"Toto, I've a feeling we're not in Kansas anymore." 'The Wizard of Oz'
If you've been reading the news lately, you know that there is a storm or 2 or 3, a-brewing. Many of us count on the equity in our homes to pay for college, leave something for our children, retirement or to buy a smaller house when it's time to down-size. At some point, it's time to sell your house.
Godzilla El Niño
Because we live in uncertain times, it's more important than ever to plan AHEAD of a disaster. Last month, the LA Times published this headline:
"A HUGE EL NIÑO COULD DEVASTATE SOUTHERN CALIFORNIA"
The article goes on to describe an event with huge potential to be bigger than the previous one, the Godzilla of El Niños.
“Everything now is going to the right way for El Niño,” Patzert said. “If this lives up to its potential, this thing can bring a lot of floods, mudslides and mayhem.”
We all have to take a moment to think what this would do to our greatest asset, our house, whether it be a rental, vacant or a primary residence. If you are waiting for the right time to sell your house, don't wait much longer.
We live in Southern California, with the surf, the sand, the earthquakes. Is your house ready for one? Can it withstand damage? Do you have earthquake insurance? FYI, 90% of Californians do NOT.
"FORGET SAN ANDREAS! SOUTHERN CALIFORNIA FACES REAL EARTHQUAKE AND TSUNAMI THREAT"
This Tech Times article describes the real conditions of Southern California and the likelihood of a massive and devastating earthquake, not to mention a tsunami hitting the coast.
The Next Housing Crash
What crash? We already had one. Well, that was almost 7 years ago and real estate is a cycle. Don't think it can happen? It will, just like it has every 7-10 years. How bad will this one be?
"THIS HOUSING BUBBLE WILL END BADLY, TOO"
This article describes the impending "Bubble #2". With artificially low interest rates, there is a reason that prices have come back up. With government manipulation, we've solved our problem, BUT the massive debt we've incurred because of the low rates will have to be paid back.
"In some ways, the current housing bubble is even more bonkers than the last one — which, if you’ll recall, sorta-kinda almost destroyed the world’s financial system."
Like I said, if you are waiting for the right time to sell, you need to look at these 3 hugely negative factors on your equity. Can you afford to survive any of them? Or do you "get out while the gettin' is good?"