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4plexowner.
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January 31, 2009 at 1:55 PM #339342January 31, 2009 at 3:09 PM #339684
HLS
ParticipantIn response to the OP…
Do you want a place to live OR an investment ?
I once had an interesting meeting with a FNMA employee who referred to the west coast and east coast as the “bookends”
I have never forgotten our conversation.Although fortunes have been made in the past from real estate, I think the game is over for a VERY long time. All the talk of moving up and keeping the house as a rental is so 60’s-70’s-80’s..
Financing and qualifying today are COMPLETELY different than any previous time in history.It worked well back then because it was affordable.
In many “bookend” states it just doesn’t make sense anymore.A house is a stucco box to live in. You can buy one or you can rent one. Either way the use is the same.
I still believe in real estate. The tax benefits are tremendous. For an investment to make sense, I want cash flow today, not lofty anticipated appreciation that may not happen, AND I also want maximum depreciation for added cash flow.
You can only depreciate a dwelling, not land.
Land in most of the bookend states is high.
You get much better ROI from states in between the bookends.If you want to gamble on appreciation, it’s your choice. If you want an investment that really makes sense now, look to 40 other states.
Markets repeat themselves. The DOW hit 1000 for the first time around 1965 and didn’t break out above that until 1984. NINETEEN YEARS..There was opportunity in between if your timing was right.
In every market, people chase performance. It usually doesn’t work.
Corresponding to the breakout of the stock market in the 1980’s was the inception of 401K’s starting in 1980… the market didn’t break out for no reason…..
The fuel for igniting the stock market to DOW 15,000 was not 1500% growth in America, it was manipulation and greed combined with the explosive contributions of clueless people putting money into something that they did not understand, EXACTLY LIKE BUYING HOUSES.
Stocks have only pulled back about 40%+ from the recent peak, so far.
It’s a different world today and comparisons to peak prices in either houses or stocks are simply foolish. Neither mean ANYTHING, except what a foolish person paid EXPECTING that it would go up more…
Markets are fueled by fear and greed, nothing more. It doesn’t matter what the product is.
Without manipulation of SOME SORT, markets don’t rise by themselves.The worst is yet to come. Buckle your seat belt, it’s going to be a rough ride.
DOW Stock Market History:
http://www.creatingwealth.co.nz/history_dow_jones_index.htmJanuary 31, 2009 at 3:09 PM #339779ParticipantIn response to the OP…
Do you want a place to live OR an investment ?
I once had an interesting meeting with a FNMA employee who referred to the west coast and east coast as the “bookends”
I have never forgotten our conversation.Although fortunes have been made in the past from real estate, I think the game is over for a VERY long time. All the talk of moving up and keeping the house as a rental is so 60’s-70’s-80’s..
Financing and qualifying today are COMPLETELY different than any previous time in history.It worked well back then because it was affordable.
In many “bookend” states it just doesn’t make sense anymore.A house is a stucco box to live in. You can buy one or you can rent one. Either way the use is the same.
I still believe in real estate. The tax benefits are tremendous. For an investment to make sense, I want cash flow today, not lofty anticipated appreciation that may not happen, AND I also want maximum depreciation for added cash flow.
You can only depreciate a dwelling, not land.
Land in most of the bookend states is high.
You get much better ROI from states in between the bookends.If you want to gamble on appreciation, it’s your choice. If you want an investment that really makes sense now, look to 40 other states.
Markets repeat themselves. The DOW hit 1000 for the first time around 1965 and didn’t break out above that until 1984. NINETEEN YEARS..There was opportunity in between if your timing was right.
In every market, people chase performance. It usually doesn’t work.
Corresponding to the breakout of the stock market in the 1980’s was the inception of 401K’s starting in 1980… the market didn’t break out for no reason…..
The fuel for igniting the stock market to DOW 15,000 was not 1500% growth in America, it was manipulation and greed combined with the explosive contributions of clueless people putting money into something that they did not understand, EXACTLY LIKE BUYING HOUSES.
Stocks have only pulled back about 40%+ from the recent peak, so far.
It’s a different world today and comparisons to peak prices in either houses or stocks are simply foolish. Neither mean ANYTHING, except what a foolish person paid EXPECTING that it would go up more…
Markets are fueled by fear and greed, nothing more. It doesn’t matter what the product is.
Without manipulation of SOME SORT, markets don’t rise by themselves.The worst is yet to come. Buckle your seat belt, it’s going to be a rough ride.
DOW Stock Market History:
http://www.creatingwealth.co.nz/history_dow_jones_index.htmJanuary 31, 2009 at 3:09 PM #339806ParticipantIn response to the OP…
Do you want a place to live OR an investment ?
I once had an interesting meeting with a FNMA employee who referred to the west coast and east coast as the “bookends”
I have never forgotten our conversation.Although fortunes have been made in the past from real estate, I think the game is over for a VERY long time. All the talk of moving up and keeping the house as a rental is so 60’s-70’s-80’s..
Financing and qualifying today are COMPLETELY different than any previous time in history.It worked well back then because it was affordable.
