Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Not a real big fan of a lot of those people who promoted RE and excessive leverage in the past... I think they are partially part of the reason a lot of "investors" came into the market.
It's not that I think a lot of the ideas are entirely bad.... it's just that a lot of people who shouldn't have practiced those ideas came into the market and didn't really have the know how or the discipline.
-chuck22b
chuck, if i told you to max out your credit card or cash your rent check and go gambling to double your money. if you did that and won, who would you credit for the win? you, me, the bank who issued the card, the system which endorsed personal loans, the casino, the croupier?
likewise, if you had lost, who would you blame for the loss?
i think you know where i'm going here.
the point is that everything we do has consequences. if we can't deal with the risk then we shouldn't stick our necks out
rcarillo,
Please tell that to the "wealthy" and the Corporations... the same principle applies to investing and growing a Country.
We should also inform the government while we are at it. Unfortunately from individuals, to corporations, to the government no one wants to pay the debts. They love to shop, but hope someone else will pay them when the bill comes due.
Quote:
Originally Posted by 58robbo
a home is not an investment. the fact that the majority of homes appreciated way over the rate of inflation was a "false economy" one we're paying dearly for now.
Yep. The rate of appreciation is and should be tied to three things. 1) inflation 2) income and 3) rents. Of couse, both income and rent also increase due to inflation so it pretty much comes down to inflation.
As long as income and rents are in balance with the prices of homes in an area buying a home is a good investment. It has tax benefits, acts as a hedge against inflation (if you have a fixed payment, only taxes/insurance will increase) and will continue to appreciate at a small rate over time.
Any appreciation over the rate of these factors is not sustainable for long and is a "false economy" exactly as you mentioned.
Timing the bottom of any market is as risky as timing the peak. You won't ever know when the "best" time to buy or sell is until after its past.
Real estate is not the stock market, it moves much slower. Even with the massive downward pressures that exists today real estate has still declined relatively slowly in comparison to other markets. As a result the downside risk of waiting to buy a home right now are rather low. House prices aren't going to magically go from 0 to 60 in a month. In the worse case you'll end up spending a bit more either on the house or in interest. This is also not to mention that real estate corrections tend to be L-shaped so the "bottom" is likely to last many months to years. On the other head, the potential loss in most real estate markets is huge if you buy now. From a financial (and rational) point of view why would you pick the option that entails much more risk?
Quote:
Buy a home when you can afford to. When you have decent reserves, good income, low debts, job stability and can buy a home that is right for you at a price you can afford.
What a surprise the same tired line from someone associated with real estate. I'm getting so sick of hearing this. Ignoring the value of the asset you are buying is just plain silly. Over paying for large assets like a house has a dramatic impacted on your finances in the long term. People should only buy homes if they are a good value.
Oh I agree, if only used house sales men would understand they aren't experts on real estate!
I agree on what you are agreeing on too!
If I had to hire an 'expert' used home salesman it would at least be one who experienced the last downturn. Not some dude or dudette that got in because the RE bubble was lucrative.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
