Been a while since I’ve posted, but was prompted by a conversation with a fellow agent who represents a high net worth individual who stated he is pulling large amounts of his liquidity out of the banks and putting it into real estate. He’s buying multiple properties that he believes will have long term stability in lieu of what he sees as serious weaknesses in our banking system. Might you consider doing likewise?
Most investment advisors have historically been reluctant to advise real estate as a substantial part of one’s investment portfolio, pointing out that it is not a liquid investment whereas stocks, bonds, mutual funds, etc., can be liquidated quickly if needed, and that some stocks pay dividends for steady income. (of course investment advisors don’t make fees on real estate either) All well and good, but what about the health of your bank and your ability to get access to funds when you need them? In today’s world, access to your funds can easily be denied over most anything. NBC reported on how in the past year GreenDot Bank, an online banking company, froze dozens of accounts and provided no reasonable explanation. This isn’t isloated to GreenDot, but has happened many times elsewhere as banks cite “suspicious activity” stemming from large deposits or withdrawals that turned out to have come via inheritances, insurance settlements or tax refunds. That is, with the press of a button, you can be locked out.
But more concerning is the health of the banking system. Numerous financial consultants point out the exposure large and medium sized banks have and we saw the results earlier this year when Silicon Valley Bank and others collapsed overnight. Don’t think it can’t happen to biggest banks. Therefore, you might consider putting some of your cash into real estate. In particular, real estate in the mountains of Western North Carolina around the Asheville area is what I’m thinking!
This area continues to attract retirees, full time relocations and of course the vacation home owners in droves. Despite some recent issues with crime in the heart of Asheville (due to several reasons I’ll not mention), the areas outside Asheville proper are wonderful places to call home or invest. Yancey County has Burnsville. Haywood County has Waynesville. Mitchell County has Spruce Pine and Bakersville. McDowell County has Marion, Lake James and Old Fort. All of these are places with limited zoning and lower prices, meaning you can do a lot more while at the same time benefit from the influx of people coming to Asheville first, only to end up in these adjoining counties. I see it all the time. People call me wanting to be in or near Asheville, but end up next door due to the better quality of life, lower costs, and yet still easily accessible to our airport and such.
So if you’re considering a reallocation of your portfolio, you ought to consider real estate in our area, and we’re here to help you find the right property. Whether your budget is $100k or $10M, we can guide you through the search and due diligence process. But at the very least, I’d encourage you to not “keep all your eggs in one basket” and at least have an account with more than one bank so that if the one collapses or locks you out, you still have access to some of your funds.