Real Estate prices in Florida really came down. Would that be a good way to diversify my portfolio now by buying something there?
So far I mostly have bonds and a few stocks. Any advice appreciated. Cheers!

Hey LongWave,

It's always good to diversify asset classes as a general rule. I'm pretty stretched to think of a period in history in which gold, stocks, bonds AND real estate all declined together, and honestly if that was happening, I'd probably looking for a bunker to live in anyway haha. So overall, it's always good to look for investment opportunities in all areas.

As for real estate, I honestly don't believe U.S. real estate will rebound as a whole for quite a while, but small pockets of real estate might do well. Your best bet is to buy very cheaply on foreclosed homes in high quality areas with expected population and job growth. I'm no expert on Florida real estate, but I'm certain that there are gems in the market, especially since it's been downtrodden pretty badly. I would say that the real estate recovery story is not going to be a quick rebound, and probably more like a 5-15 year investment, but still, it's definitely much more of a buyer's market than a seller's, which is always nice.

Do you have any idea about specific Florida markets? Maybe in good growth areas?

Yes any chance you can to jump on real estate while the costs are low is a great opportunity. The best way to build your wealth is to diversify your allocations into commodities that best suite you as a person and what you like.

I think the Florida real estate market will be rebounding in a big way.

I myself think land is a better investment (doesnt result in steady income) but it's because I dont want all the complications of leasing etc...

They arent making more land

As with buying land anywhere, it depends upon the location. Preferably, you would buy land in the future growth areas based upon demographics, proximity to tourist attractions and large(st) employers (e.g. corporations, colleges, government agencies, etc.), as well as relatively low crime rate. Another consideration would be if you plan to use it for a flip sale, rental property, or vacation/ retirement location. In this economy, a good real estate purchase can be had for a substantial discount in Florida and other parts of the country.

I'd rather have one in Silicon Valley. The price keeps rising fueled by the new tech revolution