| er/Summary] | | | | museum pieces and oil may only be needed for |
| Mark Twain took a long-term and somewhat | | | | squeaky door hinges. But people will still need houses, |
| philosophical look not only at life but real estate. | | | | offices, nightclubs, restaurants, and every other kind of |
| Looking through Mark Twain's eyes, there's a strong | | | | roof over their heads.o Bubble market corollary: The |
| case for continuing to invest in tight real estate | | | | "bubble" markets are unlikely to lose demand relative |
| markets such as Bay Area real estate. | | | | to other markets since they are so "in demand" not |
| Real estate is always a good investment, Mark Twain | | | | only in the US but around the world. In many countries |
| once said, because "God isn't making it anymore!" With | | | | around the world, saying you're from the US is |
| talk of a "bubble" in high-priced real estate markets | | | | unfortunately a way to end a conversation. But saying |
| such as the Bay Area, New York City, and Boston, it's | | | | you're from San Francisco, Boston, New York, Miami, |
| important to remember that when it comes to the | | | | or Los Angeles will usually only bring a smile and many |
| laws of supply and demand, no other investment can | | | | interested questions. |
| quite match real estate. | | | | * Revenue potential. Not all stocks pay dividends, but |
| Reasons for Investing in Bay Area Real Estate & | | | | almost every real estate investment has the potential |
| Other "Bubble" Markets | | | | to generate a regular stream of income. Whether you |
| * Intrinsic value from intrinsically short supply. To | | | | are buying investment property from afar, or just |
| paraphrase Mark Twain, not only is there not going to | | | | renting out a spare bedroom, the money you make on |
| be any more supply in the real estate market. There is | | | | rent may provide a cushion against any drop in |
| going to be plenty more demand: millions of babies | | | | values.o "Bubble market" corollary: high-cost areas also |
| born into the world each year who will probably be | | | | have the highest average rents. |
| willing to pay for a roof over their head at | | | | In closing, sure-fire investments are in even shorter |
| night–and while they're at work, eating at a | | | | supply than real estate–in fact, there aren't any. |
| restaurant, or doing anything else.o Bubble market | | | | Any investment will inevitably go down, sometimes |
| corollary: Not only is the supply of real estate in terms | | | | momentarily, sometimes for longer stretches. However, |
| of acreage not going anywhere; developers are | | | | keeping in mind the relative risks of investing in real |
| increasingly unable to create more real estate (in the | | | | estate versus other investments, real estate |
| form of bigger buildings or more buildings on existing | | | | investments are still attractive for long-term investors |
| lots) in tightly-packed and tightly-regulated markets | | | | who appreciate the intrinsic benefits of investing in real |
| such as Bay Area real estate. | | | | estate, even in pricey markets. |
| * Relatively stable investment potential. Real estate | | | | Important disclaimer: the above article is provided for |
| sometimes loses value, but never completely, even in | | | | your reading pleasure only and is not intended to |
| the worst case. If Mark Twain had filled a time capsule | | | | provide investment advice. All examples are |
| with twenty shares of cable-car stock and twenty | | | | hypothetical and intended as illustrations, not guidelines. |
| deeds to San Francisco houses, which would be | | | | Opinions expressed in this article are not necessarily |
| worth more today? Twenty, thirty, and a hundred | | | | those of the owners. |
| years from now, personal computers may become | | | | |