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Originally Posted by High_Times
I just had a conversation with my dad over the weekend about real estate. He owns properties (rentals in various forms, houses, condos, apartments, etc) and stocks and other shit.
His idea is that it is going to be just like in 1989-1991. People will leave the keys on the kitchen table and walk away. Especially the interest only idiots. At that point he is telling me it is time for me to finally buy some real estate, doing it at rock bottom prices. I think I will take his advice and wait another 1 or 2 years to buy a house.
He was a working stiff until 1988. When the stock market crashed and the real estate did over the next 3 years, he took money from his other investments and bought up a shitload of real estate for almost nothing down. He is confident it is coming around again.
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There's a Coop Apartment building on 7th Avenue and 20th Street (here in NYC) which is almost all studio (14 out of 14 per floor). It started selling in 1988, with units going from $90K to $120K. In the first half of 1992, I sold 6 units there ranging from $27K to $41K. The units are currently going from $375K to $425K. That's the raw data, you analyze it.
PS In the past few weeks in NYC we're seeing something we last saw in 1990-1993 ... a bunch of listings are comming out with higher than normal commissions to induce brokers to sell them. Could it be a sign the market is cooling off?