reading about the real estate bubble

OS

Lifer
Oct 11, 1999
15,581
1
76
link

At the bottom of page, there are daily updated links to articles about real estate bubble related news. There are some damning articles in there.
 

b0mbrman

Lifer
Jun 1, 2001
29,471
1
81
Meh...this is why I own income property rather than simply speculating on property whose value might increase.

My rental income healthily outpaces my depreciation and other costs so that's covered. Any amount I can get back through resale is just icing on the cake...
 

DeeKnow

Platinum Member
Jan 28, 2002
2,470
0
71
Originally posted by: ironcrotch
I wonder how many vultures are out there just waiting for things to go bust.


I've been sitting on cash for years... waiting for this thing to pop
 

Triumph

Lifer
Oct 9, 1999
15,031
13
81
Originally posted by: b0mbrman
Meh...this is why I own income property rather than simply speculating on property whose value might increase.

My rental income healthily outpaces my depreciation and other costs so that's covered. Any amount I can get back through resale is just icing on the cake...

That's my plan for the future. If I can just get out of this area and into a place where I can actually afford to buy rental properties on top of my own. The price of admission around here for that type of investment is just too high.

My dad has 4 rental properties (2 duplexes), and those are the main reason he could afford to put 6 kids through college. I plan on doing the same. It's a different kind of investment, where if you would rather work on a house and spend time fixing it up rather than watching the business news and calling your stock broker every day. Neither one is necessarily easy, just better suited for different styles of investers.
 

shilala

Lifer
Oct 5, 2004
11,437
1
76
Originally posted by: b0mbrman
Meh...this is why I own income property rather than simply speculating on property whose value might increase.

My rental income healthily outpaces my depreciation and other costs so that's covered. Any amount I can get back through resale is just icing on the cake...

That's right.
 

Kremlar

Golden Member
Oct 10, 1999
1,426
3
81
I've been sitting on cash for years... waiting for this thing to pop

LOL. If you've been sitting on it for years, you should have bought a few years ago and sold for profit now. Dumbass.
 

dxkj

Lifer
Feb 17, 2001
11,772
2
81
Originally posted by: Kremlar
I've been sitting on cash for years... waiting for this thing to pop

LOL. If you've been sitting on it for years, you should have bought a few years ago and sold for profit now. Dumbass.

QFT :)
 

Kremlar

Golden Member
Oct 10, 1999
1,426
3
81
Seriously. I have 2 friends who live at home with mommy and daddy and have both had a good amount of money for a down payment on a house for 5 or 6 years now. They keep saying house prices are too high, they can't afford it.

Bull - they just don't want to actually support themselves, and give up some of the frivilous things they buy now to actually gain some independence.

Well, here they are now - prices are much higher, and they refuse to make a move.

I bought my first house 4 years ago and was deathly afraid the market had topped off. Sold 3 years later and made $80K or so on the deal.

Personally, I wish I would have bought years ago when I first started renting, convincing myself it wasn't a good time to buy - I'd have a $500 mortgage payment right now on a great house!
 

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: Kremlar
Seriously. I have 2 friends who live at home with mommy and daddy and have both had a good amount of money for a down payment on a house for 5 or 6 years now. They keep saying house prices are too high, they can't afford it.

Bull - they just don't want to actually support themselves, and give up some of the frivilous things they buy now to actually gain some independence.

Well, here they are now - prices are much higher, and they refuse to make a move.

I bought my first house 4 years ago and was deathly afraid the market had topped off. Sold 3 years later and made $80K or so on the deal.

Personally, I wish I would have bought years ago when I first started renting, convincing myself it wasn't a good time to buy - I'd have a $500 mortgage payment right now on a great house!
Something to be said for that. Long term, just like the stock market, housing prices will rise. If you are thinking you'll live in your house for two years it's a bit more risky, but if you are thinking 10 it's bloody unlikely your house will not appreciate in 10 years, even if a bubble bursts.

