Boom, Bust – Bingo!, The Value of ‘Sweat & Soil’ Equity
Sweat Equity – The term sweat equity refers to a person or company’s contribution toward a business venture or other project. Sweat equity is generally not monetary and, in most cases, comes in the form of physical labor, mental effort, and time. Sweat equity is commonly found in real estate and the construction industry, as well as in the corporate world—especially for startups”
I have always been wary of the propensity to over-extend during boom cycles & therefore have practised the tried & true method of good planning, acute market research & insight & a calculated, strategic investment protocol – it has served me well throughout the years.
Real Estate like Gravity Always Eventually Comes Back Down to Earth
After the last major market re-alignments in 2001 & 2008, I began to see quite clearly the monetary patterns that usually arise & how most were fraught with over-leveraged risk & extreme ‘irrational exuberance’ on the part of investors.
As I explained, we are once again in a circular down-cycle that will absolutely impact the global real estate market. But with all cycles the key is to buy as markets reach bottom. This expediential drop-off in real estate values is just about to begin in earnest, affecting global markets – Canada included.
If one is able to patiently wait out the carnage, unprecedented opportunities arise to ride the asset prices up as markets heal & regain confidence. So even though Canada is possibly poised to fall proportionally further than some nations (…% wise), One can expect to again touch new high’s during the apex of the next market cycle…This is ultimately where YOU want to be.
Sweat & Soil Equity
In the meantime, unlike illusionary paper certificates, such as stocks or bonds, that tend to magically evaporate in value as market stresses heighten. Land, ‘sweat & soil equity’, remains as a constant if it’s appreciated for what it is intended to be – a hedge against market shocks & hard times.
Gaze out over the horizon & you will find that the sun continues to rise & the birds continue to sing. Time now to plant a garden & place aside those debilitating mind-numbing headlines, you are secure – because you are home.
SS – Eldorado Land Company
Categories: ...'Go East Young Man'