Real Estate has always been seen as a vehicle for building wealth. Many homeowners and investors in Orange County Homes have seen their property values rise, and then most recently, drop in value. However, in a cyclical market, it can be argued that these types of real estate adjustments are to be expected. In the Laguna Beach Real Estate market, we have many homes that are purchased as vacation homes, investment homes, or second residences. And depending on your definition, these homeowners may be considered “rich”…if not in monetary terms, then certainly in lifestyle terms!
According to a recent study released by Bankrate, Inc, 70% of Americans believe that it is more difficult to get rich than it was in the past. Those polled cited “job loss or income reduction” or “too many bills and not enough income” as the main obstacles to achieving wealth.
Well….duh!
Isn’t the very fact that getting rich has always been “difficult”, with a path filled with “obstacles” the very reason that more people do not consider themselves rich to begin with?
Another interesting point of this survey showed that 95% of Americans now say that they are taking steps to secure their futures by cutting back on spending, delaying purchases of luxury and unnecessary items, and saving more. Now, it seems to me that if you add a strategy of creating additional income to these steps that you just might develop the habits and means that create wealth!
So is wealth creation really “dead”? I don’t think so!
For people that have prepared themselves for just such a financial opportunity that is presenting itself right now in the real estate market, purchases are being made and interest is increasing in our area of Laguna Beach homes. Where financing is difficult, we are seeing cash purchases. Perhaps these are single individuals with substantial savings, businesses that have generated and saved income, or groups of individuals pooling their resources. In any case, if a great real estate deal is what is desired, then those interested in “connecting the dots” for their next real estate purchase are figuring out a way to make it happen.
As a first step for real estate purchases, which are considered an important element of building wealth, the “saving” habit will be something needed to obtain mortgage financing going forward, at least until lending standards adjust to any improving circumstances.
So what do YOU think? Can you still get “rich” in America?
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