Advice needed from the pros

[Anonymous]

Real easy….

If you have cash now is NOT THE TIME to buy houses when interest rates are low….

Go study the 1970’s stagflation model. History always repeats itself usually in 25 and 70 year cycles.

The govie is going to keep printing money and stealing our money and redistributing to the most pressing fires (extend Unemployment bennies, more tax incentives to buy houses, health care, stupid wars, more cash for BS programs (appliances are next), GMAC Financial needs a third bailout today, states are BK and will play their hand against the federal to get money for police and fire or they will tell them to bring in the national guard and pay for it themselves, pensions funds and municipal bond bailouts, on and on an on). It is all coming down home to roost not to mention the CRE explosion that will be here in the next 6 months…..

More debt and more risk to the debt investor means, go visit the 1980’s charts for interest rates and when we get to EVEN 10% the housing market by a mathematical certainty will drop another 35%. I don’t care if you live in La Jolla or El Centro.

Buy with CASH when rates are HIGH my friend. Good luck to you, and don’t get greedy or impatient.

[teaboy]

Hi seer,
If only it were as simple as “Buy with CASH when rates are HIGH”. But how do you get a real rate of return on that cash for the next x years if rates stay low?

I guess your advice on buying houses is a little like Buffet’s on buying stocks: “Buy low, sell high”.

Real easy….

TB 🙂

[teaboy]

Hi seer,
If only it were as simple as “Buy with CASH when rates are HIGH”. But how do you get a real rate of return on that cash for the next x years if rates stay low?

I guess your advice on buying houses is a little like Buffet’s on buying stocks: “Buy low, sell high”.

Real easy….

TB 🙂

[teaboy]

Hi seer,
If only it were as simple as “Buy with CASH when rates are HIGH”. But how do you get a real rate of return on that cash for the next x years if rates stay low?

I guess your advice on buying houses is a little like Buffet’s on buying stocks: “Buy low, sell high”.

Real easy….

TB 🙂

[teaboy]

Hi seer,
If only it were as simple as “Buy with CASH when rates are HIGH”. But how do you get a real rate of return on that cash for the next x years if rates stay low?

I guess your advice on buying houses is a little like Buffet’s on buying stocks: “Buy low, sell high”.

Real easy….

TB 🙂

[teaboy]

Hi seer,
If only it were as simple as “Buy with CASH when rates are HIGH”. But how do you get a real rate of return on that cash for the next x years if rates stay low?

I guess your advice on buying houses is a little like Buffet’s on buying stocks: “Buy low, sell high”.

Real easy….

TB 🙂

[an]

Here’s the historical median home price reported by the census bureau: http://www.census.gov/hhes/www/housing/census/historic/values.html.

Here’s the historical mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp
http://www.freddiemac.com/pmms/pmms30.htm

If you buy a median house in the 70s, by the 80s, the house doubled (adjusted for inflation). All the while, mortgage rates doubled.

[an]

Here’s the historical median home price reported by the census bureau: http://www.census.gov/hhes/www/housing/census/historic/values.html.

Here’s the historical mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp
http://www.freddiemac.com/pmms/pmms30.htm

If you buy a median house in the 70s, by the 80s, the house doubled (adjusted for inflation). All the while, mortgage rates doubled.

[an]

Here’s the historical median home price reported by the census bureau: http://www.census.gov/hhes/www/housing/census/historic/values.html.

Here’s the historical mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp
http://www.freddiemac.com/pmms/pmms30.htm

If you buy a median house in the 70s, by the 80s, the house doubled (adjusted for inflation). All the while, mortgage rates doubled.

[an]

Here’s the historical median home price reported by the census bureau: http://www.census.gov/hhes/www/housing/census/historic/values.html.

Here’s the historical mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp
http://www.freddiemac.com/pmms/pmms30.htm

If you buy a median house in the 70s, by the 80s, the house doubled (adjusted for inflation). All the while, mortgage rates doubled.

[an]

Here’s the historical median home price reported by the census bureau: http://www.census.gov/hhes/www/housing/census/historic/values.html.

Here’s the historical mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp
http://www.freddiemac.com/pmms/pmms30.htm

If you buy a median house in the 70s, by the 80s, the house doubled (adjusted for inflation). All the while, mortgage rates doubled.

