Ep. 57: How Does Real Estate Affect The Economy?

Ep. 57: How Does Real Estate Affect The Economy?

Hello, I want to thank you for coming to this
week’s video blog, my name is Robert Rico, California Realty Training and
I am so excited you are here this week. We have some great stuff to teach you, I’m
excited you’re getting involved in a real estate career, why? Because you’ll be helping people buy their
house, sell their house, whatever it is, you’re in for a good ride. Listen, this week’s question comes from a
subscriber who said, well, he asked, “Does the real estate world affect the national
economy?” Does real estate in
general, real estate activities, does the real estate world affect the nation in
general? The economy of the nation? That’s a great, great question. The answer, of course, is absolutely. Are you kidding me? Real estate and the
national economy? They go hand-in-hand, they definitely complement
each other. Now, let’s think about this, how do they complement
each other? I’m
sure you’d know this, we just have to think about this nice and slow. Now, when I first bought my first house, this
was back in 1993, when I got my first house, got it for $106,000, bought it
for $106,000. Now, let’s just talk small. That’s just me, one individual, me and my
wife, small family, buying our first house. Small, small little family, not this huge
nation, but a small family buying their house. What did house do for us, when we bought it
for $106,000? It changed our life
and the future, it really did. Now, why? Because the economy, the house prices,
the value of houses, what did they do from 1993 onward? They increased, they
increased, they increased, they increased. In the long-run, the home, that piece of property
is your value, is your future when it comes to financial stability. It’s a beautiful savings account. Anybody
who has property, if you own property and you hold it long enough, it’s
probably the safest bet, it’s probably your safest, safest savings account. If you just let it sit, over time, as we know
it through history and through the cycles of real estate, it eventually is going
to go up and up, just like a rollercoaster. Up and up and up and up and up, and if you
sell it at the right time, of course, boom, you make tons of money. Did real estate effect this small family,
the Rico’s? It sure as hell did. We were
able to sell that $106,000 house, eventually, for close to $400,000. Does real
estate affect the national economy? Well, it sure as heck effected this small
household. Now, let’s put that into effect when it comes
to the whole nation in general. When people are making money off of their
investment, when people buy property and they make great money, they make
great profit, they have equity. How Does Real Estate Affect The Economy CA
Realty Training Page 3 of 4 What do people do when they have a house and
it has equity? Now, most
people, what they do is, when they have a house that has equity, is of course,
they pull out the equity and they spend money. By spending money, that
stimulates the economy and when the economy is stimulating, everybody’s
happy, everybody’s spending, everybody is needed. We need people to make more cars, because
people who have money want to buy a car. We have people who are going on the town,
people spending money on dinners, people buying their toys. Everybody’s spending money when they
have money. How do they get money? How do they collect money? That’s right, through their
investment. Which investments? That property they bought. It makes sense,
doesn’t it? You buy a property, it creates value, value,
value, that’s called equity. With that equity, most people grab that equity,
like we did. We grabbed our
equity at first. What did we do? We spent it, we put the pool in the house,
it gave somebody work. 12 people came over and put a pool in the
backyard. It
stimulated the economy and that’s what most people do. They have their house, they watch it grow
in equity, they get that equity. They
decide to spend the money. Whether it’s vacationing or cars or additions
to the house, but it stimulates the economy, it’s
a beautiful thing. What happened in 2007, 2008? You know what happened in 2007, 2008, I
remember that. I sure remember those days, that’s when the
recession hit. What happened to the home prices, to the home
values? They dropped and
they dropped and they dropped and nobody had any equity. Well, a lot of people didn’t have any more
equity to spend money. Because
nobody was spending money, what happened to the national economy? That’s
right, that’s why we called it a recession. Let me share a quote with you that is very,
very interesting. John Stuart Mill,
political economist, once said, “Landlords grow rich in their sleep without
risking, working or economizing.” Think about that quote, landlords are being
investors by owning their own property, now, we’re talking commercial
property. Landlords, by owning commercial property,
that’s how influential real estate is to this economy. Landlords, investors who own property, they
depend on this property, they depend on this property to
collect money, without them having to do anything but upkeep. So, the question is, does the real estate
industry somehow, some way affect the nation’s economy? I think you know that answer and the answer,
of course, is absolutely, with a capital A, exclamation
point, bold, underlined. It sure does. How Does Real Estate Affect The Economy CA
Realty Training Page 4 of 4 We appreciate your questions. If you have any questions or concerns or
anything you want us to discuss, please do us a favor, huh? Leave the question
or comment down below, we’ll be more than happy to discuss it here on our
vlogs. So glad you came today, thank you for coming,
see you next week. Have a
great day.

2 thoughts on “Ep. 57: How Does Real Estate Affect The Economy?

  1. great

  2. thanks for all this great info and for that i just subscribe

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