Quote:
Originally Posted by Sylvanfan
So you being a financial planner....would like to see like 75% of the population go broke and basically be left with no money? I mean if the real estate market crashes big time chances are there are other things like stock market crashes, money market crashes, and commodity market crashes that drive it. In short if the real estate market does crash so hard.....chances are everyone is going to be screwed one way or another.
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Not exactly. Whenever you see a massive crash, smart investors don't get caught up in the hype and see it as an opportunity. If it crashes, there's huuuuge opportunity to make some serious money.
Imagine of the price of housing dropped 50%.....I'd mortgage myself to the nuts, buy as much property as I could, and when the market corrected itself (which it invariably would) you could turn around and make
massive gains. Imagine if you could have afforded 4 houses back in the 80's when it dropped during the NEP; if you still had those properties you would be a multi millionaire. Another scenario was 9/11. The US was on the brink of recession, and the terrorist attack was more or less the straw that broke the camels back. There was a price dip in real estate, and I know a number of people that leveraged themselves as far as they could, and are now multi millionaires.
There's a lot of money to be made when people panic.....