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When is the right time?

It is challenging to navigate finding a property mortgage today. The stock market and treasury bonds are moving up and down at a rapid rate, very close to the previous stock market and bond market crashes some of us have experienced up to today in our time on this earth. What is true is the United States always bounces back. The Stock Market, Housing Market, Bond Market, and Small Business all may experience pain for a short time. Short time is not defined by weeks or days. It is defined in years, like 1 or 2 years. What always remains true is that it comes back, and usually with a vengeance.

Here is the thing, you can't time the market bottom, just like you can't time the market top. The same is true for Residential Real Estate. I like to tell our customers that rates are temporary, and housing is forever. To drive that point home, over the last 30 years, including the crash of the 2008 Housing Market. In August of 1992, the adjusted median residential home price was $ 210,174.00. Now, fast forward to June of 2022, and the median home price is now $ 388,672 respectively. That is a 54% increase in home value in just 30 years. Comparatively, looking at the stock market, the adjusted returns over the last 30 years. If you had invested $ 10,000.00 (ten Thousand Dollars) into an S&P 500 Index Fund, the annualized return was 8.6%, or a total net gain on investment of $ 208,717.00. What gets really interesting is this annualized rate of return gets better or worse depending on the index invested i.e. Dow Jones, Nasdaq, and S&P Index Funds. And the chart below compares this to treasury bonds which is a great visual for the long-term investment play being the winner.

Example: This chart shows the 3 major indices. If you had invested just 21K vs the Bond Market, the ROI, over time is compelling, just like real estate.

Source: https://financial-calculators.com/historical-investment-calculator

Example of MN Real Estate Appreciation from January of 1999 to January 2020. Minneapolis – Saint Paul – Metro had appreciated 97.6% in this 21 year time frame.

Source: https://www.visualcapitalist.com/20-years-of-home-price-changes-in-every-u-s-city/

To sum this up, Real Estate and Passive investing in index funds have proven time and time again, that there is no right time to invest. The time is now. Generational wealth is one of the largest issues we face in America. If this information was shared and executed in all markets and schools, we would not be facing the poverty issues as much as we currently see today. The most important part of all of this, the information is all available on Google. Click the links and play with the calculators. The 'What If’s' eat us up. So look at the past, and focus on the present.