Saturday, September 8, 2012

Franchise Investment Versus the stock market or real estate


Most would agree that the housing market is not coming back anytime soon, and everyone in the industry said they believe he's still a bit 'more to fall. In fact, many real estate sales people are suggesting that buyers offer 25% less than the assessments already devastated when deciding what price to offer.

This does a couple things, one, we lower the price and valuations of other properties that are similar in the vicinity and two, to prevent price rebound anytime soon. All this combined with the reality that there is a heck of a lot of inventory in most housing markets to absorb, which means it will be a good 3-5 years for any significant return to normal. Needless to say, real estate may not be the best place to invest right now. -

With regard to the stocks? Well, the stock market has certainly seen hard times and has substantially dropped to 45% of what it was worth just 1 year ago. Definitely will return, however, many people have had enough of the stock market and even though I know it will, just do not need that kind of risk or stress in their lives, but rather stay in cash and put it under the mattress. Of course, this does not make sense either. -

What about buying a franchise outlet of a strong brand, is a worthy investment at this time? It could be argued both ways. But, there are some franchises that do very well in difficult times or periods of recession. And almost all dealers do as well as the business cycle is detached from the bottom and stands up. So, is this the right time to invest in a franchise business? -

Well, it certainly could be. Especially if the investor is located in an area that hurts, or are worried about losing their jobs and could also be an elegant place to invest if the investor has a bit 'of knowledge in which the franchisor provides. In any case, it is worthy of investigation, to see if this is an elegant place to park your money and maybe make some money, while the world just turned upside down is right side. Please think about this .......

No comments:

Post a Comment