The United States Government is in the process of a 1 trillion dollar bailout of banks and mortgage companies. In my opinion, if it is done properly, it would help stop the continuation of the current up tick in foreclosures, and hopefully the Real Estate market would stabilize.
With that said, I do not believe that buying bank and mortgage companies bonds will be the immediate help home owners, that are either in or facing foreclosure, need to make an immediate impact on the Real Estate market.
To make an immediate impact, I would like to see a criteria in place to help the people that legitimately need it and let the speculators take their loses. If the bailout money was used to supplement the banks and mortgage companies costs of reducing the interest rates on owners already in or facing foreclosure. This would allow owners to retain their homes, pay on their mortgages and would not benefit banks and mortgage companies for their bad decisions in the past.
If this were to take place, I believe that the Real Estate market would stabilize, and bottom out in mid to late 2009. Depending on how deep and what other sectors of the economy will be affected by the economic crisis is unsure at this time. Alot of what happens will depend on what the Government does or better yet, does not do, regarding the auto industry, energy and other related industries.
Now is the time to learn everything you can about Real Estate Investing, wait too long and you miss the opportunities that are out there. Real Estate has always rebounded, the growth may be slow, but overtime it always does well. If you look at all the recessions and depressions through our history, there have been losers and winners. Now is the time to put your plan together on what you want to do.
What are your views? Do you agree or disagree with my opinion. Don't hesitate write your comments now, share your knowledge with us.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment