We are richer when house prices go down

[felix]

I’m not advocating anything. I’m pointing out that down markets turn around without every body who wants to buy getting filled. In fact, that is what creates the turnaround.

I’m also pointing out that the “losses” holders of real estate are suffering are really only affecting the few who have to sell or those who have used their home as a bank. The vast majority of home owners are doing neither.

I’m also pointing out that very few people relatively will get homes at or near the bottom ticks.

Lastly, I’m pointing out that, even right now, one can buy real estate as an investment and get a very nice return, from renters. And that real estate investment in the long or midterm is not only likely to rise but historically has always risen.

[JWM in SD]

JWM in SD
Felix,
I hate break this to you, but it is not 2006 anymore.
The points you made have been refuted and debated already for the past two years.

Unless the Fed monetizes the mortgages, homedebtors are ultimately screwed. The only question is how many of us do they drag down with them.

[JWM in SD]

JWM in SD
Felix,
I hate break this to you, but it is not 2006 anymore.
The points you made have been refuted and debated already for the past two years.

Unless the Fed monetizes the mortgages, homedebtors are ultimately screwed. The only question is how many of us do they drag down with them.

[JWM in SD]

JWM in SD
Felix,
I hate break this to you, but it is not 2006 anymore.
The points you made have been refuted and debated already for the past two years.

Unless the Fed monetizes the mortgages, homedebtors are ultimately screwed. The only question is how many of us do they drag down with them.

[JWM in SD]

JWM in SD
Felix,
I hate break this to you, but it is not 2006 anymore.
The points you made have been refuted and debated already for the past two years.

Unless the Fed monetizes the mortgages, homedebtors are ultimately screwed. The only question is how many of us do they drag down with them.

[JWM in SD]

JWM in SD
Felix,
I hate break this to you, but it is not 2006 anymore.
The points you made have been refuted and debated already for the past two years.

Unless the Fed monetizes the mortgages, homedebtors are ultimately screwed. The only question is how many of us do they drag down with them.

[sdduuuude]

Housing and beef are very different.
Beef is an expense. Houses are assets.

It is good when things we need to buy decrease in price, but bad when things we already own decrease. You don’t really own beef. You consume it. So, the need to buy it is perpetual. Not so with a house.

When Schiller says “we are all richer” really, he really means, “those who yet need to buy a house are richer”

Those who have already bought one are not.

[sdduuuude]

Housing and beef are very different.
Beef is an expense. Houses are assets.

It is good when things we need to buy decrease in price, but bad when things we already own decrease. You don’t really own beef. You consume it. So, the need to buy it is perpetual. Not so with a house.

When Schiller says “we are all richer” really, he really means, “those who yet need to buy a house are richer”

Those who have already bought one are not.

[sdduuuude]

Housing and beef are very different.
Beef is an expense. Houses are assets.

It is good when things we need to buy decrease in price, but bad when things we already own decrease. You don’t really own beef. You consume it. So, the need to buy it is perpetual. Not so with a house.

When Schiller says “we are all richer” really, he really means, “those who yet need to buy a house are richer”

Those who have already bought one are not.

[sdduuuude]

Housing and beef are very different.
Beef is an expense. Houses are assets.

It is good when things we need to buy decrease in price, but bad when things we already own decrease. You don’t really own beef. You consume it. So, the need to buy it is perpetual. Not so with a house.

When Schiller says “we are all richer” really, he really means, “those who yet need to buy a house are richer”

Those who have already bought one are not.

[sdduuuude]

Housing and beef are very different.
Beef is an expense. Houses are assets.

It is good when things we need to buy decrease in price, but bad when things we already own decrease. You don’t really own beef. You consume it. So, the need to buy it is perpetual. Not so with a house.

When Schiller says “we are all richer” really, he really means, “those who yet need to buy a house are richer”

Those who have already bought one are not.

[Raybyrnes]

felix

If you can show a profit right now buying and renting that is exceptional but i would say that it is a half court shot for most people in this market.

I have a fiend who is a banrupcy attorney in NY who own a real estate brokerage who is turning a profit becasue he is buying up preforeclosers at steep discounts and haas worked with severl lenders which has helped him stream line the process. He is also capitalized through a group of investors and his brother is a general contractor.

That is a people and professionalism that is need to turn a profit on real estate. The average Joe just can’t do that so to suggest that there are opportunities to own and make a profit (there might be) but to a larger extent this is probably not the best place to put your money. Even I will readliy admit that and I am not nearly as bearish as many others on the board.

[Raybyrnes]

felix

If you can show a profit right now buying and renting that is exceptional but i would say that it is a half court shot for most people in this market.

I have a fiend who is a banrupcy attorney in NY who own a real estate brokerage who is turning a profit becasue he is buying up preforeclosers at steep discounts and haas worked with severl lenders which has helped him stream line the process. He is also capitalized through a group of investors and his brother is a general contractor.

That is a people and professionalism that is need to turn a profit on real estate. The average Joe just can’t do that so to suggest that there are opportunities to own and make a profit (there might be) but to a larger extent this is probably not the best place to put your money. Even I will readliy admit that and I am not nearly as bearish as many others on the board.

[Raybyrnes]

felix

If you can show a profit right now buying and renting that is exceptional but i would say that it is a half court shot for most people in this market.

I have a fiend who is a banrupcy attorney in NY who own a real estate brokerage who is turning a profit becasue he is buying up preforeclosers at steep discounts and haas worked with severl lenders which has helped him stream line the process. He is also capitalized through a group of investors and his brother is a general contractor.

That is a people and professionalism that is need to turn a profit on real estate. The average Joe just can’t do that so to suggest that there are opportunities to own and make a profit (there might be) but to a larger extent this is probably not the best place to put your money. Even I will readliy admit that and I am not nearly as bearish as many others on the board.

[Raybyrnes]

felix

If you can show a profit right now buying and renting that is exceptional but i would say that it is a half court shot for most people in this market.

I have a fiend who is a banrupcy attorney in NY who own a real estate brokerage who is turning a profit becasue he is buying up preforeclosers at steep discounts and haas worked with severl lenders which has helped him stream line the process. He is also capitalized through a group of investors and his brother is a general contractor.

That is a people and professionalism that is need to turn a profit on real estate. The average Joe just can’t do that so to suggest that there are opportunities to own and make a profit (there might be) but to a larger extent this is probably not the best place to put your money. Even I will readliy admit that and I am not nearly as bearish as many others on the board.

[Author]

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