We can personalize a property to your needs and tastes Lic. #01442349
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We can personalize a property to your needs and tastes Lic. #01442349 |
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8/8/2011 What effect will the downgrading of the US debt rating have on real estate? Well, economic theory would say that riskier investments should command a higher interest rate. In other words, the more risky the investment, the greater return is demanded by investors. So then, investors in US Treasury Bonds (which now are rated not as safe (riskier) should demand a higher interest rate. That should mean that the interest rates on Treasury Bonds will go up. Traditionally, long term mortgage rates have risen or fallen with treasury rates. See http://mortgage-x.com/general/treasury.asp. So, that would mean that now mortgage rates should go up. However, when stocks are down, traditionally, so are mortgage rates. Currently, stocks are down. At this point, mortgage rates are very low, about the lowest they've been in not even so recent history. So, if you are thinking of buying, now is the time to lock in those rates before the market adjusts to the traditional economic models. These days, no one can see much beyond tomorrow. 6/20/2011 Will the recession continue? Frankly, it looks like it. What is the best investment in a recession? We'll some may disagree with me, but I think that land or a home is the safest place to put your money. As long as you can pick your timing in real estate, you can make money there. So, don't overextend to buy real estate. You should make sure that you can cover the monthly payments, insurance and taxes for the long haul. If you can, then eventually, the prices will only go up, although they may dip along their journey. Unlike stocks, you can control your investment in real estate. You can see values rising or falling and they do it relatively slowly compared to the stock market. If the bottom really falls out, at least you have something tangible - a place to live. With stocks, you truly have nothing, if the company goes under. Interest rates are historically really low and prices are also historically low. So, this is a good time to explore your real estate investing options. Everyone needs to live somewhere! 5/20/2011 Yes, real estate is going through an interesting time and it is difficult to predict if prices will continue to decrease and whether interest rates will stay low. However, we do know that prices and interest rates haven't been better in the last 7-8 years. While history may not prove this to be the best time to buy, I would bet that history will show this is still a very good time to buy. |
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