America asked for change and we sure got it! Or you could argue that we’re actually getting more of the same: a growing government and a shrinking dollar. Those who are angry at how the government is infiltrating more aspects of our lives seem to find safety in real estate. Income property allows you to be in control of your own retirement, your own income and your own future.
Our guest speaker at this week’s event left the “system” as a big shot at Wells Fargo and is now financially free as the owner of hundreds of properties. He chose Memphis as his target market, and you’ll understand why when you see the cashflow he’s getting there. Even if you have no interest in investing out-of-state, you will learn proven strategies for success using real estate investing fundamentals.
Hope to see you there!
Kathy and The Real Wealth Team
This week’s vote on health care reform could rock the stock market. Plus both Fitch Ratings and Moody’s have stated that the US has moved substantially closer to losing its AAA credit rating. This would cost the US a lot more money in interest payments by way of higher rates to attract new investors to buy our Bonds. And higher rates on Treasuries would influence higher rates on home loans as well.
Bottomline: The window of opportunity to lock in low interest rates on 30 year fixed loans is shrinking. ___________________________________
Not surprisingly, there was no change to the Fed Funds Rate during last Tuesday’s meeting of the Federal Open Market Committee. The Fed Funds Rate is the rate banks charge each other for lending overnight. It was announced that it will remain “exceptionally low for an extended period of time.”
There is growing concern that continuing to keep rates low will lead to inflation down the road, but it does not appear to be the case today. Last week’s reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
This is probably due to the fact that we are still in a deflationary cycle as salaries decrease, supply increases and prices drop.