For the past few years, real estate prices in the U.S. have been flat or declining. American investors are suffering from a “real estate hangover” after years of overinflated home prices crashed beginning in 2006. Although there are signs that the housing market is finally beginning to recover, there still doesn’t seem to be any clear pathway to success through real estate investments.
In contrast, the Iraqi Dinar has better investment potential than U.S. real estate, and it seems likely that the Dinar’s rewards may help investors overcome the risks of poor performance in U.S. real estate.
The Dinar offers a potential antidote for real estate investors who’ve been suffering in the stagnant U.S. marketplace. Investors in their 40s through 60s who had been counting on real estate investments to fund their retirements were disappointed when the U.S. property market crashed a few years ago, erasing much of their equity.
During the last real estate collapse, many real estate investors with holdings in formerly “hot” markets watched helplessly as the values of their properties sank far below their purchase prices, leaving them “underwater.” Since then, mortgage financing has been sluggish, and home sales continue to drift in a sideways trend without rising.
Now, many investors are looking for a practical way to recover from the erosion and stagnation in U.S. and European real estate markets. Because the Dinar is a foreign currency that’s not correlated with the U.S. economy, its value tends to rise when U.S. stock, bond and real estate prices fall.
The advantages and disadvantages of real estate investments
Real estate can be a good investment under the right circumstances. Of course, America is well known for having a high level of home-ownership. When the cost-of-living is rising because of inflationary pressures, buying a home may be an excellent investment. And, well-selected rental properties and commercial real estate can also yield gains.
At the same time, owning and managing a home or other real estate can be time-consuming and expensive. That’s because homeowners must account for both planned and unplanned expenditures for home repairs as they become necessary. And, real estate owners pay a significant annual property tax in most jurisdictions.
Some types of investments are passive – They don’t require any attention after the investor acquires them. In contrast, real estate always requires hands-on management. Investment property owners who aren’t available or capable of managing their own properties often see their hoped-for gains gobbled up by costly management-company fees.
Another drawback of investing in real estate is its relative lack of liquidity. An investment is said to be “liquid” if it can be easily bought and sold within a relatively short period of time, with minimal delays.
Unfortunately, in today’s slow real estate markets, if a property owner is forced to sell because of a financial emergency, he or she may suffer a significant loss due to a lack of liquidity in the local market.
If very few buyers are interested in properties located in the seller’s neighborhood, then the seller must either wait until a buyer appears, or lower the price enough to attract “vultures” in search of distressed properties. Worse, home-equity loans are difficult to secure these days, so homeowners have few options for leveraging the equity in their houses.
In any event, currency investments are far more liquid than real estate. If pressed for money, a Dinar investor can simply liquidate the currency at fair market value through any Dinar dealer. Prices are freely available, and the time required to complete transactions are only a few days at most.
The Dinar’s other advantages over real estate
Beyond its superior liquidity, the Iraqi Dinar also has other advantages over real estate as an investment. For example, a Dinar investment is scalable, portable and tangible – You can hold it in your hands. You can accumulate the currency as quickly or slowly as you wish, without waiting to save large amounts of cash or seek mortgage financing.
And, the Dinar is a “low maintenance” investment. Once purchased, physical currency can be stored securely without any further need for intervention, until the currency is exchanged, say in the event of a revaluation. In contrast, real estate requires regular maintenance and repairs, not to mention annual taxes and local assessments.