I thought this was supposed to happen in 2011?Originally Posted by Lafayette
Wait till the commercial property defaults start to hit...
I thought this was supposed to happen in 2011?Wait till the commercial property defaults start to hit...
I bet your wrong. .....we are not bottomed out
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@Seraphim
I agree 100% with the ABCD philosophy but there is a grave flaw in your thinking on real estate. Real estate is not an investment. It is a durable consumer good. That misconception is a major, major reason why people can't make sense of the housing bubble. You don't buy a refrigerator or a car as an investment; a house is in the same category. Costs $ to maintain, degrades over time into worthlessness if you don't. That is not a characteristic consistent with the nature of an "investment".
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS
Many, many people would disagree with you on that statement. This doesn't explain why people can't make sense of the housing bubble - the reason they can't make sense is because the FED and banks are lying through their teeth, manipulating interest rates and foregoing traditional accounting methods. It is one big fabricated market and they change the laws and rules as they see fit.Real estate is not an investment.
People don't understand the housing bubble because they are either uneducated or just stupid. I remember in my investment class in 2003 it was common knowledge the housing market would eventually go down. This was a few years before prices got really absurd. Additionally, in 2006 when I was in Phoenix, all the real estate companies converted their apartments to condos to capture in the high prices in expectation the market would collapse. Point is that most educated people knew what was really happing in real estate even before the collapse or bubble. As usual its the average person who gets confused about every bubble and every bottom.
We are not at the bottom , of, anything. We will see , 2016 or so , maybe.
Price wise, if we are not at the bottom, we are close in my opinion. But like the overall economy (and actually BECAUSE of the overall economy) it will be a long time before you see dramatic improvements. If you are thinking about buying, this is a pretty good time.
Once the bubble burst, they started converting things back into apartments since the demand for rentals rose by so much (and so did rental rates).Additionally, in 2006 when I was in Phoenix, all the real estate companies converted their apartments to condos to capture in the high prices in expectation the market would collapse.
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Quarterly bump.
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real estate taxes - gotcha
They get added to your rent too. You don't escape them if you don't buy. If you do buy, you get something for that money you are otherwise just giving away every month. I just paid off my mortgage and got rid of that expense- effectively increasing my spendable income by about one third. Can't do that with rent.
Freedom is a state of mind. Nobody can take that from you unless you let them.
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