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The world’s first billion-dollar home just hit the market…
The U.K.’s Express reports a 10-bedroom villa in southern France just listed for 1 billion euros ($1.13 billion). The property spans 35 acres… includes a ballroom and stables for 30 horses… and contains 20 greenhouses.
The listing may present the perfect contrarian indicator for a “toppy” real estate market around the globe…
After eight years of ultralow interest rates, mortgages hover near all-time lows. That’s powered a massive “reflation” of the housing bubble that burst in 2007.
But some of the most expensive world markets are sputtering…
Zero Hedge reports Canada’s “bubbliest” city—Vancouver, British Columbia—has begun a long-overdue correction. Local home prices have dropped 20.7% over the last 30 days. (We warned you about Vancouver’s pending “bubble pop” back in March of this year.)
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At the same time, markets are shifting in bubble locales around the globe…
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In London, prices are falling following the U.K.’s “Brexit” vote to leave the European Union. Some analysts believe a 30% drop is just beginning.
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In New York City, July home sales in Manhattan fell 14% year over year. The average resale price has slipped 4% over 2015.
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In San Francisco, the average luxury home price fell 4.7% in the first quarter of 2016.
Longtime Daily readers know we’re huge rental real estate fans at PBRG. But no matter the market, we’re relentless in our drive to protect our downside first.
That means we only invest in properties we know can provide us substantial, safe income of at least 6-9% on our investment.
So when folks ask us if it’s still a good time to invest in real estate, we tell them yes… and no. It all depends on the market. Some markets are “crazy” overvalued. We wouldn’t touch markets like the Vancouvers or Londons of the world right now.
Other markets (like parts of northern Florida and much of Georgia) still provide good rental yields of at least 6-9%—and more with appropriate leverage (i.e., a mortgage). It all comes down to knowing how to value income-producing property.
Mark explained as much in the July issue of The Palm Beach Letter:
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Real estate is largely a local phenomenon. Miami is different from Palm Beach and Palm Beach is different from Jacksonville. And within Palm Beach, there are probably more than 500 markets. So when it comes to direct investments (as opposed to buying REITs, for example), I would not make buy/sell decisions in, say, Boca Raton, based on what is going on in Florida generally. While Florida real estate prices may still be reasonable on average, in 95% of Delray Beach, an area I know well, prices seem crazy high. They are close to 2008 tops. |
Bottom line: Real estate appears to be topping out in some of the most inflated cities on Earth. (That’s a good thing. We’ll look to scoop up “trophy” properties in these markets after the crash.) But that doesn’t mean real estate is overvalued everywhere…
Rental real estate may be your last, best chance at safe high-income yields in the world today… as long as you invest in the right markets. Mark shows you how he invests in real estate safely—in six steps—for free, right here.
Reeves’ Note: If you like the idea of investing in real estate for yield today—but don’t have the time to strike out on your own—there’s a “turnkey” possibility you should know about…
As an added bonus to our new, elite investment service, Palm Beach Confidential, we also offer special access to master real estate investor (and Mark’s brother) Justin Ford’s private deals.
Some restrictions apply… but this is a rare “backdoor” way to invest your money with the man who powers Mark’s eight-figure real estate investment empire Click here to learn more about Palm Beach Confidential.