Tulsa Commercial Real Estate Experts: Does Most Real Estate Appreciate or Does It Merely Keep Pace W

Tulsa Commercial Real Estate Experts:

Does Most Real Estate Appreciate or Does It Merely Keep Pace With Inflation?

Since the year 1985, inflation has grown 95%. Do remember when a candy bar was 25 Cents? Do you remember when a car was $15,000 brand new and fully loaded? Well my friends, these are just a couple of examples of what inflation has done to the value of our dollars.

As the government grows exponentially larger they become and more fascinated with the concept of printing money. The more they print, the more that value of your dollar decreases. Thus when most real estate professionals tell you that your property will increase in value by 3% annually, they are merely stating that your dollar will be worth 3% less next year than this year.

So does anyone actually experience appreciation in their real estate or are America's dollars just losing its value.

Unfortunately the truth is that we are just losing the value of our dollar as a ever-quickening pace. When President Bush needed something, when President Clinton needed something and now when President Obama needs lots of things they simply print money. The money is not there. The tax revenue is not there. Thus, the simply print more money. What if you and I did that?

Wouldn't that be a great concept. You and I go the store to buy a flat screen and you are short on the cash, so you just go out to your computer and you hit print. Boom! You have more money. Well obviously this will have some drawbacks. However most of these drawbacks will not be witnessed during our short 4 year term, so what do you and I care?

Amercicans have been sold on the concept that their home is most important asset. This not true. Most Americans will pay for their home nearly 3 times by the time they get to the end of their 30 year mortgage. Most Americans refinance every 4 years, and most Americas move every 5 years. Most loans are setup where you are paying nearly all intest during those first few years you occupy a residence. Around year 15 of a 30 year mortgage you finally get to start paying some principal. So basically you are just renting a house from the bank.

So is real estate a good investment? I believe real estate is only a good investment when you are buying it for 20-50% less than its current market value. Buying a house that low and then adding value to it is truly the only way to make money in real estate. So next time you get an appraisal of your home, ask yourself this question? Did the value of my home really go up or did the value of the dollar just go down? If the "value" of your home, you can bet your taxes just went up too.

For more information about this subject I highly recommend that you read the fabulous book entitled, "The Create From Jekyll Island." This book will factually lay out for you the government's fascination with printing money and how this truly effects you.

Remember, buy low & sell high or you will not be making any money. You will just be cooperating with government's "inflationary" tactics.

For more information about how to market your Tulsa commercial real estate visit the Fears & Clark Tulsa Commercial Real Estate offices or call the offices today at 918-481-2080 to get in contact with the Marketing Director and cofounder of Fears & Clark, Clay Clark.

For more information about Tulsa office space, Tulsa office buildings, the city of Tulsa, Tulsa commercial leasing, Tulsa commercial real estate and officing in dowtown Tulsa call us today.