In many “bookend” states it just doesn’t make sense anymore.A house is a stucco box to live in. You can buy one or you can rent one. Either way the use is the same.
I still believe in real estate. The tax benefits are tremendous. For an investment to make sense, I want cash flow today, not lofty anticipated appreciation that may not happen, AND I also want maximum depreciation for added cash flow.
You can only depreciate a dwelling, not land.
Land in most of the bookend states is high.
You get much better ROI from states in between the bookends.If you want to gamble on appreciation, it’s your choice. If you want an investment that really makes sense now, look to 40 other states.
Markets repeat themselves. The DOW hit 1000 for the first time around 1965 and didn’t break out above that until 1984. NINETEEN YEARS..There was opportunity in between if your timing was right.
In every market, people chase performance. It usually doesn’t work.
Corresponding to the breakout of the stock market in the 1980’s was the inception of 401K’s starting in 1980… the market didn’t break out for no reason…..
The fuel for igniting the stock market to DOW 15,000 was not 1500% growth in America, it was manipulation and greed combined with the explosive contributions of clueless people putting money into something that they did not understand, EXACTLY LIKE BUYING HOUSES.
Stocks have only pulled back about 40%+ from the recent peak, so far.
It’s a different world today and comparisons to peak prices in either houses or stocks are simply foolish. Neither mean ANYTHING, except what a foolish person paid EXPECTING that it would go up more…
Markets are fueled by fear and greed, nothing more. It doesn’t matter what the product is.
Without manipulation of SOME SORT, markets don’t rise by themselves.The worst is yet to come. Buckle your seat belt, it’s going to be a rough ride.
DOW Stock Market History:
http://www.creatingwealth.co.nz/history_dow_jones_index.htmJanuary 31, 2009 at 3:09 PM #339900ParticipantIn response to the OP…
Do you want a place to live OR an investment ?
I once had an interesting meeting with a FNMA employee who referred to the west coast and east coast as the “bookends”
I have never forgotten our conversation.Although fortunes have been made in the past from real estate, I think the game is over for a VERY long time. All the talk of moving up and keeping the house as a rental is so 60’s-70’s-80’s..
Financing and qualifying today are COMPLETELY different than any previous time in history.It worked well back then because it was affordable.
In many “bookend” states it just doesn’t make sense anymore.A house is a stucco box to live in. You can buy one or you can rent one. Either way the use is the same.
I still believe in real estate. The tax benefits are tremendous. For an investment to make sense, I want cash flow today, not lofty anticipated appreciation that may not happen, AND I also want maximum depreciation for added cash flow.
You can only depreciate a dwelling, not land.
Land in most of the bookend states is high.
You get much better ROI from states in between the bookends.If you want to gamble on appreciation, it’s your choice. If you want an investment that really makes sense now, look to 40 other states.
Markets repeat themselves. The DOW hit 1000 for the first time around 1965 and didn’t break out above that until 1984. NINETEEN YEARS..There was opportunity in between if your timing was right.
In every market, people chase performance. It usually doesn’t work.
Corresponding to the breakout of the stock market in the 1980’s was the inception of 401K’s starting in 1980… the market didn’t break out for no reason…..
The fuel for igniting the stock market to DOW 15,000 was not 1500% growth in America, it was manipulation and greed combined with the explosive contributions of clueless people putting money into something that they did not understand, EXACTLY LIKE BUYING HOUSES.
Stocks have only pulled back about 40%+ from the recent peak, so far.
It’s a different world today and comparisons to peak prices in either houses or stocks are simply foolish. Neither mean ANYTHING, except what a foolish person paid EXPECTING that it would go up more…
Markets are fueled by fear and greed, nothing more. It doesn’t matter what the product is.
Without manipulation of SOME SORT, markets don’t rise by themselves.The worst is yet to come. Buckle your seat belt, it’s going to be a rough ride.
DOW Stock Market History:
http://www.creatingwealth.co.nz/history_dow_jones_index.htmJanuary 31, 2009 at 3:09 PM #339357ParticipantIn response to the OP…
Do you want a place to live OR an investment ?
I once had an interesting meeting with a FNMA employee who referred to the west coast and east coast as the “bookends”
I have never forgotten our conversation.Although fortunes have been made in the past from real estate, I think the game is over for a VERY long time. All the talk of moving up and keeping the house as a rental is so 60’s-70’s-80’s..
Financing and qualifying today are COMPLETELY different than any previous time in history.It worked well back then because it was affordable.
In many “bookend” states it just doesn’t make sense anymore.A house is a stucco box to live in. You can buy one or you can rent one. Either way the use is the same.
I still believe in real estate. The tax benefits are tremendous. For an investment to make sense, I want cash flow today, not lofty anticipated appreciation that may not happen, AND I also want maximum depreciation for added cash flow.
You can only depreciate a dwelling, not land.
Land in most of the bookend states is high.
You get much better ROI from states in between the bookends.If you want to gamble on appreciation, it’s your choice. If you want an investment that really makes sense now, look to 40 other states.
Markets repeat themselves. The DOW hit 1000 for the first time around 1965 and didn’t break out above that until 1984. NINETEEN YEARS..There was opportunity in between if your timing was right.
