People have wondered if now is the time to start looking for good deals in the real estate market due to the evident world economic turmoil. The answer is a flat "NO"!!!!! I may sounds like an insane person, but I believe that this crisis will not right itself for another 3-5 years. Yes people, I'm not joking. The situation today is nothing close to what our politicians and financial gurus alike are saying. The economy is going down the drain, and there is no quick fix solution.

When it comes to real estate, people need to realize that it is an asset class that needs a significant amount of time for real profits to be realized. What I mean is that in the long run, housing prices will continue to climb, but we Americans have been too ignorant in viewing this investment as the next get rich opportunity. People need to realize that several things need to happen before housing prices climb to a level of sustainability. First off, salaries need to rise quite significantly. In the last five years or so, housing prices have risen, but our salary levels have not. In fact, these levels of pay stemmed from the hoopla of the Internet boom. Before this boom, have you ever imagined a bunch of young Generation Xers earning more than 30,000? In fact for the last 10 years the top bright newly grads from college have been receiving the same 40k-45k offers from those elite multinationals. This means that offers for our new graduated haven't really budged in the last ten years. If this is the case, how can you expect new families to be able to afford at today's housing prices. As you can see, the economy is in such a rut that salaries are not going to be rising anytime soon. In fact, despite what the Democrats call for an increase in the minimum wage, it won't really happen in the near term. This will create complete chaos in the financial system. This is because we need to realize that our own homegrown business need to create additional profit in order to pay more for wages, but with our economy doing so poorly we can't even justify increasing the pay for our blue collared workers. Thus, until our own business will continue to grow and earn significant profits this is going to be a far fetched dream.

Stay tuned for more ideas on this topic in the coming days