I’m always monitoring the housing situation and as you know it’s been disastrous of late to say the least. Since this is an investment site, I’m looking at this from an investment perspective. If you’ve found your dream home and don’t care about appreciation and plan to be there for 30 years, have at it.
Real estate investors should be concerned and excited at the same time. While interest rates are not going anywhere in 2010 and most likely most if not all of 2011, there’s still potential for downside.
Let’s look at a couple of issues.
There’s a huge trend growing where home owners who are perfectly capable of paying their mortgages are walking away from their home because it has lost too much value. And Fannie Mae (NYSE: FNM) has had about enough of it.
In a press release hot off the wire, it was announced that Fannie Mae is adopting new policies to discourage people from leaving their homes.
Open up almost any real estate investing book that’s about buying raw land and you’ll be told that you should never purchase land without seeing it in person first. Buying land without doing lots of in-person tests and homework is called foolish.
This is exactly the rule I broke when I first got started in raw land investing for my real estate investing portfolio. And I made a killing.
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Email: jmartin@financialrebel.com
My name is Jason A. Martin and this is my investment blog. Back in Jr. High School I fell in love with an electrical wiring company's stock on Wall Street. After following the stock daily in the papers—the Internet wasn't around back then—I sent them a letter and they sent me back all sorts of wonderful information about their company.
In High School, we had a stock market contest. All the kids were picking companies that made stuff they consumed. When I announced my beloved company, I was laughed at. Little did they know that my company was going to be the subject of a takeover soon.
Long story short, I won the contest and have made money in the stock market, through real estate investing, currency trading and so forth.
I hope you enjoy Financial Rebel. If you do, please leave your comments and share this site with those you know. I also run a currency trading blog over at CapitalistNation.com.
Jason
