The Time to Buy

The Time to Buy
Current events in Mumbai and Bangkok remind me of the old saying, “The time to buy is when the blood is in the streets.” I wonder how relevant that saying is today, when there is real blood in some streets and not just red ink. There are always people who have to sell right now for some reason or another. Unless there is a “seller’s market” these people will always present opportunities for bottom fishers. How many people in Bangkok or Mumbai will sell just because of the recent violence? How much lower price will they be willing to accept?
In areas where there is a prolonged conflict there are a lot of people who sell and leave regardless of the price they receive. In some of these markets the people just leave and abandon their property. We see this in Iraq and Sudan. Other people move into these homes and take them over, paying nothing. Sooner or later people come back and there is a big mess to straighten out. This is already happening in Baghdad.
What price will an investor pay in a case where the risk is so high. I used to go to seminars conducted by a man named Jimmy Napier. He taught us that if the yield is high enough, you can afford to lose your principal occasionally. How low does the price have to be for the yield to be that high?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com