Monday, December 27, 2010

5 Ways to Prepare for Rising Interest Rates

Investors in Real Estate should look at number five
Be careful with leverage, especially with real estate. Many people are waiting for real estate to become a great investment again. But much of the reason why home prices accelerated over the past two decades is because of increasingly affordable credit. As our economy picks up and the government slowly withdraws its support for the housing market, mortgage rates will probably shoot back up, becoming a drag on housing prices for years to come. For people planning for retirement, this means focusing less on trying to move into a huge house and reducing real estate investments. Sure, there could always be a bubble in the housing market again, making you regret this decision temporarily. But if I were you, I wouldn't bet on it.
Read the other non real estate four

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