LIVING OFF DIVIDENDS & PASSIVE INCOME

According to Chris Gaffney of Everbank.com, who’s Japanese REIT CD I recommend, said today

The markets seem to be waking up to the fact that the housing market is no where near the bottom. Borrowers are being squeezed by the treasury markets recent sell off which has increased 30-year mortgage rates the most since 2004. The National Median Home price is poised for its first annual decline since the Great Depression. An executive at the giant bond fund PIMCO said it best: “It’s a blood bath. We’re talking about a two to three year downturn that will take a whole host of characters with it, from job creation to consumer confidence. Eventually it will take the stock markets and corporate profit.” The US housing market has provided the economy with support through the creation of wealth and the seemingly endless ATM of price increases. The recent increase in yields, along with the sub prime mortgage meltdown is going to kick this support right out from under the economy, and the dollar is going to be drug down along with it.

Sounds like bad news for the housing market and for the US dollar too. I’m a big fan of investing in real estate, but extreme caution needs to be exercised right now. Don’t be in a hurry to buy property just because you read some book or attended some seminar. Especially in places like Calfornia, Florida, Nevada, Michigan, Illionois and Ohio which lead the nation in foreclosures.

I continue to own homes in Indianapolis, Indiana I’m not concerned because it has really good job growth. So its not that I’m soured on real estate investing, its just that the easy money is long gone and its time to be very careful. Real estate won’t be as forgiving as it was 5 years ago if you by wrong in this cycle.

• Is It Time To Buy Real Estate? Over the past few weeks, several of friends have asked me if its a good time to buy a house now that real estate prices have bottomed. Encouraged by the media, everyone seems to think that home prices have bottomed out and the recovery is about to begin. Even Jim......
• Real Estate Forecast 2009 As a member of the school's Real Estate Club, I got a pretty interesting update on the real estate forecast for 2009. This is just the summary. The whole article was signficantly bigger. A lot of it is obvious, but it's still a good comprehensive list. Serious dislocation has resulted......
• 10 Worst Real Estate Markets In 2009 As I mentioned in a previous post, the real estate market hasn't hit bottom yet. According to an Article in Fortune Magazine, 8 of the top 10 worst real estate markets in 2009 are in California. The range of the predicted price decline is between 20 to 25%. 1. Los Angeles 2008 median house......

• Commercial Real Estate Articles and News # 3 Greetings from the 345th wonder of the world....Cedar Crest, NM I am back from Durango, CO where I spent the week with my youth group. We joined a thousand other young adults at Fort Lewis College @ the CIY MOVE conference. It was amazing. Anyway while I was at the......
• Keeping Your Money Safe in Economic Turmoil While many are reacting to the news of bank failures and bailouts badly, there are a few people that are taking the time to assess the situation and figure out what they can do to stay on top, and keep their money safe. Panic is an ugly thing, especially when......
• Global Markets Are Plunging - What Awaits Us In The Morning? And how do you see it? Will you buy a lot and hold on? Will it be a fire sale? Or will you start drinking early? From CNN: Stocks fell sharply worldwide Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to......

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