Housing Market

  • 23 Oct
    This Is How You Get Returns Over 1,000%

    This Is How You Get Returns Over 1,000%

    • There are many examples of simple investments that returned more than 1,000%, some even 10,000%, over the last few decades.
    • In order to take advantage of such investments, you have to look at the extremes of what could happen in the next few years that aren’t included in the current economic models that use statistical averages.
    • Statistical averages are what you have to look for to protect you from negative surprises and open your portfolio to extremely positive surprises.



    Introduction

    A friend of mine just sold his home in Central London for 2.4 million pounds which is an average price in London. However, what’s interesting is that he bought the property in 1996 for just 160,000 pounds. In just 20 years, the value of his London property increased 15 times.

    Another example I have is from a recent WSJ article where a Park Avenue penthouse is selling for about $18 million. The funny thing is that the property was empty for 27 years as it was owned by the Former Republic of Yugoslavia which also allows us to know what the purchase price was in 1975. The purchase price was $100,000. In 40 years, the value of this property in New York increased 180 times. More →

  • 26 Jul
    The Economic News is Very Good, But Keep An Eye On the FED and GDP This Week

    The Economic News is Very Good, But Keep An Eye On the FED and GDP This Week

    • Housing is showing inflationary signs but still offers an opportunity to profit from the rising trend as a downturn is unlikely and not expected in the short term.
    • Amidst all the positive news, manufacturing turned negative. Yet despite this, stock valuations keep going up, increasing the risk.
    • In the week ahead: the FED’s decision and GDP data. It looks like stable weather in the near future.

    Introduction

    The last sequence of economic data was very positive. In this article we are going to discuss the important data coming out this week and analyze the information released last week. Then we’ll combine it with the current situation on the market and, as always, analyze the risks and rewards. More →

  • 18 May
    A Positive Note From Housing

    A Positive Note From Housing

    • Housing starts, positive homebuilders and a pickup in Chinese building all create a good feeling about the economy and markets.
    • Average house prices have increased but median prices show that the current situation is not even close to a bubble.
    • Rent prices are rising and therefore more buying is expected as people switch to buying instead of renting.

    Introduction

    Recent news about housing is positive. On Monday, the National Association of Home Builders reported the housing market index at 58 where a reading above 50 means that home builders have a positive feeling about the single-family housing market. Two days earlier, on Saturday, the Chinese National Bureau of Statistics reported that property investments in the first four months of 2016 rose 7.2% and construction starts gained 21.4%. And on Tuesday new housing starts came in at 1.17 million or 6.6% higher than in March. All of this is very positive news but the most important thing for investors is how this affects the economy and markets. As housing ignited the great recession, it is important to constantly be aware of what is going on in the housing market. More →