[airics]

gold and stock market.. the next bubbles to burst.. gold will be at 500. within the next 24mos.

[mresort]

The future is really hard to say.

The whole thing is basically manipulated by the federal government now.
Didn't you know the latest federal budget proposed by Obama?
He said if you don't have a job after you come out from college then you don't have to payback the student loan. If you have a job, your monthly payment cannot exceed 10% of your income minus your expenses. Oh well, if 10% is still too much, he can just come out again and drops it to 5% easily. LOL.

I know many of you have adjustable interest rate for your house and the rate is subject to increase this year. However, if tomorrow Obama comes out and requires all the national banks to freeze the interest rate for 2 more years, and asks them not to worry about that as Uncle Sam will subsidize their loss, the whole situation will be a lot different.

Banks losing too much money? No worry, the government could change the accounting rules so that you didn't have to report the loss on your financial statements.

It is not like the old days anymore. The economy is not decided by the demand and supply anymore. Everything can be manipulated by the government, so don't say who is smart and who is not so smart. You won't know the final result until the final minute.

[Fastrudy]

gold will be at 500. within the next 24mos

I'm betting it won't!

[JohnG72]

Originally Posted by Fastrudy

gold will be at 500. within the next 24mos

I'm betting it won't!

Yeah, with the amount of money being printed, the uncertainty of the housing market and the stock market, there are not a lot of places for people to put their money. So while gold is definitely in a bubble situation, its not dropping much in the next couple years.

[pommysmommy]

I recently sold some gold marked 24 karat that I picked up many years ago in Hong Kong. A local jeweler bought the pieces. I was happy with the price he paid and he was happy to get the gold. I sold when I thought gold was at an all time high. Maybe I sold too soon but I still made a profit and the jewelry was too soft to wear.

[fishordie]

Originally Posted by JM95

Which areas are you making money in?

Hmmm,

I thought I already replied to this but I guess not. I do not wish to say exactly where the majority of my present investment monies are going to as I am still buying but I will say it is in Southern California, from 3 - 7 miles inland from the Coast, in a very moderate climate, with a mix of ethnicities and neighborhoods. The infrastructure such as shopping, markets, parks, etc. have been updated within the last 10 years or less and there is a very high presence and activity level of various churches (I am not affiliated) whose flock actually perform community watches and clean ups every weekend and some weekdays. Though the homes are as much as 30 - 40 years old they are well maintained, for the most part and run anywhere from 130 - 160 thousand for an REO with cash. Those requiring loans are paying as much as 40% more for the property if the banks will even consider it. It is one of those areas I discovered by accident through my Ex-wife and have been happy as a clam. The rents on those price ranges are between 1200 and 2800 per month. The latter being a semi recovery house I set up that nets around 2800 per month.
Unbelievable investment if you know what you are doing and is a huge benefit to the participants. The others are rented to nice families who stay for long periods of time and are very stable. Average rent of those units is and has been around 1700 per month.

As a note these places were sold only a few years ago for over 3 times the prices I am paying.

I am sure this area is not the only one of its kind in the states and it just takes time and effort to locate them. If I had listened to the so called Real Estate Professionals I would have been broke long ago instead of being able to make these kind of investments. As is being noted, there are no guarantees in todays Real Estate Environment. Nobody knows the future especially those who make their living from the buying and selling of properties by others from whom they make a commission. Yet in my opinion and it is just my opinion todays environment will go down as one of the best buying opportunities we have seen in decades however it will also be a time where only the really informed folks, who buy only at the right price, will be making those profits and not where everyone makes money just because they enter the market. My only advice is beware of anyone using statistics to sell properties.

The investor/buyer must make themselves aware of the area they are farming by speaking with home owners and renters in the immediate area. Weekends, when folks are mowing their lawns or kids are playing in the streets is a perfect time to introduce yourself as someone interested in buying one of the properties in the area. Ask the appropriate questions and get the answers from the folks who live there. You might be surprised at how nice people are if you are nice to them.

Good luck to all

FOD

[MadManofBethesda]

Originally Posted by airics

.. the next bubbles to burst.. gold will be at 500. within the next 24mos.

It is very easy to short gold, airics. If you truly believe that, you can make yourself a lot of money over the next two years.

I, myself, don't see anything on the horizon that could make that even remotely possible.

Now stocks on the other hand......

[MadManofBethesda]

Originally Posted by mresort

I know many of you have adjustable interest rate for your house and the rate is subject to increase this year.

How could an ARM possibly adjust up this year?

If I hadn't sold my house in November, my ARM was scheduled to adjust down this month based on LIBOR from 4% to between 2.5% and 2.75%.

What index could an ARM be based on that would cause a year-over-year rise in this interest rate environment?

[ocean2026]

I wouldn't buy the stock market as a whole but have put money into certain sectors and companies. Hopefully in a year or two they will be higher and I will then buy something in Las Vegas which will then be a bit cheaper than now. Even UNG the natural gas fund selling at about $9 should do better as natural gas prices should increase over a year or two framework. CHK is a huge natural gas driller. There are mid size banks in Denver and New Mexico that have hi-risk and reward. United Western in Denver (UWBK) and First State in New Mexico (FSNM) both are financially a bit strapped but if they make it - they have a great branch network in two states that will come out of the recession better than almost any others.

Texas is also a good place to invest. Where I live the prices have come down greatly because its oceanfront and lots of raw land. Those things get hit harder as people will sell vacation homes, or investment land before their own houses. My town of Rockport will continue to grow quickly as it allows no polluting industry, has good schools, no unsafe streets and I define "Traffic" as when I hear a car on my street stop, pull down its window and yell out "Alex - please move over- just a little" lol my dog has a thing for napping on the pavement.

[MadManofBethesda]

Originally Posted by fishordie

Now, are there some good deals out there if your timing is right. Yes, but it is a very rare occurrence unless you are an owner occupier in the lower to lower/mid range market. Then it is not just an monetary investment but an investment in life style as well.

That's very true. I recently purchased a house in Vegas even though I expect prices to continue to fall at least another 10% if not more over the next year. But it is a primary residence and I love the house and the area. Moreover, I purchased it with the profit made from selling my house in the D.C. area, so it is basically free money anyway. (I know that makes absolutely no financial sense whatsoever.)

Originally Posted by fishordie

Owning your own home has some value in itself but do not assume it is your new bank account with a high interest rate of return. It is not.

I think everyone has been pretty much disabused of that idea since about 2005.