How To Make Today’s Real Estate Market Work For You
“Markets are changing a lot. You have to pay attention to the details of what’s going on because it affects your bottom line and your pocketbook.”
Just as the weather goes through a repetition of seasons, the real estate market goes through cycles. “It’s known as the Garrison Cycle,” explains Jared. “It starts with Expansion, where you see new buildings going up. This is followed by Equilibrium, then Decline, and finally to where we are right now – Absorption.”
“The QE3 IRA loan enacted by the government is really having an effect on today’s market. It’s going through a shift. This ‘Quantitative Easing’ piece is basically giving mortgage securities $43 billion, with a promise to keep short term interest rates low for another 3 years, or until 2015.”
“What this means is that there is an extra $43 billion dollars out there flooding the market. Inventory is down now from what it used to be. Houses that were selling for $35,000 a quarter ago, are now selling at $40-$50,000.In other words, we’ve become a seller’s market.”
- Diversify 20%
- Invest in properties selling for $50,000 or less
- The number of loans allowed by the bank = 9
You May Enjoy These Articles As Well...
Is It Time For Your Retirement CPR (Comprehensive Planning Review)?
When you look at your overall financial picture, what do you see? Do you see ...read more
Happy Holidays & New Year from RichLife Advisors
During this season of resolutions and goals, I wanted to take a moment to look ...read more