We are richer when house prices go down

[drunkle]

felix:

when you say you already have, are you talking about the house you purchased and currently rent?

if so, i’m sure you’re aware that a sample size of one is insignificant.

with the generalizations you’ve made, i was hoping you might have more to speak of. frankly, i’m seeing prices coming back from the dream of unending and unlimited appreciation. well, everyone is… but i’m feeling ready to bite and the autumn lull might be the time. but if the market, the banks, the economy implodes before then, then of course i’ll put off.

i’m certainly not afraid of a rocket shot between now and then. but if you did have significant examples of good deals, it would be worth looking into. otherwise, your generalizations and platitudes are meaningless.

[Raybyrnes]

felix

A good financial instrament? That’s a very subjective term relative to the risk you want to take on.

A risk free rate of retun might be somthing tied to treasuries in which case 2 to 3% might be an acceptable rate of return.

If you are looking at a brader market and are willing to take on risk we would need to consider performance rrelative to the market index. A loss of 3 or 4% might be pretty good on the S and P 500 if you compare it to the index which is probably down 7 or 8% ytd.

A gain of 5 or 6 % might be poor if you are in the equities market if you compare that to Gold or Oil whicha re up better than 10%.

So to address your question as to “good to get on a financial instrument at this time” it would seem to depend on what type of risk you are willling to take.

The same might be true of real estate. If you and a hypothetical buyer are both going to buy comparable homes on the same block and you pay 1 million adn he pays 1.3 millon then you probably got a good deal relative to the property at this point in time.

Lot of moving targets so without getting into your personsonal info I would ask that you provide addioal detail so that we ahve a little more to respond too.

[Raybyrnes]

felix

A good financial instrament? That’s a very subjective term relative to the risk you want to take on.

A risk free rate of retun might be somthing tied to treasuries in which case 2 to 3% might be an acceptable rate of return.

If you are looking at a brader market and are willing to take on risk we would need to consider performance rrelative to the market index. A loss of 3 or 4% might be pretty good on the S and P 500 if you compare it to the index which is probably down 7 or 8% ytd.

A gain of 5 or 6 % might be poor if you are in the equities market if you compare that to Gold or Oil whicha re up better than 10%.

So to address your question as to “good to get on a financial instrument at this time” it would seem to depend on what type of risk you are willling to take.

The same might be true of real estate. If you and a hypothetical buyer are both going to buy comparable homes on the same block and you pay 1 million adn he pays 1.3 millon then you probably got a good deal relative to the property at this point in time.

Lot of moving targets so without getting into your personsonal info I would ask that you provide addioal detail so that we ahve a little more to respond too.

[Raybyrnes]

felix

A good financial instrament? That’s a very subjective term relative to the risk you want to take on.

A risk free rate of retun might be somthing tied to treasuries in which case 2 to 3% might be an acceptable rate of return.

If you are looking at a brader market and are willing to take on risk we would need to consider performance rrelative to the market index. A loss of 3 or 4% might be pretty good on the S and P 500 if you compare it to the index which is probably down 7 or 8% ytd.

A gain of 5 or 6 % might be poor if you are in the equities market if you compare that to Gold or Oil whicha re up better than 10%.

So to address your question as to “good to get on a financial instrument at this time” it would seem to depend on what type of risk you are willling to take.

The same might be true of real estate. If you and a hypothetical buyer are both going to buy comparable homes on the same block and you pay 1 million adn he pays 1.3 millon then you probably got a good deal relative to the property at this point in time.

Lot of moving targets so without getting into your personsonal info I would ask that you provide addioal detail so that we ahve a little more to respond too.

[Raybyrnes]

felix

A good financial instrament? That’s a very subjective term relative to the risk you want to take on.

A risk free rate of retun might be somthing tied to treasuries in which case 2 to 3% might be an acceptable rate of return.

If you are looking at a brader market and are willing to take on risk we would need to consider performance rrelative to the market index. A loss of 3 or 4% might be pretty good on the S and P 500 if you compare it to the index which is probably down 7 or 8% ytd.

A gain of 5 or 6 % might be poor if you are in the equities market if you compare that to Gold or Oil whicha re up better than 10%.

So to address your question as to “good to get on a financial instrument at this time” it would seem to depend on what type of risk you are willling to take.

The same might be true of real estate. If you and a hypothetical buyer are both going to buy comparable homes on the same block and you pay 1 million adn he pays 1.3 millon then you probably got a good deal relative to the property at this point in time.

Lot of moving targets so without getting into your personsonal info I would ask that you provide addioal detail so that we ahve a little more to respond too.

[Raybyrnes]

felix

A good financial instrament? That’s a very subjective term relative to the risk you want to take on.

A risk free rate of retun might be somthing tied to treasuries in which case 2 to 3% might be an acceptable rate of return.

