Quite apart from the small investors and home owners, it appears that some of the big boys are taking a hit or two in the sub prime crisis as well.
It’s unlikely that the chairman of Citigroup or Morgan Stanley will have their houses foreclosed upon, but, in a sick way, it’s nice to know the banks have been caught with their pants down as it were. According to Mike Mayo of Deutsch Bank, Morgan Stanley will be writing off $3 to $5 billion this coming quarter.
Gazing into our crystal ball, this is a list of likely overseas property investment markets that should do well in 2008, assuming that the current financial disaster in process in the US does not spread like a disease across the world – which does look like a strong possibility.
Buying a house in order to sell for a profit has become quite popular thanks to the plethora of property shows on British TV. Is it really as easy as they make it seem?
As the sub prime mortgage debacle continues to play out across the United States, the Federal Reserve has opted to cut interest rates by another quarter percent just last week, bringing the rate down to below 5%. This cut makes all loans relatively cheaper, thereby encouraging a pantheon of economic activity to increase, hopefully in the troubled housing market. Such tactics have been used with relative success in the past, most notably in 2000 when the US economy suffered a major downturn in the wake of the dot-com collapse. This collapse triggered a recession, which took three years to completely stabilize.
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Abu Dhabi is closely following Dubai’s recent example, but with a few strong exceptions that are making Abu Dhabi look by far the better investment
prospect:
- Culture. Abu Dhabi already has satellites of the Louvre and the Guggenheim museum with more cultural attractions planned, including a Formula 1 race track complex that dwarfs the Dubai track.
There seems no end in sight to the US housing crash. Despite a massive quarter percent drop in the Federal Rate, confidence in the US residential property market seems at an all time low, with more predictions of a long slow slide coming from a variety of sources.
Steven Toumbas, an equities investor from London, has always wanted to own a second home in the US. “America is the engine for the world,” he says. “Everyone wants to have a holiday home in Florida, or an asset in New York. It’s the place to be.”
The fed rate cut of one quarter of one percent this afternoon is the big news of the moment, but ¼ % hardly seems worth the effort. The Federal Reserve Board lowered the cost of borrowing Wednesday with a quarter-point drop in rates in hopes of energizing an economy troubled by a sagging housing market and soaring oil prices.
As a bird-dog your Real Estate Investor action plan is just part of your long-term goals, short-term goals and monthly action plan. Your goals (will probably) also include your personal aspirations, which may include weight loss, exercise, spirituality and other personal goals.
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