If Real Estate Were Like the Stock Market

If Real Estate Were Like the Stock Market…

I would be rich. I saw the pre-sale/off plan debacle in Miami coming in 2005. I warned people about it. If there were a way to do it, I would have sold those contracts short. I see the new off plan replacement scam coming. It is called Fractionals. I wish I could sell them short. One tell-tale sign is the people involved. The same brokers and developers who were selling off plan properties are now selling fractionals. Where is the after market for the off plan properties? Where is the after market for the fractionals.

These are two great things about the stock market. 1) The short sale means something very different there. 2) There is always a market. The investor can cut their losses at any time and move on. I think if real estate investors could see that other investors were selling their investments short they might think harder before making a speculative move. It would also add a new revenue stream for brokers.

In the USA we have always believed that real estate would never go down. Maybe the market would slow; but the value would always remain. The exception of course was the great depression. Read Thomas Wolfe’s “Look Homeward Angel”. Read about the wild speculation in real estate that led up to the depression.

David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/