Stock Market Spring Is Here
You could hardly ask for a better climate to invest in your first piece of real estate. That last term has not been swapped with ‘home’ by accident. Investing in commercial real estate is a valid form of financial planning. You could earn future rents far in excess of any stock dividend. It is a matter of choosing sound construction in a growth neighborhood. Wetlands with intact eco-systems could be better still if you have your inheritors in mind.
We are as guilty as the other web sites in pillorying hapless Bernanke. After all, we need our search engine rankings just like the alphabetic television types. The fact is that no one recalls when interest rates were lower last. Summer follows spring, so there could be an even cheaper mortgage down the road. An Adjustable Rate Mortgage could get you a juicy worm if you move early.
Spring does not mean that you prance around in swim wear. Here are some tips to stay warm as the first signs of economic thaw appear:
1. Invest in property well below the Equated Monthly Installment (EMI) you think you can afford.
2. Do not borrow more than 20% of the present market value of property. Be satisfied with the best that your free capital can afford for the rest.
3. Take the shortest rather than the longest duration available. Pay back as soon as you can scrounge. Your first realty does not have to be your only one.
4. Make a monthly budget with plenty of slack to deal with inflation. Provide for contingencies. Be ready to honor the EMI no matter what.
5. Invest in a certified, experienced, and highly recommended real estate agent. The paper work could get you even if the bank does not.
We wish you a Happy Spring and a Great Summer as well.