At the moment global stock exchanges and economies are…VOLATILE.
Anyone who is paying attention would be able to see that everything around us is unstable and unpredictable. No one likes to be off-balance and unsure of who or what to trust. But, that IS the reality of our current economic circumstance and it’s not going to change anytime soon.
Economic Volatility Indicators:
- The Federal Reserve has just announced it will keep the Discount Rate at .75% for at least two more years. That tells us that the economy is going to stay in the tank until mid-2013.
- Very few jobs created.
- Debt remaining high.
- New housing starts almost non-existent.
In other words, the outlook is dismal.
For Real Estate investors, the impact of this is OPPORTUNITY! Why? Because, foreclosures will continue and bank owned properties will be readily available at discounted prices into the future.
With new housing construction virtually shut down because of a lack of funding from banks and owner-occupied housing on the decline, rental rates are going…UP.
Historically, rental income from investor-owned properties is absolutely one of the most stable forms of continuous cash flow. Critics would say, “but, if people don’t have jobs, they will just quit paying rent”.
While it’s true that a homeowner might simply stop paying a mortgage because their house value is underwater, a renter won’t do that. In fact, rent is the “first” thing that will be paid because a renter, and their family, simply must have a place to live.
How to get Investing Tranquility in Volatile Times:
- Get educated about investor-owned Real Estate and how you can profit from the circumstances that have all but destroyed our economy.
- Income producing real estate is, in fact, one of the several safe havens from the volatility in the stock market.
- For a perspective on home ownership vs renting, go to this link My Budget 360 for a look at 3 cycles of home ownership data over a 100 year period and the implications for the economy.
- Read our blog entitled Real Estate IRA: The Secret. (View also associated links within.)
Some investors are uncomfortable with the idea of managing the whole process of acquiring property, doing the cosmetic rehab and then finding a renter. There are however turn-key solutions that will simplify this process for you. Go to www.IRA123.com/investments for more information.
Safeguard Financial can set up a Self Directed IRA or Solo 401(k) with checkbook control that will allow you to immediately move funds out of stock market based assets so that you can invest into income-producing real estate. The process takes less than 30 days to complete and can be structured to operate in all 50 states.
Contact us by calling 877-229-9763, or fill out the form on our website www.ira123.com.
