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I think investing in a home especially in the Boston area is better than investing in the stock market. No matter what happens people are always going to want to live in the Boston area.
Last edited by Bridge781; 03-19-2020 at 07:27 PM..
Reason: H
Context is everything. If you bought the S&P in '09/'10, you were already sitting a 3x returns heading toward an election year with a juiced market driven by years of cheap debt, buyback, tax cuts, and lowered rates ... with manufacturing numbers already slowing.
Everyone acts as though they're Dalio in hindsight, but really, anyone with firing neurons knew there was a bubble. I moved my IRA to cash and bonds (not the safest haven, I know) for 2020 because I didn't want to be holding 'bags' if and when the music stopped. It's nearly impossible to time it, but it is easy to spot irrational exuberance and I wanted out.
What will be interesting to see is how much "smart" money exited the markets before losing 30%. The MA market likely lost some cash buyers, though I'm not sure those who retained their capital are eager to buy RE at this moment. I certainly wouldn't as sentiment will surely be gutted by this, even for those not emotionally attached to equity markets.
In 08/09 I had just started working and had very little to invest while now making multiples of what I did at that time.
I think investing in a home especially in the Boston area is better than investing in the stock market. No matter what happens people are always going to want to live in the Boston area.
I can certainly imagine medical tech getting outsized attention after all this is over. This should benefit Boston area the most.
For prediction look at 2008, 2nd tier towns were down quite a bit, 30%. Gold plated school districts were down 15% but inventory was not high... this is probably the best outcome we can wish for.
I think investing in a home especially in the Boston area is better than investing in the stock market. No matter what happens people are always going to want to live in the Boston area.
Just so long as you realize that "investing in a home" serves a different function than investing in equities or even real estate. Most of the value you get from owning a home is being able to live there.
For what its worth, we bought in Boston (Back Bay) at the height of the financial crisis in '08/09 when everything was melting all around us.
Our families thought we were certifiably insane and I'm not going to lie I had a few sleepless moments. We still have this condo as a rental and it has been a tremendous investment both in capital appreciation and rental returns.
I still believe if you are buying in the right location (especially in uncertain times), buy for the right reasons (as your home, long term hedge against inflation, generational investment), do not overextend yourself, have a long term horizon, then I would still buy when the time is right for your particular situation/finances.
This too will pass - there will be a vaccine, there will be increased herd immunity. We are facing the eye of the storm at the minute.
Just so long as you realize that "investing in a home" serves a different function than investing in equities or even real estate. Most of the value you get from owning a home is being able to live there.
Well put! Buying a house is not just an investment it's a home as well. You have use and enjoyment of the property while you own it. It's not like a share of stock that just sits in an account somewhere and does nothing for you while you own it except hopefully it appreciates and/or pays a dividend.
Quote:
Originally Posted by sawyer2
For what its worth, we bought in Boston (Back Bay) at the height of the financial crisis in '08/09 when everything was melting all around us.
Our families thought we were certifiably insane and I'm not going to lie I had a few sleepless moments. We still have this condo as a rental and it has been a tremendous investment both in capital appreciation and rental returns.
I still believe if you are buying in the right location (especially in uncertain times), buy for the right reasons (as your home, long term hedge against inflation, generational investment), do not overextend yourself, have a long term horizon, then I would still buy when the time is right for your particular situation/finances.
This too will pass - there will be a vaccine, there will be increased herd immunity. We are facing the eye of the storm at the minute.
Solid advice IMO. If you want to buy a home and you have the right expectations going into it and the financial where with all to afford it, then buy a home. The market goes up, the market goes down it's a never ending roller coaster. At the end of the day, most people don't really "cash out" of the RE market until they're in their later years and by then hopefully you're sitting on a very valuable asset.
For what its worth, we bought in Boston (Back Bay) at the height of the financial crisis in '08/09 when everything was melting all around us.
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When there is blood on the streets, usually its you that is bleeding. Those fortunate to have cash on hand and stable jobs were able to purchase..
I dont think we are at these panic levels yet. Would have to see empty open houses in prime locations and forclosures in 3rd tier locations before panic sets in
I could see employers moving work out of Massachusetts and into states that won't shut down. That obviously would affect prices.
Or different regions of the state. It never made sense to try to put everything in Boston.
Worcester and other gateway cities can easily take in more people and businesses.
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