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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (14958)	7/1/2002 1:25:01 AM
From: c.hinton	Read Replies (1) \| Respond to of 36161

Anybody aware of what happened to the UK housing Market in 1990-91?It Was Bad Bad Bad,Why?DEBT<DEBT<DEBT..... Bubbles are about over leveraging. That is what a big mortgage is.

To: Little Joe who wrote (14958)	7/1/2002 9:52:31 PM
From: Silver Super Bull	Read Replies (2) \| Respond to of 36161

What makes this real estate situation so dangerous, in my opinion, is the widely held belief that real estate values never go down. If that premise is believed, what is to prevent someone from massively overpaying for a property? If they believe there is no risk of a decline in value, it really becomes academic as to what price they should pay for property. I can't speak for Canadian real estate. But I read that in Chicago, the residential real estate market, in the last twenty years, has averaged AT LEAST a 1% gain annually. If that type of performance doesn't lend itself to complacency to real estate price risks, I don't know what will. And the amazing thing is that Chicago is not even near the most overvalued real estate in the U.S. DB