I hear all these commercials to refinance your home or purchase a new one at the lowest interest rates ever. I heard that stuff in the big real estate boom and it worked! Why isn't it today?
I watch a lot of pod casts and one really informed me why the low interest rates are not working in this market. He explained that the biggest borrower was that government. The bank gave most of their loans to them. Think about it who would you lend to the government or a citizen?
With the on going out of control spending the deficit just keeps growing. The deficit is like a company that keeps telling it's stock holders they need to keep borrowing and they can force the banks to do it. I thought these people were the brightest people in the nation?
So when your client or you go too get a mortgage or god forbid a credit line their isn't a whole lot of money left for the free market.
When the banks start having more money to lend to the free market, then you'll see real estate start to recover. I think that the business loans will also get going again and help our economy to get going again.
The benefit to the banks not lending is the extremely low home prices that exist today. In some markets you can pay cash for homes and not worry about the banks anymore. In real estate you can always find ways to make money with it. Right now in some areas rents are great and prices are less than most cars.
So when you look at the interest rates understand the concept that the government is also dipping into that pool. In fact they are the banks preferred customer.
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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
WWW.Rooftopprofitmax.com
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