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

To: Tradelite who wrote (1332)	1/11/2002 11:53:02 AM
From: LLCF	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.> It's not short term thinking.... the spike we have seen is probably the short term occurance. <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.> From you're mouth to gods years.... how do you know it's not the next Syracuse or Toledo??? <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. > That's a real pain in the ass... you have to get a management company to fix the toilet's when they break cause you're not in town. You're basically just even longer real estate... if you like that, I guess it's OK. DAK

To: Tradelite who wrote (1332)	1/18/2002 12:19:50 PM
From: bobby is sleepless in seattle	Read Replies (1) \| Respond to of 306849

just starting to read some of the older posts here. Generally speaking (always exceptions to the rule), I would never recommend having rental property outside of one's back yard. Place a ROI, factor in the mgt fees, the capital gains under non-owner occupied (unless one returns and lives for the reauired period) vacancy rates, how about the stress involved. And heaven forbid one has to deal with unlawful detainer. What about the property mgt team? Most, IMO, are not worth the one month's rent and 10% month...Sell the house now and avoid paying the taxes and put that money to work elsewhere. Having said that, real estate ownership is a wonderful way of building a nest egg. Primary residence paid off is nice, but rental properties can provide a nice stream of income.