Then there is the dollar problem: weak compared to almost all industrialized nations. This means that nations like Canada, England, France, Germany and China can purchase our real estate at a discount. This is accomplished by converting their currency into dollars and those exchange dollars are continually growing. Thus our assets can be purchased with less of their currency as time goes by. We have seen a big push of Europeans purchasing property in New York and other parts of the east coast as well as an increasing number of Canadians and Chinese buying real estate on the west coast. This is not a negative because, if you own real estate as in the stock market, value is created by supply and demand.
The "experts" are expecting real estate to bottom out by next year and start back up in 2009. Do you want to start your purchasing in 2010 to make sure the movement and higher prices are here or do you want to become a contratrian? My gages for purchasing are
when it looks like the sky is the limit, I sell. When the situation makes your stomach ache,
and the thought of getting into that type of investment has the reminiscence of the flu in the winter I am pretty sure it is time to start buying.
When the Federal Reserve starts cutting their short term interest rates, probably by the end of the year or the beginning of 2008, and mortgage rates head toward the 5% or lower range
it certainly isn't too late to try and find something. Someone has to get the seats with the restricted views, but at least you are in the theater. Just this once why not try to get the good seats; be ahead of the Jone's and get a good piece of the cake, including the frosting.
All you need to do is hold your nose and jump in. It could be the experience of a life time!
Roger Schlesinger
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.
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