I am one of those folks who purchased a home in 2004 and was convinced I was buying at the height of the market. Then interest rates dipped yet again and surprise, surprise Spring of 2005 saw housing prices rise yet more in my area. Good for me, but bad for all those folks waiting for the housing bubble to pop.
Yesterday I read an article in USA Today which described "The best two recession-proofing moves for your personal finances". The author of the article was not saying we will have a recession, but he does note that with rising interest rates and escalating fuel costs this winter will "feel" like a recession no matter what.
I am not so concerned personally about rising interest rates since both my mortgages are 30 year fixed rate and I have no plans to sell either property. However, I am worried about fuel costs. I live in the northeast and have gas heat for my primary home. My tenant pays for their own utilities, so I am not paying for that, however high utility bills make for unhappy tenants and unhappy tenants could adversely impact me. So yes, I definitely see how this winter could feel like a recession to me.
The article states that the two best moves to make are to Pay Off Credit Card Debt and Increase Your Cash. I have been lucky that since paying off my high credit card balances in my late 20's I have managed to not run them up again. I always pay off my credit cards every month. So I can check off step one. As for increasing my cash, I have been working on just that since purchasing my home in 2004. I drained my accounts for the downpayment, closing costs, and immediate improvements needed on the property. Since then I have spent the last year and a half rebuilding my emergency fund which currently holds about 6 months worth of living expenses.
I am hoping to start investing again in 2006. Lets hope a recession will not visit us then. But if it does, I take heart that I appear to be prepared for it. I hope everyone out there is doing the same.Labels: Recession Obsession |
EXCELLENT!
Sounds like you have been very blessed. In this day and age it is hard enough to own one property let alone two with all the bills that come along with it.
We too recently bought a house in 2004, and with remodeling and all the things that go along with owning, it's really a task with a family to save too.
Keep it up baby!
Sassy