Real Estate. Could we double bubble?
- Thread starter Lojanica
- Start date
Remember the 80's. Japan buying RE by the handful. Pebble Beach, trophy skyscrapers, etc. It could happen again but this time China. They have trillions. The potential for another bubble exists and the sentiment of out of favor asset class is what makes it all possible. The poor quality loans just needs to get cleaned off the books first.
There are some places that are great to pick up properties right now. There are a ton of 10 year old homes in Vegas that can be purchased for $80k and rented out for about $1200 per month. Sure finding good credit tenants is a little tough but if you are willing to rent to someone with a few flaws or even a person that got forclosed on you could rent it out pretty fast. The outskirts of phoenix are also pretty good and just as cheap. Rents are about the same as vegas. If you have money, now is really the time to buy in my opinion. But I also think these great deals will probably not go away anytime soon. There is enough inventory that the prices will stay down for a while.
Houses that are selling for 80k would cost at least 120k or more to rebuild. Thats always a sign you are getting a great deal. Its like you are getting free land with a house that is 30% off.
Since we can currently rent at (almost) half the amount of the mortgage we'd have to pay on the same property, it seems to make sense, then, to keep renting.Considering the amount of people buying places only to rent them out (with the hopes of selling high when they retire), renting seems like a reasonable long term plan.. but I'm wondering if we'd be kicking ourselves if, in ten years' time, house prices are astronomically higher and rents are shooting up too because 'everyone else' got rich through property.
Itâs like a game of Hot potato, only deference is the gov is playing the misic and your playing with sizable assets. just donât be holding the asset when the music stops
Eraser sed then done, ask the 1000s who got caught holding in 07,08:eek:
not a game for me, Iâm waiting for a clear( no gov interventions, back to at least sound fundamentals) bottom.
Eraser sed then done, ask the 1000s who got caught holding in 07,08:eek: not a game for me, Iâm waiting for a clear( no gov interventions, back to at least sound fundamentals) bottom.
If housing prices sky it will be because of inflation and currency debasement... neither of those make anyone "rich"..
JMO, but with the excess inventory, lack of jobs growth in the future, and Boomers wishing to downsize... the REAL economic outlook for RE appears poor.... for at least a couple of decades.
I suspect all those who are currently "diving in to scoop up all these great bargains".. will rue the day withing a few years... successful flippers, notwithstanding.
Where do you live that rents are half of mortgage prices? I'm in CA and I pay 1100 per month for my house (PITI) and renting the same house costs 1200-1500 per month. You must be in a big city because in the suburbs its cheaper to buy than to rent or at the very least the same price.
up in the cities of the Northeast are where spots primarily have had trouble...even the metro areas. They seem to be leveling off now.
Some slightly smaller city areas are now in the midst of what could be the double dip...they've had good drops YOY, then rose a bit in a few months, and now heading back down...may still have another year or two to go overall of decent 5-10% drops before at least stabilizing.
The better suburbs have stayed mostly flat, or maybe dipped slightly @ best. (3-5% long term max).
It all just boils down to what area you're in or are looking at.
Some slightly smaller city areas are now in the midst of what could be the double dip...they've had good drops YOY, then rose a bit in a few months, and now heading back down...may still have another year or two to go overall of decent 5-10% drops before at least stabilizing.
The better suburbs have stayed mostly flat, or maybe dipped slightly @ best. (3-5% long term max).
It all just boils down to what area you're in or are looking at.