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Old 06-28-2007, 07:16 PM
 
17 posts, read 72,591 times
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Any and all opinions are welcome. It's a gamble no matter what, but I'm interested in what your rationales are.
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Old 06-28-2007, 08:44 PM
 
575 posts, read 2,495,784 times
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Quote:
Originally Posted by rubberneck View Post
Any and all opinions are welcome. It's a gamble no matter what, but I'm interested in what your rationales are.
What is your investing goal? Are you seeking a "flip," rental income, rent out until you move into it after coming from another area?
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Old 06-28-2007, 09:24 PM
 
17 posts, read 72,591 times
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A house to live in.

But there's no reason to buy one that's going to lose money.

This will be our third house in 14 years, and we haven't made a dime in profit so far. I'd like to be able to cash in at some point.
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Old 10-02-2010, 06:42 AM
 
Location: central Austin
7,228 posts, read 16,097,872 times
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Real estate historically is a vehicle only for managing the effects of inflation, not "cashing in" Those days are gone, the real estate bubble has burst and isn't likely to inflate again in our life time. A house is again a place to live and an moderate hedge against inflation.
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Old 10-02-2010, 08:48 AM
 
Location: Austin
2,522 posts, read 6,035,657 times
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no, those days are still here....not quite in the same way, or as much, but money can still be made in real estate...now you need a longer investment horizon, and a focus on foreclosures, and properties that have bottomed out in extremis, and be willing to hold onto them for a longer time, perhaps renting them out and fixing them up till appreciation kicks in, at an albeit slower pace...
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Old 10-02-2010, 09:28 AM
 
Location: central Austin
7,228 posts, read 16,097,872 times
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Quote:
Originally Posted by inthecut View Post
no, those days are still here....not quite in the same way, or as much, but money can still be made in real estate...now you need a longer investment horizon, and a focus on foreclosures, and properties that have bottomed out in extremis, and be willing to hold onto them for a longer time, perhaps renting them out and fixing them up till appreciation kicks in, at an albeit slower pace...
Meh, it can work out but property tax makes it hard. Much better investment opportunities exist elsewhere (ie outside of real estate). I wouldn't go near foreclosures with a 10 foot pole, too much risk that the chain of title is broken . . . endless headaches. Only the lawyers will get rich.
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Old 10-02-2010, 01:22 PM
 
Location: Austin, TX
1,065 posts, read 1,755,787 times
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East of 35, South of 12th, North of Oltorf.

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Old 10-03-2010, 08:38 AM
 
731 posts, read 1,367,341 times
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Why does everyone get so enthusiastic during a bubble? Look at gold, everyone is talking about buying while prices are so high. Gold prices may go much higher, but the GOLD BUBBLE WILL BURST.

Now why not buy something like real estate when everyone is down on it. Three years ago everyone said buy before prices go up.

People ultimately have to live somewhere, real estate prices will rise, but most people will wait for Katie Couric or Fox News to inform them it is time to buy when the right time has past (much like gold today).

Quote:
Originally Posted by centralaustinite View Post
Real estate historically is a vehicle only for managing the effects of inflation, not "cashing in" Those days are gone, the real estate bubble has burst and isn't likely to inflate again in our life time.
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Old 10-03-2010, 09:01 AM
 
Location: central Austin
7,228 posts, read 16,097,872 times
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The real estate cycle is long, you are right, the time to buy is when others are not, there are just better asset classes right down that are "down" than illiquid real estate.
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Old 10-03-2010, 12:06 PM
 
1,148 posts, read 2,779,808 times
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Bubbles dont burst immediately in Texas. Because prices never get crazy like in California its more like the air slowly escaping out of a tire over the course of many years.
The traditional real estate bubble in Texas usually lasts about a decade. You have about 4 years of declining prices then another 6 years of prices going sideways.(which given inflation means you are losing money also).
I mean if you want to live in a house you want to live in a house. Given the supply of homes you can cherry pick the best houses for the money in the best areas/neighborhoods and come out ok in the long run.
But buying houses for investment purposes in Texas given the taxes is extremely difficult. There is a point in time where it will pay off if you have the right location and are willing to do all the work to rent it, but good luck timing it.
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