“INVESTORS” who haven’t learned their lessons?

[DWCAP]

[quote=peterb]Yes, I think this herd has been starting to buy in the last year or so. Starting with TG. Then others have begun to be infected as well. I’ve been checking this site for about 2 years and it has become much more pro-purchase than when I first came here. I’d say it’s up to maybe 30% in favor of buying now.[/quote]

It all depends on where those people want to buy. TV has come down to a point where a good case can be made that it is a good time to buy a house, if you have the money and finances (job, savings, security…) to be smart about it. Bottom or not, alot of people will take close enough for them.
The nicer parts of SD however are taking longer, so the piggs who wanna live there are waiting longer. So we will eventually get to a point where more and more piggs are buyers as their areas get realistic. This is the natural course of things, and is a good thing.

Then there will be the taunting posts where cause someone is richer than I he must be smarter than I, or because I dont wanna buy when you think it is a bottom it must mean I will never buy. I personally just shrug those posts off, cause they offer little more than a superior attitude most would recognize on a middle school playground. If I miss the bottom and eventually pay more for a house than I could have, eh that is what I get for my decisions. (Imagine that, economic consequences/rewards for my decisions! Currently we are in the special ed, ‘Everyone is a winner’ mentality)

[Bob]

[quote]Well, this thread I agree that price is not a motivator for purchasing to an investor. That is why for me, I am only looking to be a RE investor at least 5-7 years from now.[/quote]

Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.

The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.

[Bob]

[quote]Well, this thread I agree that price is not a motivator for purchasing to an investor. That is why for me, I am only looking to be a RE investor at least 5-7 years from now.[/quote]

Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.

The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.

[Bob]

[quote]Well, this thread I agree that price is not a motivator for purchasing to an investor. That is why for me, I am only looking to be a RE investor at least 5-7 years from now.[/quote]

Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.

The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.

[Bob]

[quote]Well, this thread I agree that price is not a motivator for purchasing to an investor. That is why for me, I am only looking to be a RE investor at least 5-7 years from now.[/quote]

Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.

The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.

[Bob]

[quote]Well, this thread I agree that price is not a motivator for purchasing to an investor. That is why for me, I am only looking to be a RE investor at least 5-7 years from now.[/quote]

Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.

The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.

[peterb]

Trending upward is a motivator for me and many investors. It’s about making sure it’s going up before putting in your capital. Very simple concept. Trying to pick a bottom is not worthy of the effort and very dangerous.

Price is not nearly as important as whether or not an acceptable return on investment can be achieved in a year or two. As a home owner this could be quite different. But as investor this is what’s critical.
Again, the important thing to keep in mind is when to leave the party. Buy when it’s clearly rising and sell when it’s getting frothy. Very simple strategy.

[peterb]

Trending upward is a motivator for me and many investors. It’s about making sure it’s going up before putting in your capital. Very simple concept. Trying to pick a bottom is not worthy of the effort and very dangerous.

Price is not nearly as important as whether or not an acceptable return on investment can be achieved in a year or two. As a home owner this could be quite different. But as investor this is what’s critical.
Again, the important thing to keep in mind is when to leave the party. Buy when it’s clearly rising and sell when it’s getting frothy. Very simple strategy.

[peterb]

Trending upward is a motivator for me and many investors. It’s about making sure it’s going up before putting in your capital. Very simple concept. Trying to pick a bottom is not worthy of the effort and very dangerous.

Price is not nearly as important as whether or not an acceptable return on investment can be achieved in a year or two. As a home owner this could be quite different. But as investor this is what’s critical.
Again, the important thing to keep in mind is when to leave the party. Buy when it’s clearly rising and sell when it’s getting frothy. Very simple strategy.

[peterb]

Trending upward is a motivator for me and many investors. It’s about making sure it’s going up before putting in your capital. Very simple concept. Trying to pick a bottom is not worthy of the effort and very dangerous.

Price is not nearly as important as whether or not an acceptable return on investment can be achieved in a year or two. As a home owner this could be quite different. But as investor this is what’s critical.
Again, the important thing to keep in mind is when to leave the party. Buy when it’s clearly rising and sell when it’s getting frothy. Very simple strategy.

[peterb]

Trending upward is a motivator for me and many investors. It’s about making sure it’s going up before putting in your capital. Very simple concept. Trying to pick a bottom is not worthy of the effort and very dangerous.

Price is not nearly as important as whether or not an acceptable return on investment can be achieved in a year or two. As a home owner this could be quite different. But as investor this is what’s critical.
Again, the important thing to keep in mind is when to leave the party. Buy when it’s clearly rising and sell when it’s getting frothy. Very simple strategy.

[carlsbadworker]

[quote=Bob]
Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.
The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.
[/quote]

Rental property is a business. So the most important question is the return on equity. The purchasing price is NOT you only cost. You have to factor in other various costs associated with the business. And the return is NOT only the rental income, you have to have price appreciation. No one will invest in real estate if it doesn’t come with price appreciation. Just like no one will rush into rental car business if it is barely cashflow positive.
But there’re all kinds of ways to make money in any business, you can choose yours. I happen to agree with peterb on this. But I do want to point out there’re totally different logics at play with primary residence v.s. rental property.

[carlsbadworker]

[quote=Bob]
Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.
The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.
[/quote]

Rental property is a business. So the most important question is the return on equity. The purchasing price is NOT you only cost. You have to factor in other various costs associated with the business. And the return is NOT only the rental income, you have to have price appreciation. No one will invest in real estate if it doesn’t come with price appreciation. Just like no one will rush into rental car business if it is barely cashflow positive.
But there’re all kinds of ways to make money in any business, you can choose yours. I happen to agree with peterb on this. But I do want to point out there’re totally different logics at play with primary residence v.s. rental property.

[carlsbadworker]

[quote=Bob]
Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.
The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.
[/quote]

Rental property is a business. So the most important question is the return on equity. The purchasing price is NOT you only cost. You have to factor in other various costs associated with the business. And the return is NOT only the rental income, you have to have price appreciation. No one will invest in real estate if it doesn’t come with price appreciation. Just like no one will rush into rental car business if it is barely cashflow positive.
But there’re all kinds of ways to make money in any business, you can choose yours. I happen to agree with peterb on this. But I do want to point out there’re totally different logics at play with primary residence v.s. rental property.

[carlsbadworker]

[quote=Bob]
Show me an investor who doesn’t think price is a motivating factor when purchasing, and I’ll show you a fool.
The bubble was caused by purchasers who didn’t concern themselves with “price” as much as they were concerned with “appreciation”. Obviously, there is a certain amount of “herd” mentality involved in real estate. The key to success is learning what the herd is doing and then make sure NOT to follow.
[/quote]

Rental property is a business. So the most important question is the return on equity. The purchasing price is NOT you only cost. You have to factor in other various costs associated with the business. And the return is NOT only the rental income, you have to have price appreciation. No one will invest in real estate if it doesn’t come with price appreciation. Just like no one will rush into rental car business if it is barely cashflow positive.
But there’re all kinds of ways to make money in any business, you can choose yours. I happen to agree with peterb on this. But I do want to point out there’re totally different logics at play with primary residence v.s. rental property.

[Author]

Posts