Top 10 Reasons why you should be glad the economy sucks....

Courtesy of the Real Estate Guys Radio show, I would like to offer their top 10 Reasons to be glad the Economy Sucks for you: And I could not agree more.
1) Great Real Estate is on SALE!
Why is it that Americans love to buy things on sale EXCEPT for Real Estate? For people who were looking to buy real estate even a few years ago and faced multiple bids and lack of time to do their due diligence because offers were coming in above asking price, now could be the time. They now don't have to worry about the "dumb" money that came into the market which pushed prices up. Real Estate is cyclical and WILL end up being more valuable in the future than it is today. Maybe not next year.....but if you were to buy a house today, what would the chances of it being worth more in 10-12 years? I'd say pretty good.
2) Interest Rates are Great!
It doesn't mean that everyone can get a loan but if you look back throughout recent decades, it's hard to find times that were any better. And these are fixed rate loans too! Eventually interest rates will start to go up because of the stimulus packages and other factors. How much further do you think rates can go?
3) It's a great time to become a Private Investor/Lender
There are great opportunities to become a private lender because traditional lending has become more scarce. People who can't fit into the strict lending criteria can look to other lenders at STILL good 7%-8% rates. Investors would rather be in the first position too. Why would you want to keep your money in the stock market (Roth IRA's, 401K's, etc) when you could put your money to work in the loan business?
4) Now's a great time to get a contractor to call you back!
Unlike 2-3 years ago, when contractors were "too busy" to call you back, show up, and give you a bid, now there is not enough work for them so they become more anxious to hear from you.
5)Title Companies, Agents, Attorneys, Escrow Companies NEED you right now.
They are more than willing to assist you more than ever. They are all looking for things to do, and will be more productive than 2-3 years ago for you.
6) Affordability!
When the median income is more in line with the median house it makes housing more affordable to the masses. The benchmark is when 30% of your total income is allocated to housing expense. Overall, the housing opportunity index during the last 3 months of 2008 was "affordable" based on this standard. It is up to 60% versus 56.1% in the previous quarter and up from the 46.6% in the last quarter of 2007. If the affordability keeps climbing as prices continue to drop and interest rates continue to stay low, why then are people not buying....Fear and lack of confidence in the economy&in their jobs.. Once they realize that their need for housing overcomes their fear, then they will come back to the market.
7) New housing starts are at an ALL TIME low.
It basically means supply and demand. As there is less new inventory coming onto the market versus the existing inventory and more population coming down the pike, this creates a stabilization and then an upswing. It's basic math.
8) The repeal of the 4 property limit.
Starting March 1st, Freddie and Fannie are dropping the 4 loan limit on 1-4unit loans. This will allow investors to come in and purchase more properties. The National Association of Realtors figured out that prudent investors could help soak up the glutton of houses on the market ~ The people most likely to come back into the market and who would be willing to pick up some risk were locked out of the market because of this rule. This is now designed for people to use credit and RESPONSIBLY use that credit to get lending. They are trying to bring back responsible lending practices. This means a market correction. When a market tries to correct there is going to be some pain. If there was no pain in a correction then people would not change their behavior that caused the problem in the first place.
9) It's a great time to buy a car............or anything!Cash is King!
If you have the ability to buy, it's a great time to get your hands on things you may have wanted or needed. If you need to furnish your rentals or you're thinking about redecorating your house because you decided not to sell and just update it....Now is the time. People are willing to deal like never before.
10) You can get Loans modified now more than ever before.Just a few years ago, the thought of calling your lender and asking them to modify your loan was unheard of. Now, there are companies and a whole industry springing up that are based on this principle. There are incentives from the government TO people for assisting in this process. The more people they can get current on their mortgages and give them confidence, the quicker the housing turn-around will occur.
and one bonus reason...............11) There are more $5 lunches than ever!More places are competing for your attention to provide goods and services.
Thanks to Robert Helms, Russ Grey, and Bob Helms (The Real Estate Guys)

To get more information on Nashville Real Estate or homes in the Middle TN area, please visit my website at:
www.JoshAndersonRealEstate.com