US President Obama stimulus package called the "American Recovery and Reinvestment Plan” will pump close to a trillion dollars in the US economy that will create 3 million US jobs in the short-term and spur economic growth in the long-term. World leaders across the globe have followed President Obama’s lead and devised their own stimulus plans to get their economies moving again. So the world leaders are finally working together to make sure that we all get back on the prosperity track if that’s possible.
If all goes well this sea of money being injected into the world may lower mortgage rates which will ease foreclosure rates and the optimism of a better economy will lift the stock market as investors will step off the side line and reinvest in the market. In the short term these measures will re-inflate the housing markets world wide.
When the housing market is strong worldwide, property in the Bahamas naturally gets stronger as well. The unique advantage we have in the Bahamas is that we have never experienced the huge rise and fall of prices. We have had solid modest gains over time and based on the desirability of wonderful climate and our tax free environment our prices have held well.
Its Better in The Bahamas in case you have not seen the new Ministry of Tourism new ad campaign and its true! But even in The Bahamas we are influenced by world economics an many economists however predict that these very aggressive stimulus packages will jump start the economy but the result will be inflation. In economics, inflation is the rise in the general level of prices of goods and services in an economy over time. Inflation is the decline in the real value of money because there is a loss of purchasing power. So the dollar you have today will not buy as much as tomorrow.
So to hedge against inflation and protect your wealth a smart investor will buy gold or real estate which is a tangible asset. Cars and eggs lose their value but Real Estate is an investment that will INCREASE in VALUE over time. So Real Estate is like Gold. Real estate is a long-term investment and so it is the best bet for investment when inflation is high because property will keep increasing in value. It is a historical fact that property has and will always be a great investment over the long term.
In Freeport/Lucaya we do not have any property taxes until 2015 so if you are in a position to buy this might be the time you have been waiting for to invest in your future. It will be a big mistake to wait for prices to cool down because they may have already begun to rise. You will never know when a market is at bottom until it begins to rise and then it is no longer at bottom.
“If you snooze you lose” as they say. When inflation starts to pick up this in when people should start investing in Real Estate because prices of Real Estate will begin to rise as well. Real Estate has always been the best investment you can make because it is a tangible asset and a great investment as long as you do not have too big a mortgage and you do not overpay for your property.
So in the ideal world if you get a great deal on a piece of property and don’t overextend yourself with high mortgage payments you will be in very good shape in the future if you invest in real estate. If you are thinking about Real Estate then start looking at the Real Estate web sites and talk to a Real Estate broker and get a feel for property an investing.
These are trying times for sure and we all look for a brighter future for Freeport and the world. If you are lucky enough to have a good job and have saved a few dollars this may be the right time for you to invest in yourself by investing in Real Estate. As I always like to say “Don’t be a woulda, coulda shoulda investor be a buyer/investor and you will be glad you did.
Contact James at Coldwell Banker - James Sarles Realty firstname.lastname@example.org