It's New Real Estate Conspiracy.

And like most financial conspiracies, it's complete garbage. Again, it's not a Wall Street conspiracy that speculation in housing is at a statistical extreme. It's a fact.

What I'm Doing With My Money

Personally, instead of taking equity out of my house to buy more properties, I'm doing exactly opposite. I've done what I've recommended my readers do... which is pay off at least half of your mortgage. Personally, I'm going to keep paying mine down to zero. No matter how you look at it, housing is still debt that you owe. As you might guess, I'm not interested in looking at any U.S. housing property, period.

Please note, I'm not part of "The Real Estate Conspiracy" that this real estate agent is worried about. I don't work for Wall Street. I don't get paid a commission if you buy a stock (or a house). I simply look for cheap, overlooked investment ideas. Right now, it's impossible to call real estate "cheap and overlooked."

Nobody can say when it will end, or if housing bubble will burst. Heck, tech stocks were expensive and likely "in a bubble" in March of 1999 - and they managed to double from March 1999 to March 2000. So there could be plenty more gains on way, before fun ends. Before statistical extreme reverts back to mean. But it will end. It makes no sense that median household can't afford median home where I live.

I'm quite okay missing out if housing boom continues. Why? Because real estate can't be dumped like a stock when you need to get out. So I'm content that I'm out of game, doing opposite of everyone I know, reducing any debts (including my mortgage) toward zero. It may sound crazy to you, but I'm comfortable with it.

My Plan: Follow Eduardo's Lead

One of greatest investment lessons I've learned is from Eduardo Elsztain. Eduardo has amassed a collection of Argentina's greatest real estate assets over course of 20 years as head of Cresud (Nasdaq: CRESY).

Eduardo's technique for acquiring fantastic real estate properties at fire-sale prices has been simple - he's had tons of cash available to buy properties when nobody else had any cash.

It's worked time and time again for him. Argentina has had many up and down cycles. Eduardo has bought when things look terrible, and sold when things look great.

Right now in States, things look great. So Eduardo would sell. Amazingly, nobody can even remember last time when residential real estate prices actually fell nationwide. But they still can fall...

For decades up to 1989, Japanese felt same way... real estate looked great, it had never declined. And then their housing bubble burst. It fell for years... EVERY YEAR for last 15 years, real estate housing prices in Japan have fallen.

I'll follow in Eduardo's footsteps, and have a pile of cash available to buy up bargains when prices are cheap and landowners are ready to just get out.

Hmmm... maybe a trip to Japan is in order...

Good investing,

Steve Sjuggerud

Dr. Steve Sjuggerud is editor of the free, twice-weekly Investment U Newsletter, and serves as Chairman of IU and the Oxford Club's Investment University. Steve helps people become better investors with actionable investment advice, including the article on the

A credit card allows you to live now and pay later. When you successfully apply for a credit card, you will be advised of your credit limit. Ensure you stay within it, as exceeding it could result in either your card taken away from you or being charged interest on extra credit you incur.

Charge Card

This is very similar to a credit card, although monthly balance must be paid in full. An example of a type of charge card would be an "American Express" card.

Cheque guarantee card

If you're paying for goods or services with a cheque, you'll probably be asked for a cheque guarantee card. This means bank will normally pay your cheque up to amount guaranteed.

Store Card

A restricted form of credit, store cards act as credit cards in those shops that card is accepted. Purchases are made using card, and then a consolidated bill is sent at month's end, which is then settled in a manner similar to a credit card.

Deciding which plastic card to use can be confusing but it can help you to reach a decision if you know what you want to use card for.

If you just need it as a substitute for carrying cash, rather than use a credit card, you may as well use a debit card, which takes money from your bank account directly.

If you like to pay your balance off each month, a charge card might suit you.

If you want to pay off your debt in instalments, choose a credit card.

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