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

To: y2kate who wrote (1689)	2/20/2002 1:42:16 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

y2, the probability of making a killing in the real estate market with a $700k entry fee is quite different than a sub $300k entry fee. maybe the $300k buy was smart. that doesn't mean $700k is smart. that is same old bankrupt momo hype that drove the market to oblivion.

To: y2kate who wrote (1689)	2/20/2002 12:14:25 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

>>I realize I was lucky- coincidentally, here in L.A. the real estate market tanked from about '91- '96. Still, from where I sit, it's crazy NOT to buy real estate, especially in Southern California. If you can get a good home in a good neighborhood during a soft market, it's a no-brainer. << It also tanked in the early 80's. So yes your timing has been excellent in your purchases. Frankly, it should simply be pointed out that paying inflated prices for RE is almost as worrisome as overpaying for stocks . It's a lot easier to sell at the "right price" when you purchased correctly in the first place. Would you so willingly pay $700K (with your $60K downpayment) for the house you are living in today if you were a buyer? Be honest, now. As far as fear goes....all it takes is a rational look at the numbers to take emotion out of a financial transaction. I've demonstrated that in the market where my son lives if he purchased a $300K home, he will lose nearly $25K over 5 years (this is ASSUMING "normal" appreciation) purchasing compared to renting.