It’s time to buy Boulder Real Estate and then some…

If you’re thinking about buying Boulder Real Estate, or any real estate for that matter, now’s the time to buy. Even if you’ve been watching my market updates or have looked at the recent comparison I gave you on the Boulder real estate market between 2006 and 2007 sold property in the Boulder metro area you’ll want to consider now that it’s time to buy before the tide turns more strongly away from the current buyer’s market.

While the rest of the country has been experiencing a boom that recently looks like a bust, we’ve seen the slow times already and are poised to spring up again. Boulder’s modest appreciation in the last year signals a potential up-swing that some will be sure to miss. Savvy buyers and investors are now placing their feet in the starting blocks are ready to run as they see the mounting opportunities facing them.

Even while major banks like Citigroup consider many troubles troubles, including write-downs, and job losses — there may just be…plans to turn things around. Surprised? Shouldn’t be.

Back in November, Citigoup warned it could write off somewhere between $8 billion and $11 billion in loans over the crisis in the mortgage industry. The latest scuttlebutt suggests that figure could rise as high as $24 billion, and that the bank could cut thousands of jobs.

Now, “hold on” you say. Why would we consider buying with all this crazy stuff going on in the banking and mortgage industry. With major players like Countrywide borrowing billions in the fall of 2006 and then selling for a mere 4billion just a few months later I should be optimistic. Damn right.

This is the moment to go, “against the herd” and become a buyer. Some people use the phrase I’ve hear Larry Kendall use many times. Goes something like this: “Those that see the lily pond and notice the change on the 10th or 15th day are ahead of the curve” “these are the people with vision that capitalize on the future” . Listen, my friend, if you think you’re going to win by riding on the coat-tails of others and jump on the boat on day 28 or 29 when the lily pond is half full, you’ve totally missed it!

Check this comment from the Wall Street Journal:

In a bull market, goes the saying, you should “buy on the rumor and sell on the news.” In a bear market, try the reverse. We are, obviously, deep into a bear market for financial stocks. Worries are so high that, finally, it is tempting to ask if the reality is going to be as bad as the fears.

You think the reality is going to be as bad as the hyped up fears and ‘chicken little’ pessimists? Not likely.

Two other comments from the WSJ worth considering:

If you think $24 billion in write-downs is a lot of money for Citigroup, think again. Wall Street has already written down the bank’s market value by five times as much in anticipation of bad news. Since last summer Citigroup’s market cap has slumped by a remarkable $130 billion. Some of it, obviously, was deserved. But all of it? We’ll see.

Citigroup could save nearly $6 billion just by halving its dividend. And at its current, depressed share price, Citigroup could halve its dividends… and still yield a hefty 3.8%.

Afraid to try to catch the ‘falling knife’? Well, I think it’s fallen and sticking in the top of your foot right now. Pull it out and make your play. While you may want to take small steps and be cautious, this is the type of moment that make investors lots of money and give them position to let their money work for them, instead of working for their money.

Best of luck to you, whichever path you choose.


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