Feb 28, 2009

After The Crash And Beyond

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By: Jim West

The lesson I learned in 2008 is how vulnerable investments in our own stock market can be.  For the third time in less than a decade, we have seen a major    ( 30 % or greater) loss in value.  In 1999 it was the bursting of the dotcom bubble, 2001 & 2002 the reaction to the 9/11 attacks, and 2008, the culmination of a series of poorly conceived government economic policies. We take no prisoners here. Both parties, and those who run our Federal Reserve, share plenty of blame.

With that said, our foundational premise remains:  There are Seven Reasons Why you should take action to own your business commercial property as part of your long term financial plan to provide a more stable base and build greater wealth.  These reasons are both demographic, and economic:

1.National Population Growth: we'll add 82 million people to our population by 2029.
2. Western US Job Growth: western states will experience a 40% increase in the number of jobs, and absorb much of that population growth.
3.  Government Monetary Policies:  at all levels work at stimulating development efforts, and don't think inflation isn't lurking in our future.
4.  Real Estate Fundamentals: appreciation, equity buildup & preferred tax treatment make real estate an outstanding vehicle to grow and protect wealth.
5. Beacon to the World: despite our problems, we are still a haven for financial investment, and you can expect foreign investment in the US to triple in the next decade.
6.  Entrepreneurial Engine: small business is what drives job growth, and they will harness commercial property at ever increasing rates.
7.  Boomer Wave Crests:  As with other aspects of this wave it will drive commercial real estate development to cater to their needs.