Posted by on Tuesday, April 23rd, 2013 at 3:48pm.
Are interest rates going to prove to be the new bubble??? Why not take advantage while the time is right??
Over the last 15 years or so, there have been a few bubbles. Maybe you called them, maybe not. But, there’s always money to be made by taking advantage of the TURN, that is, when the bubbles go “Pop!”
We had the Internet bubble in the early 2000s. We should have all SOLD and gone to cash after incredible appreciation.
We had the Real Estate bubble follow in mid-decade, and wouldn’t we all like that one to do over?
Gold went on a tear next after going flatline for over a decade before the meteoric rise.
So, is there a new bubble?
Well, if you GOOGLE “30-year interest rates,” and look at any number of charts, it sure looks like one!
- In January of 1995, 30-year fixed-rate mortgages were around 9.5%;
- If you borrowed $300,000, it cost $2,522.56 for a monthly payment.
- In January of 2013, 30-year fixed-rate mortgages were around 3.5%;
- If you borrowed $300,000, it cost $1,347.13 for a monthly payment.
…..THAT IS A $1,175.43 SAVINGS EACH AND EVERY MONTH!!!!
1. The Fed is trying to stimulate the economy by facilitating low rates;
2. Real estate prices have bottomed out and are recovering;
3. Consumer sentiment is on the rise;
4. Rents are UP throughout the country; and
5. The stock market has almost doubled from its decade low.
There’s the smell of a TURN in the air!
So, consider this: You can buy discounted real estate at historically LOW interest rates on a 30-year loan, thereby setting yourself up for very low payments, future appreciation, tax incentives, and all the while effectively “shorting” (or betting against), low interest rates staying low for the next 30 years.
It seems like the odds are in your favor if you consider this strategy!
If you think you might be interested, let us know and we can discuss your situation. Or, click here to start searching for properties!