In recent months there has been a lot of talk about a crash in the real estate market in LA. Analysts predict a housing bust. News reports indicate that home sales are declining in several markets all over the country. This paints the picture that real estate investing is no longer a lucrative business. Investors all over the country are advised to get out of the game as quickly as possible to avoid losses.
Why Real Estate Investing Will Always Be Profitable in LA
What analysts and news reports don’t tell you is that every decade for the past forty years there has been some kind of warning about a crash in the real estate market. Each time these warning come out, people begin to mistrust real estate investing. They turn their sights to other forms of investing. Analysts to preach this gloom and doom on the real estate market also do not understand that real estate investing is much different than stock investing. The same rules and trends do not apply.
Every decade when analysts state their predictions for a real estate market crash there are some real estate investors who heed this advice. These investors eventually regret doing so once they realize that there was no cause for alarm in real estate investing. Smart investors, on the other hand, realize that there is always money to be made in real estate investing and they know exactly why.
Humans have only a few basic needs. These basic needs never change, they never go away. These needs include food, clothing, and shelter. The constant need for shelter lies at the root of the reason that real estate investing will remain profitable. Of course, there are some other key elements, but the least you need to know is that humans will always need real estate. Even if real estate somehow dwindles from a structure with walls and a roof to a measly hole in the ground, it is still considered shelter. Someone has to provide these holes in the ground. Some holes will end up being better than other holes. Some people will have the means to buy and sell multiple holes. Real estate investing will continue to exist.