Warren Buffet speaks on "The Real Estate Bubble" - GoFuckYourself.com

Cory W · 05-01-2005, 04:52 PM

Buffett: "A lot of the psychological well-being of the American public comes from how well they've done with their housew over the years. If indeed there's been a bubble, and it's pricked at some point, the net effect on Berkshire might well be positive [because the company's financial strength would allow it to buy real-estate-related businesses at bargain prices]....

"Certainly at the high end of the real estate market in some areas, you've seen extraordinary movement.... People go crazy in economics periodically, in all kinds of ways. Residential housing has different behavioral characteristics, simply because people live there. But when you get prices increasing faster than than the underlying costs, sometimes there can be pretty serious consequences."

Munger: "You have a real asset-price bubble in places like parts of California and the suburbs of Washington, DC. "

Buffett: "I recently sold a house in Laguna for $3.5 million. It was on about 2000 sq. ft of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre."

Munger: "I know someone who lives next door to what you would actually call a fairly modest house that just sold for $17 million. There are some very extreme housing price bubbles going on."

Illicit · 05-01-2005, 04:55 PM

to buy or not to buy, that is the question

$5 submissions · 05-01-2005, 04:56 PM

The question is WHEN? There's been talk of a bubble for a while now...

NaughtyRob · 05-01-2005, 04:57 PM

I think the bubble in Vegas is about to burst.

nofx · 05-01-2005, 04:58 PM

there was something on tv about this last night

it was pretty interesting if real estate is your cup of tea.

Dildozer · 05-01-2005, 05:03 PM

There's been talk of a bubble for quite some time now. But the bubble isn't everywhere, it's very micro and depends on areas. Wether it's gonna be a bubble burst or slow deflation will change a lot as well. Personally I think it'll be a slow deflation, not an all out burst.

Head · 05-01-2005, 05:06 PM

Being a real estate investor i feel it's in it's 'Mature' stage but in lots of places through out North America property value will continue to increase. :2 cents

Tytan · 05-01-2005, 05:07 PM

uk market is booming still

$5 submissions · 05-01-2005, 05:15 PM

Quote:

Originally Posted by Dildozer

There's been talk of a bubble for quite some time now. But the bubble isn't everywhere, it's very micro and depends on areas. Wether it's gonna be a bubble burst or slow deflation will change a lot as well. Personally I think it'll be a slow deflation, not an all out burst.

True. It depends on the region. For example, the most recent bust in LA in the early 90s started out as a slow deflation then accelerated as housing inventories piled up unsold and prices kept getting slashed.

eroswebmaster · 05-01-2005, 05:15 PM

Quote:

Originally Posted by ContentProducer

I think the bubble in Vegas is about to burst.

I would hope so.
I saw a listing for a house that looked almost like a duplicate of mine going for $185,000.
Back in Texas I could probably pick it up for 1/4 that if you consider the same neighborhood etc.

Yes I live in the ghetto.

V_RocKs · 05-01-2005, 05:19 PM

Burst already! I want a nice house!

GTS Mark · 05-01-2005, 05:20 PM

There are lots of good deals out there, you just have to look harder these days

DH

Snake Doctor · 05-01-2005, 05:30 PM

You have a link? I'd like to read the whole interview.

mockingbich · 05-01-2005, 05:35 PM

Quote:

Originally Posted by ContentProducer

I think the bubble in Vegas is about to burst.

Yeah, that's what I thought that too...

But last month 3 houses sold in my neighborhood in Scummerlin. Each one was over a million... and this is just the beginning of the summer selling season

Don't bail out on Vegas yet

clickhappy · 05-01-2005, 05:45 PM

I saw this at the book store today. It says prices will ll climb until the end of the decade
http://www.amazon.com/exec/obidos/AS...716459-1004648

BRISK · 05-01-2005, 06:40 PM

Interest rates going up again tomorrow

BRISK · 05-01-2005, 06:58 PM

Quote:

Munger: "If you jump out the window at the 42nd floor and you're still doing fine as you pass the 27th floor, that doesn't mean you don't have a serious problem."

You gotta love their quotes

Cory W · 05-01-2005, 07:12 PM

Quote:

Originally Posted by Lenny2

You have a link? I'd like to read the whole interview.

Here you go man...

http://money.cnn.com/2005/05/01/news...ex.htm?cnn=yes

jonesy · 05-01-2005, 07:54 PM

Not a single individual shareholder asked about whether Berkshire might be implicated in the widening scandal about alleged earnings manipulations at American International Group

Peaches · 05-01-2005, 08:41 PM

I'm going to sit back and wait for the interest rates to go up and all the idiots who bought with nothing down and ARMs selling their houses for what they owe or getting foreclosed on. Then rent those out to the idiots who bought with nothing down and ARMs who sold their houses and can't afford to buy another one ;)

colpanic · 05-01-2005, 10:57 PM

Quote:

Originally Posted by Peaches

I'm going to sit back and wait for the interest rates to go up and all the idiots who bought with nothing down and ARMs selling their houses for what they owe or getting foreclosed on. Then rent those out to the idiots who bought with nothing down and ARMs who sold their houses and can't afford to buy another one ;)

The problem with this theory is that you then have a mortgage with a shitty interest rate, which makes it way more expensive in the long run. Unless of course you buy it cash

jonesy · 05-02-2005, 01:33 AM

Quote:

Originally Posted by Peaches

I'm going to sit back and wait for the interest rates to go up and all the idiots who bought with nothing down and ARMs selling their houses for what they owe or getting foreclosed on. Then rent those out to the idiots who bought with nothing down and ARMs who sold their houses and can't afford to buy another one ;)

yup its going to happen -

also the cost of living is rising and peoples paychecks are staying the same and not matching the rise

uno · 05-02-2005, 01:35 AM

I hope it drops around nyc and nj. I know a few props i'd love to buy.

