Who Says Real Estate Is Gonna Bust?
 

Totally disagree. Just going over the latest procedures for loans, acquisitions, probate, foreclosures.

The only thing going bust is egos.

It's easy for people to acquire the capital they need to get a home. It only goes south when the owners bring their IDs with them. New homes, old homes, you can't lose.

Problem here is teamwork. I see immigrants coming to the U.S. all the time. They get rich in less than five years. Why? Because their family and friends stick together. So they get a loan which is easy, they get the house, they pool their resources and chill out and work for a few years and either resell the home or use it as collateral for a new business yadda yadda yadda.

Having your own corporation is foremost. You can do anything with it just about.

Corporate owned real estate and your a computer geek? With an online job you can do at home? SWEEEEET! You can get a kickass house way in the country and have cheap ass mortgages without the crime, pollution and traffic.

Need I say more?

You don't know a fucking thing about anything so stfu douche.


I pissed on your mommys face last night.

It hurts my head to try and give a reply to this thread...

Gee another bright response from Siccash. Maybe that's why they're one of the rare few companies I never applied for an affiliate for. With employees like you stupid ass that makes me question not only their integrity but their honesty. Maybe we should look at that?

LOL, this thread deserves a bump ;)

You are a fucking idiot.

:1orglaugh :1orglaugh

Man, real estate is underpriced in Ohio, and overpriced in NY area, there is no one big real estate market, there are many markets.

Those who don't want to overpay should not buy, and that's all. Whats the point of this drama debate around real estate. Do you eat food from your fucking garden or what, who gives a shit, the only guys worried about real estate are those mother fuckers making a living by screwing people and banks with their stupid real estate speculation business. Go fuck yourself

Yes indeed real estate is underpriced in Ohio. Yet is it underpriced because the land isn't good or underpriced because the people aren't good? Ohio is beautiful country but it's got some tensions going on amongst the populace. That might be affecting the prices. If you make 100k a year Ohio sounds good especially if you work remote.

One thing about Ohio I must say is true, the chicks are cute! Rare to meet an ugly broad from Ohio.

US regions are priced according to where most of the top country income earners live.

I think the aliens are going to come down and buy all the available real estate.

just so you know, real estate in the Miami / South Beach area has already decreased as much as 10% over the past few months.

and people who have ARM mortgages are about to shiat the bed, once their mortgage payments reset and increase a few hundred more dollars a month due to the 17th consecutive rate increase by the feds.

Fuck, who would be crazy enough to live in Miamai/South Beach? Anyone living in Florida is crazy. Fuckin' hurricanes and shit. I'm surprised you can sell a house there over $100k

The ARM market may not be that bad off. They're not going to let all those people fall off. Even if they do it'll be goodie for us purchasers. Foreclosures are a juicy market if you know what to do. Location, location, location, services, services, services.

Real estate is the vulnerable under belly of the US economy. Which in many respects resembles a huge Ponzi scheme.

I have read some analysts suggesting that the average equity in real estate across America is negative.

You people don't save. The current economic expansion is fueled by borrowing at low interest rates.

But just as the massive military deficit spending of the Vietnam War era lead to 14% inflations and 20% interest rates, the massive military deficit spending in Afghanistan and Iraq will do the same.

When interest rates hit 10% it will be a bloodbath.

I recommend selling anything and everything that is interest rate sensitive. Rent. Do not own. Buy gold and keep cash in t-bills. Euro or CAD$ denominated.

Check out Costa Rica.

Please don't check out Canada.

:2 cents:

San Diego's market has also softened.

How is Canada going to survive without Uncle Sam's money?

Good question, especially for a Toronto guy like you :1orglaugh

Canadians are funny

Our auto industry will crash and burn.

Our resouce industry will do fine. China is a big buyer of oil and everything else.

We have to redirect trade to Mexico and South America and Europe.

There will be much pain, but nothing like what will be experienced in the US of A.

the realty business will take a big dump probably with in the next 3 to 5 years. prices are wayyy inflated, banks give out mortgages way too easy, and it will all come crashing down.

either that or it will just stabilize more.

I could agree to a point but the one thing Americans have to hedge their bets is lots of cash. If push came to shove and every American or at least the top 20% suddenly went on a savings spree it would take a few weeks or months for the country to rebound.

