This morning I tuned into NBC's Today show and Suze Orman was discussing the recession that some of our country has already started to experience and what consumers should do to protect their money.
Orman recommends that consumers:
Do not panic and make rash decisions based on the current state of the economy. Markets are cyclical. Think of your investments on a long term basis. Especially those that you might not need to turn around for the next 10 years. Save your money.
Do not cash out of your 401K. If you needed to file bankruptcy your 401k is protected. If you pull this money put you will not have it for later when you really need it.
And last is Orman's recommendation,paraphrased below, when it comes to buying real estate:
If you can get a good deal on a house, 30-50% off. and you can get a mortgage at the currently low interest rates of 5.5%, buy that house.
Many real estate professionals have questioned this as well, calling today's buyers, "fence sitters". The feeling today is that many buyers are waiting for a better deal and waiting for prices to come down. Some are trying to tap into the foreclosure market, preceiving that they will be able to get the deal of the century.
Not all real estate markets are created equal, and neither are all homebuyers.
So I pose this question to real estate agents: Are you working in a market where there are great deals for buyers? Are buyers taking advantage of your market deals? What is your experience?
I pose this question to home buyers: Do you live in a market where there are great deals?Can you get a house now for 30-50% under its orginally listed price? Are you going to buy a house in the near future? If so, why? If not, why not?
;)
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