Risks of Home Equity Loans & Use of Leverage -- Wealth Cycles & Plays -- BUCHAN BULL VLOG 13

Another blog brought on by viewer questions. I love questions, they force me to think and theorize. This blog discusses the housing market, home equity loans, and wealth cycles. It discusses the possible risks in home-equity loans, and why a sell and purchase back strategy may provide the best return in out current economic environment.

Good Links:

http://www.bankofcanada.ca/wp-content/uploads/2010/09/annual_page1_page2_page... --Historical Bank Of Canada Bank Rates --consider how quickly these rates can accelerate, and then consider how low our rate is currently, versus historic norms., I think we are in for a fast increase when they begin.

http://www.bankofcanada.ca/wp-content/uploads/2010/09/annual_page53.pdf --Historic Conventional Mortgage Rate, Bank of Canada (look at 1973-1983 period)

http://www.bloomberg.com/news/2011-05-25/u-s-home-prices-fell-5-5-in-first-qu... --Bloomberg Article 25May2011 --U.S. home prices dropped 5.5 percent in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values.

http://buchanalexisgoldsilver.com --Sign-up for the Newsletter!!

Twitter: @BuchanAlexisPMC --Follow-on Twitter to get the latest information and analysis!!

Stay tuned for a Fresh New Newsletter combining the ideas thoughts and backgrounds of Alexiscom1 and Myself -- a great combination in my opinion, as we are close friends, but have quite different backgrounds, and views upon events. Please shoot use your questions or ideas about things you would like to see covered in the newsletter. Topics will range from economies, to commodities, to stock markets, to whatever someone feels is related.

As always, I love to hear peoples thoughts, counter-arguments, comments and questions.

All the Best and thanks for watching!

The Bull

buchanbullbullion.blogspot.com - my written blog--I do lots of written articles, usually on stocks and trading, whatever questions people have.

Welcome to the Buchan Bull Bullion Channel!!

Your Economic & Financial Friend!!

We specialize in Bullion Sales, Production and Custom Casting.

Buchan Bull 99.9% Fine Silver, Traditionally Hand-Poured, Serialized and Sealed Bars Batch #5 should be available around the end of March--Thanks to everyone for all the support and the incredible demand, which has sold out all of the previous four batches.

Thanks for viewing and your support of Buchan Bull Bullion.

As always any questions, comments and criticism are welcome, and All the Best!

Stay tuned for more updates and videos of the production process.

PLEASE NOTE: No materials used in production are stored on-site. All materials used in production, including molds, are kept at various secure off-site locations and accessed only for production or inventory control purposes, both for safety and chain of integrity purposes.


WHY BUCHAN BULL BULLION?

1. Do you know where your Silver comes from?

Every bar produced by Buchan Bull Bullion will be serialized and a log will be kept updated on www.buchanbullbullion.com which will allow bar owners to identify exactly what batch their bars have come from, and all batch information will include complete data identifying exact per gram weights of silver for each mint(if more than one mint's silver is required for a single batch) used in the production process.

2. Is your Silver produced using recycled inputs, creating a much more environmentally friendly production process?

At Buchan Bull Bullion we do not refine bullion and therefore require very little, ideally none, of the harsh, toxic and environmentally damaging products used in the refining and leeching process to purify unpure bullion to 99.9%. At Buchan Bull Bullion we start with 99.9% raw silver blanks, sourced from various US and Canadian mints.

3. Is you silver produced locally, supporting local business?

At Buchan Bull Bullion, we are a family operation with help from other small family businesses, in an attempt to keep everything at a local level. If you read a bit in the ABOUT THE BULL section, you will find that money is not the main objective at Buchan Bull Bullion. Here we want to educate our clients, and have our clients educate us; we want to go up against the big guys and come out on top. Buchan Bull Bullion is produced for the average Joe, because that is who the Bull is, just the average BULL.

Please feel free to comment or ask any questions.

The BULL's personal blog can be found at www.buchanbullbullion.com , as well as updates regarding production, and information on custom casting.

We guarantee the authenticity of all our products, especially those produced in-house. We will cut any bar into pieces or drill holes in any place to prove the authenticity of our pieces, and are very happy to discuss any concerns that clients may have.

www.buchanbullbullion.com
jim@buchanbullbullion.com

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[BuchanBullBullion]

@charronfamilyconnect @2011rcm @solojam -- Just posted links in the description to Historic Canadian 5-year Conventional Mortgage Rates and Historic Bank of Canada Rates, should have posted these earlier as they are at the basis of the argument. Look specifically at the 1973-1983 period.

All the Best,

Jim

[leo14t]

Very nice video. I agree playing with home equity is a very risky move, but that depends on what are you going to use a Home equity loan. I truly believe that investing in Real Estate market in this downmarket is a very good move to make. Investing in Rental properties to increase cashflow and not looking to invest for appreciation. As a Real Estate agent i recommend this to homeowners with equity or people with 401k plans that are loosing money day by day... 10% on a rentalproperty is agooddeal

[charronfamilyconnect]

@BuchanBullBullion Thanks man I will check those out a litte later. Your a great source of info. Much appreciated!

[BuchanBullBullion]

@charronfamilyconnect Exactly, it is like catching a falling knife down there right now. I posted a 25May11 article in description "U.S. home prices dropped 5.5 percent in the first quarter from a year earlier, the biggest decline in almost two years, as sales of discounted foreclosures undermined real estate values. ", and another article came out today, forclosures made up 28% of all sales, and are expected to increase as a % of sales moving forward--puts pressure on entire market, bad news.

[charronfamilyconnect]

@BuchanBullBullion My acquantances are mostly buying in Georgia and are buying the homes outright and have property management companies taking care of the managment of the properties. They charge 10% of rent. Sounds good but ofcourse I would rather buy where there are jobs flowing which seems to be nowhere in the us man!

[charronfamilyconnect]

@BuchanBullBullion What is the risk if you have the money up front to buy it outright? Hey man this is my situation which I dont share with everyone. I have mortgage free home valued at $275,000, and about $150,000 liquid doing jack shit in GIC's What would you do with that man. OFcourse I have some prescious metals stored away(500 oz of silver). What would you do man if you were me? I guess you would sell the family home first? Thats tough when my boys grew up here in this nice community?

[BuchanBullBullion]

@2011rcm Certainly not basing the increase prediction on housing market solely, just think it is time to get that ball rolling--the longer they keep it low the more harm to the economy in the long-run(ie. Greenspan). Funny because only a week ago most analysts expected a rate hike in May, but due to the European debt concerns, possible end of QE and volatility in markets lately, 3 primary dealers have pushed back their increase expectations until sept.. I may be dreaming, but please do it soon!!

[2011rcm]

@BuchanBullBullion With the increases in inflation during the last quarter, (food, energy, commodities) an increase in rates would hurt businesses. The housing market is not important enough to raise rates at this time.

[2011rcm]

@charronfamilyconnect Short term bonds, nothing over 5 months, then reallocate your money as conditions arise. Generally the market favours PM stocks after July August, currently Gold stocks have underperformed based on the rise in Gold prices.

[BuchanBullBullion]

@2011rcm I will go opposite the tide--I expect a small hike on the 31May2011, followed by further hikes in sept and into the New Year. Everything lately is so based off of one piece of economic information that it can be so difficult to call until the date, as there may be new info released which changes market consensus.

The volatility we see just shows a lack of market comprehension, and movement with each new piece of data released--a tricky period to play in.

All the Best,

Jim