The Scariest Housing Market Chart Ever

[Taco]

Now is an excellent time to start renting.

The Scariest Housing Market Chart Ever
http://articles.businessinsider.com/201 ... tion-chart

[jamesbond]

Now is an excellent time to start renting.

The Scariest Housing Market Chart Ever
http://articles.businessinsider.com/201 ... tion-chart

Yeah, that's some scary shit! I bought my place end of 2007, since then it has dropped in value 25% and I live in a very good area with very low crime and excellent schools. If I had know real estate was going to collapse, I would of never bought my townhouse and just continued to live in my condo.

Boy am I glad I never invested in real estate. I actually went to some real estate seminars years ago (Dave Del Dotto, Carlton Sheets, Mike and Irene Milan) and bought some of their courses. Man, I am glad I never became a real estate investor. It is the worst investment in the world right now.

I feel sorry for people who bought rental property as now they are f***ed six ways from Sunday! Their property has gone down in value and if they can't find renters, then they are stuck making the mortgage payment on the property (this is in addtion to their own home).

I will NEVER invest real estate, it is no longer an asset, it is a liability. I read an article recently that said since July of 2006, real estate has gone down in value in the US on average 34%! That is more than it did during the great depression!

I may sell my place next year, take the loss (will have to come up with money at the closing, even though I put 20% down) and start renting. The nice thing about renting is that you don't have to pay any real estate taxes and no homeowners association fees.

[gsjackson]

Rental property isn't a bad investment right now if you want to hold it and just collect the rent. The ROI now can often be over ten percent if you don't have a mortgage, and there are plenty of renters in most markets because banks aren't making loans to would-be buyers. But you have to assume that you can't get out of it any time soon, so there's no liquidity at all. I've had a condo on the market three different times over the last two years, at what my realtor and I thought were market prices (steadily coming down in asking price from $85K to $54K), but no takers. I'm resigned to just holding it forever as a rental.

JB, a 27 percent loss since 2007 isn't all that bad, relatively speaking. The bubble never blew up quite so ridiculously in the Midwest.

[Taco]

Now is an excellent time to start renting.

The Scariest Housing Market Chart Ever
http://articles.businessinsider.com/201 ... tion-chart

Yeah, that's some scary shit! I bought my place end of 2007, since then it has dropped in value 25% and I live in a very good area with very low crime and excellent schools. If I had know real estate was going to collapse, I would of never bought my townhouse and just continued to live in my condo.

Boy am I glad I never invested in real estate. I actually went to some real estate seminars years ago (Dave Del Dotto, Carlton Sheets, Mike and Irene Milan) and bought some of their courses. Man, I am glad I never became a real estate investor. It is the worst investment in the world right now.

I feel sorry for people who bought rental property as now they are f***ed six ways from Sunday! Their property has gone down in value and if they can't find renters, then they are stuck making the mortgage payment on the property (this is in addtion to their own home).

I will NEVER invest real estate, it is no longer an asset, it is a liability. I read an article recently that said since July of 2006, real estate has gone down in value in the US on average 34%! That is more than it did during the great depression!

I may sell my place next year, take the loss (will have to come up with money at the closing, even though I put 20% down) and start renting. The nice thing about renting is that you don't have to pay any real estate taxes and no homeowners association fees.

There are some countries where real estate is still a safe investment. Indonesia, Malaysia, India, Latin America and Philippines are countries where the prices are currently increasing as more people move there permanantly.

[fschmidt]

From the chart, it looks like a great time to buy real estate.

[Taco]

From the chart, it looks like a great time to buy real estate.

I thought this was interesting.

30 Reasons To Get Out Of Real Estate Part 1
http://www.youtube.com/watch?v=8_AyOunL ... ure=relmfu

30 Reasons To Get Out Of Real Estate Part 2
http://www.youtube.com/watch?v=-7O9RLIV ... ure=relmfu

[Billy]

Germany is booming in the real estate sector. specially in munich people buy like crazy because of low interest rates and the angst from the euro collapse. i had luck to buy it cheap because a already lived in the flat i sold it now with 40 percent gains . but that was pure luck. I would never buy to speculate there is no way to foresee what will come. That said, USA seems to be in low so maybe it´s a good time for investing.

[MrPeabody]

From the chart, it looks like a great time to buy real estate.

I agree that the time to buy is when it becomes common knowledge that it's a bad idea to buy real estate. When my next store neighbor told me that housing could only go up forever in California, I sold my house in Orange County and made twice the original price, so with leverage that was my best investment ever. You need to do the opposite of the mob to make money. But, with one qualification - you never know when it is going to bottom and when it will go up again. The timing is difficult. If you have spare cash you don't need for a long time, it could make sense to buy houses in an area with a good rental market and a possibility for appreciation. Housing in Houston never appreciates, but California maybe.

[momopi]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

[Taco]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

I disagree, on the grounds that the US currency is currently being devalued at an enormous rate. The US will be bankrupt again by September or October of this year, right before the coming election there will be another US credit downgrade if not sooner.

[gsjackson]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

I disagree, on the grounds that the US currency is currently being devalued at an enormous rate. The US will be bankrupt again by September or October of this year, right before the coming election there will be another US credit downgrade if not sooner.

