31 Mar State of the Economy
Is there any relief? It seems there is bad news everywhere whether it be on the television, radio or newspaper. Jobless rates are increasing, foreclosures are rising, banks and companies are going out of business and spending is down. Even some of the gurus in their field have been set back. Attendance at events are down and even if I think we have challenges, there are other people with bigger challenges.
Is anyone exempt from the economic meltdown?
One of the credit card company just lowered my credit card limit to $9,000 from 29,000. I always pay on time and always pay a little more than minimum. So not sure why the drastic drop. The bank says it’s the economy and having too many credit inquiry and loans. Doing multiple transactions involving loans and credit checks as a real estate investor is common. The credit card company states that 1 inquiry a year is common.
The credit card company are probably in the same financial strife as the banks and so are increasing their interest rates and lowering the limits. I remember having about this low limit back when I was in college several decades ago. Might have to go back to using cash and checks like the old days.
It is the worst of times and for some this is the best of times. Housing prices are down which makes it one of the best times to buy. There are so many houses to choose from and at bargain prices. A lot of the banks however are still holding onto their higher market price. And banks are being overly stringent on their financing. It went from one extreme of lending to anyone with a pulse to the other extreme of making it so difficult for most to qualify without giving up their first born. It is no wonder there are so many homes sitting on the market.
So what do you do? Buy as many houses as possible while prices are down. Stay away from banks and do seller financing and get private funding. Does anyone have any other ideas?
How has the current state of the economy affected you? What are you doing to overcome some of the challenges?
Investing in Your Future