Good morning to Summertime Fun !
This month’s deep dive: The headline fear “ Better to Rent than Own”
This is a most common media fascination, particularly MSNBC. For the 34 % of Americans who are renters, the answer is Maybe. Truth be told, generally about 10 % of the rental population is in a financial position to buy.
Therefore let’s move from national dynamics to instead focus on those able and capable of being or becoming a Buyer – the 70 % already owning homes or intend to own. Further, to address the leading statement, we will narrow our comments to the 4 % of the population able to buy, yet choose to rent. Here are the most common reasons for holding back.
1) High interest rates. Facts are facts, and if and when the rates drop, one can refinance. Historically, the waiting may hurt.
2) The price, it’s too high. For those able to purchase, price is already taken into account. But for those holding back, the price of the property ‘desired’ is above the ability to pay. Here, the solutions are to either not buy or instead, seek properties matching one’s ‘ability to own’.
3) The payment is so much higher than my rent. Here I would offer the following:
A) Target what is affordable, not some idea or ideal. If you cannot afford a Corvette, avoid the Corvette showroom.
B) Income stability. Life is uncertain, however your income prospects should be stable, or savings should be growing quickly. Self-discipline if often key. Regardless of whether you own or rent, payments need to be made.
C) I cannot afford to buy, today. Such as this, is quite subjective, yet the jump will be taken at some time. My take on the market, backed up with quite a few decades of data, is the best time to buy is yesterday, the second best is today and the third best is tomorrow. It will always be a challenge to buy, demanding hard work and solid preparation. We can help. Some insight: home values this year, have once again increased over 6 % over the same time last year.
Note: This despite a softening economy, all the tech company layoffs, and all happening in the world. If you received compensation increase of 5 % the past year you maybe treading water. Trending water is not my favorite thing.
If you find yourself in this segment of life, please.. please.. let’s talk. My goal is not to change minds, but instead, to broaden one’s knowledge base to help in the decision making process.
MARKET NEWS
US Economy Growth: The second of three reports for 1st Quarter GDP growth has arrived. It is showing a positive 1.2 % year-over-year growth. Most news outlets focus on the 70 % of GDP which is dependent upon consumer spending. This sector is slowing down, with delinquency rates for credit and auto increasing. Such remains a natural consequence of our response to CoVid. This includes a couple of years of double digit inflation. We have not seen any dis-inflation – not negative inflation – since.
We need to take it all in. Most are still working, spending, and keeping children in school and camps. Personally, I attempt to be encouraging and enjoy our conversations, as each is unique. What can we do with the specific you? More vacations, more savings, more time with family, more investing? I strive to be a safe place to explore and consider available options. Question: What is YOUR reality / situation / circumstances? We are here for you. CALL.
Federal Reserve: Recent auctions have been quite poor. Worry about if or when the Fed will begin reducing rates ? Geopolitical concerns ? Election concerns ? Will the Fed step back into the market and slow down the balance sheet run off (Let us give them the kudo’s they deserve as the balance sheet has reduced 2 T over the past couple of years).
For some, the issue is perspective: Federal Reserve has its path to a slow landing and US Treasury Secretary Janet Yellen has hers. The consumer and investor are caught in the middle.
Yikes … !! Life continues to be interesting.
We watch, we wait, and we report, to assist in planning and preparation. It teaches us patience, certain readiness, and importance of timing. We seek the best answer that fits your goals, based on our conversation. If you are ready, so are we. Call today.
Inspired Market News
to Bring Needed Balance
Our Good News comes from a favorite source: FutureCrunch.com. They have re-branded as Fix The News.
The Good, the Bad, And the Ugly
The Good –
What’s the opposite of doom-scrolling?
‘I went to China and drove a dozen electric cars. Western carmakers are cooked.’ The EU just approved a law to hit gas imports with a methane emissions limit. France announces winners of world’s first commercial-scale floating wind auction. Australia’s mining sector gets serious about the clean energy transition. Notable progress towards public EV chargers in the US (a lot more still needed, though). Major tech companies commit to buying 20 million tons of nature-based carbon removal credits with stronger safeguards. A lot of people are working towards a just transitionin West Virginia. Vermont is on the cusp of mandating 100% clean electricity by 2035. Revenues from carbon pricing are now over $100 billion. Scientists say they’ve found a way to recycle cement from demolished concrete buildings. Electric vehicles and heat pumps definitively shown to be less emissions-intensive in 95 countries. Watch an electric vehicle absolutely smoke a Lamborghini, Porsche, Jaguar, and Maserati.
