Today’s main interest rate cuts are the lowest in the Federal Reserve’s history.
What does all this mean for our real estate investing?
I went to two of my most fav real estate bloggers, Dr. Housing Bubble and Property Grunt, for answers.
This is what I got.
First, Dr. Housing Bubble.
He’s still somewhat obsessed with the Bernard Madoff scandal.
However, Dr. Housing Bubble does bring out the dirt under the carpet that we’ve all known has existed all along.
That underground economy. Strange, nefarious and sinister but inviting.
A lot of sophisticated sheep will get sheared, if I can use that word picture to describe the chaos in Palm Beach and the Hamptons.
But I like his comment,” Human behavior rarely changes.
The crash of 2008 will force many people to reveal their losses.
We will be shocked at what we find…”
I think he’s very right.
Onward to Property Grunt.
He’s almost evangelical in his forceful post entitled “Watch and Pray.”
As always he’s pragmatic, which is one of the main reasons I read him.
He gives us a good list for real estate investing and for those of us who will be investing heavily as the prices fall.
It’s #9 that inspires me the most this morning.
He writes, ” For those with liquidity(cash) there will be a ton of opportunity for investments since there will be dirt cheap options out there.”
That can’t be empasized enough.
I believe the smart savvy investors, many of whom are young at the moment, will lay the foundations for their fortunes now within the next two years. They’ll have some very grateful grandchildren- 50 to 75 years from now.
How’s that for thinking ahead?
More Interest Rate Cut News
Fed Could Signal Other Steps Besides Rate Cut – Economy * US … – The Federal Reserve is expected to cut interest rates to close to zero on Tuesday and may point to further unconventional steps to battle a year-old recession.