This is a guest post from Ikem Chukumerije, CEO/President of SportsRelocation.com
The stories have been flooding the news wires for months now. It seems you can’t pick up a newspaper or turn on the television without hearing about another foreclosure or another town struggling under the weight of the current recession. Job growth is weak at best, the stock market resembles a Yo-Yo with its up and down nature, and nobody is really sure when things will turn around for the economy.
In other words, this is the perfect time for professional athletes to invest in real estate. That last sentence wasn’t a misprint! This really is a great time to look at long-term investing and there is no better long-term investment out there than real estate.
The old adage “it takes money to make money” perfectly applies in today’s real estate market. Great bargains in practically every city in America are available for someone who has the money to make those investments. Now I hear you saying, “he’s lost his mind, there is no way to predict how quickly the market will make an upturn,” and you would be absolutely correct in your assessment of the possible length of this recession. That is why you have to think long-term with regards to a real estate investment.
If you plan on entering this volatile market be prepared for initial setbacks; but I have no doubt, nor do any market watchers, that in the long run prime real estate will bounce back in a big way. Some markets to watch in the next couple years are in cities that have strong high-tech, military, or manufacturing foundations such as the following:
- Madison, Wisconsin
- San Diego, California
- Raleigh-Durham, North Carolina
- Austin, Texas
- San Antonio, Texas
- Des Moines, Iowa
- Omaha, Nebraska
Similarly, there are markets that because they lack that foundation will have a much harder time bouncing back in the near future. They would include:
- Orlando, Florida
- Pensacola, Florida
- West Palm Beach, Florida
- Atlantic City, New Jersey
- Phoenix, Arizona
With the current low interest rates for ten-year, fifteen-year, and thirty-year fixed mortgages, and government incentives for investors, now is the perfect time to enter the real estate market and build a portfolio for your future. Tax advantages are many and long-term appreciation is an added benefit. Real estate is a necessity for Americans, as much of a necessity as food and clothing. The real estate market may have taken a temporary hit during these hard times but history tells us that the wise investor cannot go wrong by investing wisely in choice markets.
There are those who would tell you that investing in real estate is a high-risk investment, and if we are talking about short-term investing that is certainly the case. But if one is looking at making an investment with decades in mind then there is barely any risk at all.
The average professional athlete has a playing career of approximately five years. That is five years of premium salaries and endorsements that will have to be used wisely, so that when the playing career is over there is a solid financial foundation to rely upon. My recommendation is to find a real estate broker who is knowledgeable about the latest national trends and accustomed to dealing with the market(s) that appeal to you (e.g. luxury condos or single-family units). Once you have established trust with this broker, you then need to take the steps to guard against the future when your career comes to an end.
SportsRelocation.com™ assists players/coaches of the NBA, WNBA, FIBA, CFL, NFL, MLB, NHL, and Entertainers relocate nationwide by servicing your Real Estate & Relocation needs.