The Residential Real Estate Post-Crash Index-Moderated Message Board

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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated

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To: Jim McMannis who wrote (28052)	7/6/2011 1:42:39 PM
From: Horgad	Read Replies (1) of 119362

"Think replacement cost might be the thing to "give"?" It hardly seems possible. Yes, copper and maybe even oil could drop significantly, but cement, lumber, labor, city hook-up fees? It doesn't seem likely. But the million dollar question is still how long will it take to work the extra capacity out of the system. Right now people are building and moving into apartment buildings. That isn't exactly helping the housing market. Of course, that trend will likely reverse rapidly once jobs and loans become available again. But that could be years or even a decades away depending on how far the gov. and the FED drag us down. As for buying cheap and renting it out, I don't see and reason to wait (just don't count on appreciation). Might have to deal with increased odds of tenants going bad because of the uncertain job market, but people have to live somewhere when they can't own a home. You just have to convince some potential apartment dwellers that they would be better off renting a house. It should not be that hard...

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