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

To: Oblomov who wrote (411)	8/28/2001 2:46:04 PM
From: JakeStraw	Read Replies (1) \| Respond to of 306849

>>why can't it simply be "money well spent"? As I see it, it's simply a lot better choice than renting and a good tax deduction.

To: Oblomov who wrote (411)	8/28/2001 2:49:23 PM
From: long-gone	Respond to of 306849

<<If one renovates a gutted house in a bad neighborhood, and the neighborhood rebounds, then the risk/reward ratio may be favorable. In most cases the real ROI is not so good>> Or if one buys well just before an individual market becomes "hot" as happened often in CA, in West TX - prior to oil crash, NYC of late, the booms of the Metro Denver area. ... and ONLY if they are in a position they can sell at or near top. My mother & father owned a home in Lubbock during the heady days of oil. A person they had never seen walked up to the door offering $230k for the home in which they had $46 invested. They didn't sell because they would have had to buy something else at an equally inflated price. The housing market crashed. 7 years later (1 year after my father died) my mother was able to sell it for $64k. Everyone speaks of the current heady real estate market, but I can show any number of more rural places where home prices have declined/ perhaps as many as have seen the massive increases.