The sectors in real estate where prices can double in the next ten years while the rest of the market will fall apart
Kara Zeilig
Jul. 14, 2007

Real estate always poses as the most challenging part of investment and trading. Smart investors have a substantial portion of their portfolios in real estate. However, the real estate part of the portfolio is the most difficult to manage for a consistent profit.

While the traditional residential real estate market is in real doldrums, there are sectors that will double and perhaps quadruple in the next ten years. Smart investors are taking advantage of the real estate market and accumulating properties in the preferred sectors.

Residential real estate will fall in prices rapidly because of two reasons. First, the leveraged nature of the property holdings by individual families calls for lower valuation during stagflation or deflation driven economic conditions. The second reason is ever escalating property taxes. If the budget deficit is out of control, property taxes all across the country are just insane. The commercial and industrial sectors of real estate will fall slowly now and then accelerate later when energy price skyrockets and the economy goes more on cyber based Internet.

The farmlands currently present tremendous opportunities. These lands enjoy lower property taxes. The debt on these holdings is far less. The grain prices are rising fast with most of it getting used for bio-fuel. The lower US dollar allows the emerging economies import more grains and meat from America. These are all bullish factors for the farmland.

It is time to accumulate farmlands and adjoining properties. Remember, you can own farmland and not farm it yourself. You can ask a local farmer to farm it for you for half the proceeds from the output. The higher demand and prices of grains provides the positive cash flow that you look for.

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