If you are looking at a brader market and are willing to take on risk we would need to consider performance rrelative to the market index. A loss of 3 or 4% might be pretty good on the S and P 500 if you compare it to the index which is probably down 7 or 8% ytd.

A gain of 5 or 6 % might be poor if you are in the equities market if you compare that to Gold or Oil whicha re up better than 10%.

So to address your question as to “good to get on a financial instrument at this time” it would seem to depend on what type of risk you are willling to take.

The same might be true of real estate. If you and a hypothetical buyer are both going to buy comparable homes on the same block and you pay 1 million adn he pays 1.3 millon then you probably got a good deal relative to the property at this point in time.

Lot of moving targets so without getting into your personsonal info I would ask that you provide addioal detail so that we ahve a little more to respond too.

[sdduuuude]

Felix,

If you look at the bottom of this page, you will see a slogan “In God we Trust, Everyone Else Bring Data”

Sad to hear you won’t discuss the detailed financials of a deal you made that shows a good return.

I think most here realize that when such returns are possible, the market will be closer to turning around. Such data would help your argument.

Nobody here knows you. Why not share the data ?
Even if everyone here did know you, why not share the data ?

I urge you to post all the details, short of an address. I’d like to see the economics of how to get a good return in SD real estate. Coming here, making a claim, then not backing it up means one of two things:
1) You are lying or
2) You aren’t here to help us better undersatand the market.

Coming here, then making a claim, then backing it up with data is the way to sway people here.

[sdduuuude]

Felix,

If you look at the bottom of this page, you will see a slogan “In God we Trust, Everyone Else Bring Data”

Sad to hear you won’t discuss the detailed financials of a deal you made that shows a good return.

I think most here realize that when such returns are possible, the market will be closer to turning around. Such data would help your argument.

Nobody here knows you. Why not share the data ?
Even if everyone here did know you, why not share the data ?

I urge you to post all the details, short of an address. I’d like to see the economics of how to get a good return in SD real estate. Coming here, making a claim, then not backing it up means one of two things:
1) You are lying or
2) You aren’t here to help us better undersatand the market.

Coming here, then making a claim, then backing it up with data is the way to sway people here.

[sdduuuude]

Felix,

If you look at the bottom of this page, you will see a slogan “In God we Trust, Everyone Else Bring Data”

Sad to hear you won’t discuss the detailed financials of a deal you made that shows a good return.

I think most here realize that when such returns are possible, the market will be closer to turning around. Such data would help your argument.

Nobody here knows you. Why not share the data ?
Even if everyone here did know you, why not share the data ?

I urge you to post all the details, short of an address. I’d like to see the economics of how to get a good return in SD real estate. Coming here, making a claim, then not backing it up means one of two things:
1) You are lying or
2) You aren’t here to help us better undersatand the market.

Coming here, then making a claim, then backing it up with data is the way to sway people here.

[sdduuuude]

Felix,

If you look at the bottom of this page, you will see a slogan “In God we Trust, Everyone Else Bring Data”

Sad to hear you won’t discuss the detailed financials of a deal you made that shows a good return.

I think most here realize that when such returns are possible, the market will be closer to turning around. Such data would help your argument.

Nobody here knows you. Why not share the data ?
Even if everyone here did know you, why not share the data ?

I urge you to post all the details, short of an address. I’d like to see the economics of how to get a good return in SD real estate. Coming here, making a claim, then not backing it up means one of two things:
1) You are lying or
2) You aren’t here to help us better undersatand the market.

Coming here, then making a claim, then backing it up with data is the way to sway people here.

[sdduuuude]

Felix,

If you look at the bottom of this page, you will see a slogan “In God we Trust, Everyone Else Bring Data”

Sad to hear you won’t discuss the detailed financials of a deal you made that shows a good return.

I think most here realize that when such returns are possible, the market will be closer to turning around. Such data would help your argument.

Nobody here knows you. Why not share the data ?
Even if everyone here did know you, why not share the data ?

I urge you to post all the details, short of an address. I’d like to see the economics of how to get a good return in SD real estate. Coming here, making a claim, then not backing it up means one of two things:
1) You are lying or
2) You aren’t here to help us better undersatand the market.

Coming here, then making a claim, then backing it up with data is the way to sway people here.

[ltokuda]

felix, the reason I ask is that a lot of people on Piggington’s believe that the “ultimate” bottom of the market is when you can buy a property with N % down, rent it out, and get a positive cash flow. If N = 20%, that’s pretty good. If N = 10%, that’s even better. If N = 5%, that’s fantastic. In theory, you should never be able to get to N = 0%. Providing real numbers would let people calculate the value of N for your house.