In every market, people chase performance. It usually doesn’t work.
Corresponding to the breakout of the stock market in the 1980’s was the inception of 401K’s starting in 1980… the market didn’t break out for no reason…..
The fuel for igniting the stock market to DOW 15,000 was not 1500% growth in America, it was manipulation and greed combined with the explosive contributions of clueless people putting money into something that they did not understand, EXACTLY LIKE BUYING HOUSES.
Stocks have only pulled back about 40%+ from the recent peak, so far.
It’s a different world today and comparisons to peak prices in either houses or stocks are simply foolish. Neither mean ANYTHING, except what a foolish person paid EXPECTING that it would go up more…
Markets are fueled by fear and greed, nothing more. It doesn’t matter what the product is.
Without manipulation of SOME SORT, markets don’t rise by themselves.The worst is yet to come. Buckle your seat belt, it’s going to be a rough ride.
DOW Stock Market History:
http://www.creatingwealth.co.nz/history_dow_jones_index.htmJanuary 31, 2009 at 3:34 PM #339925CA renter
ParticipantGood post, HLS.
Agree with your assessment that “investing” will look very different going forward compared to the past few decades. People have been conditioned to think that inflation/growth will bail them out of all their mistakes (buying too high).
I personally believe that Boomers, a nice bottom of a cycle due to the deflation of Great Depression, and post-war economies were the driving force behind all this asset price inflation. We are on the crest of this movement, IMHO, and could be entering a deflationary environment for a long, long time.
January 31, 2009 at 3:34 PM #339708ParticipantGood post, HLS.
Agree with your assessment that “investing” will look very different going forward compared to the past few decades. People have been conditioned to think that inflation/growth will bail them out of all their mistakes (buying too high).
I personally believe that Boomers, a nice bottom of a cycle due to the deflation of Great Depression, and post-war economies were the driving force behind all this asset price inflation. We are on the crest of this movement, IMHO, and could be entering a deflationary environment for a long, long time.
January 31, 2009 at 3:34 PM #339382ParticipantGood post, HLS.
Agree with your assessment that “investing” will look very different going forward compared to the past few decades. People have been conditioned to think that inflation/growth will bail them out of all their mistakes (buying too high).
I personally believe that Boomers, a nice bottom of a cycle due to the deflation of Great Depression, and post-war economies were the driving force behind all this asset price inflation. We are on the crest of this movement, IMHO, and could be entering a deflationary environment for a long, long time.
January 31, 2009 at 3:34 PM #339804ParticipantGood post, HLS.
Agree with your assessment that “investing” will look very different going forward compared to the past few decades. People have been conditioned to think that inflation/growth will bail them out of all their mistakes (buying too high).
I personally believe that Boomers, a nice bottom of a cycle due to the deflation of Great Depression, and post-war economies were the driving force behind all this asset price inflation. We are on the crest of this movement, IMHO, and could be entering a deflationary environment for a long, long time.
January 31, 2009 at 3:34 PM #339831ParticipantGood post, HLS.
Agree with your assessment that “investing” will look very different going forward compared to the past few decades. People have been conditioned to think that inflation/growth will bail them out of all their mistakes (buying too high).
I personally believe that Boomers, a nice bottom of a cycle due to the deflation of Great Depression, and post-war economies were the driving force behind all this asset price inflation. We are on the crest of this movement, IMHO, and could be entering a deflationary environment for a long, long time.
January 31, 2009 at 3:50 PM #3399304plexowner
Participant“There’s a simple demographic fact underlying the collapse of housing. The Baby Boomer Americans who start to retiring right about now have bid up the price of homes so high that the next generation of humans won’t be able to buy them.”
George Ure (www. urbansurvival.com) had the statement above on his friday post
if you are interested in understanding the big picture of what is really going on in our country and world, I find that George’s daily (mon-sat) writing is excellent
January 31, 2009 at 3:50 PM #339836Participant“There’s a simple demographic fact underlying the collapse of housing. The Baby Boomer Americans who start to retiring right about now have bid up the price of homes so high that the next generation of humans won’t be able to buy them.”
George Ure (www. urbansurvival.com) had the statement above on his friday post
if you are interested in understanding the big picture of what is really going on in our country and world, I find that George’s daily (mon-sat) writing is excellent
January 31, 2009 at 3:50 PM #339809Participant“There’s a simple demographic fact underlying the collapse of housing. The Baby Boomer Americans who start to retiring right about now have bid up the price of homes so high that the next generation of humans won’t be able to buy them.”
George Ure (www. urbansurvival.com) had the statement above on his friday post
if you are interested in understanding the big picture of what is really going on in our country and world, I find that George’s daily (mon-sat) writing is excellent
January 31, 2009 at 3:50 PM #339713Participant“There’s a simple demographic fact underlying the collapse of housing. The Baby Boomer Americans who start to retiring right about now have bid up the price of homes so high that the next generation of humans won’t be able to buy them.”
George Ure (www. urbansurvival.com) had the statement above on his friday post
if you are interested in understanding the big picture of what is really going on in our country and world, I find that George’s daily (mon-sat) writing is excellent
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