Permanent Value

President’s Message

Bruce Doole
April 18th, 2012

SPRINGTIME IS ELECTION TIME …

As in any Presidential election year, politics dominate the headlines and especially which nominee will eventually face the President in November. As of the second week of April, the top two Republican candidates have been narrowed down to one and it is becoming clear who America’s choices will be in November. The main question that voters have been asking themselves is “am I better off economically than I was four years ago?” The second question is “what has this Administration and Congress done to improve the economy?” The third question would be “is there someone out there who can do a better job?” While these questions garner all the headlines, we believe it is each individual’s responsibility, along with the advice of their financial advisor, to improve their economic position regardless of who is in the White House, what party controls Congress, or what the economy is doing.

So what can be done now to improve our personal economic situation based on the opportunities that are available? We know that interest rates are at a historical low and real estate prices are down significantly over the past five years. We know that US companies are profitable yet not enough to be hiring at a rate that would lower the unemployment rate more than marginally. We know the government is deeply in debt and the debt has almost tripled in the past ten years. Thus, we know that the government will do everything possible to keeps rates low in order to avoid overwhelming interest rates on the debt. So how do these facts help us?

 

UPDATE REAL ESTATE…

Refinancing your current real estate and looking to add it should be one of your highest financial priorities. All the factors mentioned above, from low interest rates, inventories, and prices to increasing rents and population lead to this conclusion. Where to start is sometimes a tough question since most people buy based on where they want to live or the aesthetics of the house rather than the numbers of how it will significantly increase their financial position. This is where we as your advisor come in because we can take an objective look at your current situation and see how your current and future real estate holdings fit into your goals and lifestyle. We will be contacting you and by applying this philosophy we hope to accelerate the timeframe by which you will reach your goals. Factors such as current cash holdings, mortgage/s held and future income needs will all be evaluated to determine how suitable an accelerated real estate asset strategy is for you. Even Warren Buffett recently said in an interview on CNBC that he would buy “millions” of single family homes if it was logistically feasible for him to do so. This being said, it is certainly possible for a small investor to buy a few investment properties to achieve early financial independence if shown how and when the long-term conditions and prices are right.

We hope you and your families all had a very Happy Easter and Passover and look forward to seeing and talking to you as we review your 2012 budgets and plans ahead for the year.