[investor]

When and where to buy a home is tough to predict. Due to the massive amounts of money the fed has printed,that will hit the market at some point,I think that we are in for a period of high inflation in about 18-24 months. Probably in the range of 12 to 15%. How that will effect home prices probably will depend on the job market, which is probably going to get worse before it gets better. More jobs= more people with money to buy a house. More unemployed (despite the inflation) = a soft housing market and lower home prices despite inflation. As many have pointed out, the amount of foreclosures is artificially low so recent home bidding wars may cease if/when the pre-forclosure homes finally do hit the market, which may further lower home prices. If the pre-foreclosures do not hit the market, home prices may continue to creep up. Balancing all of these factors is difficult. I think that if someone is in a position of long term financial secuirity,ie a good/secure job, locking in a home at a reasonable recession price in the next 12 months at a fixed 30 year mortgage will probably make you look like a real estate guru in 6-10 years. I just bought a class A office condo for my office at $177/sq ft on a major road because I believe that now is a great time to buy foreclosed commercial real estate.Good luck.

[investor]

When and where to buy a home is tough to predict. Due to the massive amounts of money the fed has printed,that will hit the market at some point,I think that we are in for a period of high inflation in about 18-24 months. Probably in the range of 12 to 15%. How that will effect home prices probably will depend on the job market, which is probably going to get worse before it gets better. More jobs= more people with money to buy a house. More unemployed (despite the inflation) = a soft housing market and lower home prices despite inflation. As many have pointed out, the amount of foreclosures is artificially low so recent home bidding wars may cease if/when the pre-forclosure homes finally do hit the market, which may further lower home prices. If the pre-foreclosures do not hit the market, home prices may continue to creep up. Balancing all of these factors is difficult. I think that if someone is in a position of long term financial secuirity,ie a good/secure job, locking in a home at a reasonable recession price in the next 12 months at a fixed 30 year mortgage will probably make you look like a real estate guru in 6-10 years. I just bought a class A office condo for my office at $177/sq ft on a major road because I believe that now is a great time to buy foreclosed commercial real estate.Good luck.

[investor]

When and where to buy a home is tough to predict. Due to the massive amounts of money the fed has printed,that will hit the market at some point,I think that we are in for a period of high inflation in about 18-24 months. Probably in the range of 12 to 15%. How that will effect home prices probably will depend on the job market, which is probably going to get worse before it gets better. More jobs= more people with money to buy a house. More unemployed (despite the inflation) = a soft housing market and lower home prices despite inflation. As many have pointed out, the amount of foreclosures is artificially low so recent home bidding wars may cease if/when the pre-forclosure homes finally do hit the market, which may further lower home prices. If the pre-foreclosures do not hit the market, home prices may continue to creep up. Balancing all of these factors is difficult. I think that if someone is in a position of long term financial secuirity,ie a good/secure job, locking in a home at a reasonable recession price in the next 12 months at a fixed 30 year mortgage will probably make you look like a real estate guru in 6-10 years. I just bought a class A office condo for my office at $177/sq ft on a major road because I believe that now is a great time to buy foreclosed commercial real estate.Good luck.

[investor]

When and where to buy a home is tough to predict. Due to the massive amounts of money the fed has printed,that will hit the market at some point,I think that we are in for a period of high inflation in about 18-24 months. Probably in the range of 12 to 15%. How that will effect home prices probably will depend on the job market, which is probably going to get worse before it gets better. More jobs= more people with money to buy a house. More unemployed (despite the inflation) = a soft housing market and lower home prices despite inflation. As many have pointed out, the amount of foreclosures is artificially low so recent home bidding wars may cease if/when the pre-forclosure homes finally do hit the market, which may further lower home prices. If the pre-foreclosures do not hit the market, home prices may continue to creep up. Balancing all of these factors is difficult. I think that if someone is in a position of long term financial secuirity,ie a good/secure job, locking in a home at a reasonable recession price in the next 12 months at a fixed 30 year mortgage will probably make you look like a real estate guru in 6-10 years. I just bought a class A office condo for my office at $177/sq ft on a major road because I believe that now is a great time to buy foreclosed commercial real estate.Good luck.

[Author]

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