SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: get shorty who wrote (7002)11/21/2002 8:44:51 PM
From: Elroy JetsonRead Replies (1) of 306849
 
The author suggested that to try and "time" the RE market was foolhardy. The article basically espoused the same buy and hold philosophy that's usually associated with equities.

I have always believed in the absolute importance of Valuing the Market, aka "Buy Low Sell High".

I believe people who ignore valuation and instead talk about "buy and hold" or "timing the market" are either confused or trying to confuse you.

I did not sell my equities simply because they became excessively valued during the recent equity bubble. But excessive valuation did inform me to be eager to sell in 2000 when the upward trend ended.

Obviously transaction costs for real estate are higher than they are for equities. Additionally lead time to sell real estate is measured in months rather than minutes. But excessive valuation in real estate should inform you to be eager to sell when the upward trend ends.

Valuation is the most important tool an investor needs to know. Value compares the price of an investment with the income and risk of that investment, relative to other investments. By this yardstick real estate in many geographic regions is overvalued.

Southern California in particular, where Condos now sell for the same square foot price as homes in the same area, would make me especially eager to sell a Condo as this disparity in valuation will not continue.

If you would like to own real estate, or do already, learning how to appraise property value is the most important investment you need to make. Buying a property or a stock because a fast-talking salesman tells you "it's a sure thing" or "it will only go up" will eventually lead to grief.

I have noticed that people will invest far more time and effort in getting a "good deal" on a car than they will in getting a good deal on investments with their life savings. The results of this are catastrophic.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News