As long as we allow emotion to dictate our financial decisions, we will inevitably fail, because we usually experience a heightened level of anxiety when we’re focused on how “bad it is, was, or could be…”
If we base our outlook on what’s in the “rear view mirror,” as John Foltz suggested at our last meeting, we’ll miss out on the inevitable future, which is, simply, increasing values.
Even though we may not be at the bottom of the curve, the only way we’ll know we’re at the bottom is after it has happened. If you wait until it has passed, and prices begin to increase, the same problem that keeps people from acting on the downside will keep them from acting on the upside. How many out there will see prices start to rise and think, unrealistically, that the prices will come back down again. They’ll wait, and wait, and wait, and they’ll miss the ride up…which is proven to happen over time.
In skateboarding, the athlete looks forward when they travel down one side of a half-pipe. As they approach and enter the downside of the transition, they push with their legs, pumping into the bottom of the curve. This action takes place before they hit the bottom, and it provides them with the momentum to travel beyond the top of the opposite side.
As we approach the bottom, knowing that the market will increase over time, as long as you are able to carry your property, it’s a great time to pump your assets into a home, especially if you’re a first time home-buyer.