We are richer when house prices go down

[drunkle]

ca renter:

thanks for posting in detail exactly what i was thinking. 4.5% return… on what? considering the huge risk in depreciation, counting your measley chickens at this point is beyond premature.

[Raybyrnes]

CA renter

What if it was a 1.2 million dollar place that was bought on a short sales basis for 700K. Perhaps a big piece of the depreciation has been accounted for. Additionally if you look at this over a 30 year period of time do you think it is going to lose value.

Real estate offers autocorrelation in a diversified portfolio. If you already own stocks, bonds, precious metals, oil, energy, foreign stocks than Real Estate can fit the bill for a small sliver of high net worth individuals.

Rather than buying REITS he has elected for a direct investment. He own the property. Maybe he plans on leaving it to his kids. Unless tax codes change the cost basis they get it out has a huge upside and that would be 20 or 30 years out.

[Raybyrnes]

CA renter

What if it was a 1.2 million dollar place that was bought on a short sales basis for 700K. Perhaps a big piece of the depreciation has been accounted for. Additionally if you look at this over a 30 year period of time do you think it is going to lose value.

Real estate offers autocorrelation in a diversified portfolio. If you already own stocks, bonds, precious metals, oil, energy, foreign stocks than Real Estate can fit the bill for a small sliver of high net worth individuals.

Rather than buying REITS he has elected for a direct investment. He own the property. Maybe he plans on leaving it to his kids. Unless tax codes change the cost basis they get it out has a huge upside and that would be 20 or 30 years out.

[Raybyrnes]

CA renter

What if it was a 1.2 million dollar place that was bought on a short sales basis for 700K. Perhaps a big piece of the depreciation has been accounted for. Additionally if you look at this over a 30 year period of time do you think it is going to lose value.

Real estate offers autocorrelation in a diversified portfolio. If you already own stocks, bonds, precious metals, oil, energy, foreign stocks than Real Estate can fit the bill for a small sliver of high net worth individuals.

Rather than buying REITS he has elected for a direct investment. He own the property. Maybe he plans on leaving it to his kids. Unless tax codes change the cost basis they get it out has a huge upside and that would be 20 or 30 years out.

[Raybyrnes]

CA renter

What if it was a 1.2 million dollar place that was bought on a short sales basis for 700K. Perhaps a big piece of the depreciation has been accounted for. Additionally if you look at this over a 30 year period of time do you think it is going to lose value.

Real estate offers autocorrelation in a diversified portfolio. If you already own stocks, bonds, precious metals, oil, energy, foreign stocks than Real Estate can fit the bill for a small sliver of high net worth individuals.

Rather than buying REITS he has elected for a direct investment. He own the property. Maybe he plans on leaving it to his kids. Unless tax codes change the cost basis they get it out has a huge upside and that would be 20 or 30 years out.

[Raybyrnes]

CA renter

What if it was a 1.2 million dollar place that was bought on a short sales basis for 700K. Perhaps a big piece of the depreciation has been accounted for. Additionally if you look at this over a 30 year period of time do you think it is going to lose value.

Real estate offers autocorrelation in a diversified portfolio. If you already own stocks, bonds, precious metals, oil, energy, foreign stocks than Real Estate can fit the bill for a small sliver of high net worth individuals.

Rather than buying REITS he has elected for a direct investment. He own the property. Maybe he plans on leaving it to his kids. Unless tax codes change the cost basis they get it out has a huge upside and that would be 20 or 30 years out.

[Navydoc]

Of course he’ll do fine in the long run. But that’s not what this forum is about. I joined this group so I could talk about home prices from the perspective of someone who is waiting to buy my personal residence, NOT as an ivestment. If you can make a purchase pencil out as a rental/investment go right ahead. I have been a landlord before, and have absolutely no interest in being one again, especially if in the current environment a CD will yield just as much.

I gaurantee that the home I’m interested in buying for myself will not pencil out as a rental right now. In this light, Schiller’s comments are aimed right at me and others like me.

[Navydoc]

Of course he’ll do fine in the long run. But that’s not what this forum is about. I joined this group so I could talk about home prices from the perspective of someone who is waiting to buy my personal residence, NOT as an ivestment. If you can make a purchase pencil out as a rental/investment go right ahead. I have been a landlord before, and have absolutely no interest in being one again, especially if in the current environment a CD will yield just as much.

I gaurantee that the home I’m interested in buying for myself will not pencil out as a rental right now. In this light, Schiller’s comments are aimed right at me and others like me.

[Navydoc]

Of course he’ll do fine in the long run. But that’s not what this forum is about. I joined this group so I could talk about home prices from the perspective of someone who is waiting to buy my personal residence, NOT as an ivestment. If you can make a purchase pencil out as a rental/investment go right ahead. I have been a landlord before, and have absolutely no interest in being one again, especially if in the current environment a CD will yield just as much.

I gaurantee that the home I’m interested in buying for myself will not pencil out as a rental right now. In this light, Schiller’s comments are aimed right at me and others like me.

