Priscilla H Carey
07-17-03, - 03:39 AM
Recently I was listening to an American Certified Residential Specialist CRS®instructor on the subject of creating wealth through real estate investment, savings, and retirement; he went on to say that the average American citizen is a consumer driven to spend. The current economic environment is that US banks are offering consumers mortgage interest rates as low as 5-6% or lower, new car loans 12 months 3.79% and the two sectors of the industry that are expected to report better results are "Banks that generally have market-sensitive securities businesses, or consumer businesses such as mortgages and credit cards." (Reuters 7/15/03)
American consumer habits to spend are aggressively pursued by credit card companies; these companies send out massive amounts of emails on a daily basis luring the consumers to enter into more debt offering many attractive options if they spend.
Americans, the instructor said, continue to borrow against the equity of their home and are spending the money but not into investments that will appreciate in value over a period; but spending it on frivolous items.
There will be many Americans who will receive cheques this year, from the federal government as tax reimbursement due to President Bush’s tax break new laws; more likely this extra money will not be invested; but it will be spent. If lending interest rates were to increase, many Americans will not be able to support their obligations, and risk loosing their homes.
Why should Bahamians be concerned with the US market and their spending habits? We need to; our economy is closely linked and dependent on theirs. More troubling is that our Bahamian culture and spending habits closely follows theirs. We have to admit and realize that we too are consumers that like to spend, even when it means living beyond our means.
In comparison we should study the Japanese culture and their habits in relation to their money and their economy. Japan is an industrial nation exporting large amounts of their goods abroad; with probably the largest chunk being exported to the US. Japan’s exports though outweigh their imports making their economy strong. Yet even Japan is feeling the pinch as news coming out of there also speaks of difficult times.
When the yen slid below 140 to a dollar for the first time in seven years on the morning of June 8, hardly anyone at the offices of Nomura Securities in Tokyo raised an eyebrow. "It's just another day," said one blasé trader. News from Japan has been so gloomy of late - unemployment reaching a record 4.1%, housing-starts shrinking for a 16th consecutive month in April, wholesale prices falling 1.7% year-on-year in May - that one more piece of bad news only gets added to the pile. But that pile adds up to a very gloomy package. (Asiaweek Magazine)
News have it that because of their current conditions Japanese consumers spending is down by 0.1 percent in April, the biggest cutback since the beginning of the year. Japanese consumers are holding on to their cash. Japanese people are usually a discipline people that prefer to save and invest than to spend.
Americans on the other hand are told to spend……. Confusing isn’t it? Frightening when one think on the amount of debt a country like the USA has; their deficit stands at an unimaginable 450 BILLION. Government have borrowed into future generations and put the country at the mercy of other nationals such as the Japanese, and Arabs to name a few. Sounds familiar? The Bahamas is not doing well with $260 Million in deficit we depend too heavily on two “soft” industries; banking and tourism.
Finding solutions and even a sense of direction in this type of conditions is not easy for the average person and business. Planning becomes a huge problem; and planning for the future even a greater problem. Nevertheless we should plan. A basic practice for starters should be to look at our income our spending habits our needs with the intention to identify an amount for our savings.
During the 1990s the US stock market soared, technology advances left us marveled at amazing achievements; global communication changed the way of doing business, email is exciting, contacting a person in seconds in far away places is a reality. Sadly US corporate corruption in high places has left stock markets badly damaged. People in droves have lost their savings their retirement money, their medical funds. People that managed to rescue some of their funds or those who still have disposable income are looking for a safer vehicle to invest into.
All things considered today investing in real estate is a good sensible thing to do. You can see it touch it hold it at worse you have to fix it at best you can generate income through it and leave it for your children. There are different types of properties in the market to meet different needs and goals.
When you invest into real estate you control your investment. There are also different ways to enter into this investment from sole ownership to partnerships. Exploring your options should be done even if you start in a small way. You should also study the process banks use to consider loan requests. Each bank is different in the way it handles your application although general requirements are usually similar from bank to bank.
Today we live in a complex world I believe our generation is witness of a really complex world; perhaps is due to the power of communication through technology. I sincerely believe that it is getting progressively worse.
While we should be encouraged to plan our finances and our lives in general as wise stewards we need to see it from the spiritual perspective by taking notice and seeking understanding from the Holy Bible and what it has to say about the times we live in.
In its forecast about future world conditions The Bible is not encouraging. It says that the world’s economy will deteriorate further it will not get better but worse. The sinful condition of our heart will only show man inhumanity to man. The heart of man departs from God and follows sinful ways. Look around you notice sin and wickedness abound. However, be encouraged because The Bible also speaks of a new world order and new Kingdom that is to come wherein purity of the heart will exist and all sin will be no more through the person of the Lord and Savior Jesus Christ.
From the spiritual perspective we need to plan for His Kingdom; Jesus’ teachings about finances are found in His Scripture; He left us a complete guide on how-to live in His Word, in it He speaks about every topic to help us live successfully now and look forward to our rewards in His Kingdom to come. As you search for understanding and knowledge in books and literature about investments you too should search in His Word; it will be the best reading you will ever have.
