[quote=livinincali][quote=AN][quote=spdrun]Why wait for another bubble before things crash down?[/quote]
So I can sell all of my houses at insane prices and rent, while waiting for the crash.[/quote]
Do you think you’ll know where the top of the bubble is and when it’s going to crash? What if the top of this current bubble is in the next 3-6 months?[/quote]
If you noticed, I never said anything about top. What I said is insane prices. If it never get to insane price, then I have no problem keeping what I have and buying more when it crash. What we have today IMHO is not insane prices. I wouldn’t sell at today’s price. I also never said I would know when it would crash. But I know when a price is insane when I see them. Today, in some areas, we’re still 30-40% below peak 2005 nominal price (not even talking about inflation adjusted).
Between 1926 and 1996, the annual average rate of return on Real Estate was 11.1%. So, insane to me would be 2005 price + 3-11% annual increase. I’d even take 2004 price + 3-11% annual increase. For example, that would put those McMansions in Eastlake at $1.2M-$2.3M. Today, they’re going for $650-700k.
