| One of the fundamental sectors that investors should | | | | new home before April 30 and taking possession |
| make sure they are invested in as the United States | | | | before June 30, 2010 receive up to $8,000 in tax |
| heads into full-out recovery mode is the homebuilders | | | | credits. Even though such incentives have come and |
| sector. There are several reasons why this is such a | | | | gone, local government bodies, builders themselves |
| bullish area and why investors who are daring enough | | | | as well as realtors are offering incentives, either |
| to take a longer term position in this sector will stand | | | | solely or jointly to incent buyers. And this is just the |
| to profit. Briefly, here are three: | | | | start. If the buying cools down, investors in this |
| Recovery Leader | | | | sector can rest assured that the government will |
| With housing as one of the main drivers of the | | | | step up once again and offer more tax credits to |
| recent recession, it stands to reason that housing will | | | | invite potential buyers to step into the game. |
| also be a driver in the recovery. Of course, there | | | | Necessity |
| was much more than just "housing" to blame for the | | | | Everyone needs a place to live and despite the |
| recession; the automotive industry ground to a halt | | | | recent housing market correction, real estate remains |
| (the automakers are now earning money, repaying | | | | a favorable investment for building wealth |
| debt and ramping up production), the banks' lending | | | | (remember, the stock markets were down just as |
| practices were irresponsibly risky (they are no longer | | | | much if not more in some markets than the housing |
| so; plus, many of the tenuous lenders are no longer | | | | market). Since there are always people looking for |
| in business given their losses) and people were out of | | | | homes, as people become employed once again and |
| work (unemployment is shrinking and people are | | | | start seeing their finances improve, they will start |
| gradually getting back to work, albeit at lower | | | | buying into the housing market and/or upgrading. |
| wages). | | | | In all three the above, homebuilders exist to fill those |
| Incentives | | | | home ownership gaps in people's lives. Ultimately, |
| Just as the automotive industry saw roughly a | | | | people want to own their own home and being able |
| decade of incentives to get buyers into their vehicles | | | | to customize a house gives most owners a great |
| and saw people switching vehicles sooner, the | | | | sense of pride and ownership. Over the next few |
| housing industry is currently a favorite for the | | | | years, this sector will not only rebound (it recently |
| Incentives Gods. Recently, the President Obama put | | | | has rebounded) but it will prosper. |
| incentives in place that would see people buying a | | | | |