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Helping You to Protect Yourself in Your Local Market Against Downturns in the Future

You can hardly pick up a newspaper or watch the News on TV without reading or hearing something about the housing crash. There are some areas where the market has not yet been affected very much yet. If the housing market in your area is one of these, it could soon begin to go downhill and you might not have much time to take action as you think.

The market can change almost overnight, going from very active to nearly dead with little notice. This can leave you with property you can’t sell. This is very bad news if it is property you bought as an investment and not much better if it is the house you live in. You may need to sell for a profit and be unable to do so. It is important to take steps now to protect yourself and your available choices if the local market starts to crash.

The first thing you need to do to protect your investment as well as yourself is to switch your loan from an adjustable rate or interest-only loan to a mortgage that has a fixed rate. Having a fixed rate mortgage lets you have peace of mind with an interest rate that stays the same even if rates go up rapidly. If you were to stay with an adjustable rate or interest-only mortgage, you could find yourself paying much higher monthly payments.

Next, you will want to make sure you can afford to stay in your home. If you don’t see that there will be any need to move in the next few years, you may not have to worry about the value of your home going up or down at this time.

If you expect to keep your house for a long time, you need to realize it is not just an investment. You need to remember, too, that the market will level out eventually and your home’s value will also become stable.

But if you are having problems paying your mortgage every month or that you might have to move in the near future, it might be best to sell your house now and move before the market falls anymore.

Of course, you need to guard your savings and keep them safe. Banks, savings and loans, and other such finance businesses invest a lot of money in real estate. You could lose a good deal of your savings if the housing market keeps going down because banks and savings and loans are at such a huge risk. To make sure of the safety of your savings and investments, get a rating of your bank or savings and loan’s risk.

It is also important to consider the security of your current and future investments. Right now, you need to shift high-risk investments to low risk alternatives. Among the safer choices you should consider are CDs and Treasury bills as these are low risk. Another possible choice is foreign currencies, which are showing to be very strong right now.
With the real estate market very possibly going down in your area, you need to do everything you can to lower your risk of losing your home and other investments.