Why Real Estate Is appealing After Madoff
The news continues to be filled with stories of humans who lost their life savings in the Bernard Madoff debacle. After allegedly causing some $50 billion in financial assets to vanish, the human fallout is becoming more obvious.
There has been some grousing that the victims were universally rich and should have known better, as whether swindle is somehow justified. In fact, many victims were human and some apparently lost their life savings.
“After watching their wealth evaporate in what could be the largest financial scam,” says the Palm Beach Post, “some victims of the alleged Madoff scandal are considering selling their life insurance policies to support themselves.
“Investors who turned all their liquid assets by to Bernard L. Madoff Investment Securities now may have little left except for their homes and insurance policies.”
It’s the part about “their homes” that I find interesting.
As explained earlier, whether you have assets they need to be diversified. Not just in different stocks, but in different investment options.
Just for fun, speak with local humans who own investment property or with local real estate brokers. I can’t say what’s happening everywhere, but in my area home values are down significantly but rents are
that happens for several reasons:
First, many whether not most renters have leases, generally lasting one to two years. Most leases in force today were made prior to the worst of the economic meltdown to period.
Second, many renters who have completed their initial lease term continue on the property on a hold-over basis — they stay month-to-month with the same terms as the original lease.
Third, many of those who can move have no interesting in going elsewhere — even whether they can reduce their monthly payment. that happens considering it’s neither cheap nor convenient to move nor is it a particularly pleasant experience.
Fourth, rental demand in many areas is rising. Why? considering a growing number of public have lost their homes and jobs, but they haven’t lost their need for shelter.
Hopefully some of those who lost entire portfolios with Mr. Madoff have a little real estate on the side. At that moment the ownership of such property would be very comforting.
For the full story, please see: Madoff investors turn to life insurance
Orginal post by Peter G. Miller
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