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sdduuuude
ParticipantFLU – call it the “middle of the ‘W’ recovery.”
The gov is basically borrowing money to get out of debt and putting lipstick on lots of pigs (banks). In the short term, it fees up credit and makes for the appearance of a recovery, but we are still in deep doo-doo so the second hammer must fall eventually.
Also, it seems that the housing crash was really a bubble pop based on inflated asset prices. The effects of this have hit employment, but it seems the effects of reduced employment haven’t hit the economy yet.
The slowness with which economies move is always amazing to me.
ParticipantFLU – call it the “middle of the ‘W’ recovery.”
The gov is basically borrowing money to get out of debt and putting lipstick on lots of pigs (banks). In the short term, it fees up credit and makes for the appearance of a recovery, but we are still in deep doo-doo so the second hammer must fall eventually.
Also, it seems that the housing crash was really a bubble pop based on inflated asset prices. The effects of this have hit employment, but it seems the effects of reduced employment haven’t hit the economy yet.
The slowness with which economies move is always amazing to me.
ParticipantFLU – call it the “middle of the ‘W’ recovery.”
The gov is basically borrowing money to get out of debt and putting lipstick on lots of pigs (banks). In the short term, it fees up credit and makes for the appearance of a recovery, but we are still in deep doo-doo so the second hammer must fall eventually.
Also, it seems that the housing crash was really a bubble pop based on inflated asset prices. The effects of this have hit employment, but it seems the effects of reduced employment haven’t hit the economy yet.
The slowness with which economies move is always amazing to me.
ParticipantYes, we should make it illegal for anyone to loan anyone else any money unless it is the government doing the loaning or borrowing. That’ll fix everything. Brilliant
ParticipantYes, we should make it illegal for anyone to loan anyone else any money unless it is the government doing the loaning or borrowing. That’ll fix everything. Brilliant
ParticipantYes, we should make it illegal for anyone to loan anyone else any money unless it is the government doing the loaning or borrowing. That’ll fix everything. Brilliant
ParticipantYes, we should make it illegal for anyone to loan anyone else any money unless it is the government doing the loaning or borrowing. That’ll fix everything. Brilliant
ParticipantYes, we should make it illegal for anyone to loan anyone else any money unless it is the government doing the loaning or borrowing. That’ll fix everything. Brilliant
ParticipantThe realtor in the OP doesn’t get it and will say whatever it takes to sell the house. The question isn’t “can you build it for that price?” The right question to ask is “can you get something comparable for that price – either by building it or by purchasing something else?” If the market for houses allows you to get something for much less than the replacement cost, it just means you should not spend the money to build. It doesn’t mean the house is a deal, as other houses could be even better deals. i.e. be sure to check comps.
There is some correlation between the replacement cost and the value of the house, and to some extent, the economics of the construction and housing markets do affect one another, but really for a given house, once built, the replacement cost is a sunk cost.
Lets take an example of two houses of the same size with the same number of bedrooms and bathrooms. One has a terrible layout, closed-off kitchen, isolated living rooms, hallways too large, rooms too small, etc. The other is properly designed with open kitchen. Same exact replacement cost. Differnt value.
ParticipantThe realtor in the OP doesn’t get it and will say whatever it takes to sell the house. The question isn’t “can you build it for that price?” The right question to ask is “can you get something comparable for that price – either by building it or by purchasing something else?” If the market for houses allows you to get something for much less than the replacement cost, it just means you should not spend the money to build. It doesn’t mean the house is a deal, as other houses could be even better deals. i.e. be sure to check comps.
There is some correlation between the replacement cost and the value of the house, and to some extent, the economics of the construction and housing markets do affect one another, but really for a given house, once built, the replacement cost is a sunk cost.
Lets take an example of two houses of the same size with the same number of bedrooms and bathrooms. One has a terrible layout, closed-off kitchen, isolated living rooms, hallways too large, rooms too small, etc. The other is properly designed with open kitchen. Same exact replacement cost. Differnt value.
ParticipantThe realtor in the OP doesn’t get it and will say whatever it takes to sell the house. The question isn’t “can you build it for that price?” The right question to ask is “can you get something comparable for that price – either by building it or by purchasing something else?” If the market for houses allows you to get something for much less than the replacement cost, it just means you should not spend the money to build. It doesn’t mean the house is a deal, as other houses could be even better deals. i.e. be sure to check comps.
There is some correlation between the replacement cost and the value of the house, and to some extent, the economics of the construction and housing markets do affect one another, but really for a given house, once built, the replacement cost is a sunk cost.
Lets take an example of two houses of the same size with the same number of bedrooms and bathrooms. One has a terrible layout, closed-off kitchen, isolated living rooms, hallways too large, rooms too small, etc. The other is properly designed with open kitchen. Same exact replacement cost. Differnt value.
ParticipantThe realtor in the OP doesn’t get it and will say whatever it takes to sell the house. The question isn’t “can you build it for that price?” The right question to ask is “can you get something comparable for that price – either by building it or by purchasing something else?” If the market for houses allows you to get something for much less than the replacement cost, it just means you should not spend the money to build. It doesn’t mean the house is a deal, as other houses could be even better deals. i.e. be sure to check comps.
There is some correlation between the replacement cost and the value of the house, and to some extent, the economics of the construction and housing markets do affect one another, but really for a given house, once built, the replacement cost is a sunk cost.
Lets take an example of two houses of the same size with the same number of bedrooms and bathrooms. One has a terrible layout, closed-off kitchen, isolated living rooms, hallways too large, rooms too small, etc. The other is properly designed with open kitchen. Same exact replacement cost. Differnt value.
ParticipantThe realtor in the OP doesn’t get it and will say whatever it takes to sell the house. The question isn’t “can you build it for that price?” The right question to ask is “can you get something comparable for that price – either by building it or by purchasing something else?” If the market for houses allows you to get something for much less than the replacement cost, it just means you should not spend the money to build. It doesn’t mean the house is a deal, as other houses could be even better deals. i.e. be sure to check comps.
There is some correlation between the replacement cost and the value of the house, and to some extent, the economics of the construction and housing markets do affect one another, but really for a given house, once built, the replacement cost is a sunk cost.
Lets take an example of two houses of the same size with the same number of bedrooms and bathrooms. One has a terrible layout, closed-off kitchen, isolated living rooms, hallways too large, rooms too small, etc. The other is properly designed with open kitchen. Same exact replacement cost. Differnt value.
ParticipantAs time goes on, I’m starting to believe more and more in the double (triple ?) recession. We may be out of this one sooner than the bearish Pigg-types (me included) expect, but back into another one much faster than the mainstream believes possible.
With that said, this may be the time to get out, but look for another chance to get in.
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