2012: Could the Mayans Have Predicted Economic Apocalypse? Part II

2012: Could the Mayans Have Predicted Economic Apocalypse? Part II
By: Nicholas A. Dunlap, CPM

The following is an excerpt from my 2012 Outlook on Investing that appeared in this month’s Apartment News & Apartment Management Magazines. I will be publishing it in segments here on my blog. Here is Part II.

Record Low Interest Rates = Time to Refinance or Reposition Your Debt
With no plans to help grow our economy and no solution on how to add jobs or decrease the national unemployment rate, President Obama realizes that his only way to the American people’s hearts is through their wallets. Albeit, the route is not direct and requires his influence over the still green Bernanke. Eleven months ahead of the Presidential election, we can certainly expect President Obama to exercise his influence and keep rates low. If you did not take advantage of the low rates in late 2011, make this a priority for 2012.

If you share my conservative outlook on investing and are not highly leveraged, take advantage of the low interest rates to either reposition the existing debt on your property to lower your debt service and increase your cash flow, refinance and set money aside for additional investment opportunities or refinance and reinvest the money into your property by introducing capital improvements or upgrades.

Put this at the top of your 2012 to do list.