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shots shots shots posted:As long as a significant block of people (typically unsophisticated investors who distrust other asset classes) view real estate as an investment rather than a consumption good, it's an almost unsolvable problem, especially if they have savings. This is a half truth. I own a handful of houses. (which is funny cause I live in apartment) The idea of a house as an investment is rather muddled. Most of the unsophisticated investors or just people buying were counting on appreciation that out striped inflation. Alot of people got hosed because they bought at a price level that just couldnt be supported by rents. The last house I bought was a short sale. And it was a very good bargain. If someone bought with traditional financing their payment would be 45% of what the rent is. The rental is getting me 12% return on my money after carry costs. Between my family and my cousins we own 4 houses on the same street. This is because of the price is the neighborhood is cheap. One friend asked why we didnt buy in a "nicer" place. I explained that it boils down to cost if I buy a house in the newer part of town the cost literally triples and I start getting 4% return for my money. When it comes to real estate the bubble was flued by so much greed and corruption and flat out propaganda that sound economic thinking just went out the window. But any investor should be thinking what his ROI is and if prices are too high then they too wouldnt buy. Hell I backed out of another Short Sale deal when I realized the the house was soo trashed it would take up 57% more than the cost of the house to repair everything.
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Mar 20, 2013 09:59
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| # ¿ Apr 28, 2024 02:16 |
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