05-01-2005, 04:52 PM	#1
Cory W Deeply shallow Join Date: Jan 2004 Location: Hollywood, Ca. Posts: 9,133	Warren Buffet speaks on "The Real Estate Bubble" Buffett: "A lot of the psychological well-being of the American public comes from how well they've done with their housew over the years. If indeed there's been a bubble, and it's pricked at some point, the net effect on Berkshire might well be positive [because the company's financial strength would allow it to buy real-estate-related businesses at bargain prices].... "Certainly at the high end of the real estate market in some areas, you've seen extraordinary movement.... People go crazy in economics periodically, in all kinds of ways. Residential housing has different behavioral characteristics, simply because people live there. But when you get prices increasing faster than than the underlying costs, sometimes there can be pretty serious consequences." Munger: "You have a real asset-price bubble in places like parts of California and the suburbs of Washington, DC. " Buffett: "I recently sold a house in Laguna for $3.5 million. It was on about 2000 sq. ft of land, maybe a twentieth of an acre, and the house might cost about $500,000 if you wanted to replace it. So the land sold for something like $60 million an acre." Munger: "I know someone who lives next door to what you would actually call a fairly modest house that just sold for $17 million. There are some very extreme housing price bubbles going on." __________________ ICQ: 292310358 Offering writing and content services (mainstream). Marketing for L3 Payments

05-01-2005, 04:55 PM	#2
Illicit wtf ? Join Date: Dec 2003 Location: GFY Posts: 11,895	to buy or not to buy, that is the question __________________ Insert Sig Here

05-01-2005, 04:56 PM	#3
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	The question is WHEN? There's been talk of a bubble for a while now... __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

05-01-2005, 04:57 PM	#4
NaughtyRob Two fresh affiliate progs Industry Role: Join Date: Nov 2004 Location: Inside teen pussy Posts: 29,602	I think the bubble in Vegas is about to burst. __________________ [email protected] Skype: 17026955414 Vacares Web Hosting - Protect Your Ass with Included Daily Backups

05-01-2005, 04:58 PM	#5
nofx Too lazy to set a custom title Join Date: Nov 2002 Location: Virgin Mary's womb Posts: 16,826	there was something on tv about this last night it was pretty interesting if real estate is your cup of tea. __________________ Often times I wonder why There's love and hate, theres live or die. When sickness comes I must decide: When feelings go, theres suicide.

05-01-2005, 05:03 PM	#6
Dildozer Confirmed User Join Date: Jul 2002 Location: Montreal Posts: 7,519	There's been talk of a bubble for quite some time now. But the bubble isn't everywhere, it's very micro and depends on areas. Wether it's gonna be a bubble burst or slow deflation will change a lot as well. Personally I think it'll be a slow deflation, not an all out burst. __________________ Spam link here

05-01-2005, 05:06 PM	#7
Head Confirmed User Join Date: Nov 2003 Location: Starship Enterprise Posts: 8,278	Being a real estate investor i feel it's in it's 'Mature' stage but in lots of places through out North America property value will continue to increase. :2 cents __________________

05-01-2005, 05:07 PM	#8
Tytan Too lazy to set a custom title Join Date: Sep 2003 Location: Somewhere over the rainbow Posts: 1,391	uk market is booming still __________________ Adult Webmaster/Pharmacy/Mortgage/Casino/General opt-in email lists for sale - full data ---------REFERENCES AVAILABLE----------- ------------------------------------------------ Adult opt-in bases for sale icq@261453175

05-01-2005, 05:19 PM	#11
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,409	Burst already! I want a nice house!

05-01-2005, 05:20 PM	#12
GTS Mark Vrume Mark Industry Role: Join Date: Jan 2001 Location: Toronto, Canada Posts: 20,912	There are lots of good deals out there, you just have to look harder these days DH

05-01-2005, 05:30 PM	#13
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	You have a link? I'd like to read the whole interview. __________________ sig too big

05-01-2005, 05:45 PM	#15
clickhappy Confirmed User Industry Role: Join Date: Mar 2004 Posts: 4,027	I saw this at the book store today. It says prices will ll climb until the end of the decade http://www.amazon.com/exec/obidos/AS...716459-1004648

05-01-2005, 06:40 PM	#16
BRISK Too lazy to set a custom title Join Date: Feb 2003 Posts: 12,240	Interest rates going up again tomorrow __________________ I post on GFY so that when people ask me what I do, I can tell them that I work with the mentally retarded.

05-01-2005, 07:54 PM	#19
jonesy Confirmed User Join Date: Jan 2003 Posts: 6,688	Not a single individual shareholder asked about whether Berkshire might be implicated in the widening scandal about alleged earnings manipulations at American International Group __________________ . Shooting Bikini Girls

05-01-2005, 08:41 PM	#20
Peaches Old broad Join Date: Oct 2002 Location: Away Posts: 13,933	I'm going to sit back and wait for the interest rates to go up and all the idiots who bought with nothing down and ARMs selling their houses for what they owe or getting foreclosed on. Then rent those out to the idiots who bought with nothing down and ARMs who sold their houses and can't afford to buy another one ;)

05-02-2005, 01:35 AM	#23
uno RIP Dodger. BEST.CAT.EVER Industry Role: Join Date: Dec 2002 Location: NYC Area Posts: 18,450	I hope it drops around nyc and nj. I know a few props i'd love to buy. __________________ -uno icq: 111-914 CrazyBabe.com - porn art MojoHost - For all your hosting needs, present and future. Tell them I sent ya!