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

To: LLCF who wrote (1331)	1/11/2002 11:36:10 AM
From: Tradelite	Read Replies (2) \| Respond to of 306849

The only problem with that line of thinking, from what I can see, is that you are thinking SHORT-TERM. Short-term owners should not buy houses. Even if a million dollar home in the Bay Area drops to half a million in two years, it will someday be worth a million again and eventually 1.5 million or 2 million, given enough time. Perhaps the problem with thinking today is that many younger people do not see themselves staying in the same location for very long, and therefore they can't plan for the future very well in terms of real estate investing. However, some of these younger people could buy a home, and then be transferred to another city and could rent out the home in the old city to pay off the mortgage. That's how some people do it and have done it for years. Some of these people wind up very wealthy for having done it this way.