What To Do When A Whole Market Is Overvalued…?

By: ispeculatornew
Date posted: 09.04.2013 (3:00 am) | Write a Comment  (0 Comments)

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As many of you know, in the process of building myself a solid and diversified income source to become financially independent, I have looked at many different options. Clearly, my dividend income strategy will end up representing the core of that income over but I’ve also considered options such as real estate. Then, yesterday while reading the economist, I came across this chart:


I do already own real estate in both Canada and the US but since I’m much more familiar and closer to Canadian markets, I’d be more likely to invest there. Those numbers look very scary for Canada don’t they? It’s hard to argue that prices should move in similar ways to rent and income? Canadian Real Estate looks very overpriced. It’s even worse when you consider how much debt Canadians have.

Of course, Japan seems extremely cheap based on those metrics but I’d hesitate very much to invest in Japan real estate these days.

I’m not sure what I’ll do. It’s difficult to wait for a bubble to “pop” but in a case like this, buying just before a crash would end up being a very poor use of my money.

Any thoughts on this? Should I Wait?

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