Savvy Mom Investor

an easy path to financial freedom

Recession Panic!

Fear of recession got you panicking? My husband spoke with my brother-in-law on the phone yesterday. He told him he cashed out ALL of his stocks because of the recent stock market plummet and the indicators of an impending recession. I’ve been encouraging my B-I-L and S-I-L to transfer some of their retirement money into Southern California land for a long time. They didn’t believe me because they equate this type of real estate with residential real estate. Well of course they won’t believe me if this is how they look at it – because of the SUBPRIME DEBACLE!

I will say this again… residential real estate and land banking are not the same thing! Land does not depreciate because it does not wear out, become obsolete or get used up, like a house does.

The text in the chart below is a little fuzzy. The jist is that throughout the recessions in the last 50 or so years, land in Southern California has exponentially increased in value.1952-1999 chart

January 21, 2008 Posted by Kelly Burch Abrajano | California, Economy, Financial Freedom, Land Banking, Recession, investment, money | | No Comments Yet