WILL MILLIONS OF AMERICANS GET CRUSHED IN THE CRASHING REAL ESTATE MARKET?

RENO, NEVADA, August 26, 2005 – Soaring home prices combined with low interest rates and liberal bank lending policies have created a triple witching in the real estate market. The impact is clear in the statistics for interest only mortgages in recent home purchases nationwide. The national average is now nearly 20 percent for these loans, up almost 20-fold in the past five years alone. In the most expensive markets, they are even more common. In California, for instance, home purchases with interest only loans exceeded 50% this year. According to Dr. Scott Brown, of the Delano Max Wealth Institute in Reno, Nevada, home buyers are extended far beyond their means to pay their mortgages should interest rates rise or a family financial crisis occur such as a job loss.

“I think that people need to wake up to the reality that the real estate market is not a safe place for their retirement savings,” Dr. Brown said “people should be looking to the stock market as a place for future financial gains that could offer them retirement security.” He is quick to point to the famous Yale economist Dr. Bob Shiller’s book “Irrational Exuberance” that extols the virtue of patiently waiting for markets to bottom out to buy. Dr. Shiller further admonishes impatient, inexperienced investors who enter markets when they have been driven up to unsustainable heights as the stock markets were at the end of the 1990s and the real estate market is currently in 2005.

The Delano Max Wealth Institute is dedicated to providing individuals with courses and seminars that teach prudent savings and investing habits. Dr. Brown is also a finance professor at the University of Puerto Rico at Rio Piedras. He is recognized as an expert at low risk, high return investing and takes great pride in helping others retire safely. The company website is www.BonanzaBase.com the company ezine is www.WalletDoctor.com and Dr. Brown can be reached at 1-530-336-6616 by e-mail at scott@bonanzabase.com.

If you'd like more information about this topic, or to schedule an interview with Dr. Brown, please call Shandy Brown at 530-336-6616 or e-mail Shandy at shandy@bonanzabase.com