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Its a general number that I've heard touted by "investment" experts.
Actually the number touted was 5-6%, but I figured if they are gonna throw around baseless numbers, I might as well also.
Look, I get what actual experienced investors do, and how they could make money even in rough markets.
But I also noticed the wave of foreign investors in Vegas starting around a year and a half ago...mostly from China, Japan, Canada, and Australia. And it doesn't take a genius to figure out that the ding a lings are attending "investment and wealth" seminars in these nations and getting investment advice on a place they honestly know nothing about.
Now I know these guys are gonna fail. I also know that LV realtors are gonna tout this opportunity because its a current pay check.
My thing is, I might as well have fun LOL at these people, and at the same time gloat in personal satisfaction at predictions coming to fruition when I was loudly proclaimed to know nothing.
Its a general number that I've heard touted by "investment" experts.
Actually the number touted was 5-6%, but I figured if they are gonna throw around baseless numbers, I might as well also.
Look, I get what actual experienced investors do, and how they could make money even in rough markets.
Every time I have heard "Investment Experts" throw around numbers it has been vastly higher than you are quoting. At least double digits...
It is in fact reasonably easy to turn double digits on low end properties. Even with a hired PM. I don't recommend these to anyone other than a knowledgable local...who I would suspect would not need my services.
There are however reasonable properties for an out of town buyer which yield 7 or 8% with reasonable assumptions. And they have some reasonable...though not guaranteed...probability of appreciating in later years.
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But I also noticed the wave of foreign investors in Vegas starting around a year and a half ago...mostly from China, Japan, Canada, and Australia. And it doesn't take a genius to figure out that the ding a lings are attending "investment and wealth" seminars in these nations and getting investment advice on a place they honestly know nothing about.
Now I know these guys are gonna fail. I also know that LV realtors are gonna tout this opportunity because its a current pay check.
My thing is, I might as well have fun LOL at these people, and at the same time gloat in personal satisfaction at predictions coming to fruition when I was loudly proclaimed to know nothing.
I'm sure you can relate Tony.
There are actually very few...and some are quite wise. I hear it touted as a big deal but look at the assessors records and see how many out of country addreesses you actually find. Sure they could be using LLC fronts, which I recommend to anyone doing multiple properties, but they are still a small number.
I have a small set of european and a slightly larger set of Canadian clients. But the Canadians tend toward second homes rather than investment. The european clients have definite views of what they wish to buy and they get that, even if in some cases I don't agree.
And they are not going to fail. They may not make the riches they expect...but they will do OK. I am sure a few will screw up but most will survive.
Note it was the locals who ended up getting burned when the crash came.The California investors were long gone.
And they are not going to fail. They may not make the riches they expect...but they will do OK. I am sure a few will screw up but most will survive.
Note it was the locals who ended up getting burned when the crash came.The California investors were long gone.
You are using the terms "fail" and "survive" in an incompatible manner here.
Fail in this case would be to make less money on their investment than had they made the investment elsewhere.
Nothing to do with the context you are using it in.
IOW, if the investor buys a home in Nevada, rents it out at point that returns say 2% and after say 3-5 years, sells the property at the same price they paid for it, they have in fact failed if there is another investment vehicle where they could have returned 4-6%.
The problem becomes even more accute if inflation kicks in but fails to increase housing prices. Under this scenario, while rent could possibly be increased(so long as wages rise to keep up with inflation Bwahahahaha!), more likely the investor is gonna be crying as banks are paying interest that keeps rising in an effort to keep the inflation under control.
Of course, you've failed to acknowledge, oh....ever....about how incorrect you've been in your past multiple bottom calls. And I wouldn't expect you to acknowledge the above either except to post some variation of how no one can predict the future or whatever the nonsense of the day you are posting is.
You are using the terms "fail" and "survive" in an incompatible manner here.
Fail in this case would be to make less money on their investment than had they made the investment elsewhere.
Nothing to do with the context you are using it in.
IOW, if the investor buys a home in Nevada, rents it out at point that returns say 2% and after say 3-5 years, sells the property at the same price they paid for it, they have in fact failed if there is another investment vehicle where they could have returned 4-6%.
The cash investor with any skill at all is making a lot more than 2%. In fact I would think 6 to 8% is relatively easily doable by even those not very skilled. A local working at it should be able to do better than 10.
However he may well lose to the non skilled outsider who buys a better property at lower yield but higher appreciation.
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The problem becomes even more accute if inflation kicks in but fails to increase housing prices. Under this scenario, while rent could possibly be increased(so long as wages rise to keep up with inflation Bwahahahaha!), more likely the investor is gonna be crying as banks are paying interest that keeps rising in an effort to keep the inflation under control.
Of course, you've failed to acknowledge, oh....ever....about how incorrect you've been in your past multiple bottom calls. And I wouldn't expect you to acknowledge the above either except to post some variation of how no one can predict the future or whatever the nonsense of the day you are posting is.
With the idiot set of numbers you have been recently quoting I am not surprised that you are trying to change the subject. Gets embarassing to publish such stupidity does it not?
I have not been inaccurate in calling the bottom. I have done so once and it clearly was a bottom that lasted over a year. I do not make eternal pronouncements. The wild drop stopped and stayed stable for over a year. Look at the charts...it is pretty clear. That it then dropped again is a new trend that may lead pretty quick to a new bottom.
I will however give you a projection...it is all going to look better in five years...
Gets embarassing to publish such stupidity does it not?
It's never stopped you though.
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I have not been inaccurate in calling the bottom. I have done so once and it clearly was a bottom that lasted over a year. I do not make eternal pronouncements. The wild drop stopped and stayed stable for over a year. Look at the charts...it is pretty clear. That it then dropped again is a new trend that may lead pretty quick to a new bottom.
What a monumental load of rubbish. You've been calling the bottom for years. You're as accurate as a randomly thrown dart. "I accurately called the bottom...but then it dropped again." Priceless.
Aren't you the guy that created a poll predicting that 2010 would finish up between 5%-10%? I'll answer that for you - yes, it was. Your penchant for distorting your track record on calling the housing market is understandable, but laughable nonetheless.
It's never stopped you though.What a monumental load of rubbish. You've been calling the bottom for years. You're as accurate as a randomly thrown dart. "I accurately called the bottom...but then it dropped again." Priceless.
Aren't you the guy that created a poll predicting that 2010 would finish up between 5%-10%? I'll answer that for you - yes, it was. Your penchant for distorting your track record on calling the housing market is understandable, but laughable nonetheless.
It's never stopped you though.What a monumental load of rubbish. You've been calling the bottom for years. You're as accurate as a randomly thrown dart. "I accurately called the bottom...but then it dropped again." Priceless.
Nope. Your post remain lies. Truth and your post never get together. Yes I called a bottom...Yes it was a bottom. Sorry you can't deal with that.
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Aren't you the guy that created a poll predicting that 2010 would finish up between 5%-10%? I'll answer that for you - yes, it was. Your penchant for distorting your track record on calling the housing market is understandable, but laughable nonetheless.
Nope... Again your post show your total lack of comprehension. There is little that we can do to help you with the fact that your post show a complete lack of understanding.
And your post are written in a manner that shows your hostrility to reason. You appear unable to write constructively. But maybe someone will be able to help you.
Nope. Your post remain lies. Truth and your post never get together. Yes I called a bottom...Yes it was a bottom. Sorry you can't deal with that.
Sorry huckster, it clearly wasn't the bottom. The median housing price dropped from $141.7K to as low as $125K from just your latest failed bottom call. Here another reader was kind enough to document a previous failed bottom call from 3 years ago.
Nope... Again your post show your total lack of comprehension. There is little that we can do to help you with the fact that your post show a complete lack of understanding.
And your post are written in a manner that shows your hostrility to reason. You appear unable to write constructively. But maybe someone will be able to help you.
Here's your self constructed poll predicting a housing price increase of greater than 5% but less than 10% in 2010. On a positive note, your margin of error is shrinking a bit. So, hopefully the people who may have acted on your advice aren't terribly underwater.
Sorry huckster, it clearly wasn't the bottom. The median housing price dropped from $141.7K to as low as $125K from just your latest failed bottom call. Here another reader was kind enough to document a previous failed bottom call from 3 years ago.
Here's your self constructed poll predicting a housing price increase of greater than 5% but less than 10% in 2010. On a positive note, your margin of error is shrinking a bit. So, hopefully the people who may have acted on your advice aren't terribly underwater.
You call it "hostrility", I call it setting the record straight. A dismal record to be sure.
The "bottom" in spring of 2008 was on volume not price as is clear from the following messages. And it was the bottom on volume. The spring 2009 bottom was on price and it was the price bottom and held well over a year. The price decline went from over a percent per month to about zero...that is a bottom.
The poll was an opportunity for those who wished to do a projection to do so. I thought we would do better. You I note did not contribute. That maintained your ability to critize regardless of the outcome.
I'm considering buying my first apartment or condo. I know very little about real estate though I'm trying to learn more about it. In your opinion, do you think it's wise to purchase real estate in Vegas right now? And why or why not?
Thanks ahead of time.
What does your personal balance sheet currently look like (assets, liabilities, net worth, liquid net worth)?
If you were laid off tomorrow, how long do you think it might take (with 90% confidence) to find a comparable job that pays about the same? Do you have living expenses stashed to see you through that amount of time?
Where are you in your saving for retirement?
Do you have or plan to have kids for which you need to save for college?
etc etc etc etc
My point is you may want to insure your overall financial picture is sound before buying a condo.
If you're thinking of buying a condo as part of an investment strategy in the hopes it will increase in value over time -- well, then think of a condo as one type of capital asset. Your portfolio of assets should include a wide variety of non-correlated assets in stocks spread around the 3x3 matrix of market capitalization versus agression in growth, and across international markets, ditto for bonds & alternative investments (REITs for example).
etc etc etc
Are all of your ducks lined up?
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