Why I am still bullish on real estate…

I personally believe real estate outside of most of the major metros are still at an all time low and will only go higher over the next decades.  If you are an avid reader of my blog then you know my feelings on how I believe the government will continue to spend and print money and drive up inflation. Which makes me “bullish” on real estate.

If you are like me, you might not have paid attention or just not know what the terms “bullish” and “bearish” mean when people refer to the stock market and investing.

What do the terms mean?

The terms “bullish” and “bearish” are used in the stock market to describe the overall sentiment of investors. A bullish investor is someone who believes that the stock market will go up in value, while a bearish investor is someone who believes that the stock market will go down in value.

The terms “bullish” and “bearish” are thought to have originated from the way in which each animal attacks its opponent. A bull charges forward with its horns, while a bear swipes downward with its claws. This behavior was then metaphorically related to the movement of a stock market.

A bullish market is characterized by rising stock prices, while a bearish market is characterized by falling stock prices. Bullish markets are typically associated with optimism about the economy, while bearish markets are typically associated with pessimism about the economy.

Investors use the terms “bullish” and “bearish” to describe their own investment outlook and to communicate their views to other investors. For example, an investor might say that they are “bullish on the stock market” if they believe that stock prices will go up in the near future. They might also say that they are “bearish on the stock market” if they believe that stock prices will go down in the near future.

As I stated, I am bullish on the real estate market. See image below.

Real Estate has always had a gradual incline up.  Again, all real estate is local, so this is looking at the national market.  It factors in those cities that see large highs and get inflated.  This is why it is important to study one market and become an expert in that market.

Another reason I am bullish on the real estate market is I am buying properties to rent to tenants.  I am buying cash flow. I love getting appreciation from my properties, but overtime, I am looking to increase the rents and get more cash flow.

As you can see below in the image by IProperty Management group.  This has been the trajectory for rents since 1940. 

Lastly, I am bullish on real estate, because where else are you going to put your money.  You have to store it somewhere.  You could put it in the stock market.  You can put it in the bank.  You can put it under your bed.  But if you want it to grow.  You have to put it to work.  I choose to put mine to work in real estate.

Not only do I get the benefits of appreciation, a hedge against inflation, rent growth, cash flow. But the tax benefits are huge for us at this point in our careers.

I am curious to hear from you though?

Are you “bullish” or “bearish” on real estate?  With rising interest rates people are not being as aggressive as they were before on buying real estate.  My experience is less competition and more concessions by sellers.  Which as an investor is what I really like.

Please share with me your thoughts.

To your success and your future.



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