There is a lot I do not know. Physics, for one. Macro-economics is another. (I am one of the few real estate bloggers that will tell you that, I’ll bet.) But I do know my checkbook. I know the hurt I see families going through with their struggling in this economy. I know real estate agents and mortgage officers around the country that have disappeared and I have no idea where they are or how they are doing.
I know Kansas City is suffering but not nearly to the extent of so many other cities and their economies. And I know that the whole Freddie/Fannie thing is causing indecision with people that really should not be indecisive at this moment.
This post is not put out for the marginal buyers of real estate investment property. In this economy if you do not have proper reserves and a proper down payment you need to conserve liquid assets until you do. Do not gamble on appreciation or quick re-sales.
This post is addressed to those of you I’ve spoken with in the last 30-60 days sitting on the sidelines with heavy assets. You know who you are. $80,000 to invest. $100,000 to invest. $120,000 to invest. Plus reserves in retirement accounts and great equity in your primary homes. You should be in this real estate market.
To some of you I’ve mathematically shown you how you will benefit. Even IF Kansas City suffered a 10% down fall over the next year or two you would still come out ahead, way ahead, in any 8-10 year scenario. And I cannot think of a time ever that Kansas City has suffered that kind of decline. And I really don’t imagine it happening now in the areas I would invest in real estate in Kansas City. Market fundamentals should tell you the same thing.