Buy, Sell or Hold? Reading the Real Estate Signals

Bad markets are good for some people. Several of my clients are making the recession and housing slump work for them after being worked over by loss of money in the stock market, loss of a lucrative paycheck, business downturns and yes, even loss of their home. The secret to surviving unfortunate events along our path in this life, is to release the past, accept the present and prepare for the future.

If Plan A goes awry, move on to Plan B, C or D. Holding on to unrealistic hope that things will change is an optimistic approach than may have a very pessimistic outcome. Years ago a seasoned real estate agent passed by my desk as I was making a notation in my daily planner in ink. He paused long enough to offer a bit of life advice, "I always plan in pencil. Plans and life are subject to change." Ahh yes, change is constant and it should be expected rather than a surprise. The real estate cycle moves from high to low and back again with predictable regularity. Buy low, sell high is good advice, but takes courage laced with abundant knowledge to execute.

Several of my clients recently purchased income property. The drop in real estate prices reflects positively on cash flow for income property. It takes some research to find the right properties and a combination of elbow grease, time and good management are required. However, often the building can carry the mortgage, taxes, insurance and monthly expenses with little to no cash infusion from the owner. If equity builds during the ensuing ownership years that's an added perk, but for now it may not be a cash cow, but it is paying its own way.

A tough economy forces us to take stock of not only our financial picture, but to examine our lifestyle as well. Clients are downsizing, moving closer to employment and finding creative ways to survive and thrive during challenging times. There are opportunites at every stage of the real estate cycle. Waiting for the experts to declare the bottom is here, may mean you've missed opportunities that will not show themselves again until the next ride down.

Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800

PalosVerdesLifestyle - Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.

South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Information is deemed reliable but not guaranteed.

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