OfflineHello Fellow DG'ers.
I was wondering if anyone had a better understanding of the QE that the FED is doing on real estate prices.
I have a townhouse 3 br / 3.5 bath in santa clara.
Loan Left $390K. Market Value North of $610K. I was wondering if it is a wise decision to sell the house at this time and rent for 1-2 yrs to buy a single family for primary residence.
I have an investment property in fresno which is cash flowing 600$.
Thought is to use some equity after selling the townhome to buy 2nd investment property which will cash flow the same.
Please help with your comments.
Regards,
AJ
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What AJ Sule is talking about is Quantitative Easing.
Quantitative easing is a tool used by central banks as part of their monetary policy to stimulate the economy. Basically the government pumps money into the economy by buying bonds, treasury bills etc.
Read more: http://www.businessinsider.com/questions/what-is-qe2-or-qe3-or-qe4#ixzz2...
As for the effect of this on housing....Well, I'm not educated enough for an answer on such policies. Ron Paul would probably know. Judging by his Bill to get a full Audit of the FED (It's being voted in Congress TODAY actually!), it's probably not a good thing in terms of an Austrian economics standpoint.
"A man who has never lost himself in a cause bigger than himself has missed one of life's mountaintop experiences." Richard Nixon