Hi, thanks for the reply.
Just to clarify, I am planning on addressing issues about eminent domain later, you'll see that I did mention it. This was just an introductory piece. I will be looking into the different types of real estate later in the series. As this blog is mostly for individuals who aren't familiar with investing, I try to post things in easily understandable articles that are as free as possible from jargon. Due to the nature of what I set out to do in this blog, I also do not delve too deeply into the topic that I am writing about. This is partly due to the fact that it would make the articles I write unnecessarily long-winded and dull. I also expect people reading what I have written to do their own research if they are interested in the advice I have given. This is in order to familiarize themselves with what they are investing in. I have found that when it comes to investing, most people fare better when they do the research themselves, rather than everything being spelled out for them. When you do your own research you retain it in a much more comprehensive way.
Not only that but it is retained in their memory for longer periods of time.
The way memory works is basically, the more connections you have linked with a memory, the stronger it becomes. Doing research for yourself helps build these connections by exposing you to different experiences. Investing is rarely a one dimensional avenue. This serves not only to strengthen the information they will glean from their research, but also to link it to their lives in a personal and useful way. Every person is unique and their financial situation is too. Their research will be a reflection of the calculation of their finances, acknowledging their current situation, goals for their future and a plethora of other things. Sorry for the long reply. I just wanted to let you know why this article was so lacking in information and to alert you to the fact that is was only a fun introductory piece that will be substantiated later.
I think the mess created by quantitative easing and the extended low interest rates are going to create a real problem in real estate in the not too distant future. When the interest rise and property values drop...there will be good deals for people with capital.
When interest rates rise...keep an eye on the bond market...that's when the roller coaster ride starts all over again.