What is a person to do?  First it was the Real Estate Market and now it is the Stock Market Again!  Not only do we have to worry about the American economy but now we have to worry about what is happening globally as every little hiccup seems to have a rebound effect across the world.

In this economic roller coaster ride there may be another option that doesn’t involve Gold, Oil or Treasuries.  Few people know, that in the 1970’s, the government created Self-Directed IRA’s.  One of the advantages of this program is that you can hold real estate in them.  You can build wealth and take advantage of this market of low priced homes to buy an investment property or your dream retirement home through your IRA and have numerous tax advantages in the long run!

According to NOAA South Florida had the hottest 2010 summer temperatures ever recorded.  Nine of the 10 warmest years known to science have all occurred since 2002 with 12 of the warmest years on record coming since 1997.  Several months ago I wrote about the drought along the Treasure Coast of Florida which is severe and at Stage 3.  Stage 4 is rationing drinking water!  The city of West Palm Beach now has ZERO watering.  The County of West Palm Beach will allow 1 watering per week and luckily along the Treasure Coast we are allowed to water twice a week for 20 min. each time.  The rainy season normally starts on May 21st give or take a few days but this year we didn’t really get any rain until the last week in June.  This situation has created extreme pressure on the health of landscapes throughout the Treasure Coast and particularly on Homeowners Associations who have “rules and regulations” regarding the landscaping standards that “must” be adhered to.

Owners & HOA’s need to understand that the rationing of water used to sprinkle the lawns applies to the use of city water, well water, or water being drawn from rivers, lakes and/or ponds.  It makes no difference the source; all water is being rationed!

Research done by John K. McIlwain, senior resident member of the Urban Land Institute, titled Housing in America: The Next Decade, discusses the implications of the rising numbers of foreclosures, re-establishing a private market residential finance system and the shifts in the housing demands. The bottom line is that the old “normal” will not return.

It has long been held that the “American Dream” of home ownership built wealth through an increase in the equity values over the time period that the property was held. Unfortunately, due to the massive numbers of foreclosures in the market over the past 5 years, predictions for home appreciation over the next decade are estimated to be as low as 1 to 2 percent annually. To put that into perspective, a house valued at $100,000 in today’s market (if the values have leveled off) will only rise in equity $1000 to $2000 next year. While that is good for property taxes, it clearly means that lost equity will not return anytime in the foreseeable future. It is also estimated that current homeownership will drop from the current 67% to about 62% by the end of this decade. According to McIlwain, re-establishing a robust private mortgage market