Preaching more real estate doomsday (happy Friday!)
I know I’ve said it before, but I’m worried about the housing market in the US, and consequently the economy. For all the reasons I outlined before (people borrowing beyond their means, the tougher new bankruptcy law, and the increase of minimum payments on credit cards), I’m nervous. I’m not the only one. Here are some interesting articles…
MSN and About both did articles on the credit card minimum increase. They both admit that while it is like discipline that is awful at the time but good in the end, a lot of people will be driven into financial hardship; MSN’s article states that “Bank of America … worked an extra $130 million into its 2005 budget to cover projected losses from defaulting cardholders.” About’s article sums it up: “In the long run, an increase is actually good news for consumers, but in the short-term, it could be devastating for people who have overextended themselves.”
Investment U cites the falling median home price statistic in their article “First Crack in the Housing Bubble … And Everyone Missed It” (via Savvy Saver).
Finally, a little speculation. Bad Credit Repair has a post called “The guru of real estate investing is getting rid off his U.S. real estate holdings, should you pay attention?” CNNMoney has a full report on this as well. Their article’s subtitle is “Tom Barrack is selling most of his U.S. portfolio. Maybe you should be nervous too.”
Realistically, I don’t have enough money right now to responsibly buy real estate. Even if I did, I wouldn’t… I’m saving my money for all the forclosure deals that I suspect are going to be available in the next couple years.
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