Always a Great Time to Invest

Been Listening to the airways- T.V. and Radio???

Have you noticed how euphoria over the reduction in sweet crude among the commentators?? Only a few cautious optimists were to be found. Perhaps we will see a reduction in the price of heating oil, natural gas and gasoline in the coming months!!!

With the reported increased pressure on prices, the Fed has found its hands tied to reel in the "loosen" money policy reflected in the current 2.5 % discount rate. With inflation up, you are now hearing the concern that the finance markets will tighten up even more as interest rates will go up with the inflation as business activity tends to slow down at time of high inflation.

We should not be surprised at this correlation as the U.S. economy is driven by consumer's buying power. Yet, as has been stated in some financial magazines and papers, a correction in the market only means the market will stabilize and rebound. So it is also with real estate!

New homes starts are down(and have been down) as the market finds a new foundation for renewed growth. The reduction in sales doesn't mean there aren't individuals and families seeking housing. Presently, there is simply a "unwillingness to buy" due to the negative publicity regarding housing. Know anyone that has ever told you how they found "the greatest deal I ever found in a home"? Ask them if they found that in an up market or a down market!

Every market, stock, housing and/or business, is different but opportunities always exist to make a very wise investment. For example, if your renting today or in a house too small for your family(0r simply too large due to the family leaving), housing prices are great and banks want to loan you the money.

So if renting, why give up a 15% to 25% tax break on your monthly housing cost? If you itemize(or could if your bought a house), this is possible!!!

If the house isn't "right-sized" for you, can you afford to wait until interest rates go up?? Or for home prices to rebound significantly???

If you have a home to sell as you buy the new one, remember the market will be "fair". You may get a bit less for the house and give more concessions now than say in 2004, but you will buy the new house without competing with 12 other buyers, find the seller willing to negotiate and concede on a few points which also would have been impossible in 2004. Thus, the market conditions have changed but you can come out ahead.

So whether you are seeing the 401K give up some of its gain or the mortgage market tighten up a bit, you need not fear. The silver lining is there for those willing to look for it!!!!

Keep your chin up!! Let the wind blow through your hair!! Know now is the the time to act!!!