"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.
$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?
I remember hearing this kind of tripe back in the 80s. The market kind of did a reverse in the early 90s and then was compounded in the Los Angeles area by the 1994 Northridge earthquake. Those earthquakes really arn't kind to property values as they destroy a HUGE chunk of it in a minute or so.
Our house here in southern OH appreciated about 15% in 10 years, but it sold, quickly (within 40 days, or 1/3 the average that a home is on the market). If we held out for a little more, we might have sold, be we are already building a $400,000 home---and this is not a "mega" high-end house. It's just what they cost now.
Since everyone has to live somewhere, you are usually better off buying than renting, which is almost like throwing money away. The key is to not buy an overpriced, crappy, depreciating house, but that has always been true. Anyway, it still is a good time to buy if you can find a bargain property and a low interest loan.
Given his handle, he is pretty much right. Austin and Miami and THE hottest markets in the nation right now.
With interest rats so low the last few years, American families jumped from renting into houses, fueling the current economy. With this came better homes for our families and hopes for American Families. You better care for American families, they are the engine of America.
And since when do Mortgage companies not want to do business with American families?
Thats what they said about the dot com bubble too.
tweedly tweet.......there's nothing to fear, investors, there's nothing to fear.......
The only economic indicator one needs to watch in regard to credit-fueled asset inflation, whether houses, stocks, or tulips is long-term interest rates, which the Fed cannot arbitrarily fix.
Rates low - no problem!
Rates rising - problem!