It’s no secret that for much of the country the residential real estate market is in a tizzy. Foreclosures, slow demand and an ever abundant supply has caused prices to stagnate and/or decline. Over time every negative creates some positives. What are they? How can a wealth management strategy turn lemons into lemonade? Here are some thoughts. If you have some add them as comments.

Refinance: The Federal Reserve has reduced interest rates and the yields on Treasury Bonds are the lowest in several months. Clearly it is more difficult to get a mortgage but if you can, you may be able to lock in a low cost of money for your existing or future investments.

Gifting: With values down it may be a great time to gift the equity in your primary or secondary residences either outright or to a Qualified Personal Residence Trust (QPRT) for benefit of your loved ones. What may have been “too big” for gift tax purposes may be “just right” with a decline in appraised values.

Re-Negotiate: If you are under water (value less than your mortgage) it may be appropriate to have a conversation with your mortgage lender about different terms.

Opportunities: Whenever there is chaos and confusion in an investment sector there invariably is an opportunity to be evaluated. The “dream home” or “vacation property” that now is a reasonable price due to a change in circumstances and a slow market. There could very well be projects that become available in part or in whole due to slow market conditions.

We likely are very early in the residential real estate adjustment but to consider options and opportunities well in advance can be very helpful in putting in to place a well thought out strategy in to a sound wealth management strategy.

The foregoing content reflects the opinions of White Oaks Wealth Advisors and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns.

Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.