Real Estate is dying? Investment-wise what is the next Asset Class Du Jour?

[oil_trader]

Yes there are many venues, rehabbing still pays 3$ for every one invested if done right and with sweat equity.
The trick in Mobile Home Parks is the renting and self financing of the mobile homes. That is like or better than the used car lot...remember most renters or owners have very very very bad credit.
Just a way to make a few bucks.

Quote from Midas:

RV Parks are very good as well. Park owners need to put in a pad and sewer/electrical connection, some rec. area and thats about it.

Margins are very good, and if the land is in a good area (close to water, resort area, etc) the land values can appreciate nicely.

 

[drsteph]

Some posts elsewhere on this board about P/E ratios in real estate markets with the rental price being the numerator. Those are useful.

Looked into buying rental real estate locally but despite low mortgage rates income does not cover expenses. Large number of properties here for rental because of speculators further depresses rental income. Not a good situation for anyone but renters.

Waiting for this bubble to burst and some of these real estate wizards to crap out and hit any bid. 40% discount to current prices once the homevestors crowd gets burnt will suit my pocket nicely. Won't care about mortgage rates - I'll pay cash (how novel!). Figure that I can hang on for a few years for either the market to stabilize or rental values climb as the overleveraged get shaken out. If nothing materializes, no biggie, shift the cash to whatever other hot asset class exists.

BTW favoring pac rim foreign asset funds lately that invest outside of china. Profit on FX and nikkei's recovery.

 

[Covertibility]

Trailor parks... LMAO
Eastern Europe RE was funny but RV's ?!?!

How about the moon ? Mars ?
I'll awaiting a response from God regarding some real estate in heaven.

 

[yabz]

Quote from lrm21:

Let's assume and I am not convinced that Real Estate is tanking. Stocks are probably done also, with the raising rates and at best we can expect so so returns.

Anyone shifting funds into new areas and what are they?

Teak wood. Prices are doubling every 5 years. No one is planting it and the demand is soaring.

 

[oil_trader]

You don't think folks make money in RE?
I wager that they fare better than many "traders" here and for a lot less headacke
check out this website and the figures....
http://www.49errealestate.com/

Quote from Covertibility:

Trailor parks... LMAO
Eastern Europe RE was funny but RV's ?!?!

How about the moon ? Mars ?
I'll awaiting a response from God regarding some real estate in heaven.

 

[BlueHorseshoe]

Quote from drsteph:



BTW favoring pac rim foreign asset funds lately that invest outside of china. Profit on FX and nikkei's recovery.

Yes, the region is going to benefit from emergence of China. Singapore, Thailand, S. Korea, Japan, Taiwan all offer exposure to China growth but with a better regulatory environment, management, etc. Singapore property prices have continued the fall that began during the Asian economic crisis - and Mainland Chinese are moving here in droves!!

Currently we are renting in Singapore and are able to get a rent reduction every 12 months due to ongoing weakness. With Chinese moving here, and Indonesia situation on the mend, I'm thinking Singapore real estate could bottoming in the next 12-24 months.

Kicker is the vast majority, like +90% of loans here are variable rate. If interest rates kick higher that may give us another leg down and real buying opportunity.

 

[EqtTrdr]

so stock market cannot rally if home prices plunge??

inverse relationship or direct correlation only.....???

 

[Hydroblunt]

Quote from oil_trader:

You don't think folks make money in RE?
I wager that they fare better than many "traders" here and for a lot less headacke
check out this website and the figures....
http://www.49errealestate.com/

I agree but RE "trading" & investing requires a much higher bankroll. No such thing as real estate prop firms. It seems more like the next step once you make some good loot as a trader.

 

[oil_trader]

down. So you do not need THAT MUCH.
Of course things happen slower and
nothing is ever guaranteed.
My problem I am not handy to make and do things on my own around the house.
if I was I would do that full time and buy and sell houses.trading and poker are more hobbies with much money to lose..

 

[larrybf]

real estate is dying?????? well if it dying. the people who have participated in it are 1000's times better off than all the day trader wannabes that have visited this board with an endless stream of nonsense and losing strategies........ i have made money in the market .............but it pales in comparison to what my PASSIVE real estate investments have done........so i aint so smart either...... but at least i am happy