Interest rates will increase sharply in the future.
The conundrum that every person with money has right now is should I spend my money or not? My answer would be yes I would spend money now to buy tangible assets however I would try to finance them at low rates as well.
You once more are making a mistake of me telling you to buy. I don’t do that. Just because I have bought does not mean you should buy. I am in a position to do so and have taken advantage of that. I am also preserving cash to take advantage of what will be extraordinary opportunities when interest rates to go high.
Make no mistake about it that when rates to go high, and they will someday, that prices will decrease, perhaps sharply. Show me a post where I have not maintained that thought. However you cannot also have a very high interest rate environment without accompanying costs for pretty much everything. High gas, high energy, high fuel, high rent, high food, high water, high everything prices… So your cash pile will suffer somewhat. However I do think keeping a cash pile is a good thing… personally I will be getting bonds when that happens. however the rentals will still be there, and even though they will be devalued, they will still be a fantastic income generator due to the fixed financing.
The best time to buy varies for everyone. It depends on their goals, finances and mostly personal situation. More often then not people are driven to buy because of pressure from one or the other spouse and because they want to start a family. Single people like you don’t have that problem. It is not a particularly good reason to buy but it is the way things work. Anyone who is going to buy better damn well know that interest rate shock is in our future. Well it has been in our future for how long? A decade? Will it happen this year, next year? next decade? I don’t know… however anyone that buys obviously should have a strategy that will cope with it.
