Posted on 08/24/2005 6:58:33 AM PDT by austinite
Listen folks there is no bubble, take it from me there has been a cosmic shift in real estate investing. Foreign money, "old money", dead baby boomer inheritance money and speculation type money is pouring into the real estate market faster then Carter can make liver pills. There is now absolutely no connection between home ownership and personal income, real estate (residential) in the US is now a global economic comody, just like pork bellys and sugar cane. Who cares if the average income family can no longer afford the average home. Don't worry. Their money is unimportant. They should be renters anyway. The big players control the game now, the little guy is insignificant now and forever.
Housing will appreciate 10,15,20% a year, year in and year out- forever. Don't ever expect a correction. In just ten years the AVERAGE house will be well over $400,000, pricing completely out the average worker, which is a good thing in the long run for the invester class.
Buy a house if you can, actually buy 1,2,3 as many as you can!
"real estate (residential) in the US is now a global economic comody"
You mispelled comedy.
The greater Fool theory is still alive.
"real estate (residential) in the US is now a global economic comody, just like pork bellys and sugar cane"
And tulips. Don't forget tulips.
Didn't get the loan, eh?
Listen folks there is no bubble, take it from me there has been a cosmic shift in real estate investing. Foreign money, "old money", dead baby boomer inheritance money and speculation type money is pouring into the real estate market faster then Carter can make liver pills.
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And of course it could never leave for the next hot item just like it could not bail on the dot.coms.
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Buy a house if you can, actually buy 1,2,3 as many as you can!
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Sign number 700 there is a bubble is that you can read statements like the above.
I always figured it was because I'm Irish... part Irish at least. I have to have land. I have to own it. When my husband and I had been married six years, we bought our first duplex... both sides and now we have a modest portfolio of six units not including our residence. We started by moving in and living there, fixing it up and moving on. We leveraged. I recommend it for young freepers starting out. Now, however, it's almost full time for my husband who is Mr. Greenjeans. He's combination contractor, janitor and social worker. I'm the mean ole lawyer he can threated the tenants with as a last resort but we've only filed two or three forceble retainer actions in 29 years.
They are not making any more dirt. Our goal now is to get it all paid off and retire on the rent and maybe start moving back into the properties as we tootle around in our motor home, selling them off one by one after living in them two years to avoid capital gains.
I meant to say comodity, but comedy works well.
I'm thinking it is. But I could be wrong.
I pointed something similar out on another thread. All it takes is getting in on the bottom and working your ass off.
Good work and I hope you have a happy retirement.
$400,000 Gets a two bedroom shack TODAY. (At least around here) So that means that my investment is going to appreciate zilch in 10 years.
I hate to tell you, but we're already there, in my town. Most houses here are selling for way over $400K.
With interest only loans and 40 year mortgages....it doesn't look good does it?
You might find a dump in a bad neighborhood for $400,000 around here. Things are slowing down now, though. The increases in prices have been astronomical, and now houses are sitting for weeks, rather than being sold in just days. I haven't been keeping track of selling prices, though.
This phrase 'They're not making any more dirt" has been thrown around lately, and it cracks me up.
We have PLENTY of land. Ever fly across the country, and look out the window? We have vast tracks of empty land.
Been to the Bay Area lately? There's PLENTY of new construction.
You are right, that starting small and building an investment like you are is a GREAT idea. The only problem is, to do that NOW, requires inheriting a small fortune, making $300K a year, or signing insane terms like an interest-only loan. Plus, you have to believe that housing NEVER loses value, which to me is also a sign of being irrational.
Who's buying right now? Investors. Who's selling? Investors. Nobody else can afford to get in the game right now. The minute the investors blink, and stop buying from each other...it's over.
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