Saturday, November 14, 2009

Why small time property investors should never bet against Obama?

In the stock market there is a general felling that investors or the market should never bet against the Fed (Federal Reserve). However, as a small time property investor I think we should tweak this message to never bet against Obama!!!

I am a very simple man who is only interested in supporting my family and having the security of a comfy retirement so this article will have nothing to do with politics (we can save that for the talking heads on TV).

The premise for this post is you need to watch where the government is focused and see if you can place yourself in the path of the money. Because if you can take your small pieces of capital and invest it in markets the government is focused on fixing you could get an artificial pop in value.

If you chose this strategy know that you will need to pay very close attention because as the government focus changes and it will you will need to recycle your dollars via a sale, 1031 exchange or be willing to hold for quite some time. Because as the government changes focus demand will fall and prices will stay flat to down.

At this point the government is still very focused on the first time buyer market via tax credits and liberal FHA lending. Recently they have expanded their coverage to include the move up market via their own tax credit.

The government is not done with housing and they will continue to be a market force so find away to profit from all the money they are throwing around.

Good Investing

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