BTW 50 year mortgages!!!!!!!! WTF!!!!!!
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Right now, real estate is better than stocks
- Thread starter detective
- Start date
Opportunities exist in every market for the person willing to do their homework.
The title of this thread is very general (real estate vs. stocks)
In GENERAL terms neither is better than the other and certainly not now. And again, depends on your time frame.
So to say one is better "Right now" is pure and utter ignorance.
The title of this thread is very general (real estate vs. stocks)
In GENERAL terms neither is better than the other and certainly not now. And again, depends on your time frame.
So to say one is better "Right now" is pure and utter ignorance.
The only problem with real estate is that its relatively illiquid. There is a lot of pessimism out there, prices have come down, and those properties that never really felt the huge boom, like apartments, are going to maintain good value and rise. Buying rental properties like apartments is a better bet than buying stocks. When people don't have enough money to buy houses, they have to stay in apartments.
Quote from Ialwayslearn:
The pain in real estate has NOT been felt yet.
If you really want in.........get this real estate when it's fire-saled after people stop paying mortgages, because they CAN"T, and the banks or courthouses start giving it away.
Now is not the time to INVEST in real estate(time frame dependant), but if you're going to live there forever and you believe the price is fair........write that check and don't worry about it.
I totally disagree. The entire real estate market has been in a <i>de facto</i> fire-sale mode for over six months.
As the EUR/USD has just crossed 1.51, as a European I would feel stupid not to take advantage of this situation.
Real value of American residential property has dropped precipitously, and to a foreigner the value you're getting for your money is enormous.
I bet you were bullish a year ago when housing prices were at an all-time high.
I'm happy, there are good deals out there and if you have the cash it's worth for the long term. I mean, maybe prices may continue dropping in the next three months but over the next 20 years you can't expect it to continue.
I have not been bullish on real estate for 7 years. Yes I saw prices sky rocket and even profitted from it. But it had to end.
When I hear everyone and their sister getting their real estate license and "flipping" houses it's time for caution.
So in effect you are calling the bottom in real estate due to currency rates. Come on!!
Nothing has fundamentally changed within the US economy and the shakedown in real esate is just starting and going to get "worse", if you view declining prices as worse.
Sure we'll get a rally in this market or that market here and there, but it won't have any legs.
It takes some time for these Macro cycles to run their course and people can hang on for a bit longer, but eventually you have to pay up for the "easy money" spending so many Americans enjoyed. I even did. But I never backed myself into a corner either.
We have tried and tried to prevent this, but the writing's on the wall.
It's just common sense.
When I hear everyone and their sister getting their real estate license and "flipping" houses it's time for caution.
So in effect you are calling the bottom in real estate due to currency rates. Come on!!
Nothing has fundamentally changed within the US economy and the shakedown in real esate is just starting and going to get "worse", if you view declining prices as worse.
Sure we'll get a rally in this market or that market here and there, but it won't have any legs.
It takes some time for these Macro cycles to run their course and people can hang on for a bit longer, but eventually you have to pay up for the "easy money" spending so many Americans enjoyed. I even did. But I never backed myself into a corner either.
We have tried and tried to prevent this, but the writing's on the wall.
It's just common sense.
Quote from tneub:
the courthouses never "give it away".....it never happens like that....the banks will give it away somewhat.....if you call loss mitigation dept.....and haggle with them....and can close quickly.....buying homes in PRE-FORECLOSURE is the best......if you ever get into the business....just remember that........banks have the opportunity to get them off there books before going thru with the whole costly foreclosure procedure.....and they will generally discount heavily for this......foreclosures at the courthouse steps are a crapshoot.....and they normally start with the reserve of the mortgage note.....hoping for a sucker to snatch them up.......and there are alot of suckers at those things......alot more than veterans.......if it doesn't auction.....most of the time it doesn't.....then it becomes REO.....real estate owned.....aka...bank owned.....and goes into their inventory...where they try and get a realtor to price it and sell it.....getting them PRE-foreclosure is where it's at.....pulled 100k...on two Pre-foreclosures in NJ this year....i posted pics on here once.....i do alot of contracting work....
How do you find PRE-foreclosure? I am scaling in on the rental property starting this year and would like some advice.
thanks,
What area/state are you looking at?
Quote from PAPA ROACH:
... the avg. joe cannot afford the higher costs. This will lead to slackening demand and ultimately commodities falling from record highs.
like most third world countries the average joe doesn't have to be able to afford the higher costs, he will be forced (by prices) to make sacrifices, he will have to cut on clothing and food to be able to pay the high rent (since he couldn't pay the high mortgage)
but one thing average joe can do and must do so we can have a healthy economy is to; keep dreaming
dreaming about a better life in the next few years, higher wages maybe, lower prices and higher standard of living, he can dream all the way to his grave, like every other average joe did before him
one thing to keep in mind when studying the economy is the distribution of wealth, how it has been distributed and how those who own the largest portion circulate the money they own,
the average joe is more like a sheep, eat, sleep, give your life to your master and die, his only responsibilities as a good citizen are to; 1. work 2. pay taxes 3. eat and sleep on time so he can work the next day 4. spend the money earned 5. reproduce 6. feed the offspring and last but most significant 7. always be wishful and hopeful, dream of a better tomorrow
when in reality there is no better tomorrow, except for those who come on tv, so they can keep giving breath to his dreams and feed his hopes so they never die, that's it, that was all his life
it is when those idiots stop dreaming that they will start thinking, but in the end i could care less, for all this will only fall on deaf ears, and on those who already know this shit
most people don't learn anything, not even the pain they suffer in their lives teaches them, not even a million reincarnations, nothing, that is what they are; sheep, they can't be what they aren't
the average joe's life is there to be fucked with, like that of a lab rat
Quote from detective:
With all the negativity in real estate, the overhang of supply which has pressured prices in the hot regions, going in and buying real estate in cities with exploding populations is a good value. The record profit margins of US companies will be pressured as wage inflation is the next step as workers demand higher wages in the face of $100 oil, $12 wheat, etc, the list goes on.
Higher wages don't come from workers demanding them. They come from undersupply of workers (and I don't think thats an issue here).