Now, if you're in a market like some of them in Florida or CA good luck to you, but throughout the rest of the country it's pretty safe to buy a home now. Don't stretch yourself, and then if your house dips a couple of percent it's no biggy.

 

BriGy86

Diamond Member
Sep 10, 2004
4,538
1
91
my sister doesn't make enough, she's been saving up for years and is waiting to buy a house with me after im done with college
 

rh71

No Lifer
Aug 28, 2001
52,853
1,048
126
looks like my bro may be able to buy a house in SD after all...

I have my NY house for 2.5 years now. Don't really plan on selling for at least another 5. I'm sorta stuck in the middle in terms of which way I want prices to go at this point...
 

Demon-Xanth

Lifer
Feb 15, 2000
20,551
2
81
Put it this way, I have a friend who is a realtor who sends me listings every few days. The bubble isn't close to popping in my area.
 

BriGy86

Diamond Member
Sep 10, 2004
4,538
1
91
Originally posted by: Demon-Xanth
Put it this way, I have a friend who is a realtor who sends me listings every few days. The bubble isn't close to popping in my area.

what area are you in?

i think entry level houses are in the 200,000+ range here in MN
 

alent1234

Diamond Member
Dec 15, 2002
3,915
0
0
Originally posted by: OS
link

At the bottom of page, there are daily updated links to articles about real estate bubble related news. There are some damning articles in there.



This guy is only talking about the bay area. Nationwide there is no bubble if you look at the averages. Parts of California, Miami probably. NYC is a maybe.

If you do the math and adjust for interest rates the prices aren't really that high.
 

kranky

Elite Member
Oct 9, 1999
21,014
137
106
While a bubble is clearly a regional/local issue, there are some serious warning signs for the overheated markets out west.

When the average home sells for 10 times the average salary, something is going to change. And people taking interest-only mortgages... they are crazy. That's betting your financial security on low interest rates, and that's not real smart.
 

DrPizza

Administrator Elite Member Goat Whisperer
Mar 5, 2001
49,606
166
111
www.slatebrookfarm.com
It's about time that the bubble bursts. Fortunately, there hasn't been much of a bubble locally. Real estate has remained affordable. Nor is there a huge appreciation in value. Most property values have been outpacing inflation, but not by much... certainly not doubling in value in 5 years or less as some have reported in the bigger cities. Where I live now, prices have actually been going down (which is nice) - I'm thinking about buying another house in my new neighborhood as investment property.
 

alkemyst

No Lifer
Feb 13, 2001
83,967
19
81
There isn't a 'bubble' so much in my opinion for the educated.

When you have someone selling a property for $150k, then immediately someone flipping it for $250k and another coming it to try and get $350k...that is where you have the danger, the last guy standing. Especially when you are talking a 5-10 year old home compared to an equally sized new home that's probably now in a gated/guarded community with a warranty and better amendities.....just doesn't make sense other than avoiding the 12-18months houses here take to build.

I do see prices adjusting though, some areas will be really hit. The guys that bought in 2+ years ago should be safe, maybe the last year buyers, but those just coming on need to buy as low as possible as I do see a definitely blip down.

That said I don't think anyone is losing their as$ that's living in the homes or renting them. Those that are planning on flips though may be holding a large mortgage.
 

JulesMaximus

No Lifer
Jul 3, 2003
74,456
854
126
reading about the real estate bubble almost makes me crap my pants

Why? Did you buy a house within the last year with 100% financing and an adjustable rate mortgage?
 

Demon-Xanth

Lifer
Feb 15, 2000
20,551
2
81
Originally posted by: BriGy86
Originally posted by: Demon-Xanth
Put it this way, I have a friend who is a realtor who sends me listings every few days. The bubble isn't close to popping in my area.

what area are you in?

i think entry level houses are in the 200,000+ range here in MN

Entry level houses here just jumped from $200-250k to $340-380k in two years. We're 120 miles east of the area where the bubble supposedly popped.