This is just nonsense. The United States is a sovereign nation that can print its own currency to meet any debt. It will never go bankrupt unless posturing politicians refuse to pay the nation's debts. The debt service charge it is currently paying -- the only meaningful metric, since the underlying debt itself hasn't been paid off since Andrew Jackson was president, and never will be, and nobody really cares -- is quite low historically as a percentage of GNP, because the interest we are paying on that borrowed money is next to nothing. When you echo the calamity howling of the deficit-mongers you are just making yourself part of an elitist movement to torpedo government social spending. The credit rating agencies are part of the same movement, and have completely discredited themselves in recent years.

The United States has a debt problem only with respect to rising health care costs, and that's only because we are too corrupt to throw out the blood-sucking insurance and drug companies that create the burdensome costs.

[MrPeabody]

When I lived in the Netherlands, most people rented. The lease in the apartment would allow the tenant to make any changes he wanted. Before he moved in, an inspector would carefully note the original condition of the apartment. When the tenant moved out he had to restore the apartment to the original condition. Most of the apartments didn't even have flooring. You just got an apartment with a bare cement floor and you were expected to add your own flooring like click laminate or carpeting. Many Dutch when they move take their floors with them. With this arrangement it is possible to have your own individual living space just like you want it, without the necessity of buying. If you buy a house, it requires a significant deposit like 20% down. That is the way the US used to be before it was taken over by the Wall Street gangsters coming up with their financial schemes like sub prime mortgages.

[Taco]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

I disagree, on the grounds that the US currency is currently being devalued at an enormous rate. The US will be bankrupt again by September or October of this year, right before the coming election there will be another US credit downgrade if not sooner.

This is just nonsense. The United States is a sovereign nation that can print its own currency to meet any debt. It will never go bankrupt unless posturing politicians refuse to pay the nation's debts. The debt service charge it is currently paying -- the only meaningful metric, since the underlying debt itself hasn't been paid off since Andrew Jackson was president, and never will be, and nobody really cares -- is quite low historically as a percentage of GNP, because the interest we are paying on that borrowed money is next to nothing. When you echo the calamity howling of the deficit-mongers you are just making yourself part of an elitist movement to torpedo government social spending. The credit rating agencies are part of the same movement, and have completely discredited themselves in recent years.

The United States has a debt problem only with respect to rising health care costs, and that's only because we are too corrupt to throw out the blood-sucking insurance and drug companies that create the burdensome costs.

Nice try.

Unfortunately, the US just passed the NDRP law which means that house your living in isn't actually yours anymore. You might want to try reading it sometime.
You'd have to be on crack to be real estate in the US right now.

Executive Order - National Defense Resources Preparedness
viewtopic.php?t=13158

[gsjackson]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

I disagree, on the grounds that the US currency is currently being devalued at an enormous rate. The US will be bankrupt again by September or October of this year, right before the coming election there will be another US credit downgrade if not sooner.

This is just nonsense. The United States is a sovereign nation that can print its own currency to meet any debt. It will never go bankrupt unless posturing politicians refuse to pay the nation's debts. The debt service charge it is currently paying -- the only meaningful metric, since the underlying debt itself hasn't been paid off since Andrew Jackson was president, and never will be, and nobody really cares -- is quite low historically as a percentage of GNP, because the interest we are paying on that borrowed money is next to nothing. When you echo the calamity howling of the deficit-mongers you are just making yourself part of an elitist movement to torpedo government social spending. The credit rating agencies are part of the same movement, and have completely discredited themselves in recent years.

The United States has a debt problem only with respect to rising health care costs, and that's only because we are too corrupt to throw out the blood-sucking insurance and drug companies that create the burdensome costs.

Nice try.

Unfortunately, the US just passed the NDRP law which means that house your living in isn't actually yours anymore. You might want to try reading it sometime.
You'd have to be on crack to be real estate in the US right now.

Executive Order - National Defense Resources Preparedness
viewtopic.php?t=13158

Huh??? I have no idea what this executive order has to do with government debt, debauched currency, and the US going bankrupt, which is impossible by definition unless we decide we want to be bankrupt.

[Taco]

You buy (or invest) when it's cheaper to buy than to rent.

You rent when it's cheaper to rent than to buy.

It's not hard.

I disagree, on the grounds that the US currency is currently being devalued at an enormous rate. The US will be bankrupt again by September or October of this year, right before the coming election there will be another US credit downgrade if not sooner.

This is just nonsense. The United States is a sovereign nation that can print its own currency to meet any debt. It will never go bankrupt unless posturing politicians refuse to pay the nation's debts. The debt service charge it is currently paying -- the only meaningful metric, since the underlying debt itself hasn't been paid off since Andrew Jackson was president, and never will be, and nobody really cares -- is quite low historically as a percentage of GNP, because the interest we are paying on that borrowed money is next to nothing. When you echo the calamity howling of the deficit-mongers you are just making yourself part of an elitist movement to torpedo government social spending. The credit rating agencies are part of the same movement, and have completely discredited themselves in recent years.

The United States has a debt problem only with respect to rising health care costs, and that's only because we are too corrupt to throw out the blood-sucking insurance and drug companies that create the burdensome costs.

Nice try.

Unfortunately, the US just passed the NDRP law which means that house your living in isn't actually yours anymore. You might want to try reading it sometime.
You'd have to be on crack to be real estate in the US right now.

Executive Order - National Defense Resources Preparedness
viewtopic.php?t=13158

Huh??? I have no idea what this executive order has to do with government debt, debauched currency, and the US going bankrupt, which is impossible by definition unless we decide we want to be bankrupt.

I'm not surprised.