Are we in between actions? Have we begun a traditional Real Estate cycle that normally last for years or are we still wobbling along with a time out before the Real Estate hurricane winds pick-up again? We are seeing signs of a global struggling economy in Tokyo, China, Canada and in our own face-time right here in the United States right now
FED SPEAKS WITHOUT SPEAKING
Fed rates haven't been raised since 2006 which is an unusually long run to keep rates below LOW for so long. Why are we not stabilizing with increases? Because we are not on sure footing. Its also called shaky ground but that is too startling. What does this mean to the average person out there?
RECENT REAL ESTATE CRASH
Well, some will say that if the perfect storm lines up similar to this last man-made fiasco of looting and raiding with no regards for anything or anyone, we will crash again joining the rest of the world who are trying to stabilize. Japan has had four recessions back to back. It is out of economic balance
THE DAY THE MUSIC DIED?
Lets pretend the bottom falls out right here and right now. Its like musical chairs in a sense. The music stops and you better have a seat. Many do grab a seat except the one person and then, they are out of it. You got to have a chair to land on as sure as there will be a stop...to the music. Will the music stop?
ASSESS YOURSELF
Ask yourself when buying today, can I sell this for what I paid in 1 year? 2 years ? 3 or more years? Because if we run lean and into a downturn, then you are stuck with the home you purchased or may face the loss of it if you have to sell. That's why you should buy what you can afford and even below this to be safe. Buy you should if you can. Low interest rates support this thinking
PAY IT OFF
I was talking to a man the other day and explaining how important it is to pay-off your home. It solves nearly all your long-term problems. Stop and think about this. A third to a half of what you make goes to rent or mortgage payments. The rest of the income to maintain it all and to live. Whats left over is controversial for many if any.
ZERO BALANCE ON MORTGAGE
If you own your home outright, then you are out of the stress aspect of the shelter dynamic. Your income can even be reduced and you still have a place to lay your head. This is where Social Security and other pension programs work so well. If debt free, your fine. The only other pull would be your ego wanting more and more. You cant take it with you but some people keep trying
MORE MONEY LESS HOME
Million dollar homes are now quite the normal for many parts of the world. The point here is that a million dollars doesn't do what it used to do. Even entry level for a decent neighborhood, fixer upper is near a half million around most parts. Location still commands respect in the Real Estate world
WAR IS COSTLY
Wars put huge strains on economies. Terrorists know this and they are constantly trying to start as many as they can. We can expect more assaults on this country to get us into war debt which is a terrorist long-term strategy especially with a new Presidential election coming on too.
ADJUSTMENT COMING
Economic analysts are predicting a economy shock and advise caution. What does this mean? If we stop buying, it helps the shock and depresses the economy. If we spend, then what do people fall back on? The Fed is having this same problem. Raise rates or leave them alone and all the discussion that ensues
ATTITUDE OF THE PEOPLE
Morale is closely tied into our growth or lack of it. When Americans feel good about their personal situations which could mean, jobs, security, home ownership, health and prosperity, the country glows and goes. However, that sword cuts both ways and harshly too. Right now, there is suspicion in the air
WHAT DOES MINIMUM WAGE BUY?
It buys the minimum! Jobs remain at minimum wage which doesn't do much for personal growth but does allow for survival. Health insurance remains obstinate and a money driven necessity and meanwhile, threats of government shut-down loom because congress cannot find a middle ground to operate from.
CONSERVATIVE BY NATURE
I don't do projections, economic analysis or have strong opinions about this subject. Why? I am a conservative by nature and deed. I save money, I don't spend more than I make, have no debts and remain happy with less not more. Great for me but it wouldn't stimulate the economy very well if we all did this. However, there is a time to do it and a time to not and knowing which one is crucial
GO LEAN?
Find your footing and hold that position for now. There is some sort of inevitable shake-up coming and you want to prepare for the worse while the economy tries to find its way and stability becomes the norm once again. There are always ways to streamline until we do not have to. For now, go lean.
STABILIZE
Do you need a new car? Vacation? Toy? Have you done what experts have been preaching for decades which is to put six months of income away? As sure as there will be debates on who should be our next President, you will want to make sure your situation is stable regadless of what takes place
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