Are you richer today than you were on this day last year?

Not many can answer yes to that question if you define “rich” by financial resources.  Even those who have lots of money in the bank have not seen it grow in the usual fashion.  In fact it was about one year ago when the stock market took a huge decline.   Almost everyone has been affected by the economy.  Just like Cancer or Divorce, we all know someone who is suffering from the current economic situation.  It was not vey long ago when the cash flow was on.  Famlies took nice vacations, many used equity to remodel or sold and bought larger homes, every 3 car garage held an Escalade rollin dubs!  Americans were fascinated with  lifestyles of the rich and famous.  70% of families were homeowners, and prices were rising so fast that  if you had made at least 2 payments then you probably had some equity!  To quote an old song …….”tThose were the days my friend, we thought hey’d never end!”  Fast forward to the end of 2009  and we are facing record unemployment, record foreclosures, record decline in home values.  We have all kinds of record economic woes! 

This sounds kind of depressing on the surface, but Iam a glass half full  kinda girl so lets step back and take a different look at some of these changes……..

First of all opportunity abounds in the real estate market right now:

  1st time home buyers ( our kids) can buy a home cheaper than they can rent one with only 3 and 1/2%  down using an FHA loan that has some credit flexibility compared to other loans!  Some of their down can be agift and their closing costs can be paid by the seller.  In many cases this makes it less cash out of pocket than a rental house!

Investors are out in record numbers.  With prices and interest rates so low they know they can have positive cash flow on a rental from day one.  You’ve know they are singing all the way to the bank each month!  Fortunes are made in times just like these!

In general housing affordability is very good for everyone, even the displaced or those who had to give up their home to foreclosure or short sale.  They can find rentals in good supply and at a reasonable rate saving them lots every month over their old mortgages and giving them a fresh start!

The best news of all you won’t hear about on TV and that is when times get tough we turn inward to our families.  We begin to appreciate the small pleasures.  We cook at home and eat together instead of going out.  We play games at home instead of attending an expensive event.  We take a walk on a nice day.  Read a book.  Enjoy a night in by the fire with friends. Many plan “Staycations”  doing things locally.  But best of all our values shift.  We look a little deeper than the surface to find joy and fulfillment.  We empathise with others woes & tend to treat each other better.  We pull together as a community in tough times and work harder to take care of those in need. So look around and cheer up….Perhaps we are much richer than we were just one year ago!