We make money. The reason why is because in America we-love-play. That's the difference. Give us a ball, a stick, an open field, some dice, a deck of cards and we're all over it.

Real estate can't crash in the U.S. without the world dying off worse. Don't underestimate us.

We die, everyone dies.

You are sharp! Very sharp! Our auto industry will die because it's too oppressive. They have to be forced to employ the safeguards, fuel efficiencey and other additions consumers want. Remember the 70's when Toyota started kicking the U.S.'s ass? Same well into the 80s. Had to redesign cars to compete. Asia in many respects is a great ally. They know when our companies fuck us over and they make up the balance by producing products they know we want.

That's the difference. The U.S. doesn't parlay to supply and demand. They employ mind control commercials and political shit that tells you what you want and you better take it up the ass and like it. Basically our commerce is run by too many criminals.

Our auto industry is going to die on the vine unless they make the leap to alternative energy or hybrid and the safety/comfort features for a reasonable price.

Oh... another complex thread with mixes of other stuff :winkwink: But quickly....

Real estate in the conventional sense is a roller coaster - but that normally conforms to a pattern over decades - and much the same in any country.

Real estate in the US in particular needs... well, a kinda extra eye in the monitoring. Reason being, the overall fiscal policy is a major problem and some elements have basically no or little foundation. The US as "USA Inc" is a non-profit enterprise and appears unable to control it's operating budgets and accquiring more debts on a daily basis.

It was.. either spring of 2002 or 2003 that the US Treasury completed the largest ever survey - over 15 years worth, - and, simply put, estimated that (at that time) 94% of all homes and the contents therein were the value of the real national debt. (There were plenty other stats and recommendations, but generally, not good news). This document was published - then stuffed to the bottom of an out-tray within a week - for obvious reasons.

The above scenario has clearly changed much for the worse since that time where borrowings from other nations are now in the region of $10 bill daily, trade deficits are mounting (there never was a trade surplus of any consequence since the 60's) and fairly high costs being expended on issues like Iraq. The obvious reduction in dollar value and increased costs of imported product sure does not help this situation.

Bottom line.. how is the country being funded in reality? Basically by two areas where there are trade surpluses - wheat and arms and also by foreign loans.

Back to real estate - this is being funded from little substance - credit and loans and in an area/jurisdiction which itself is operating on a credit card. This is hardly a "stable" investment, but certainly would be if the bell timed-out and the market crashed - let's hope that shit don't happen.

There are major fundamental flaws - until these are addressed - it's a possibly problematic market. There are many more secure - and often far more profitable areas on the planet for real estate/land investment. Why chase property where a million others are chasing it and verbally hyping it beyond any rational level? Only my :2 cents: worth - go for security - then the highest potential capital increase.


Totally agree with the above Greg. Corps are tools - and the more tools available for use, the better. It is also relevant where these corps are based - some offer more facilities than others etc.

I'm just making sure i'm in a position to buy when the time is right:)

I bought my house because it had a nice private pool, it's one story and my old hound-dog can't climb stairs.

Commercial warehouses I own are valued based on investment return, short and simple, 9% cap rate in my area.

Webby, interesting note, over the last 18 months two tenant leases have been assumed and extended term options exercised by Sumitomo Corp. as they swallowed the auto related tenants.

The balloon in some cities might burst... here in montreal it's underpriced right now.

You got no consideration for that ol' hound-dog L-Pink? :winkwink:

Mmmm... your example of Sumitomo seems to be a trend generally - and almost happening without being noticed. There are some major changes and shifting of economic regions going on - and presumably not likely to stop in the forseeable future.

Suppose.. tho almost sub-consiously, I've been looking at "prospective potential" areas with that economic shift in mind for real estate investment and grabbing anything that has a chance - (OK.. you still have to do the homework), but it's stunning so far and way beyond expections with captial increases averaging around 50% annually and little prospect of that slowing - basically means a good few mill into the bin annually. From that stage, stuff the "developer hat" on - and it's just silly money.

I don't know the area well enough, but smell there is a lot of potential in Asia in general for RE investment. Also areas, some of which may not be "cultivated" totally yet where there is an appeal for tourism (basically exotic locations), - these have a tendency to shoot thru the roof within a very short time scale.

