How to Make a Slow Fortune in Real Estate
You can accelerate your LIFE SAVINGS PLAN by buying and holding income-producing real-estate., http://www.moneycafe.com/library/primeratehistory.htm , If you don’t yet own your own home (but would like to) BUY one now and LOCK in the interest for 30...
Step-by-Step Guide
-
Step 1: You can accelerate your LIFE SAVINGS PLAN by buying and holding income-producing real-estate.
Crashed Real Estate Prices.
Tax Write offs.
Future appreciation in price.
Lowest Interest rates in 50 years (see graph below). -
Step 2: http://www.moneycafe.com/library/primeratehistory.htm
, Banks normally loan fixed rate loan on primary residences that are owner occupied. ,,, At the end of the 1950s and early 1960s homeowners were getting loans on their homes at less than 6 percent.
In 2010 and 2011 rates fell below 5%, the lowest since the 1950s. ,,,, Assess the increased / excess equity (what your house is worth
- what you still owe) in your house yearly and use that excess equity to buy another as soon as you can scrape up a reasonable deposit (20% if you are conservative). , Lock in the interest rates for 30 years; rent the property out; keep raising rents; reassess the value of all of your properties yearly. , Repeat until Rich! ,, Once every 40 years there is a major housing bubble caused by cheap money that inflates Real Estate.
This happened in the 1890s, 1930s, 1970s and 2010s.
During this severe recession, the Government prints money and spend it on stimulus packages (McKinley, FDR, Nixon) causing an inflationary up-leg.
The initial contraction in Construction and Jobs causes inflation to be under control the first half of the decade, but when the population increase absorbs the foreclosed homes, then the Banks start to aggressively loan money on homes as they rise in price the second half of the decade.
The printing of
4.1 billion dollars of cash per day insures another inflationary up-leg and a good jump in Real Estate prices.
Currently in 2011 one million foreclosures are expected as the ALT-A and Option Adjustable rate loan packages adjust higher.
This caused an average
3.9% drop in prices in 2010 and another
3.9% average drop in home prices is expected in
2011.
After March 2012 the loan packages are 99% done resetting to higher payments and you can expect Real Estate to rise in price some. -
Step 3: If you don’t yet own your own home (but would like to) BUY one now and LOCK in the interest for 30 years.
-
Step 4: Home prices are relatively cheap compared to their 2006 highs (if you think they will get cheaper then wait a little longer … if you’re not SURE they will get cheaper
-
Step 5: buy now).
-
Step 6: Money is cheap - mortgage rates are the lowest since the 1950s.
-
Step 7: http://www.moneycafe.com/library/primeratehistory.htm
-
Step 8: You want to keep buying that cheap money for as long as possible …
-
Step 9: … but
-
Step 10: only IF you are prepared to take the next step
-
Step 11: which is to …
-
Step 12: STEP 2.
-
Step 13: STEP 3.
-
Step 14: STEP 4.
-
Step 15: this will take 10 to 30 years … to accelerate: start that little (or big) side-business that you've been thinking of and use the excess cash-flow to buy more investment properties rather than Porsches!
-
Step 16: Simple … and
-
Step 17: you couldn’t be starting at a better time in history!
Detailed Guide
Crashed Real Estate Prices.
Tax Write offs.
Future appreciation in price.
Lowest Interest rates in 50 years (see graph below).
, Banks normally loan fixed rate loan on primary residences that are owner occupied. ,,, At the end of the 1950s and early 1960s homeowners were getting loans on their homes at less than 6 percent.
In 2010 and 2011 rates fell below 5%, the lowest since the 1950s. ,,,, Assess the increased / excess equity (what your house is worth
- what you still owe) in your house yearly and use that excess equity to buy another as soon as you can scrape up a reasonable deposit (20% if you are conservative). , Lock in the interest rates for 30 years; rent the property out; keep raising rents; reassess the value of all of your properties yearly. , Repeat until Rich! ,, Once every 40 years there is a major housing bubble caused by cheap money that inflates Real Estate.
This happened in the 1890s, 1930s, 1970s and 2010s.
During this severe recession, the Government prints money and spend it on stimulus packages (McKinley, FDR, Nixon) causing an inflationary up-leg.
The initial contraction in Construction and Jobs causes inflation to be under control the first half of the decade, but when the population increase absorbs the foreclosed homes, then the Banks start to aggressively loan money on homes as they rise in price the second half of the decade.
The printing of
4.1 billion dollars of cash per day insures another inflationary up-leg and a good jump in Real Estate prices.
Currently in 2011 one million foreclosures are expected as the ALT-A and Option Adjustable rate loan packages adjust higher.
This caused an average
3.9% drop in prices in 2010 and another
3.9% average drop in home prices is expected in
2011.
After March 2012 the loan packages are 99% done resetting to higher payments and you can expect Real Estate to rise in price some.
About the Author
Melissa Jimenez
Professional writer focused on creating easy-to-follow lifestyle tutorials.
Rate This Guide
How helpful was this guide? Click to rate: