With the Fed cutting the Fed Fund Rate to 3.5 and potential further rate cuts down the road this means debt is becoming cheap again. So now is the time to start looking at using debt to buy assets such as real estate. Add this with the housing market in a downturn I say the next 6 months to a year could mean good buying opportunities.
If you currently have a real estate asset that you leveraged the other opportunity is to refinance. I was speaking with a colleague of mine during the week who recently refinanced his house in New Jersey. His original mortgage rate was 6.25 which he got almost a year ago but he just recently refinanced with a rate of 5.25. This is a full point difference which is pretty big if you ask me. Again these opportunities are really only available for people in good financial shape since the credit crisis has made lending restrictions stronger. Make sure you shop around for the best deal on acquiring debt.
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