The other reason I ask is that the experienced rental property owners on this site have talked about “unexpected” costs of owning a rental unit. Besides financing, you have to consider taxes, maintenance, vacancy, insurance, and miscelaneous fees (like trash) if applicable. Its unclear whether you factored in all the parameters when you decided that you got a good deal. It seems like most first time investors don’t take all the costs into account and end up losing money because of it. There are experts on this site who can break down the details much better than I can.

Once you plug in the right numbers, then you can more accurately calculate the expected return on your investment. Then its up to you to decide if that’s a good return or not.

I certainly won’t press you to review personal information that you’re not comfortable sharing. At this point, telling us what numbers you used for vacancy rate, maintenace, etc and telling us your rate of return would basically give away the price you paid. I guess we’ll have to leave it at that. Hopefully, you took all the expenses into account and truly did get a good deal. If so, then we may be getting to the point where there are good buying opportunities again.

[ltokuda]

felix, the reason I ask is that a lot of people on Piggington’s believe that the “ultimate” bottom of the market is when you can buy a property with N % down, rent it out, and get a positive cash flow. If N = 20%, that’s pretty good. If N = 10%, that’s even better. If N = 5%, that’s fantastic. In theory, you should never be able to get to N = 0%. Providing real numbers would let people calculate the value of N for your house.

The other reason I ask is that the experienced rental property owners on this site have talked about “unexpected” costs of owning a rental unit. Besides financing, you have to consider taxes, maintenance, vacancy, insurance, and miscelaneous fees (like trash) if applicable. Its unclear whether you factored in all the parameters when you decided that you got a good deal. It seems like most first time investors don’t take all the costs into account and end up losing money because of it. There are experts on this site who can break down the details much better than I can.

Once you plug in the right numbers, then you can more accurately calculate the expected return on your investment. Then its up to you to decide if that’s a good return or not.

I certainly won’t press you to review personal information that you’re not comfortable sharing. At this point, telling us what numbers you used for vacancy rate, maintenace, etc and telling us your rate of return would basically give away the price you paid. I guess we’ll have to leave it at that. Hopefully, you took all the expenses into account and truly did get a good deal. If so, then we may be getting to the point where there are good buying opportunities again.

[ltokuda]

felix, the reason I ask is that a lot of people on Piggington’s believe that the “ultimate” bottom of the market is when you can buy a property with N % down, rent it out, and get a positive cash flow. If N = 20%, that’s pretty good. If N = 10%, that’s even better. If N = 5%, that’s fantastic. In theory, you should never be able to get to N = 0%. Providing real numbers would let people calculate the value of N for your house.

The other reason I ask is that the experienced rental property owners on this site have talked about “unexpected” costs of owning a rental unit. Besides financing, you have to consider taxes, maintenance, vacancy, insurance, and miscelaneous fees (like trash) if applicable. Its unclear whether you factored in all the parameters when you decided that you got a good deal. It seems like most first time investors don’t take all the costs into account and end up losing money because of it. There are experts on this site who can break down the details much better than I can.

Once you plug in the right numbers, then you can more accurately calculate the expected return on your investment. Then its up to you to decide if that’s a good return or not.

I certainly won’t press you to review personal information that you’re not comfortable sharing. At this point, telling us what numbers you used for vacancy rate, maintenace, etc and telling us your rate of return would basically give away the price you paid. I guess we’ll have to leave it at that. Hopefully, you took all the expenses into account and truly did get a good deal. If so, then we may be getting to the point where there are good buying opportunities again.

[ltokuda]

felix, the reason I ask is that a lot of people on Piggington’s believe that the “ultimate” bottom of the market is when you can buy a property with N % down, rent it out, and get a positive cash flow. If N = 20%, that’s pretty good. If N = 10%, that’s even better. If N = 5%, that’s fantastic. In theory, you should never be able to get to N = 0%. Providing real numbers would let people calculate the value of N for your house.

The other reason I ask is that the experienced rental property owners on this site have talked about “unexpected” costs of owning a rental unit. Besides financing, you have to consider taxes, maintenance, vacancy, insurance, and miscelaneous fees (like trash) if applicable. Its unclear whether you factored in all the parameters when you decided that you got a good deal. It seems like most first time investors don’t take all the costs into account and end up losing money because of it. There are experts on this site who can break down the details much better than I can.

Once you plug in the right numbers, then you can more accurately calculate the expected return on your investment. Then its up to you to decide if that’s a good return or not.

I certainly won’t press you to review personal information that you’re not comfortable sharing. At this point, telling us what numbers you used for vacancy rate, maintenace, etc and telling us your rate of return would basically give away the price you paid. I guess we’ll have to leave it at that. Hopefully, you took all the expenses into account and truly did get a good deal. If so, then we may be getting to the point where there are good buying opportunities again.

[Author]

Posts