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by Dr. Steve Sjuggerud
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continues. Why? Because real estate can't be dumped like a stock when you need to get out. So I'm content that I'm out of the game, doing the opposite of everyone I know, reducing any debts (including my mortgage) toward zero. It may sound crazy to you, but I'm comfortable with it.
My Plan: Follow Eduardo's Lead
One of the greatest investment lessons I've learned is from Eduardo Elsztain. Eduardo has amassed a collection of Argentina's greatest real estate assets over the course of 20 years as head of Cresud (Nasdaq: CRESY).
Eduardo's technique for acquiring fantastic real estate properties at fire-sale prices has been simple - he's had tons of cash available to buy properties when nobody else had any cash.
It's worked time and time again for him. Argentina has had many up and down cycles. Eduardo has bought when things look terrible, and sold when things look great.
Right now in the States, things look great. So Eduardo would sell. Amazingly, nobody can even remember the last time when residential real estate prices actually fell nationwide. But they still can fall...
For decades up to 1989, the Japanese felt the same way... real estate looked great, it had never declined. And then their housing bubble burst. It fell for years... EVERY YEAR for the last 15 years, real estate housing prices in Japan have fallen.
I'll follow in Eduardo's footsteps, and have a pile of cash available to buy up the bargains when prices are cheap and landowners are ready to just get out.
Hmmm... maybe a trip to Japan is in order... |
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