To Buy or not to Buy? By: Stephanie Kennedy

Have you heard of this statement: “The rich get richer and the poor get poorer”? This is sad but very true. Since 2009, the US economy is on recession, and not just any normal short-term recession but definitely the pits. People have hit rock bottom that until now Americans have not fully recovered from it. It’s like experiencing a modern day Great Depression.


Big companies close up and declare bankruptcy. With this, people lose their jobs. Lay-offs are pretty massive all over the country. Some endure the low pay or salary cut in half just to stay afloat and still with a job. Is it enough? No. Food on the table is compromised. Cars are sold second hand because gas per gallon is too steep. Bills are always final notice. Mortgage payments are missed. Home foreclosures become so rampant and the housing market crashes. People don’t have their own homes anymore. Banks and financial corporation’s take the plunge, lose profit and try to sell houses at lower than low rates but still, only a handful can afford to buy.


What happens to the banks and similar establishments? These businesses thrive on real estate investments for decades. It has always been considered a safe investment, real estate. It is a great way to spend money on. In the late ‘90’s up to mid 21st century, homes were selling up until 2009 when the recession enveloped everything. The housing market has become unstable.


Who is to blame for this? The housing market plummeted due to a number of reasons. Banks and financial institutions are partly the cause of this situation. Instead of lending people on safe terms, the banks/institutions charge the borrowers much more than they can pay. How can people keep their payments when their salaries are not enough to pay them with?


Another major reason is the steady decline of the U S economy. Prices are high and yet salaries remained constant, if not cut back. This has affected the whole world as well. Investors of real estate from other countries declare their offices bankrupt and just crash. As of 2009, losses were estimate at $2 Trillion dollars.


But that was 2009. At that time, people were advised not to purchase real estate because the value will go as far down the drain and investing in it is like throwing money on fire. 2011 is a new year that brings new hope – the market will get better, financial analysts have repeatedly said. Prices are low. People are looking to rent for properties and if you are looking to earn, now is the right time to buy. Same is to be said for those looking to buy their own homes. Buy now while the prices are low.