I try to stay up with all that is going on in the financial market and with the Feds cutting the rate again, will that really help. I know for me personally, I like for it to drop because it will decrease the rates I pay on my in-house bank loans that are tied to the fed rate. But, will it really help everyday people that are trying to get by. They are faced with rising gas prices which will in turn raise the price on consumer products because of shipping and the lowering of the value of the dollar.
I understand economics, with lower rates, businesses and others entrepuneuers will spend money and expand their operations and in turn create new jobs or services. I don't think that will work this time. Look at the Bear Stearns fallout, I think everyone has opened their eyes wider (or at least I have). I feel I am ok with my assets and how they are leveraged but I am not wild about jumping into further debt. Think about it, if I am buying rental properties to rent out, do you feel tenants will be struggling and therefor not paying their rent on time or even at all. I currently have someone moving out of a rental because he says he can't afford it and will be moving back in with his mother.
Don't get me wrong, if a deal comes along, I will probably be the first in line! We have to be smart about what we are doing and I just feel more people are going to be a little more wiser in their decisions and be slower to act. What do you think?
I am a Realtor in Searcy, Arkansas and I sell new homes, existing homes, commercial property, farms and land as well as manage and own rental properties. If you are looking for real estate for an investment or a home, I will be glad to assist you! You can call my personal cell number at 501-278-7659 or e-mail me at Larry@Searcy4Sale.com.