In 2004-2005, when mortgage rates were 5% or lower it seemed that everyone was in a rush to purchase a new home for personal use or investment. In 2009, when mortgage rates fall below 5%, what should you do? Well, if you have a strong balance sheet and have investment dollars, it will be time to start looking! Imagine if I told you four years ago that you can buy real estate for a 50% discount and get a mortgage rate below 5%. I believe that in the first half of next year you will be able to find housing for 50% off in selected markets. As for investment real estate, it may be more difficult to find a tenant to rent your property. We should also keep a close eye on the home building stocks and Real Estate Investment Trusts. They will be cutting their dividends early next year but could rebound after June, 2009.
Weekend thoughts....It seems that Caroline Kennedy may be the next Junior Senator from New York replacing the new Secretary of State, Hillary Clinton....there was a small 5.1 earthquake in Los Angeles the other day...it was an aftershock of a 1999 earthquake (how does that work?)...Look for a Christmas rally in the markets for the next two weeks...especially if the government gives the Auto Companies $25 Billion to
burn....
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1 comment:
OUCH...to the Auto Industry BURNING those Fed dollars. :(
1999 is only minutes away in 'Earthquake' time...so the 2008 aftershock doesn't surprise me. LOL
I just hope the aftershocks in the global stock markets settle sooner than later. I might just be a more willing shopper in Dec. 2010.
...loving your blog! ;)
Hugs, M
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