[peterb]

These are all rationalizations for buying an asset that is depreciating. It would at least be a lower risk decision if the purchase were not heavily leveraged.
Why buy now? What’s the hurry to take such a risk? RE doesnt all of the sudden shoot up on good news like the stock market. Wait for unemployment to stop rising and foreclosures to stop dominating the market. At least those would be bullish indicators for the RE market to stabilize. Time is your friend here, not the enemy.

We’re in uncharted territory for this economy. Huge bank failures, recession and growing unemployment. And now it looks as though the whole world is headed into a recession as well.

I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.

[peterb]

These are all rationalizations for buying an asset that is depreciating. It would at least be a lower risk decision if the purchase were not heavily leveraged.
Why buy now? What’s the hurry to take such a risk? RE doesnt all of the sudden shoot up on good news like the stock market. Wait for unemployment to stop rising and foreclosures to stop dominating the market. At least those would be bullish indicators for the RE market to stabilize. Time is your friend here, not the enemy.

We’re in uncharted territory for this economy. Huge bank failures, recession and growing unemployment. And now it looks as though the whole world is headed into a recession as well.

I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.

[peterb]

These are all rationalizations for buying an asset that is depreciating. It would at least be a lower risk decision if the purchase were not heavily leveraged.
Why buy now? What’s the hurry to take such a risk? RE doesnt all of the sudden shoot up on good news like the stock market. Wait for unemployment to stop rising and foreclosures to stop dominating the market. At least those would be bullish indicators for the RE market to stabilize. Time is your friend here, not the enemy.

We’re in uncharted territory for this economy. Huge bank failures, recession and growing unemployment. And now it looks as though the whole world is headed into a recession as well.

I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.

[peterb]

These are all rationalizations for buying an asset that is depreciating. It would at least be a lower risk decision if the purchase were not heavily leveraged.
Why buy now? What’s the hurry to take such a risk? RE doesnt all of the sudden shoot up on good news like the stock market. Wait for unemployment to stop rising and foreclosures to stop dominating the market. At least those would be bullish indicators for the RE market to stabilize. Time is your friend here, not the enemy.

We’re in uncharted territory for this economy. Huge bank failures, recession and growing unemployment. And now it looks as though the whole world is headed into a recession as well.

I would advice anyone considering buying a highly leveraged, depreciating asset in this environment to be extremely careful….unless you have lots of availble cash to fall back on should things get considerably worse.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Paulson looks truely terrified. He got down on one knee begging Pelosi. This is not good. They know something we dont and I’m guessing it aint good.
Something will probably pass this weekend, but unless that guys is an Oscar level actor, I think he believes that disaster is at the door. Either way, that may be the case.

[peterb]

Paulson looks truely terrified. He got down on one knee begging Pelosi. This is not good. They know something we dont and I’m guessing it aint good.
Something will probably pass this weekend, but unless that guys is an Oscar level actor, I think he believes that disaster is at the door. Either way, that may be the case.

[peterb]

Paulson looks truely terrified. He got down on one knee begging Pelosi. This is not good. They know something we dont and I’m guessing it aint good.
Something will probably pass this weekend, but unless that guys is an Oscar level actor, I think he believes that disaster is at the door. Either way, that may be the case.

[peterb]

Paulson looks truely terrified. He got down on one knee begging Pelosi. This is not good. They know something we dont and I’m guessing it aint good.
Something will probably pass this weekend, but unless that guys is an Oscar level actor, I think he believes that disaster is at the door. Either way, that may be the case.

[peterb]

Paulson looks truely terrified. He got down on one knee begging Pelosi. This is not good. They know something we dont and I’m guessing it aint good.
Something will probably pass this weekend, but unless that guys is an Oscar level actor, I think he believes that disaster is at the door. Either way, that may be the case.

[peterb]

I think total capitulation will take a little longer just by seeing all the people on this site that are still eager to buy at the “right” price. I still remember in 1995 that most people I talked with thought RE was a waste of money. I dont see that yet. In 1994 there were nice 2 bdrm condo’s on the beach in Newport Beach for $99K. And they were’nt selling. I think we’ll need a couple more false bottoms to get sentiment totally negative. All the people that thought a bottom was in need to buy and then see it drop another 25%. Basically, when I see just about everyone on this site saying to wait, then we’ll be near a bottom. Old beliefs die hard. I’d say another 2 years may do it.

[Author]

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