in the market for a house?
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Originally Posted by vader1,Mar 29 2005, 10:09 AM
I bought my last place a three years ago for $220k. My friend was looking too but he said "Houses are wayyyyy over priced. These things are gonna come way down. I will just wait." We make about the same amount of dough.
I am now listing that one at $350k probably get about $330k after commission and negotiation. Thats $110k in equity in three years. He made $0 by renting, and I am moving up to a nicer place and he is now trying to afford to buy places that were well within his reach three years ago, but now, at a higher salary, he has to stretch to buy one because the appreciation outpaced his income.
I understand the point that the Hoth is trying to make, and in some markets that have the potential to burst, his stategy might work for him but here is what I find universal to ANY market. If you pay attention and dig around a bit, you can ALWAYS find property that is undervalued and will appreciate. If you take care of it and even put a little work and money into it, you can increase your return. If you wait hoping for a bubble, you may make out like a bandit, you may get passed by. But you can always make gains if you put in the time and effort, in any market. Just do your research, be patient, and sell when the time is right.
I am now listing that one at $350k probably get about $330k after commission and negotiation. Thats $110k in equity in three years. He made $0 by renting, and I am moving up to a nicer place and he is now trying to afford to buy places that were well within his reach three years ago, but now, at a higher salary, he has to stretch to buy one because the appreciation outpaced his income.
I understand the point that the Hoth is trying to make, and in some markets that have the potential to burst, his stategy might work for him but here is what I find universal to ANY market. If you pay attention and dig around a bit, you can ALWAYS find property that is undervalued and will appreciate. If you take care of it and even put a little work and money into it, you can increase your return. If you wait hoping for a bubble, you may make out like a bandit, you may get passed by. But you can always make gains if you put in the time and effort, in any market. Just do your research, be patient, and sell when the time is right.
I myself have started buying and selling properties in the last few years. I picked properties in nice neighborhood with potential, renovated them, live there for a couple years and turn it around and sell them. Do it a couple times and do it the right way, you can make a few bucks.
Keep it simple, stay away from high leverage type of financing, maintain solvency at all times. It may look very conservative, but it is the safe way to invest. In an uncertain time, cash is king.
Anyway, lets hope the market remains healthy and everybody is able to make some money out of it.
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From: Vegas baby!!
as I mentioned earlier, regarding the bankruptcy legislation that recently passed, I knew in my gut that it was tied to the recent spate of very aggressive lending practices. now, allow me to quote something from the latest edition of a well-respected financial newsletter called "Personal Finance":
"New, tougher personal bankruptcy legislation passed in Congress the week of March 7. Credit card and other lenders have been pushing for more stringent legislation for many years, but bills had encountered tough resistance from congressional Democrats. The new law requires a means test on bankruptcy candidates to determine whether debts can be cancelled or must be repaid; previously, a judge decided this. This bill also makes it easier for lenders to force the sale of a debtor's primary residence."
If you guys think the losses on margin accounts where huge during the stock market crash... the sizes of margins are EXPONENTIALLY LARGER for people leveraged to the hilt on their home(s).
(from page 10 of their newsletter, in their Capsule Advisory section. www.pfnewsletter.com)
"New, tougher personal bankruptcy legislation passed in Congress the week of March 7. Credit card and other lenders have been pushing for more stringent legislation for many years, but bills had encountered tough resistance from congressional Democrats. The new law requires a means test on bankruptcy candidates to determine whether debts can be cancelled or must be repaid; previously, a judge decided this. This bill also makes it easier for lenders to force the sale of a debtor's primary residence."
If you guys think the losses on margin accounts where huge during the stock market crash... the sizes of margins are EXPONENTIALLY LARGER for people leveraged to the hilt on their home(s).
(from page 10 of their newsletter, in their Capsule Advisory section. www.pfnewsletter.com)
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This is exactly what will happen when our government is heavily lobbied by the credit card companies and banks.
The root of the problem is not people abusing the existing bankruptcy laws(there are some cases, but not as bad as they claimed). It is the easy credits which got people into financial shitholes in the first place.
When you have credit card companies signing young people up for credit cards in school, you have a serious problem in the making. This practice trains and conditions these young people to rely on credits, to buy things that they can't afford. Ofter times the "borrow to live" way of life and the debts follow these young people into their adulthoods.
It is like the drug dealers selling cheap drugs to young people and complain they are not getting paid on time. Now they want tougher laws to make these their customers to pay up. Even after their customers went broke.
This is so unfair. Credit cards companies prey on their customers, lure them into their Lion cage (high interest trap), congress is closing up the exit (bankruptcy) for these people. Now there is no way out!
Mission accomplished. Credit card companies "1", consumer "0".
The root of the problem is not people abusing the existing bankruptcy laws(there are some cases, but not as bad as they claimed). It is the easy credits which got people into financial shitholes in the first place.
When you have credit card companies signing young people up for credit cards in school, you have a serious problem in the making. This practice trains and conditions these young people to rely on credits, to buy things that they can't afford. Ofter times the "borrow to live" way of life and the debts follow these young people into their adulthoods.
It is like the drug dealers selling cheap drugs to young people and complain they are not getting paid on time. Now they want tougher laws to make these their customers to pay up. Even after their customers went broke.
This is so unfair. Credit cards companies prey on their customers, lure them into their Lion cage (high interest trap), congress is closing up the exit (bankruptcy) for these people. Now there is no way out!
Mission accomplished. Credit card companies "1", consumer "0".
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From: Vegas baby!!
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Yesterday in CNBC or some network channels, there was a round table discussing about the real estate market.
Naturally, only the professor from Yale sticking with the Bubble theory.
Representative for the R.E. agents, builders, lenders.....all claiming that the market is in great shape.
It reminds me many stock analysts were still recommending people to buy Enron's stock up to the day when the general public discovered all its dirty laundry.
People, be very careful of whose opinions you are listening to!
You can't trust most of the so called experts. They have hugh conflict of interests. Their interests of course, not yours.
When people quiting their jobs to become real estate investors. Flipping property for profits, debt to income ratio, personal backruptcy and foreclosure rate at a all time high, you don't need to be an expert to see something is not right here.
Naturally, only the professor from Yale sticking with the Bubble theory.
Representative for the R.E. agents, builders, lenders.....all claiming that the market is in great shape.
It reminds me many stock analysts were still recommending people to buy Enron's stock up to the day when the general public discovered all its dirty laundry.
People, be very careful of whose opinions you are listening to!
You can't trust most of the so called experts. They have hugh conflict of interests. Their interests of course, not yours.
When people quiting their jobs to become real estate investors. Flipping property for profits, debt to income ratio, personal backruptcy and foreclosure rate at a all time high, you don't need to be an expert to see something is not right here.
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From: MAHT-O-MEDI
Originally Posted by The Hoth,Apr 8 2005, 07:55 AM
Naturally, only the professor from Yale sticking with the Bubble theory.
Representative for the R.E. agents, builders, lenders.....all claiming that the market is in great shape.
People, be very careful of whose opinions you are listening to!
Oh well. I still think it is a good move, but if I end up opn skid row I will post again from the pulic library so you can all say "I told you so"
By the way, can somebody slow down mortgage rates please. Thanks.
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Good luck dude. I bought a house a few months ago and I am keeping my fingers crossed.
One thing for sure, I am well prepared for the rate hike. Bring it on, Alan Greenspan!
You can raise the rates, but you can never take away my house!
Inspired by Brave Heart.
One thing for sure, I am well prepared for the rate hike. Bring it on, Alan Greenspan!
You can raise the rates, but you can never take away my house!
Inspired by Brave Heart.