It is how you look at things…

Since the issue on the crashing stock markets started hitting the newspapers, I have been asked almost every day about what is going to happen next. How is it going to affect our real-estate industry here in the Philippines? So I decided to ask other experts to validate my theories. What I find very interesting is that suddenly there are so many experts in the newspapers with different takes on the issue and opposing predictions. But even some of the most respected and experienced economists wrote that it is very difficult to make accurate predictions on what is going to happen next.

It is these times of uncertainty that often provide the opportunities for those who have visions…or at least see things differently. Come to think of it, the stock market would not even exist if everybody wins and nobody loses. It is the way they look at things. It is their bet on the outcome of their forecasts…or guesses. In one of the books I’ve read, there was an experiment done on Wall Street comparing the success of the tips on the stocks taken based on the random hits on a dartboard versus the forecasts of expert analysts, and they almost have the same success rate, with the dartboard scoring a little higher. With the current downward trend now, some people may just be waiting for it to really dive to its lowest level and then start coming in again. Some win, some lose, but they both think they are astute.

Well the good news is that we are sure now that there is money around but it is not being traded in the stock market. Players have massively pulled out from the game of portfolio investment. Just like the children’s game of passing the ball while the music is playing then they stop passing when the music stops, the music in the stock market just stopped. Someone, somewhere is holding on to the cash. Someone, somewhere is thinking about where to put his cash, thinking of other alternative investments, thinking of other business ventures, or thinking of how he will take his sweet time to enjoy his money while watching the rest of the world in chaos.

For some of the well connected and well informed real-estate practitioners, they know who and where these people are, and they always have some great opportunities to offer. The more experienced investors know that this is a very good time to buy and they know exactly what and where to buy. However, for those who are new in the game, my advice is to get the professional services of licensed and well-informed real-estate professionals and not just be carried away with impressive ads. Like what I always preach, in these modern times, it is no longer location, location, location to consider in real estate, but Location, Information (advanced is better) and Timing!

This is the reason why most of the broker’s organizations like REBAP, PAREB, NAR, developers’ associations like CREBA, SHDA, OSHDP & NREA conduct regular business meetings where they discuss not only the hottest issues but the best opportunities for their clients. While these organizations recognize the realities of the issues at hand, they try to look at the positive angles of the situation where more favorable outcomes can be expected.

In the case of NREA, or the National Real Estate Association, its membership includes developers, real-estate brokers, appraisers, real-estate consultants, marketing experts, trainors, real-estate lawyers, real-estate tax consultants, architects, engineers, contractors, interior designers, suppliers and manufacturers of construction materials, etc. This provides a broader discussion during meetings with each of the allied industries and services properly represented. The dynamic exchange of relevant information also helps the members in their planning.

From the experience we had from the past two boom-and-bust cycles, we have learned to look at things positively. Let us be clear that it is not the intention of this writer to convince people to stay positive and look for the silver lining, but then again we all have a choice: you can either sulk, worry, scrimp and live in fear of what is going to happen next, or look at it as nature’s way of correcting things to be able to distribute the opportunities to more people…including you.