This is a big topic for an Austin investment real estate agent to take on. So…… I won’t. But I do find the topic fascinating. Most of us get our economic news from Cable News.
During the build up to the Iraq war– I lost all faith in our “cheer leading” media. I believe that with economic news — the media has their “talking points”.
I found this article By John Mauldin — it is a cohesive argument that is written in terms we can all understand. John put this article together with input from Dr. Lacy Hunt of Hoisington Investment Management in Austin, Texas. It is an overview of the risks that we face in the US Economy. I am covering it here because investors always want to be able to predict how their investments will fare with the upcoming economic woes.
What does this article mean to the Austin Real Estate Investor:
1. Sellers– if you really want to sell a property, be reasonable now. You don’t need to sell good properties but if you are trying to dump a “dog” -- dump it now or prepare to hold it for another 2 or 3 years.
2. Buyers: — Austin is one of the best real estate markets in the country. There will be plenty of bargains out there. Spend your investment dollars here. The following photo shows the areas of the country with the highest loan default rate. As you can see, Texas is faring well compared to most of the country. The Texas market is stronger than the markets making headlines.
http://www.tradingurus.com/the-velocity-of-money-john-mauldins-weekly-e-letter.html
It’s something to ponder.
