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Originally Posted by Brujah
Thanks Colin!
Do you think they should have sold in 2005 or 2006? Is now the time to buy and flip when it gets back up to 2005 prices? How long do you think it'll take to recover back to 2005 prices?
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To get back to 2005 prices for the Tampa area from here at 5% per year would take a decade and the long term appreciation of the housing market is roughly at the rate of inflation - which historically has been less than that.
I'd much rather be in the stock market. I think this is a historic opportunity in the stock market and personally I think
stocks are a lot easier to value. There is going to be all kinds of unpredictable real estate and banking legislation and that just adds another element of risk to real estate from my POV.
Bill Gross said earlier today that he still thinks long term rates will get down to 4.5%. If I were really a real estate bug I'd wait for the lower rates and then wait for a few months of uptick. Bernard Baruch said something like "you take the first 10% and the last 10% and I'll take everything in the middle". That seems like a good rule here. he also said "Don't try to buy at the bottom and sell at the top. It can't be done except by liars. "