Yes Webby,

Asian real estate IF you can get it would be a good idea. In Thailand I have friends who are super influential. You can own property in Thailand if you have the connections. That's some sweet shit there.

As for corporate ownership of real estate in my case I had to wake up and realize I was missing out. Due primarily to illness I was fighting no doctors knew what was going on til I almost keeled over. Now what I've learned is that it's easier for me to do my job at home so why not acquire a property I can enjoy to work from. Why buy it with my own credit when a corporation can. So I'm hatting myself on corporate real estate purchases.

I also learned a great way to find honorable tenants for a property too. I was living in California as a break and looking for adventure. All I found was bad air, bad food, poor political leadership and long fucking lines and traffic. So it's back home for me.

Yet that also means commercial properties I can acquire and fill with decent people if I choose to landlord.

The best thing about real estate is being SANE about it. There are always good deals because so many people are crazy. Divorces, disasters etc. All you need is a funding source which you can get even if your credit is SHIT. It's about taking responsibility. Banks and real estate companies die on the vine as long as a property remains unsold. So you come along willing to take responsibility and you're the golden boy. Yet that's half the battle. It's making that property turn a profit in the short or long term. That depends on certain factors. Sometimes you can get a property that either has lots of charm and appeal or gets that way through your efforts. My brother in law did that. Wasn't even done building the house when a couple just drove up and he made a hefty profit right there.

It's about being sane with real estate and being responsible.

Well that's one thing you're right about.

You are taking the words right out of my mouth Greg :winkwink:

It is correct in what you say - even if you do nothing with eg a plot of land, - it still increases annually with no effort. (Not quite the same as the net biz)

It's never exactly trouble-free, (got to deal with surveyors and others), but ideal for a biz where you can operate from home. (That's where is handy if you can build up a team of professionals who are stable and can be used on other investment projects.)

Also... again, being responsible and covering every aspect in detail before a purchase, is crucial.

And... if there is a project which comes along and it sounds on the biggish side, but fundamentally a good deal - there is no reason not to set up another corp for that project and invite others to participate as shareholders. Some stuff is just a no-brainer!

It's only me, but have a tendency to look for an "average" capital gain of around 20% annually for land alone and no or little construction on it and in locations which offer a good prospect of development at some future time. Tho that modest return seems to have shot up far more than we ever expected possible. The development aspect in a way ensures a future - where dev prospect revenue is many times more than land values.

Again.. there are niches :) Suppose mine are "ecological" and "exotic locations" - eg just putting a another project together now for.. dunno yet, could be more depending on neighboring vendors, but a base plot of around 800 acres with 200+ existing home construction permits already in place. This is both a mix of ecological and exotic with around 2.5 kilometers of beaches and coves with plenty ocean view plots - got to be one of the richest places on the planet for that. It's too much work for one person to handle, so formed a corp for this one and working directors as partners.

But basically... hour for hour spent on either net or real estate - there is no question real estate is miles ahead, - not just for immediate benefit, but long term.

Real Estate will always take a dip till the market catches up then it sky rockets. Great long term and short term if you get in and buy at the right time.

As long as we keep reproducing people will continue to buy their dream home it's every mans dream to own there own home. Its the safest Investment if you dont over extend yourself.

Too much inventory on the market right now. I see for sale signs everywhere in my city.

Its the sky is falling BS and people are sheep. you will never lose on real estate only if you cant make the payments then your fucked but long term its the safest. We arnt growing more land but we are producing more people.

If you can withhold the storm sit on it till it rebounds

Someone pointed out the obvious recently Roger - "there is no manufacturing unit to make any more land" :)

Yea.. agree! Also.. you noticed these "dips" are more inclined to happen in "conventional" market areas with high demand and hyping?

And sure.. gotta know the area, know the market in that area, plus external aspects which could either enhance or screw any potential - and know or have a clue of the future prospects.

