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PerryChase
ParticipantAlso when homes are begging for buyers, rent will go down.
Individual homeowners cannot afford to go negative cash flow so they can’t offer free rent or even lower rents. But when homes become corporate owned, you’ll see 1-2 months free rent with move-in. It was that way in the 1990s and it’ll happen again.
Rents will go down when real estate is tranfered to new owners at discounted prices. It’s happening now, albeit at snail pace.
July 20, 2007 at 1:04 PM in reply to: Everyone can relax, Fed claims subprime losses contained #66718ParticipantThe financial/political leaders have no choice but to sugarcoat the latest bad news, lest they create a panic by being too blunt.
It was the same during the early 1990s recession. Bush senior kept on saying there was no recession all through the elections. Of course, the people knew better and felt it in their pocket books and we all know who won the elections. It’s the economy, stupid. 🙂
In the real estate market, the real suckers are the people who need to sell but are waiting for a Spring 2008 bounce. They’ll be chasing the market all the way down.
July 20, 2007 at 1:04 PM in reply to: Everyone can relax, Fed claims subprime losses contained #66782ParticipantThe financial/political leaders have no choice but to sugarcoat the latest bad news, lest they create a panic by being too blunt.
It was the same during the early 1990s recession. Bush senior kept on saying there was no recession all through the elections. Of course, the people knew better and felt it in their pocket books and we all know who won the elections. It’s the economy, stupid. 🙂
In the real estate market, the real suckers are the people who need to sell but are waiting for a Spring 2008 bounce. They’ll be chasing the market all the way down.
ParticipantRemember that when a home is taken off the market, it sits empty. That home will become inventory at some future point. Investors, wealthy as they maybe, can only endure negative cash flows for so long.
Interesting point to note is that the stock market is in a rally because the big cap are globalized companies. The world economy is now doing much better than America. I expect this real estate downturn to last 10 years.
Think about it this way: if wealthy investors think that the downturn will last 6 years and have enough wherewithal to last that long; but the RE slump hangs in there, they might give up in year 7 or year 8. So, with cash in hand, you can find killer deals then.
Right now, the general thinking is that RE will appreciate again in 2009. If it doesn’t happen, you’ll see a lot of people starting to give up in the fall/winter of 2009. That will feed on it itself just like it did when prices were going up.
ParticipantRemember that when a home is taken off the market, it sits empty. That home will become inventory at some future point. Investors, wealthy as they maybe, can only endure negative cash flows for so long.
Interesting point to note is that the stock market is in a rally because the big cap are globalized companies. The world economy is now doing much better than America. I expect this real estate downturn to last 10 years.
Think about it this way: if wealthy investors think that the downturn will last 6 years and have enough wherewithal to last that long; but the RE slump hangs in there, they might give up in year 7 or year 8. So, with cash in hand, you can find killer deals then.
Right now, the general thinking is that RE will appreciate again in 2009. If it doesn’t happen, you’ll see a lot of people starting to give up in the fall/winter of 2009. That will feed on it itself just like it did when prices were going up.
ParticipantCool video. Do you have FiOS in Temecula?
Yeah, load to youtube for everyone to see.I’ve never been to Temecula. Now I see it’s not any different than planned communities in San Diego.
ParticipantCool video. Do you have FiOS in Temecula?
Yeah, load to youtube for everyone to see.I’ve never been to Temecula. Now I see it’s not any different than planned communities in San Diego.
ParticipantI guess Realtors have to buy their own signs.
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I believe that 23109 wanted a 1-story house (not a 2-story one).ParticipantI guess Realtors have to buy their own signs.
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I believe that 23109 wanted a 1-story house (not a 2-story one).ParticipantThis is a nice convenient complex. However, the units are old and dated compared to the what else is available Downtown. This complex has the layout of a suburban condo development but it’s downtown (that might be an advantage to many).
I’ve been watching this also but I think that the prices will come down even more. The prices seem to hold up better because it’s an 1980s complex with long time home-owners and fewer speculators.
The unit you linked to is refurbished using Ikea cabinets that are open at the bottom (no kick-plates). All the junk and dust will soon accumulate under the cabinets.
I think this is a good place for retirees or professionals with no children.
Right now, prices are lower mainly because of speculators selling. Wait a few years for other types of must sell inventory (death, divorce, etc..). I don’t think that prices will appreciate for least 5 years. There will be with much lower prices in the near to mid horizon.
ParticipantThis is a nice convenient complex. However, the units are old and dated compared to the what else is available Downtown. This complex has the layout of a suburban condo development but it’s downtown (that might be an advantage to many).
I’ve been watching this also but I think that the prices will come down even more. The prices seem to hold up better because it’s an 1980s complex with long time home-owners and fewer speculators.
The unit you linked to is refurbished using Ikea cabinets that are open at the bottom (no kick-plates). All the junk and dust will soon accumulate under the cabinets.
I think this is a good place for retirees or professionals with no children.
Right now, prices are lower mainly because of speculators selling. Wait a few years for other types of must sell inventory (death, divorce, etc..). I don’t think that prices will appreciate for least 5 years. There will be with much lower prices in the near to mid horizon.
Participantyeah, waiting_hawk rocks.
I sent the CL poster a link to this attorney who specializes in predatory lending.
Participantyeah, waiting_hawk rocks.
I sent the CL poster a link to this attorney who specializes in predatory lending.
July 17, 2007 at 8:55 AM in reply to: Research (or Speculation) as to timeline for Mortgage Resets and NODs #66125ParticipantI concur with 4plexowner and JWM.
Just watch the market carefully and you’ll get a feel of the bottom when it’s here.
JWM is right. No need to buy anything if you can rent for less. Young folks tend to enjoy condo/apartment living. In this case, renting is best as you can hop around and try out different communities (such as in Downtown San Diego).
I remember my college days. I would love to move because, each time, it was to a nicer, cleaner apartment.
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