[carlsbadworker]

I completely agree with Mr. Mortgage.

[carlsbadworker]

I completely agree with Mr. Mortgage.

[carlsbadworker]

I completely agree with Mr. Mortgage.

[carlsbadworker]

I completely agree with Mr. Mortgage.

[carlsbadworker]

I completely agree with Mr. Mortgage.

[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.

[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=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

But the people who bought (TG included) are only buying for their primary residence. 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.

[carlsbadworker]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

But the people who bought (TG included) are only buying for their primary residence. 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.

[carlsbadworker]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

But the people who bought (TG included) are only buying for their primary residence. 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.

[carlsbadworker]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

But the people who bought (TG included) are only buying for their primary residence. 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.

[carlsbadworker]

[quote=peterb]Well, this thread is concerning “investor” behavior. You’ve made several assumptions that would be incorrect for me. Sounds like Chris as well as some others. I come here to get a feel for how the more conservative buyer is thinking and behaving. For me it’s not price that’s a motivator for purchasing. It’s whether or not it’s going up in value and how quickly… that would cause me to buy again. [/quote]

But the people who bought (TG included) are only buying for their primary residence. 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.

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