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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: SpongeBrain who wrote (348)	8/28/2001 9:38:17 AM
From: Jason W	Respond to of 306849

Sponge..., You failed to mention that the down payment money for the house you DIDN'T buy would be sitting somewhere earning you interest all the while. IF a person invested wisely, AND housing prices dropped significantly, an individual COULD benefit from timing the real estate market...tricky, but a calculated risk for someone who chose to do so. For those whose lifestyle could accommodate such a move, now does seem like a good time to downsize or sell and wait. Regards, Jason

To: SpongeBrain who wrote (348)	8/28/2001 10:34:55 AM
From: Oblomov	Read Replies (4) \| Respond to of 306849

>>But renting is a GUARANTEED 100% loss. Not true... that's RE agent hype, IMO. I have been renting, when I easily could have bought a house. I simply did not want to commit to the responsibility of ownership, and I wanted the flexibility to move to a new city at a moment's notice. The lost opportunity of potential equity gain was a small price to pay for this flexibility. Second, to live in the same or an equivalent neighborhood, my mortgage payment would be at least double my current rent payment. Even after the mortgage interest deduction, I would have less cash flow. My equity would need to increase substantially each year for it to be economic. I prefer liquid assets. I prefer holding assets that are not valued primarily by emotional considerations (although, we being human, all valuations admittedly do have their emotional component). I do not get the warm fuzzy feeling that some people get from "owning" the [bank's] house in which they live. I value freedom over security. I am single, with no children, and have no need for a 3000 ft^2 house, anyway. Owning a house is not of equal financial merit for everyone.

To: SpongeBrain who wrote (348)	8/28/2001 11:00:47 AM
From: Tom Gordon	Respond to of 306849

$2000.00 rent? they too (rent) will come down in direct proportion to the real estate correction. One thing you must keep in mind , that interest rates will move up as the real estate bubble collapses because all those banks holding all of those bad loans will be called and easy bank lending will become a thing of the past during this contractionary period. Unless you are flush with cash, by all means go for it, but, I'm afraid you might just be in for a rude awakening as your purchase deflates, interest rates go up, your purchase has no market ability, and your job is in jeopardy because of this stagflationary market at best won't go away. Those consumer index nos. out today are worth reckoning my friend. Regards,Tom.