With all of the controversy on going in our County and the world I am happy that mortgage rates remain historically low. 20 years from now will most likely proof that today is the best time to invest in real estate. We currently have historically low rates and home values not seen since the 80’s. The stage is set for many new future millionaires soon and all because they invested in Real Estate today. So what is causing all of this? We all get busy with our everyday lives so I will break down the major issues;
The Dollar has increased its buying power on a global scale. The Euro was just a short time ago had roughly 50% more buying power than our Dollar. The exchange rate was a little more than $1.50 only equaled one Euro. So how does this affect you? Well in 2008 the Euro was making its huge surged as the dollar value began to fall. This is when we gas prices suddenly went up to nearly $4.00 per gallon in my part of the Country. The falling Dollar buying power is what caused this. The reason is because at one time $38 would purchase a barrel of oil. In 2008 it took over $100 to buy the same barrel of oil. The price of oil did not change the buy power of the dollar is what changed.
The new Arizona immigration law is an emotional topic. No matter your point of view the law only mirrors the Federal Law. The root of the issue here is an illegal immigrate. The term illegal is just that illegal. The Media has hyped this up to an emotional hot bed issue. So are the police going to pull someone over due to the color of their skin? I guess the argument can be made but with said the job of the police is to watch us all. So what is the issue with producing identification if you are asked for it? I received a ticket recently and had to produce a driver’s license, vehicle registration and proof of insurance and I am a legal citizen. Maybe I have this wrong but should I be protesting because I had to show aka papers?
The Healthcare bill was recently forced upon the American People that more than spoke out that they did not want this form of Healthcare. Where is the Media coverage of Canada making major cuts to its Healthcare system because they can not keep up with the cost of its Healthcare Program? Most people do not relies that there is a huge business in treating Canadians’ with medical issues all along the US / Canada boarder. Should everyone have Medical care? I think we would all agree with this but who/how is this coverage going to be paid? Keep in mind that the Fed’s are us. To say that the Fed’s are going to paid is only saying that we all agree to pay our own way. We will all pay in the form of higher taxes. Sometimes we have to be careful what we ask for as we just might get it.
The on going oil mess in the Gulf is just that a mess. As someone that worked in the construction trades while going to college I find it hard to belief that this issue is not resolved by now. Yes it is easy to write this since I am not out there myself but we can all see the delay in action caused largely by our own Feds. Let’s correct the problem and then sort out the legal issues later. For the Feds to announced a Federal investigation with possible legal action against BP officials has got to be the worst thing to do at this time. Again common sense, let these people with all of the expertise stop the flow of this oil without the treat of legal action against them. Once all of these grandstanding begins then every step has to be gone over from a legal prospective before it is taken. This is done so that some Federal prosecutor does not try to make a name for himself because a BP procedure done did not follow some kind of protocol even if successful.
Think about this, even with all of this turmoil gas prices are falling. All due to the stronger dollar or weak Euro, you pick. There is no need to get into Israel, North or South Korea or the Obama Administration as they are all dealing with serious issues. If we simply follow the countries laws and use common sense then life is good. Once emotion is injected into any issue then we loose focus on the big picture. This emotion is what has caused many people to sit on the sidelines while investors are buying everything that they can. It is your choice to remain on the real estate sidelines or to take action but nothing ventured nothing gained.