It's very regional. Regardless, if there's ENOUGH softening, it might mess up the larger economy.

a mortgage is a bond. learn how bonds work. in bonds, as rates go up, the value of existing bonds (bonds already out there) have to go down to compete with the newer bonds with higher yields.

right now, the older existing mortgages out there right now will go down down down as rates go up. if you were one of the fortunate to get a fixed rate, AND you can ride it long term (even if way upside down) you'll be cool. But the levels of ARMS, no interest and other crazy shit out there is FRIGHTENING. and no - it doesn't just stop at the 'large markets'. to say that we're not threatened by a national crisis is sticking uour head in the sand.

good thing so many people haven't tied their payments to interest rates

market in NYC has definitely pulled back...my sister just got a studio in the upper east side if manhattan for $449,000. yup, 525sq ft for $449k. It was listed 2 months ago at $499k and listed in January for $529K.

True...A lot of that is... fundamentally weak and no less than selling folks shit they can't afford in the first instance. (Like "no deposit" car sales/leases)

Everyone is in for a cut of "something" - whether that be banks, finance houses or simply credit cards. The further they are away from any home or land deals, the better, - else it's not real. Better to stuff your money where your mouth is and remain realistic and loan free.

one of few people in this thread who have a clue :thumbsup

yeah I think people have to realize that in the major markets a lot of property was purchased by speculators who bought with ARM's.
Well here is the situation.
You buy a house in LA for $600k and you were paying $2400 for mortgage and renting it out for $2600 a month. well all is fine.
However interst has gone up and so has the ARM...well guess what now the payment is $3200 and the rent is still $2600...how long can you do this until you go broke.
This ain't happening in Nebraska but in places like San Diego, LA, New York City, Miami...
Also remeber this the people in these city's have a very low temperment to losing money and remeber they are gonna want to get out of the houses and quickly however so will a lot of other people. However the average person still can't afford a mortgage.
So don't base everything by living in Ohio and looking around and seeing what is happening there.

ARMs have a tendancy to be fixed from 3-5 years is the most common. That is fixed for 5 years. So its a 5 year ride out in base case scenario.

:1orglaugh :1orglaugh :1orglaugh :1orglaugh :1orglaugh

who gives a shit if people with ARMs go under. rates hit a all time low and people buying beyond their means(buying mcmansions) who opt for the interest only or ARM were destine to end up getting fucked. let them cry a fucking river when i come in and buy their foreclosure, laughing all the way to the bank.

Lotta good points here. Lotta good points.

Allstar, that's why I don't rent. It would really, really depend on the right situation. For me, if I had a $600k crib with a fixed $2400 per month I could easily max that out with tenants and make a good profit. A house at that cost is going to go up in value regardless and if you fix it up and add the goodies it'll go further. That's a good investment.

The best, the BEST thing to put into a property are good people. Plain and simple. Real estate to this day is the safest surest way to get rich quick. In five years you can be a millionaire if you do things right. If you have family members who are neat and honest and hardworking you will without a doubt be a millionaire in real estate.

Wish I had moved faster younger and not gotten wrapped up in all these Don Quixote bullshit causes. I can recover easily though. Just give yourself a five year plan, make sure you work your corporations right and don't get stupid with drugs, whores, gambling and over generosity.

Knowing all the ins and outs of corporate commercial purchases is where I'm at now. Being free to work in the country is the big help here.

Anyone hip to corporate purchasing?

Snidley Whiplash but true.

Divorce, disasters and mismanagement of others is the fastest way to get rich in real estate.

Dumb=Poor
Sloppy=Poor

If you just had $100k laying around you could purchase a million bucks in real estate easy.

because unfortunately much of the american economy depends on the liquidity of these poor schmucks. and there are far too many lurking out there that are about to shit out their own skeleton - too many for my comfort level at least.

Real estate business is run by banks. Get rich with OPM (other people's money) should not be a dream. Make your own money first and buy your house 100% cash, then you will have my respect. If you cant, then you are a damn loser, and should shut the fuck up, bc the money is not yours, you borrowed it, exactly like Bush is borrowing from China and Europe to keep the country running.

Canadians still believe they are independant, its extremely funny, its basically a colony like Mexico.

Mexico and Canada would not survive without the US. You are employed by US companies for US customers. So piss off.

I'd say, 30 million Mexicans cant be wrong. US rocks!

I have to agree here. The reason the U.S. continually expands is because we have a sense of fair play and we love to play. We love our cars, motorcycles, skis etc. and video games and any games.

Other countries like to kill each other over shit like cartoons and soccer. We kill each other over real shit like disrespect and cheating.

We know how to kill. We know how to play.