The Bad – Will Inflation Ever Get Where the Fed Wants?
Latest PCE numbers in for the month of April. No change in the year over year with the Core PCE at 2.8 %. Shelter and auto insurance keeping it up. As we go into the second half of the year, we are actually expecting core to increase to about 3 % as the second half of 2023 was quite soft.
Another interesting note, in the EU shelter is not a component of their inflation index. If we used the EU methodology our inflation numbers would be at 2%.
The Ugly:
Politics.
Bottom Line
There are problems all around us. For those of us in real estate and like investments, the problems I speak of above, have resulted in our making large amounts of money. To the tune of millions. I for one would have been thrilled with half of that, had the result been more housing, better infrastructure, solar on the top of all commercial buildings.
Yet, for now, I will stick with what works, with what makes us these incredible returns. If you are of a similar mind, please continue reading. And, I do thank each and every one who does read for your kindness, forgiveness of my gaffs and most importantly your ongoing friendships and business relationships. Let us all continue to have fun, in spite of so many headwinds!
We seek to find the good of people, carefully review any negative headwinds, while striving to help maintain a sense of balance and encouragement. Yes, we each have challenges, our desire to improve and do better is steadfast. This driving force helps make us better. Clearly higher taxes, and high inflation challenge family finances. Yet the good news; History shows that this too, will pass. Stay active, motivated, and open minded. Let this reality become our common ground and let your voices be heard.
Planning and Preparation
I rarely change this section. The basics for investing are pretty straight forward. What remains is finding the best path to success and the discipline to stay the course. It begins when you reach out to us. Please make the call today.
Should one invest in stocks, bonds, real estate? Each person has a different view of potential, of comfort levels, of the sense of risk vs reward. Such is the heart of the market place and key to one’s “planning and preparation”. To this, we offer clients our expertise and experience in order to complement your perspective. Our goal: Bring a full range of meaningful options to enhance your discernment, based upon todays market realities. Call today. Let’s set a time.
Our strategies are straight forward, logical, and built on sound reasoning. No doctorate in finance needed to plan and succeed.
Why Call Mike
What We Do – Why We Are Here
We know how to explore and carefully examine the many available options. Yes, we are real estate centric for the long term gains anticipated. While we do NOT ignore other types of investment. We scrutinize for safety and prioritize the most feasible. It is how we build a trusted relationship with you, as you grow your wealth and secure a solid future.
Small Business: We love small business and provide a full array of financing tools.
Residential / Commercial: We offer strong lenders and a complete package of lending options.
Retirement Strategies: Like myself, as we mature, real estate becomes more personal. If you agree, let’s talk. Together, we can help find answers and solutions to questions about a too soon tomorrow. We can start today. We can address a range of questions, from working at home, to a multitude of retirement options. Our effort is to bring clarity to important real estate planning issues.
Purchasing Options for Investment Properties:
We finance Nationwide investment property purchases. Little known loans requiring very limited documentation – NO income tax returns. The loans are based upon the properties cash flow. Curious? call. Investing out of the area is not rocket science.. yet you do need to have some knowledge, let us fill in the blanks for you to succeed and prosper!
What We Do: Our role is to explain and bring clarity to time-tested strategies able to keep your money working for you. One that is worthy and a profitable use of your valuable time. Let’s talk.
Tools: We offer multiple tools and proven methods. The goal: offering highly qualified and knowledgable professionals ready to make it happen.
Our Purpose:
Be insightful and practical.
Working with you, to find the best answers and solutions.
Always Being Straight Forward, with No Short Cuts.
Success begins with solid preparation and a proven professional – Mike Ryan. I know the ropes and am a proven advocate. I offer time-tested insights and experience. Best, I love to see my clients achieve their goals. Call us. We are the professional team who stands with you. Call today.
We are ready and forward looking !!
Thank you and blessings to all.
