One certain answer, it is easy to get a loan when you ‘don’t need a loan’ than when you are in dire need. I have advised clients for years to borrow a little more than they think they need and always be liquid. The best buying opportunities come when everyone else is out of cash.
Any student of history sees one of two scenarios in today’s real estate markets: 1.) the opportunity of a lifetime to buy, 2.) an abyss. The abyss by all accounts is highly unlikely, but again history teaches us to prepare for the worst, cheer for the best.
Realistically, the fear I hear today in the media, from my freinds, and around the water cooler reminds me of the stories my Grand Dad told about the 1930’s. But the world I see - new cars, lines at the movie theater, full restaruants and people in shopping malls (with bags), and plenty of Government $$ injected feverously remind me more of the panic before a recovery.
Maybe it’s just my hopeful nature? Maybe I’m just contarian to the core? Maybe I’m right. Maybe there is a wave of inflation about to hit the US economy, that will increase the cost of borrowing - and real estate values. Maybe it’s time to borrow all you can at today’s fixed rates (generally below 6.0%) and get your cash ready to buy hard assets that are about to appreciate or inflate again.
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