[Navydoc]

Of course he’ll do fine in the long run. But that’s not what this forum is about. I joined this group so I could talk about home prices from the perspective of someone who is waiting to buy my personal residence, NOT as an ivestment. If you can make a purchase pencil out as a rental/investment go right ahead. I have been a landlord before, and have absolutely no interest in being one again, especially if in the current environment a CD will yield just as much.

I gaurantee that the home I’m interested in buying for myself will not pencil out as a rental right now. In this light, Schiller’s comments are aimed right at me and others like me.

[Navydoc]

Of course he’ll do fine in the long run. But that’s not what this forum is about. I joined this group so I could talk about home prices from the perspective of someone who is waiting to buy my personal residence, NOT as an ivestment. If you can make a purchase pencil out as a rental/investment go right ahead. I have been a landlord before, and have absolutely no interest in being one again, especially if in the current environment a CD will yield just as much.

I gaurantee that the home I’m interested in buying for myself will not pencil out as a rental right now. In this light, Schiller’s comments are aimed right at me and others like me.

[Raybyrnes]

Cd rate are now falling on aaverage to around 3% so if Felix is able to get 4+ that is a 25% premium he is potentially realizing on his investment. He is being slammed by the board for investment ideas that he clearly expressed. He additionally made it apparent that this is a very long term investment and he has sustaining power with income. Additionally he has stated that he already ahs other asset classes covered. All I am trying to do is provide benefit of the doubt.

This much I know for sure. I have a friend who is a bankrupcy attorney in the NY area who owns a real estate brokerage and he is buying properties on the cheap and is cash flowing them out with above average rates of return. For people to say no one can do it is a false sense of market realities.

There are always a select few who can turn profits even in tough environments. This typically requires capital and expertise. Who is to say that Felix does not ahve that. He has offered an opinion that there are properties out there. He is a contrarion and he thinks this is going to be suitable for him. He might be a troll but from his statements I see nothing that is suggestive of him telling anyone else to go out and buy only that it made sense for him. Addiitonally how many people have the ability to pay cash for a high end home. That eliminates 99.9% of the board.

[Raybyrnes]

Cd rate are now falling on aaverage to around 3% so if Felix is able to get 4+ that is a 25% premium he is potentially realizing on his investment. He is being slammed by the board for investment ideas that he clearly expressed. He additionally made it apparent that this is a very long term investment and he has sustaining power with income. Additionally he has stated that he already ahs other asset classes covered. All I am trying to do is provide benefit of the doubt.

This much I know for sure. I have a friend who is a bankrupcy attorney in the NY area who owns a real estate brokerage and he is buying properties on the cheap and is cash flowing them out with above average rates of return. For people to say no one can do it is a false sense of market realities.

There are always a select few who can turn profits even in tough environments. This typically requires capital and expertise. Who is to say that Felix does not ahve that. He has offered an opinion that there are properties out there. He is a contrarion and he thinks this is going to be suitable for him. He might be a troll but from his statements I see nothing that is suggestive of him telling anyone else to go out and buy only that it made sense for him. Addiitonally how many people have the ability to pay cash for a high end home. That eliminates 99.9% of the board.

[Raybyrnes]

Cd rate are now falling on aaverage to around 3% so if Felix is able to get 4+ that is a 25% premium he is potentially realizing on his investment. He is being slammed by the board for investment ideas that he clearly expressed. He additionally made it apparent that this is a very long term investment and he has sustaining power with income. Additionally he has stated that he already ahs other asset classes covered. All I am trying to do is provide benefit of the doubt.

This much I know for sure. I have a friend who is a bankrupcy attorney in the NY area who owns a real estate brokerage and he is buying properties on the cheap and is cash flowing them out with above average rates of return. For people to say no one can do it is a false sense of market realities.

There are always a select few who can turn profits even in tough environments. This typically requires capital and expertise. Who is to say that Felix does not ahve that. He has offered an opinion that there are properties out there. He is a contrarion and he thinks this is going to be suitable for him. He might be a troll but from his statements I see nothing that is suggestive of him telling anyone else to go out and buy only that it made sense for him. Addiitonally how many people have the ability to pay cash for a high end home. That eliminates 99.9% of the board.

[Raybyrnes]

Cd rate are now falling on aaverage to around 3% so if Felix is able to get 4+ that is a 25% premium he is potentially realizing on his investment. He is being slammed by the board for investment ideas that he clearly expressed. He additionally made it apparent that this is a very long term investment and he has sustaining power with income. Additionally he has stated that he already ahs other asset classes covered. All I am trying to do is provide benefit of the doubt.

This much I know for sure. I have a friend who is a bankrupcy attorney in the NY area who owns a real estate brokerage and he is buying properties on the cheap and is cash flowing them out with above average rates of return. For people to say no one can do it is a false sense of market realities.

There are always a select few who can turn profits even in tough environments. This typically requires capital and expertise. Who is to say that Felix does not ahve that. He has offered an opinion that there are properties out there. He is a contrarion and he thinks this is going to be suitable for him. He might be a troll but from his statements I see nothing that is suggestive of him telling anyone else to go out and buy only that it made sense for him. Addiitonally how many people have the ability to pay cash for a high end home. That eliminates 99.9% of the board.

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