Interesting Real Estate Survey of 1,500 Respondents

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Just recieved this information from one of my mortgage brokers. Found it to be what I had expected, in that, most prospective clients have indicated they are not sure they would be able to qualify for financing. Until those who are interested check with a mortgage professional, they will be passing on some of the best property prices in years. I have always felt that tangible assets are best to aquire during a downturn in markets.

Just watch the large commercial projects going up in your community and you will see what the smart money is doing in times of excess supply and low prices.

According to the survey, which included about 1,500 respondents, 70 percent of non-homeowners have no plans to purchase a home in the next 12 months and nearly half in the 18 to 34 age group say the reason is because it's too costly. While those in the 35 to 44 age group are concerned that they might not be able to qualify for a home loan. The survey also found that only 12 percent of the non-homeowner respondents said they expect to buy a home in the next 12 months.

When has it been more affordable???

Rates are below 6%
Home Prices are low
There are still programs... - just to name a few - As of 21 November, 2008, rates may change.

•- FHA 97% financing with seller paying up to 6% of the sales price towards buyers closing costs. Rates under 6%
•- RD - 100 % financing with seller paying all closing costs. - rates under 6%
•- VA - 100 % financing with seller paying all closing costs. - rates under 6%

Washington "We have a Problem"

Earth to Washington: "We Have a Problem" I read yesterday in a Bloomberg report, the financial institutions could have up to $1 Trillion in write-downs in the near future. Do you realize how much that represents? If you expect the taxpayer to bail these institutions out, how may years will it take and how high will our taxes be to pay for this $1 Trillion bailout? Then I read that our President and Congress intend to give the Federal Reserve more power to control the financial institutions. Question? Just who is the Federal Reserve accountable too? I would bet that most of the readers of this blog cannot answer that question. The answer is NOT the Government (people) of the United States. Some will say; "The President nominates the Chairman of the Federal Reserve as in Ben Bernanke. What that did not say is that the choice of who the President nominates is based on who the Board of Governors choose to send up to the President. In other words, the Federal Reserve chooses it's own Chairman, then the President and Senate approve their nomination. Now on top of the above, I read the new financial system will be based on some Scandinavian or Norwegian program, "Hello"? Are not Norway, Sweden, Finland and Denmark predominantly Socialist? Bet you cannot find that article in the major media this morning! By the way, "Socialism" has not worked in any Nation in the past, so what makes them think Socialism will work in the United State of America? Washington will not deal with the problem but playing the ethanol game has and will continue to drive this Nation into the bottomless pit. Relying on foreign enemies to supply the necessary oil to fill fuel the economy will continue the down fall. What to do? Having spent some years in the securities markets, hard asset markets, financial markets and finally the real estate market, I have concluded the following: 1. The dollar will continue to fall as the leaders will be unwilling to deal with the problem. Putting the Fed in a stronger position will only exaggerate the problem with the dollar. Remember all they want is control and they are getting it without strings attached. 2. I have yet to see a weather report being accurate over a couple of days, just how can they predict the weather 1 year, 5 years, 10 years or 20 years in the future? The "Global Warming Group" is just another way for the elite to control the masses. Once again I believe that to be Socialism. 3. Since 1990 I have watched the "hard asset" markets and still cannot justify the movements of gold, silver and platinum. The only answer for the movements up or down would have to be controlled (unproven) through manipulation. When gold should be at an all time high it drops $50 - $75 per ounce. 4. Dependent upon your current financial position: a. Real Estate investors who are over their head with dropping values and increasing payments should SELL before the price drops further. b. Investors with extra cash, looking for a hedge against inflation should BUY LOW, finance low and do your home- work in the area. Know the employment outlook, rental rates, and vacancy rates. c. Investors with large amount of cash looking for long term investment should look to Farms and Ranch properties. Once again do your home-work! Midwest farms are getting record prices per acre. I do not for see the leaders of this Nation dealing with the fuel problem other than throwing tax dollars at the ethanol program. This will raise the price of farm produce which will cause the price of farm acres to increase. We are entering into some extreme times and it is time to make extreme decisions for our future survival.