Written by David Crowther I know that we all seem to be cash poor, and in an unstable economy the reasons to keep what little cash you do have seem to get bigger with each nightly news broadcast. But there are some very compelling reasons to get that cash out of your account and start using it now.
The housing market shows signs of strengthening and the amount of fire-sales is decreasing quickly. What this means for people who have some cash on hand is that the sweetest deals are going away. They always exist, but the large pool of them that has been available is drying up rapidly. When the pool gets smaller, the deals get harder to find and the competition goes way up.
Investing in real estate is a major buffer against inflation, and bank insecurity. Property value goes up with inflation, as do rents. Plus with the deals still out there you can make a return larger than what the stock market has ever been able to produce long-term. Real Estate, done correctly, is a much better investment for cash than a bond or stock has ever been.
Fast closings are a very nice perk about cash closings. Taking the loan out of real estate also takes the complexity out; you only have a few simple documents to sign and you’re done. A recent closing of mine was literally 10 minutes and half of that was getting a bottled water and finding a pen, and the client understood what those few papers meant. Total closing cost = $511.00. Compare that to a closing with a loan and your jaw will drop.
For the above reason I hope you’ll consider taking that nest egg out and putting to use in a way that will benefit you for years to come. Cash is always good to have on hand, but it is even better when used correctly.