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Old 06-11-2016, 12:15 AM
 
397 posts, read 364,046 times
Reputation: 166

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Quote:
Originally Posted by roeldls View Post
SF and SJ number 1 and 2 nationally for jobs. Texas getting hit hard.

What will happen? Well, CA is big trouble. Outside of SF, the state is completely f'd. What does LA make or do? What does Fresno make or do? Zilch increasingly. Where do the smart kids go after college? Not bakersfield or SD..

But, so it is with many places in the nation, and it's not going to be pretty from here on out. Uncle sam may have to learn to speak Swedish, so as tio understand their economic theory before it's over.
Unprecedented, yes. I want to buy a luxury submarine. Would love to get away from this crowded land.
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Old 06-11-2016, 12:34 AM
 
28,113 posts, read 63,642,682 times
Reputation: 23263
Quote:
Originally Posted by livinfairfax View Post
I think the money will go toward gold/commodities/bitcoin. Bitcoin jumped from less than $500 to near $600 right now. If markets tank, watch for it to hit $1000 near gold again.

If I'm an individual investor or institutional investor, I don't see how I take my money out of equity and put it into real estate right now.

SV I think will be especially get hit. IPOs for past few years have dumped a lot of money around here. Right now its replaced with private capital. It'll be interesting to see if this continues.

I'm still betting on 20% decline in real estate by end of 2016.
Looking at a property right now that needs work... running the numbers it will make sense if I can buy it right and the return as a rental is far superior than money in CDs.

The only losses I have ever realized have been in the Stock Market...

Even when Real Estate tanked... my rents held steady or increased.

I don't invest in property that doesn't cash flow...
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Old 06-11-2016, 02:19 AM
 
397 posts, read 364,046 times
Reputation: 166
Quote:
Originally Posted by Ultrarunner View Post
Looking at a property right now that needs work... running the numbers it will make sense if I can buy it right and the return as a rental is far superior than money in CDs.

The only losses I have ever realized have been in the Stock Market...

Even when Real Estate tanked... my rents held steady or increased.

I don't invest in property that doesn't cash flow...
I used to rent out. Too much work. Too many crazies out there 😉
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Old 06-11-2016, 07:20 AM
 
4,369 posts, read 3,721,273 times
Reputation: 2479
Quote:
Originally Posted by Ultrarunner View Post
Often with Stocks drop money flows to Real Estate...
That's not how it works at all. When stocks drop there's a recession. When there's a recession they care more about what's on the dinner plate and less about real estate.
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Old 06-11-2016, 07:30 AM
 
Location: home
1,235 posts, read 1,530,831 times
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Quote:
Originally Posted by roeldls View Post
SF and SJ number 1 and 2 nationally for jobs. Texas getting hit hard.

Texas unemployment rate is 4.4% CA is 5.3%

State Unemployment Rates | April 2016


Where I live (Austin), the rate is 2.9%

http://www.bls.gov/eag/eag.tx_austin_msa.htm
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Old 06-11-2016, 07:35 AM
 
Location: home
1,235 posts, read 1,530,831 times
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Quote:
Originally Posted by Perma Bear View Post
That's not how it works at all. When stocks drop there's a recession. When there's a recession they care more about what's on the dinner plate and less about real estate.
Comparing the historical Nasdaq composite with the Case-Shiller would confirm this, but foreign investment has warped this relationship though. The US economy is not a closed system.
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Old 06-11-2016, 08:13 AM
 
4,369 posts, read 3,721,273 times
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Quote:
Originally Posted by sojourner77 View Post
Comparing the historical Nasdaq composite with the Case-Shiller would confirm this, but foreign investment has warped this relationship though. The US economy is not a closed system.
Where the US goes so goes the rest of the world. If the economic crisis in China worsens I can see the money laundering stoping
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Old 06-11-2016, 08:16 AM
 
4,369 posts, read 3,721,273 times
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Quote:
Originally Posted by sojourner77 View Post
Texas unemployment rate is 4.4% CA is 5.3%

State Unemployment Rates | April 2016


Where I live (Austin), the rate is 2.9%

Austin-Round Rock-San Marcos, TX Economy at a Glance
But then you have to live in Texas
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Old 06-11-2016, 09:30 AM
 
28,113 posts, read 63,642,682 times
Reputation: 23263
Quote:
Originally Posted by Perma Bear View Post
That's not how it works at all. When stocks drop there's a recession. When there's a recession they care more about what's on the dinner plate and less about real estate.
I work in the medical field and the Docs were picking up investment property left and right as a safe haven when the market was tanking...

Sure the investment property values were unstable BUT they made out like bandits in the income department... the yields after it was all said and done were 10 to 15 times money in the bank while the bottom fell out in the stock markets.

Can't speak for anywhere else... SF Bay Area is home and a lot of money flowed to Real Estate... over 40% of sales were all cash.

Amazing times to be sure...

There are still plenty I know that have sworn off the market forever... right or wrong... they will keep their rental properties that are paid for or have dirt cheap mortgages.
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Old 06-11-2016, 09:53 AM
 
4,369 posts, read 3,721,273 times
Reputation: 2479
Quote:
Originally Posted by Ultrarunner View Post
I work in the medical field and the Docs were picking up investment property left and right as a safe haven when the market was tanking...

Sure the investment property values were unstable BUT they made out like bandits in the income department... the yields after it was all said and done were 10 to 15 times money in the bank while the bottom fell out in the stock markets.

Can't speak for anywhere else... SF Bay Area is home and a lot of money flowed to Real Estate... over 40% of sales were all cash.

Amazing times to be sure...

There are still plenty I know that have sworn off the market forever... right or wrong... they will keep their rental properties that are paid for or have dirt cheap mortgages.
I made out like a bandit when stock prices rise, what's your point? I also didn't get calls to fix General Motors sink at 3 am.
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