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

[EqtTrdr]

Quote from 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

I will be the first to admit I know less than nothing about RE investing. But doesn't the entire premise of the RE investing industry revolve around the notion of continually increasing prices?

Is is possible to make money in RE investing in a falling marketplace?

At least with stocks you can profit both ways.

Please take me to school here and let me know where I am wrong.

Thanks!

 

[oil_trader]

That's what foreclosure and distressed property means. Not to mention rehabbing and building from scratch.

Quote from EqtTrdr:

I will be the first to admit I know less than nothing about RE investing. But doesn't the entire premise of the RE investing industry revolve around the notion of continually increasing prices?

Is is possible to make money in RE investing in a falling marketplace?

At least with stocks you can profit both ways.

Please take me to school here and let me know where I am wrong.

Thanks!

 

[Midas]

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


Once again your ignorance amuses me. While you are beating on the keyboard trying to scrape together 2 pennies like the monkey that you are, the people who own those RV parks and trailer parks are sitting on several million dollars worth of land that others are paying for. In most cases they are owned by private investors that hire a manager and deal with the property only a few hours per month (when they are going to the bank with a fat rent roll)

In the end it is all about making money.

I have seen you post in many threads and have come to the conclusion that you are a complete idiot. After this reply I will not waste any time responding to your posts.

 

[onewaypockets]

Quote from Covertibility:

trailer 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.

Don't turn up your nose at what you don't know about. I know someone that has owned trailer parks for 40 years....he is worth about 10 million now.

Very little upkeep, tenants stay in place for a long time (where else can they live so cheap), etc.

It's not glamorous but it may be worth considering (for an open minded investor anyway) in a real estate portfolio.

 

[Cutten]

Quote from BlueHorseshoe:

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.

The trouble is, Shanghai is about 7-8 times cheaper. In 15 years time it will probably be *more* expensive than Singapore. Why buy an already mature market?

 

[BlueHorseshoe]

Quote from Cutten:

The trouble is, Shanghai is about 7-8 times cheaper ...

You are normally pretty astute Cutten but this looks like a fish teaching a cat how to purr.

Not even by the most fantastic stretch of imagination can Shanghai RE be considered cheaper than Singapore's, let alone 7-8X ... the statement is ridiculous on its face.

I'd be happy to entertain your argument, if only to do you the favor of punching holes in it. Kindly make clear whether you are talking about commercial and/or residential real estate, and by what criteria you measure cost and value.

 

[Arnie]

RV and trailer parks are a niche market...a very desirable market. Most of these type developments are grandfathered under current zoning. Try to get a new park approved, if you doubt that. While researching for some other properties at a local courthouse I ran across a recent sale of a 65 unit mobile home park. Asssuming they only rent the lots, and assuming $300 per lot, which probabaly includes water and sewer, thats a yearly gross of $234,000. This property also has 2 rental houses and they probably own and rent out some of the mobile homes. So the income is probably higher This property sold for $1,400,000. In appraising income properties, a quick and dirty indicator of value is the gross rent multiplier, or GRM. The lower this figure, the greater the return on investment. For single family homes in my area, the GRM usually ranges from about 80-130 or so. The indicated GRM for this park is 5.98. Not bad.

 

[SteveD]

A well located, well managed mobile home park has a much higher cash flow than an apartment development of similar size in most major cities in the US.

But Wall Street likes the brochure the apartment REIT's have as the pictures are nicer.

SteveD

 

[Cutten]

Quote from BlueHorseshoe:

You are normally pretty astute Cutten but this looks like a fish teaching a cat how to purr.

Not even by the most fantastic stretch of imagination can Shanghai RE be considered cheaper than Singapore's, let alone 7-8X ... the statement is ridiculous on its face.

I'd be happy to entertain your argument, if only to do you the favor of punching holes in it. Kindly make clear whether you are talking about commercial and/or residential real estate, and by what criteria you measure cost and value.

Ok - let me know your estimate for prices per square metre for Shanghai and Singapore. Residential apartments in reasonably good central areas. If you can supply some sources e.g. respected real estate firms estimates, that would be helpful.

 

[praetorian2]

You'll hate to hear this, but gold/silver are the new play. Pretty screwey really. I'd have never thought it, but that's where I'm staking my money.