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Musings from the road! June 6, 2008

Posted by shaferfinancial in Uncategorized.
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My family and I are on the road heading to our summer home in New Hampshire.  This weekend in Boston for a family event and then the final leg to New Hampshire.  Next week I will start regular posts again.

Well the foreclosure rate has risen again, with evidence it will continue to rise next quarter.  Foreclosures are mostly a California, Florida, Nevada, Arizona problem and are still centered on sub-prime adjustable rate mortgages.  However, prime adjustables foreclosures went up to 1.48%.  Still, prime foreclosures remain under 1% in totality.  There is some evidence that the prime adjustable rate’s rose as investors with little equity abadoned homes as a result of their income losses (jobs losses).  As the recession drives unemployment we will see additional foreclosures adding to the already large supply of homes in these areas.

Still questionable whether the prices will be driven down enough to make is sensible to invest in real estate in these areas.  Certainly, it makes little sense now to buy investment real estate with this much supply out there and rents decreasing.  However, there are still some very exciting areas in the country where the numbers support investing (see www.bawldguy.com).  I will be reviewing a new book on real estate investing basics next week, look for it if you have any interest in building wealth through real estate!

Not much action on my EIUL post last week.  Either I am making sense to people or they have given up on me and are ignoring my posts as last time I broached the subject there was much action!

The Fed’s look like they will stop decreasing the fed fund rate and hold steady for a while.  This is good, indicating that the economy might not be in as deep as recession as some feared.

The American Automobile manufacturers have finally come on board with smaller more fuel efficient cars.  But is it too late????  We average around 36 MPG with our Honda Accord Hybrid (a six cyclinder 265 horses) fully loaded running the air conditioner all the way.  Not bad in my book.  Honda sales are up almost 6%, while Ford, GM and Chrysler sales fall off the table.  

World capital still seen buying commercial real estate in the US, driving cap rates down.  This is a good sign for us as we are still seen as a safe haven for capital.  Its really amazing how much wealth is out there looking for a place to park!!!!

The  Shafer Wealth Academy www.shaferwealthacademy.com has been successfully adding academy members and building wealth creating plans for folks, taking advantage of all that wealth running around the globe!

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Comments»

1. BawldGuy Talking - June 6, 2008

Greetings from Paradise, Dave.

Though you said things in your answers to BHB comments infinitely better than I did last year on the same topic, our answers were identical in point of fact.

The difference? Huge. The screamers showed up, though I didn’t tell you. They reigning their silly attack rhetoric because of your richly detailed (superior to mine) answers.

It’s my guess there are all kinds of readers allowing the info to percolate. We, ah, that would be you and the mouse in your pocket, gave them a lot of info to digest.

Enjoy Boston and the family, and drive safely on your last leg to New Hampshire.


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