Metal Buildings, Concepts For Building

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REAL ESTATE MARKETS

I have been in the" building business" forty years (if the truth be known closer to fifty but don't tell anyone that!). I KNOW what buildings of many different types are worth. Similar to stock values the prices may go up or they may go down. The fact that a particular stock is down does not mean that the market price is what that stock is worth and conversely. Well the same is true of a "building" and real estate in general,  it may be down but the market price may or may not relate to a property's  intrinsic worth; by intrinsic worth I am subscribing the concept of replacement cost. This is why there are still investors buying every building they can afford to buy. They, the real estate investors and developers know replacement values. 

Neither stocks nor buildings are liquid assets nor is gold, silver, or diamonds, they are all commodities that can be converted  to liquid assets such as what??? Paper money?? Bonds??? Stocks?? MAYBE? But I'm not sure. I have never had a lot of faith in paper. To me paper is only as good or worth as much as perceived by the public at large. The public at large is the unknown quantity.

The answer to this particular riddle in my mind is this. When property or a particular stock is up you want to own as much of it as possible. When it’s down you want to own as little of it as possible. When there is a threat of a commodity or stock going down divest when the opposite is true invest. Same with the commodity called real estate. They are all commodities by the mere fact that they all go up and down. JUST LIKE SOY BEANS. Now all we need is a crystal ball to tell us when to exercise those options. No one saw the real estate market falling/failing as it has (other than the damn banks, I think they knew). I for one am very happy to see some indication of a rebound.

State of Florida Certified General Contractor cgc 006912 toll free 877 382 0811

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