Now that our nation’s credit rating has been downgraded by S&P, CNN is referring to our economy as the “debt mess,” and all indicators point to trouble ahead, what’s a wise investor to do? 

Looking at the wide-screen picture, we can’t lower interest rates any further; the stock market is reactionary and making people nervous; and even precious metals, hedge funds, currencies and commodities aren’t behaving predictably.

Q.  So where is the smart money going?
A.  Real Estate.

1. The economic path forward will have to be inflationary because we cannot lower interest rates which are already approaching zero, and we have to make our downgraded debt attractive to buyers.
   
2. The mortgage banking scandals (forging documents and such) have hit the media, and foreclosure systems are overwhelmed and often paralyzed.  The Government will be asked to step in to guarantee mortgages for all.
   
3. The housing market has been in steep decline for 5 years and more, inventory is high and prices are at rock bottom.  New loans are at amazing, historically low rates.
   
4. Real estate does well in inflationary times because capital appreciation keeps apace and increases equity.

Buy Low – Sell High.  The present buying opportunity is unprecedented. Home prices have dropped as much as they did in the Great Depression… maybe more. Loans can be obtained with incredibly low costs.  Then hold on as the economy inflates to cover the present economic problems, and sell high as the inflationary tide raises all the boats.

This is the “Real Estate Buyers Bull Market” of all time.  Coastal property will never be a better buy in our lifetimes.  And it’s beautiful here on the Coast of Northern California, with sweeping panoramas of one of the last great places, with a majestic unspoiled coastline and charming villages along the Pacific Ocean.  Come for the ocean views and great climate, and stay for your investment portfolio!  I’ll be happy to show you around.

Best regards, Bill         
bill@CoastalBroker.net