A decade ago, I began buying up as much physical real estate as I could.
I was living in North Florida, one of the worst-hit areas from the housing bust… So the opportunities were everywhere.
I bought vacant lots… a condo near the beach… several homes… and even a mile of intracoastal frontage. I bought industrial land and a few trophy properties in my area, too.
Now, even after years of soaring home prices, I’m betting we’ve only seen the tip of the iceberg. I expect real estate will continue to soar this decade… And I want you to profit from it.
You could follow my lead and buy physical property. But that’s not your only option…
Buying up physical real estate is a great decision. I’ve done it myself for years with great success. But frankly, it’s not right for everyone… There’s a lot more hassle and risk involved in individual properties.
If you’re OK with rolling up your sleeves and doing the extra work, then I encourage you to think about adding physical real estate to your portfolio today. I have no doubt its value will continue to soar in the coming years, just like we’ve seen over the past decade.
But if simpler sounds better to you, you can take advantage of this situation in two other ways… And they’re both within the stock market.
You first option is to invest in the companies directly responsible for filling the gap in housing supply…
That includes homebuilders and other companies that own physical real estate.
These kinds of companies are sure to do well in the coming years. High demand will mean plenty of work for homebuilders. And companies that already own physical real estate should see the prices of their assets rise… and their stock prices will follow suit.
This is a great alternative to buying physical real estate. But there’s another way to make this trade, too. It comes from an old idea in investing…
The folks who really made money during the California Gold Rush are the ones who never spent a single second looking for gold.
Instead, they set up shops selling picks and shovels… panning equipment… rugged jeans and boots… and so on. They sold what everyone else needed in the rush – win or lose.
We can do the same thing in the housing market…
So your second option is owning the “picks and shovels” companies that will thrive as the housing boom continues. I’m talking about the businesses that sell supplies to homebuilders, contractors, and even the do-it-yourselfers… as well as the companies that help get building done, whether through services or equipment.
These companies are crucial to keeping the housing boom on track. And finding the right businesses can lead to incredible profits…
For example, heavy-machinery maker Caterpillar (CAT) is up roughly 1,500% over the past 19 years. That’s more than double the total return of the S&P 500 over the same period.
These picks-and-shovels investments will likely be the unsung heroes of this housing boom… And I believe the investors who get on board with them now will see hundreds-of-percent gains in the coming years.
No matter which way you prefer to invest in the current housing boom, the key is getting on board now… because today’s setup is truly as good as it gets.
The housing market is red-hot… But it’s no speculative bubble. And that means it can – and likely will – continue from here.
By investing today, you’re setting yourself up to capitalize on what could be one of the best decades ever for housing…
I’ve been pounding the table on real estate because I don’t want you to miss it. So please, decide which strategy is right for you and put it to work now.
Good investing,
— Steve
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Source: Daily Wealth