A sense the housing market has bottomed.

last downturn didnt have massive inflation, nor global economy with global marketplace

nor did it have weak dollar.....

I used to agree with the housing complete blowout idea,
now i dont anymore...

you just have to look at what rents have done in Los Angeles to understand that the market is not going to completely implode

right now I can buy condos in los angeles, where the monthly rent will cover the mortgage easily....
2 years ago you could never do that.

People are going to use housing as their inflation hedge, thats what the goldbugs and doomsday types dont seem to understand in my opinion.

plus, stats now show 80% or more of the population is now housing bearish and believe in a housing bubble.... since this is a trading forum, that should ring alarm bells for any of you who trade, being bearish when the crowd is bearish usually doesnt turn out well.
 
hey question for all, lets say i believed all yours hypothesis of massive crash

what are the laws regarding getting a 10 year interest only no money down mortgage in california?

lets say 10 years down the line a condo i bought had lost 50% of its value...

can i just hand the keys in to the bank and say "its yours"

what are the repercussions of doing so?

thanks all
 
Quote from jasonjm:

last downturn didnt have massive inflation, nor global economy with global marketplace

nor did it have weak dollar.....

I used to agree with the housing complete blowout idea,
now i dont anymore...

you just have to look at what rents have done in Los Angeles to understand that the market is not going to completely implode

right now I can buy condos in los angeles, where the monthly rent will cover the mortgage easily....
2 years ago you could never do that.

People are going to use housing as their inflation hedge, thats what the goldbugs and doomsday types dont seem to understand in my opinion.

plus, stats now show 80% or more of the population is now housing bearish and believe in a housing bubble.... since this is a trading forum, that should ring alarm bells for any of you who trade, being bearish when the crowd is bearish usually doesnt turn out well.
More...

So you can buy condos and rent out. How much can you rent out buying a 600K home ?
 
if you pick the good areas right now, a nice 3 bedroom 700k condo will rent out for $4k per month

shitty 2 bed house in good area that costs 800k will rent out for $4500
 
I agree with jason on his views on housing. Pretty much everyone is bearish on housing, even realtors to some extent. Inflation has already been pretty high the past few years contrary to the CPI number and I think part of the home appreciation was due to keeping up with inflation. With continued high inflation, house prices will once again rise double-digits.
 
McDonald, Jack in the box, you can buy a burger for 99 cents.

New cars can be had for $7000 .

Beautiful clothing at Walmart goes for $7-15, cheaper than 15 years ago .

15 years ago, an engineer makes 40K average. These days, IT engineers makes about 55K .

Where is inflation ?
 
uhhhh let me see

the bmw 330i I bought 16 months ago has been replaced by the 335i which costs 15% more in 16 months

my health insurance has gone up 250% in 6 years (and I have never claimed a single thing and the benefits are the same)

my sisters college fees go up close to 15% per annum

gas has doubled in the last few years

food has gone up Id say 10% a year

housing is up 10% plus a year

rents (both commercial and residential) are up I'd say 75% over the last 4 years

no, i dont see any inflation, do you?
 
adobian good points, jasonjm what we call whats happening now in the economy is called stagflation. just type the word stagflation into google and read some of the articles. some articles are written in 2002,2003. just off on timing.

peace,
bgp
 
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