[ilovegarlic]

Originally Posted by ScoopLV

I remember reading similar posts in 2006. You do not have a crystal ball. What happens when five Katrinas and Sandys hit the east coast in one summer? That's likely to happen this decade. What happens if/when Lake Mead dries up? I hope to be outta here before that happens. I think it's likely.

What happens when (not if) the next economic downturn happens? Las Vegas always gets hit first, hit hardest and is the last to recover.

I agree that this is a great time to buy a house (or several). But to say that this isn't a bubble implies that you've recently time-traveled and know how everything is going to turn out.

Oh my Lordy! My sarcasm skills are off today!

[von949]

Originally Posted by VegasVicsezhowdy

That photo is NOT Summerlin.

Tell that to Vegas Inc.


(╯°□°）╯ ︵ ┻━┻

[aardogfsu]

I think people still freshly scarred from the last crash will be hesitant to start paying 2005 prices tomorrow and being that we've had a big run up pretty fast, I think prices might slow a bit and hit a plateau...I'm just not seeing the returns right now on whats available. I'm totally against renting vs. buying but if prices keep climbing and rent stays the same (which it has), if a family can rent a 3 bedroom for under 800 (see craigslist) while the market is asking $160,000 for that home, I just don't see the return on that from an investment standpoint and it's been the investors that drove up this market with over 50% cash deals.

I could be wrong (have been many times) but I think we slow down.

[VegasVicsezhowdy]

Originally Posted by lvoc

That may well be very sensible advice. All depends on where the home prices finally end up.

I see little downside risk. Though what goes up can come down.

Note though a couple of hundred thousand at 3.5% is a pretty good deal. I have suggested to a couple of my outright owners that they take a good look at it.

You are actually making sense now. I totally agree that leveraging over 30 years with a fixed rate is the way to go. Zero down (if possible). They're not bringing back debtor prisons any time soon so there really is little downside risk (as you say). If it all does implode you want to be as liquid as possible.

In my opinion, the greatest problem that real estate will have is the supply from the contraction of debt and the rising levels of taxation and since we are speculating, I will say that I believe that the current recovery will continue into 2015 but that there will be no "new" highs. After 2015, we may very well see prices under real pressure due to the collapse of availability of 30-year money.

So yeah, as much as I hate to admit it, I actually agree with you on that point. Jolly good.

[Yung and succesful lv]

i’m 32. I make 6 figures, and have a little over 150k in the bank. I see no reason to buy a place.
Now I still see some of my friends “desperate” to buy, but a lot of people have gotten on to the thing that renting isn't a bad thing.

When you buy you end up committing to more space than you need, and a lot of young professional types these days under 35 dont have kids. Many people dont want kids so who needs a big ass house? The only people buying houses these days are Flippers and Hedge Funds.

I mean rent is actually really cheap right now, the apartment im in right now costs much less then one I lived in in 2006 when i got out of college.

Theres no stigma to renting anymore, I think people figured that out.
Who wants to maintain a pile of wood and bricks anyway, when an apartment complex will do it for you more cheaply with no commitment?

[Tarara Boomdea]

I would disagree that rent is cheap now, but it will be getting there (rental glut anyone?) If I were your age, I would rent for the indefinite future.

[lvoc]

Originally Posted by Yung and succesful lv

i’m 32. I make 6 figures, and have a little over 150k in the bank. I see no reason to buy a place.
Now I still see some of my friends “desperate” to buy, but a lot of people have gotten on to the thing that renting isn't a bad thing.

When you buy you end up committing to more space than you need, and a lot of young professional types these days under 35 dont have kids. Many people dont want kids so who needs a big ass house? The only people buying houses these days are Flippers and Hedge Funds.

I mean rent is actually really cheap right now, the apartment im in right now costs much less then one I lived in in 2006 when i got out of college.

Theres no stigma to renting anymore, I think people figured that out.
Who wants to maintain a pile of wood and bricks anyway, when an apartment complex will do it for you more cheaply with no commitment?

There is a very good chance that you are missing a substantial opportunity to acquire wealth.

Take whatever rent you are paying and use it as your mortgage payment. Then find a reasonable house and buy it with a conventional mortgage.Use your cash to make whatever down you need.

You end up with a place to live and which is appreciating right now at 2 to 3% per month. If you buy reasonably well you can move on and rent the place and have the mortgage and expenses covered by the rent.

There really is no good reason to leave 3.5% money on the table.

[Tarara Boomdea]

Fitch: Recent Price Gains May Not Be Here to Stay
04/19/2013

While some might be rejoicing at the recent rising home prices and rising home sales seen across the nation, Fitch Ratings “still views these gains cautiously.” In fact, the agency predicts price gains will slow and perhaps even reverse over the next year.

[Yung and succesful lv]

Originally Posted by lvoc

There is a very good chance that you are missing a substantial opportunity to acquire wealth.

Take whatever rent you are paying and use it as your mortgage payment. Then find a reasonable house and buy it with a conventional mortgage.Use your cash to make whatever down you need.

You end up with a place to live and which is appreciating right now at 2 to 3% per month. If you buy reasonably well you can move on and rent the place and have the mortgage and expenses covered by the rent.

There really is no good reason to leave 3.5% money on the table.

While the narrative of owning a home is very powerful it does come with many unintended consequences, such as lack of mobility and low risk taking as one’s home consumes money, time and worry.

Thanks for your ideas but my lifestyle is stress free right now and my blood pressure is much lower knowing I'm not tied up in anything.

[ilovegarlic]

Originally Posted by Yung and succesful lv

While the narrative of owning a home is very powerful it does come with many unintended consequences, such as lack of mobility and low risk taking as one’s home consumes money, time and worry.

Thanks for your ideas but my lifestyle is stress free right now and my blood pressure is much lower knowing I'm not tied up in anything.

FINALLY, some common sense. Many a dream(s) and paths to happiness have been ruined by the nightmare of "the american dream" of home ownership.