Moving money from stocks to real estate!

[luchabee]

For many reasons, including converting potential earnings from capital gains to ordinary income, the potential that your IRA will not be able to benefit from depreciation or interest deductions, improper asset diversification, and high custodian costs, speak with a tax attorney of CPA/CFP before you do this.

From neutral parties, I have heard it is far better to use cash from an existing property than to use your IRA if you are going to invest in real estate right now (which is a whole different question entirely).

Be careful . . . they are not the deal that many think they are. Talk to an attorney or CPA.

[socrattt]

Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.

Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?

As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.

My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.

[socrattt]

Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.

Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?

As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.

My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.

[socrattt]

Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.

Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?

As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.

My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.

[socrattt]

Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.

Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?

As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.

My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.

[socrattt]

Thank you all for your advice. I guess the question is can a home built an area like Temecula continue to fall much below the costs of building? Lets be honest our boy Greenspan really blew it and now we are going to be in some interesting times with inflation. I am definitely not an economist, but I could potentially see our prime rate hit 12 or 13% on the low end of the spectrum much sooner than we all expect. With that said inflation will continue to rise and a homes would seem to be somewhat of a safe haven at a $/sqft that is much below building costs. There are homes in Temecula, built by decent builders that can be picked up for $60/sqft., which sounds incredible.

Then the other side of the coin is what happens to a town like Temecula or Murrieta that is so over built yet has had such a healthy infastructure in the past? Can that town withstand thousands of homes being vacant without the crime rate escalating and other serious problems occurring?

As far as coastal properties, I completely agree it is a luxury, yet the coastal market west of the 5 really hasn’t received the beating I expected.

My mindset is in a position where if real estate truly does fail us and homes do start selling for $20-$30/sqft or less, our country will really be in a bad position. I believe we are in trouble regardless of which shady politician takes over the helm, but if we are all this pesimistic about any investment we should all be thinking of another country to live in the near future. There is no possible way this country could deal with such a catastrophe where real estate and stocks are virtually worthless, which seems to be the idea with many people. Just my humble opinion.

[peterb]

You should give this a quick read:
http://www.pcasd.com/the_impact_of_negative_real_interest_rates

Rich is a pretty sharp guy and what he’s saying is being said by other insightful people like Chris Puplava, Marc Faber and Jim Rogers. Of course, CNBC and other’s arent in agreement, yet.
Check out Mr Mortgage’s recent post!

We’re in a bull market for commodities that has 5 years left in it. Real estate just went through a historical bubble and is firmly entrenched in a deflationary cycle. Unemployment is rising while credit is constricting. These trends show no signs of stabilizing, let alone reversing.

In 1907 Wall Street went completely bankrupt. We survived.

[peterb]

You should give this a quick read:
http://www.pcasd.com/the_impact_of_negative_real_interest_rates

Rich is a pretty sharp guy and what he’s saying is being said by other insightful people like Chris Puplava, Marc Faber and Jim Rogers. Of course, CNBC and other’s arent in agreement, yet.
Check out Mr Mortgage’s recent post!

We’re in a bull market for commodities that has 5 years left in it. Real estate just went through a historical bubble and is firmly entrenched in a deflationary cycle. Unemployment is rising while credit is constricting. These trends show no signs of stabilizing, let alone reversing.

In 1907 Wall Street went completely bankrupt. We survived.

[peterb]

You should give this a quick read:
http://www.pcasd.com/the_impact_of_negative_real_interest_rates

Rich is a pretty sharp guy and what he’s saying is being said by other insightful people like Chris Puplava, Marc Faber and Jim Rogers. Of course, CNBC and other’s arent in agreement, yet.
Check out Mr Mortgage’s recent post!

We’re in a bull market for commodities that has 5 years left in it. Real estate just went through a historical bubble and is firmly entrenched in a deflationary cycle. Unemployment is rising while credit is constricting. These trends show no signs of stabilizing, let alone reversing.

In 1907 Wall Street went completely bankrupt. We survived.

[peterb]

You should give this a quick read:
http://www.pcasd.com/the_impact_of_negative_real_interest_rates

Rich is a pretty sharp guy and what he’s saying is being said by other insightful people like Chris Puplava, Marc Faber and Jim Rogers. Of course, CNBC and other’s arent in agreement, yet.
Check out Mr Mortgage’s recent post!

We’re in a bull market for commodities that has 5 years left in it. Real estate just went through a historical bubble and is firmly entrenched in a deflationary cycle. Unemployment is rising while credit is constricting. These trends show no signs of stabilizing, let alone reversing.

In 1907 Wall Street went completely bankrupt. We survived.

[peterb]

You should give this a quick read:
http://www.pcasd.com/the_impact_of_negative_real_interest_rates

Rich is a pretty sharp guy and what he’s saying is being said by other insightful people like Chris Puplava, Marc Faber and Jim Rogers. Of course, CNBC and other’s arent in agreement, yet.
Check out Mr Mortgage’s recent post!

We’re in a bull market for commodities that has 5 years left in it. Real estate just went through a historical bubble and is firmly entrenched in a deflationary cycle. Unemployment is rising while credit is constricting. These trends show no signs of stabilizing, let alone reversing.

In 1907 Wall Street went completely bankrupt. We survived.

[Author]

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