Actually if you read my posts back from when I started which was long before any of you ever joined this board, I was one of the most bearish people here.
Similarly, I regularly receive requests for evaluations of property, for opinions, for thoughts and none of this is solicited and these are not for clients of mine. Also when everyone was gleefully predicting the tsunami and how we would all get great affordable deals I was one of the few who warned about how this would not be the case due to interventions by the govt.
Again, try to read my comments carefully. I have not told anyone to buy. What I have been saying is to look for a continuation of what is a concerted effort to revive the market via good old fashion manipulation. This manipulation will be in the form of pushing further risk onto the taxpayer backed GSEs. Furthermore the timing of this effort is particularly ironic given it is an election year.
Yes a homeowner underwater with a 600k loan and a turd 450k home will soon be able to refi it for the full 600k. That loan will be backed by fannie mae. This is nothing short of fraud. An asset that is not worth 600k will be moved to a GSE and that 600k is insured by your tax dollars in an indirect manner. This also will remove this home from a potential buyers pool as a short sale or reo. This is market manipulation. This will happen on a larger scale. This is not a free market.
This will however goose the market. You can hide your head all you want. You can deny you missed a local bottom, it doesn’t matter to me… If you follow investment property closely you will see it has been moving over the past few years. Similarly where is the tsunami of homes? Markmax where are they at? Have you seen them?
How about you jameswenn? Do you really think the original poster would be idiotic enough to spend 500k on a condo in mission valley? This is not rental stock. Try to understand what rental stock really is ok? Have you been tracking the sales of true rental stock and watching as the prices have been going up?
If you don’t want to use valuable advice to your advantage that is fine. Why don’t we wait a year and look back on what I have said. How does that sound. If you haven’t been reading recommendations that the Fed has been giving regarding the GSEs, and what a hell of alot of other news has been with regards to changing the current model in order to stimulate things, then that is fine, keep your head buried and keep waiting for that mirage of a tsunami. Meanwhile myself and others will continue to purchase rentals and take advantage of the opportunities.
