Fast Tracking your Road to Recovery
How badly were you hurt in this recession? 401K down? I’ve heard our Urban Rehabber members and friends mourn the fact their retirement accounts are down 45, 50, even 60%. And, of course, most realize it took years to build these funds and figure it’ll take years to rebuild them. And, for some, there may not be enough years left to do it.
This isn’t some Doom & Gloom scare tactic. It’s the reality we are living through today. And yes, I am confident our economy will recover, maybe faster than we expect. That will be good news on the jobs front and for our sense of security.
Recovery may replenish our investment accounts– up to a point. But everybody agrees: it’ll take a while. Because many stock values were “bubble” driven just like the real estate sector in some parts of the country.
But we are not helpless. There are opportunities available to us today, here in every major city, that will do more to replenish our savings and investments than merely standing by, waiting for better times.
As recently as two years ago Chicago brick bungalows on the South Side were selling for $175 Thousand and up. Since they were built in the late 1920s and 30’s, brick bungalows have been the housing of choice for Chicago families seeking permanence and solid quality of life. And that hasn’t changed. What has changed is today we can buy these fine homes for a fraction of their recent value.
Our students are buying. A week ago we put in an offer on a 5-bedroom 1.1 bath brick bungalow, with a 2-car garage; it is listed at $49,900! And our agents tell us all it will need is redecorating. Can we fix it and sell it now? Not likely. But we’re in no hurry.
While we wait out the return of the market we will enjoy a handsome cash flow (expenses will be well under $1 Thousand per month). And when we do sell, in two or three years, you can bet the profits would put that 401K right back where it belongs.
That’s what I call “fast tracking” your Road to Recovery.
© Philip Elmes. For more about Phil Elmes and the Urban Rehabber coaching program go to: http://www.UrbanRehabber.com