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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: AC Flyer who wrote (14058)	1/27/2002 11:29:02 AM
From: oldirtybastard	Read Replies (2) \| Respond to of 74559

would any of this change if I knew despite my tax savings, you're in trouble since you need to sell your house because you lost your job, why don't I just wait until you are in even more trouble and then buy it from you cheaper? May be harder for you to sell, since your neighbor lost his job too, maybe I should wait a little longer until a 3rd family is in trouble and need to sell too. you get it? Now what if everyone started thinking in that direction? Can't happen right? That almost 8% unemployment in the pacific northwest and the 8% in Canada is an anomaly, not a trend, you know this right?

To: AC Flyer who wrote (14058)	1/28/2002 1:28:00 AM
From: TobagoJack	Respond to of 74559

Hi Mike, I treat nothing on the thread as intrusive, because I use the thread as my online diary, and not a soap box. I think your trading big home for smaller one is wise. We in Hong Kong are familiar with tax-free trading of real estate property (rental and owner occupied) and many flip real estate as many others would flip paper assets. There was an incredible period (1988-1997) during which real estate increased in price 500-800% depending on location and every other shop front is a real estate agency. Trust me on this one, the result, ultimately, as in when I ripped my current abode from its previous owner, is neither health nor pretty. Property price is about 60% off the peak value and can fall further. I am familiar with US real estate rules because I had co-owned apartment complex in the past and still own one property to this day. The dangerous tendency, IMO, in the US is that many folks apparently treat their primary residence as (a) savings, which it is not, because it is a liability, and one can not realize the savings component without trading down, and as (b) credit card, which it can be, but then defeats the plausible saving features without removing the liability component. As Greenskaput had mentioned once, to paraphrase, ‘everything will be OK as long as real estate price keeps going up’, which of course will not happen. Chugs, Jay