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I am not a Realtor. However, I think a lot of Realtors are too optimistic. However, in my opinion, you and some other posters are way too negative. What happen if my mortgage payment is below my rent due to the low interest rate and it is my 2nd home?
Also, are some of you crying about inflation because of government is printing like mad? You can either have a inflation cycle or deflation cycle but not both.
I am not a Realtor. However, I think a lot of Realtors are too optimistic. However, in my opinion, you and some other posters are way too negative. What happen if my mortgage payment is below my rent due to the low interest rate and it is my 2nd home?
Also, are some of you crying about inflation because of government is printing like mad? You can either have a inflation cycle or deflation cycle but not both.
You want me to be "positive" while people get bamboozled everyday and fall into dire straits via poor advise. If your mtg pmt (PITI) is below rent you obviously have positive cash flow. The other question is what is happening to the value of your 2nd home while it is being rented.
You are incorrect. You can have both inflation and deflation at the same time. It is happening right now. ie. Deflation in real estate. Inflation in food, healthcare, energy, etc. Quit listening to the economists on TV.
Last edited by GordonGekkoSC; 05-28-2010 at 04:42 AM..
Reason: .
High end is falling off a cliff....entry level stuff is going strong...even now that the Obama bucks have run out the 130-280k range is moving very nicely. Not sure what will happen on a National level with housing but things here are holding steady. I would anticipate that the entry level and move up (up to 300k) should fare just fine over the next 3-5 years. To many people moving this way that fall in the 150-300k trange to not make a difference. My .02, yes I'm a homebuilder but I'm also a realist.
High end is falling off a cliff....entry level stuff is going strong...even now that the Obama bucks have run out the 130-280k range is moving very nicely. Not sure what will happen on a National level with housing but things here are holding steady. I would anticipate that the entry level and move up (up to 300k) should fare just fine over the next 3-5 years. To many people moving this way that fall in the 150-300k trange to not make a difference. My .02, yes I'm a homebuilder but I'm also a realist.
Affordable housing will always move....but not immune to price deflation.
You want me to be "positive" while people get bamboozled everyday and fall into dire straits via poor advise. If your mtg pmt (PITI) is below rent you obviously have positive cash flow. The other question is what is happening to the value of your 2nd home while it is being rented.
You are incorrect. You can have both inflation and deflation at the same time. It is happening right now. ie. Deflation in real estate. Inflation in food, healthcare, energy, etc. Quit listening to the economists on TV.
I don't rent my 2nd home. I live in it. My first home is also not rented but a family member lives in it. I don't need the money. My first house brought in 1999, and second in 2010 in the best neighborhood in Mt. Pleasant (it is also the lowest closing for something like last 3 years if not 4). I will take the potential market value drop but is not like I will sell it (if there is a value change, it will never be realized).
It is hard to debate economics on a online forum. I actually have an economics degree from an institute produced Nobel winners (I don't use it for a living but it is helpful). What you mentioned can only exist in a short period and can hardly impact a person's bottom line. I actually believe that we will have slight deflation this year, and the government will over spend trying to avoid the deflation death trap. Then we will have hyper-inflation for next 5 years. Fiat money policy is inflation driven.
What is it like to sell "falling knives" I mean real estate?
Is it worth putting your clients into a growing debt (money pit) that most will never pay off due to depreciation and deflation?
Do you really think it is a great time to buy because interest rates are low?
I'm confused by your post (not a realtor) why do you think it is the realtors fault for selling homes? There is not going to be a sale if noone is buying. The home buyer is the one that has the responsibility of being able to afford the home they buy, the loan officer is more to blame than the realtor if the owner gets into more debt than they can afford IMO, they are the ones that actually see the income of the buyers and their debt ratio.
Realtors are paid to do a job, to find homes for clients, not to decide if the buyer can really afford to buy. You obviously feel it's not a good time to buy, there are plenty of others that disagree with you. You could be right, most people learn by making their own mistakes, not by being told what to do.
That is like blaming the car salesmen for selling you a car that will depreciate in value.....
People will buy in a bad market if they want to reguardless of whether or not the property is droping in value. I am in a position where my house hasn't dropped that bad, I don't owe that much and I could move up real easy and it wouldn't be a bad time for me to do since I wouldn't be moving into the 400K+ market. I will move up but only when I am ready, reguardless of what the market is doing, I am not going to buy a house with the plan of reselling anytime soon, I buy a home to live in not as an investment, that is why I am taking a bath in the stock market.......
If you look at the stock market for long term 90% of all 5 year periods have grown, and 100% of all 10 year periods have grown. I am sure if you look at realestate it is very simular.....
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The other question is what is happening to the value of your 2nd home while it is being rented. 
