Real Estate Market is BACK

[auntieannie68]

back to a haven for slumlords

[TomMoser]

Originally Posted by Cpt.Trips

This ladies and gentlemen is just about the most irresponsible, mis-quoted and mis-guided post I've seen in a long time. No where does it state sales are back to pre-financial collapse days. It clearly said the "Cap-Rate" is back to prior levels. Plus, using a cap rate as a guide to help an investor is almost criminal. Let me explain.Many real estate investors determine the value of an income property by using the capitalization rate, aka cap rate. It is probably the one most misused concept in real estate investing. What the cap rate represents is merely the projected return for one year as if the property were bought with all cash. Not many of us buy property for all cash, so we have to break the deal down, usually by trial and error, to find the cash on cash return on our actual investment using leverage. Furthermore, any financial planner worth a spit will tell you for the long term investor a well balanced portfolio of blue chip's, bonds and maybe some gold will always out preform all other investments. Also, real estate never leads an economy out of a recession. Without solid job creation and low unemployment, all else is lost. And to answer the question, I'll put my money in the market, Wall St. will not call me and tell me my dividends will be late because it lost it's job. Finally, this is why I lump real estate agents in the same boat as insurance and used car salesmen.

The smaller the property, the less the less accurate the "cap rate". It works very well for large apartment complexes but not so well for the 2-4 unit properties that are prevelant in Scranton.

[Riverside4ever]

If people dont have money to pay their rent what good is a income property? ... I have friends that have houses and they all have tenants who are behind on the rent ....

Im glad I got out of the rental business ... I have less headaches for it .....

OH and BTW the market is not back.... Thats the pols playing with ya ... You would be stupid to dump money into a home today (unless its your primary home ) ... The bottom will fall out again come Nov - Dec All the hype is a smokescreen to try and stimulate the market ..

[scrantonluna]

Originally Posted by Riverside4ever

If people dont have money to pay their rent what good is a income property? ... ..

And that is why some landlords will ONLY rent to section 8ers - guaranteed check every month.

[jimazee]

Originally Posted by scrantonluna

And that is why some landlords will ONLY rent to section 8ers - guaranteed check every month.

Which can crush neighborhoods and then towns: who started with historically low employment and an increasingly elderly population, then add a lousy economy driving a even worsening job market, to accelerate an already declining real estate market.

RE market back? Uh, sure....sorta. Lots of places are for sale and rentals are brisk.

[Riverside4ever]

Originally Posted by scrantonluna

And that is why some landlords will ONLY rent to section 8ers - guaranteed check every month.

Eventually that money will run out also....

[TomMoser]

The real problem for income properites in Scranton is the corrupt government, bankrupt treasury, and ridiculous wage tax. Real estate taxes are going up at the same time that the wage tax is driving people out of the city limits.

[Winfield brown]

I'm new to the area and I'm looking to network with investors. So far I've been unable to find any clubs.

[fisheye]

Originally Posted by Winfield brown

I'm new to the area and I'm looking to network with investors. So far I've been unable to find any clubs my email is fieldhound@yahoo.com if anyone is interested thanks Winfield

You might want to check out one of City-Data's national threads: //www.city-data.com/forum/investing/. The one thread you chose is two years old. Anyway; good luck.

[jetgraphics]

Though "prices" (2014) may be back, the value of the "dollar bill" (2014) is lower than before 2008.
Still a loss.