To: Jacquerie
It's a great time for BUYERS and even those "Movin' on Up"....
I have been through 3 of these events....and they are all similar...the smart-BUYERS buy low and sell high....the others are the "suckers" that buy high and panic and sell low....
The really smart home owners BUY and HOLD in a great location.....and do NOT look to housing as an investment.....
24 posted on
10/28/2007 5:27:39 AM PDT by
cbkaty
(I may not always post...but I am always here......)
To: cbkaty
The really smart home owners BUY and HOLD in a great location.....and do NOT look to housing as an investment..... Yep. Nothing wrong with buying rental property. But the idea that a person puts everything they have in a home as an "investment" is just wacky. An investment is something that you can liquidate when the market dictates. Not your primary residence.
27 posted on
10/28/2007 5:47:11 AM PDT by
kjam22
(see me play the guitar here http://www.youtube.com/watch?v=noHy7Cuoucc)
To: cbkaty
The really smart home owners BUY and HOLD in a great location.....and do NOT look to housing as an investment..... You've hit the nail on the head. Real estate always appreciates over the long run so people who buy houses as homes instead of investments and who and live in them long enough to build equity, will always realize a profit when they finally sell regardless of the ups and downs of the market. Whereas the people who buy houses as investments and who sell them soon afterwards will make money when the market is hot but will lose money when the market declines.
To: cbkaty
the smart-BUYERS buy low and sell high....the others are the "suckers" that buy high and panic and sell low.... And then there are the semi-suckers who buy low and sell lower, as the market continues to plunge. Never catch a falling knife, as they say. If you've ever looked at a price graph of a typical SF Bay Area house over the last ten years, you understand that the term "bubble" is not an exaggeration:
As you can see, somewhere around January of 2004, prices started to rise drastically. I tried to find out what happened around that time, and it appears that that was when restrictions on sub-prime mortgages were loosened.
What goes up must come down, and in this case, that's about 50%, or $300,000. I'll wait.
84 posted on
10/28/2007 2:22:40 PM PDT by
giotto
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson