[Bart9399]

Geez: It might be a great time to invest in real estate. Maybe not.

Is real estate a better longterm investment than the stock market? Hardly.
People like Warren Buffet have said that repeatedly. (That said, even he has suggested that it now might be the time to invest in real estate.)

Here's a link to an article From a few years ago:

Stocks vs. Real Estate | 1 | CNNMoney.com

Real estate has packed quite a punch of late, appreciating 12.4% annually between 2001 and 2006, according to the S&P/Case-Shiller U.S. Home Price index. That clobbered stock prices, which gained only 4.3% a year as measured by the S&P 500.


But over the long run stocks win easily. A new study by Jack Clark Francis, a finance and economics professor at Baruch College in New York City, and Yale's Roger G. Ibbotson compared the annual returns of real estate from 1978 to 2004 compared with those of 15 different "paper" investments, including stocks, bonds, commodities futures, mortgage securities and real estate investment trusts (REITs).
The results? Housing delivered a solid but unimpressive annualized return of 8.6%. Commercial property did better at 9.5%. The S&P, however, delivered a crushing 13.4%.

guy

[ArmyFool]

Originally Posted by von949

Everytime there is a "For Rent" sign put up in my neighbhood, I call the phone number listed on the sign. The most recent home for rent in my neighborhood is slightly smaller than mine. Price was $1475 a month. My mortgage is almost half that. So in order for us to RENT in our neighborhood, we would have to pay over $550 extra as opposed to buying, for a smaller space.

That $550 extra can go in the stock market now.

Really??? I live in Centennial Hills zip 89143. A 3 bedroom house in our area starts at $850. $1475 sounds a little too much for me for Vegas.

[lvoc]

Originally Posted by ArmyFool

Really??? I live in Centennial Hills zip 89143. A 3 bedroom house in our area starts at $850. $1475 sounds a little too much for me for Vegas.

That is true. But the Median is $1200 and the mean $1354. So a bigger, nicer neighborhood at $1450 or so would not be out of line.

And 89143 is a low/middle zip code...so it can be a lot more elsewhere.

[eventusstultorummagister]

Originally Posted by lvoc

That is true. But the Median is $1200 and the mean $1354. So a bigger, nicer neighborhood at $1450 or so would not be out of line.

And 89143 is a low/middle zip code...so it can be a lot more elsewhere.

$.70/sq ft is standard for the "nicer" Northern areas.

That's @$980 for a 1,400 sq/ft home. Knock it down 10% for a 12-month lease so $900/mo. is about right.

[lvoc]

Originally Posted by eventusstultorummagister

$.70/sq ft is standard for the "nicer" Northern areas.

That's @$980 for a 1,400 sq/ft home. Knock it down 10% for a 12-month lease so $900/mo. is about right.

That is your problem...I quote reality and you quote fiction. May be why you cannot accept reality.

The mean is close to 2000 SF in that area. Even the median is 1850 SF

[TheGreatCurve]

Originally Posted by Bart9399

Geez: It might be a great time to invest in real estate. Maybe not.

Is real estate a better longterm investment than the stock market? Hardly.
People like Warren Buffet have said that repeatedly. (That said, even he has suggested that it now might be the time to invest in real estate.)

Here's a link to an article From a few years ago:

Stocks vs. Real Estate | 1 | CNNMoney.com

But over the long run stocks win easily. A new study by Jack Clark Francis, a finance and economics professor at Baruch College in New York City, and Yale's Roger G. Ibbotson compared the annual returns of real estate from 1978 to 2004 compared with those of 15 different "paper" investments, including stocks, bonds, commodities futures, mortgage securities and real estate investment trusts (REITs).
The results? Housing delivered a solid but unimpressive annualized return of 8.6%. Commercial property did better at 9.5%. The S&P, however, delivered a crushing 13.4%.
guy

And that's just between 1978 to 2004. If you look at a much longer period, like 1900 to 2011, you'll see that the return in the stock market is at least double that of housing.

[airics]

Originally Posted by lvoc

That is your problem...I quote reality and you quote fiction. May be why you cannot accept reality.

The mean is close to 2000 SF in that area. Even the median is 1850 SF

Ain't that the truth.... 900 in centennial area 3br? Maybe in the 1100 sf tapestrys that you can buy for 80k.

[LVPoker1]

Originally Posted by Jamiesport

If you bought your house two years ago, last year, 6 months ago you are upside down already. Easy money on housing has been made back in 2005 or 2006 and you will never find anything like that in the future. Buying a house today in Las Vegas is pointless. You are better of buying a property in desirable parts of the country not in Las Vegas. Those cookie cutter stucco homes are worthless. Las Vegas best days are thing of the past. It's not gambling destination any more, it's party destination for young college kids and all those nightclubs that are open all over. With Macau in Asia and local Indian casinos near every major city in US. Unless you plan to get stuck for a long time in Sin City don't buy anything. Home prices will not go up any time soon, try may even drop more. Economy is in bad shape and media is pumping consumption.

I bought 18 months ago in 89135. According to Zillow, and the resales around me, I am stuck about 6% on paper. The fees to buy the house were about 3% including the mortgage junk fees, so that is 9% of the value, or about $20,000. If I rented, I would have tossed away just over $30,000 total. Instead, I have knocked about $14,000 off of the debt, which is equal to the actual theo loss. I also can deduct the interest off of the mortgage.

The mortgage on my 15 year is $200-$300 less than what it rents for, so at the very least I have saved $5000 by buying, but in reality I saved about $10,000. That is in just 18 months.

It sounds like you are bitter about who knows what, but anyone that is going to be here for 2+ years and rents is going to lose that bet because the rents are substantially higher than a mortgage payment would be, and it will only take 1-2 years to get out from under the closing costs as opposed to renting. This formula will continue to work as long as the house is not losing 15%+ a year. Maybe you think it will, but if rents stay the same that is impossible.

[eventusstultorummagister]

Originally Posted by LVPoker1

I bought 18 months ago in 89135. According to Zillow, and the resales around me, I am stuck about 6% on paper. The fees to buy the house were about 3% including the mortgage junk fees, so that is 9% of the value, or about $20,000. If I rented, I would have tossed away just over $30,000 total. Instead, I have knocked about $14,000 off of the debt, which is equal to the actual theo loss. I also can deduct the interest off of the mortgage.

The mortgage on my 15 year is $200-$300 less than what it rents for, so at the very least I have saved $5000 by buying, but in reality I saved about $10,000. That is in just 18 months.

It sounds like you are bitter about who knows what, but anyone that is going to be here for 2+ years and rents is going to lose that bet because the rents are substantially higher than a mortgage payment would be, and it will only take 1-2 years to get out from under the closing costs as opposed to renting. This formula will continue to work as long as the house is not losing 15%+ a year. Maybe you think it will, but if rents stay the same that is impossible.

Based on what you say you have a decent but not strong hand...
What is the true "EV"? In this instance, if you determine the probability of breaking even each year in the first 5 years and multiply these values by their respective probabilities you get EV but since probability is weighted at around 50% due to various economic conditions uniform distribution reduces EV to 10%. Comparatively speaking, 10% is like limping in with a medium pair. If the pot is not raised and others limp in you may end up with positive EV but if somebody calls you will very likely end up holding the inferior hand.

[jerseyru]

Originally Posted by ArmyFool

Really??? I live in Centennial Hills zip 89143. A 3 bedroom house in our area starts at $850. $1475 sounds a little too much for me for Vegas.

That sounds about right. I just rented my 3 brm house in 89131 for $1375; it took less than a week to get a renter.