Should I invest my down payment in the stock market? What would your do you pay taxes on forex profits be to make the most out of this one year given his current finances? Lastly, do they know the price range of the house they want to buy? If 500k is above or close to the range they’re looking for the house then no need to make a cent, protect the money and keep it in cash.
Now to answer the question as best I can without knowing all the details of your friend’s situation, for people with a chunk of cash that will be used in 12 months or fewer for a down payment on a home, put it in a high interest savings account. I pulled all my money out of stocks and investments 4 months before I bought my house. 1 year in the stock market. No one truly predicts the stock market with great accuracy, and if they did they would be ridiculously rich and not handing out advice here. So while you may make some extra cash, I can’t see it being enough to take that big of a risk. While in Korea, I saw the won fluctuate between 900 KRW per 1 US dollar to about 1300 KRW to 1 USD. Obviously if I could consistently buy 1300 won per dollar and then buy dollars for 900 won, I’d make some money.
The hard part is knowing when to buy and sell. When we were leaving Korea we wanted to turn some won into dollars. The exchange rate was about 1150. A few months later, the exchange rate was 1050.
We could have had thousands of dollars more had we waited. Now the excahnge rate is 1145. Now my experience trading currencies has always been with money I have, but, like you can with stocks, you can also trade currencies on margin. With Forex, that means you can lose more money than you have in your account but you can also increase profits by making bigger trades that you could have otherwise. North Korea start talking about nuclear missiles, the Korean won suffers and my stress level increases. The result was a wonderful lesson in chaos theory: how positive feedback loops in a nonlinear system can cause the entire system to go spinning out of control.
Butler says that the recession hit just as metro Atlanta and Georgia were in one of the state’s biggest growth cycles, led by flourishing residential, commercial and industrial real estate development. When the real estate market and the economy took a dive, the over-leveraged construction industry collapsed. What does that mean for the Atlanta real estate market and for investors? Similarly, many would-be sellers in today’s housing market are considering whether to become landlords rather than sell at a loss.
The question then becomes what about Apartments in Atlanta and the rental prices? Rental prices have been on the rise, along with occupancy. But now, there are so many people out there renting, that it’s easier just to get them into the property, cause if you don’t take the property, the next person that comes and looks at it, they will take the property. Part of that, of course, is that there aren’t that many new apartments being built. You have to wonder how far behind the nation Atlanta is expected to lag considering that higher rental prices could bring a recovery in the construction industry and that would help solve the unemployment problem. Of course, until things start selling the construction industry will be fairly stagnant but increasing rent might be a sign that apartments will start selling eventually. Time for South Korea to fight inflation?
Is the currency war finally here? The way this plays out over the next couple of years is going to be pretty fascinating and will have a huge impact on our prosperity. Do you accept Martin Wolf’s assertion that the US will inevitably win the war by inflating internally through QE? If so at what price does this victory come and how do you invade inflation and high interest rates once the recovery comes? To put it crudely, the US wants to inflate the rest of the world, while the latter is trying to deflate the US. The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. How many short payoffs will be required to obtain all necessary releases.
If you are trying to do a short sale on a property that is already in foreclosure and you need to get a release of two mortgages and 7 judgments liens you may want to pass. Make sure the seller is completely on board. Have your agent consistently check up with them to see if they have an update. Frequently sellers become disinterested and ignore the bank’s request for updated financial information.
The bank may be ready and you may be ready but you cant get far without the seller. Have all your ducks in a row regarding financing. If it is a property that needs work and you intend on getting an FHA insured loan you may lose your short sale approval during the time it takes to get your loan commitment. It is best to be preapproved and be ready immediately upon acceptance for appraisal, inspections, etc. A lender is loath to hold a short sale approval open for too long. Still, the experience may not be smooth. One guy made an offer on a short sale property which the seller accepted.