______________
Priscilla H. Carey is a Christian Writer and also a Licensed Real Estate Broker for Century 21 C. Investment Realtors Bahamas. Comments and feedback on this article may be directed to this address: prichy@cinvest.com
American consumer habits to spend are aggressively pursued by credit card companies; these companies send out massive amounts of emails on a daily basis luring the consumers to enter into more debt offering many attractive options if they spend.
Americans, the instructor said, continue to borrow against the equity of their home and are spending the money but not into investments that will appreciate in value over a period; but spending it on frivolous items.
There will be many Americans who will receive cheques this year, from the federal government as tax reimbursement due to President Bush’s tax break new laws; more likely this extra money will not be invested; but it will be spent. If lending interest rates were to increase, many Americans will not be able to support their obligations, and risk loosing their homes.
Why should Bahamians be concerned with the US market and their spending habits? We need to; our economy is closely linked and dependent on theirs. More troubling is that our Bahamian culture and spending habits closely follows theirs. We have to admit and realize that we too are consumers that like to spend, even when it means living beyond our means.
In comparison we should study the Japanese culture and their habits in relation to their money and their economy. Japan is an industrial nation exporting large amounts of their goods abroad; with probably the largest chunk being exported to the US. Japan’s exports though outweigh their imports making their economy strong. Yet even Japan is feeling the pinch as news coming out of there also speaks of difficult times.
When the yen slid below 140 to a dollar for the first time in seven years on the morning of June 8, hardly anyone at the offices of Nomura Securities in Tokyo raised an eyebrow. "It's just another day," said one blasé trader. News from Japan has been so gloomy of late - unemployment reaching a record 4.1%, housing-starts shrinking for a 16th consecutive month in April, wholesale prices falling 1.7% year-on-year in May - that one more piece of bad news only gets added to the pile. But that pile adds up to a very gloomy package. (Asiaweek Magazine)
News have it that because of their current conditions Japanese consumers spending is down by 0.1 percent in April, the biggest cutback since the beginning of the year. Japanese consumers are holding on to their cash. Japanese people are usually a discipline people that prefer to save and invest than to spend.
Americans on the other hand are told to spend……. Confusing isn’t it? Frightening when one think on the amount of debt a country like the USA has; their deficit stands at an unimaginable 450 BILLION. Government have borrowed into future generations and put the country at the mercy of other nationals such as the Japanese, and Arabs to name a few. Sounds familiar? The Bahamas is not doing well with $260 Million in deficit we depend too heavily on two “soft” industries; banking and tourism.
Finding solutions and even a sense of direction in this type of conditions is not easy for the average person and business. Planning becomes a huge problem; and planning for the future even a greater problem. Nevertheless we should plan. A basic practice for starters should be to look at our income our spending habits our needs with the intention to identify an amount for our savings.
During the 1990s the US stock market soared, technology advances left us marveled at amazing achievements; global communication changed the way of doing business, email is exciting, contacting a person in seconds in far away places is a reality. Sadly US corporate corruption in high places has left stock markets badly damaged. People in droves have lost their savings their retirement money, their medical funds. People that managed to rescue some of their funds or those who still have disposable income are looking for a safer vehicle to invest into.
All things considered today investing in real estate is a good sensible thing to do. You can see it touch it hold it at worse you have to fix it at best you can generate income through it and leave it for your children. There are different types of properties in the market to meet different needs and goals.
When you invest into real estate you control your investment. There are also different ways to enter into this investment from sole ownership to partnerships. Exploring your options should be done even if you start in a small way. You should also study the process banks use to consider loan requests. Each bank is different in the way it handles your application although general requirements are usually similar from bank to bank.
Today we live in a complex world I believe our generation is witness of a really complex world; perhaps is due to the power of communication through technology. I sincerely believe that it is getting progressively worse.
While we should be encouraged to plan our finances and our lives in general as wise stewards we need to see it from the spiritual perspective by taking notice and seeking understanding from the Holy Bible and what it has to say about the times we live in.
In its forecast about future world conditions The Bible is not encouraging. It says that the world’s economy will deteriorate further it will not get better but worse. The sinful condition of our heart will only show man inhumanity to man. The heart of man departs from God and follows sinful ways. Look around you notice sin and wickedness abound. However, be encouraged because The Bible also speaks of a new world order and new Kingdom that is to come wherein purity of the heart will exist and all sin will be no more through the person of the Lord and Savior Jesus Christ.
From the spiritual perspective we need to plan for His Kingdom; Jesus’ teachings about finances are found in His Scripture; He left us a complete guide on how-to live in His Word, in it He speaks about every topic to help us live successfully now and look forward to our rewards in His Kingdom to come. As you search for understanding and knowledge in books and literature about investments you too should search in His Word; it will be the best reading you will ever have.
______________
Priscilla H. Carey is a Christian Writer and also a Licensed Real Estate Broker for Century 21 C. Investment Realtors Bahamas. Comments and feedback on this article may be directed to this address: prichy@cinvest.com