A Sea of Trouble

With all the negative in the news lately, I decided to add a little "lightness" to your day in this blog. Not ALL of life is about economics and real estate......well... IT SHOULD BE.. but its not ENJOY

Great truths about life that adults have learned

Raising teen-agers is like nailing Jell-O to a tree.

There is always a lot to be thankful for, if you take the time to look. For

example, I'm sitting here thinking how nice it is that wrinkles don't hurt.

One reason to smile is that every seven minutes of every day, someone in an

aerobics class pulls a hamstring.

Car sickness is the feeling you get when the monthly payment is due.

The best way to keep kids at home is to make a pleasant atmosphere - and let

the air out of their tires.

Families are like fudge...mostly sweet, with a few nuts.

Today's mighty oak is just yesterday's nut that held its ground.

Middle age is when you choose your cereal for the fiber, not the toy.

My mind not only wanders; sometimes it leaves completely.

If you can remain calm, you just don't have all the facts.

New Year, New Opportunities

The new year 2011 will bring many new opportunities in Real Estate Investment. The pitfalls will be equal to the opportunities.

2010 will always be considered the bottom of the real estate market since the Great Depression. Not since the 1930's have we seen the same levels of depreciation of prices or the number of defaults and foreclosures. During the last quarter of 2010, a modest turn in the level of decline of values and the number of home sales has turned.

In the South Florida market, we have experienced the highest level of closed sales in the last 4 years starting in July of this last year. While prices have dipped on average by 45-60%, depending upon location, the number of sales has jumped over 120% over last years levels. That has virtually stopped the slide in values and in some cases has led to some bidding wars among investors on the best deals. Short Sales and Foreclosure sales still outnumber the resales in the market but this number is quickly declining.

Pressure on interest rates and the weakening dollar are putting people back into the market as well to grab the best mortgage deals before they are gone. AND they WILL be gone within 18 months at the outside. It is inevitable. The fox is already in the coop. The fox is the massive dollar printing that took place in the last 20 months by the Federal reserve and there is no pulling that back in. Those dollars are in the market place and at some point, will come home to wage an inflation war on the US. Be prepared.

Real Estate and commodities, especially those pegged in US currency will be a good hedge against the devaluing of your cash position. But debt will not be your friend by any stretch if you are holding short term adjustable interest debt. You are sitting on a time bomb that you MUST get rid of or be seriously hurt. Dont ignore this warning. It will be to your peril.