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

To: TheStockFairy who wrote (5682)	9/29/2002 3:31:39 PM
From: John Chen	Read Replies (1) \| Respond to of 306849

TheStockFairy,re:"luxury apartments, $1000 per month..." That is very reasonable, considering the starter house in Chicage has been 500K+ and going up, from what I learned on this thread. You probably can't pay for the 'tax, insurance, misc. maintainance of a starter house', never mind the 'P&I' (you do get back part of the interest and tax you paid though). If you don't have 'teens' in the family (not assuming anything on your life(style)), enjoy your luxury apartment, go out and eat in nice restaurant, take trip(s) and visit your friends with 500K+ starter home or whoever has house and enjoy there. You maybe in a sweet-spot of RE as far as apartment rental is concerned. One nice thing about your situation is: RE turns VERY VERY SLOW (up or down). So your cycle could be very favorable.

To: TheStockFairy who wrote (5682)	9/29/2002 5:14:30 PM
From: Elroy Jetson	Respond to of 306849

I smell bad times for apartment REITs, in particular AIMCO (NYSE:AIV). One $300 million apartment complexes in Los Angeles built by the Casden Company. The rents are grossly over-priced with one bedrooms at $2k /mo and $4.5 /mo for two bedrooms. I think I can safely say that rents in surrounding buildings are less than half these amounts. This project was one of a package of losers sold to AIMCO for stock. There seems to be a great number of owners and builders selling apartments to AIMCO right now for stock at premium prices. Unless there's a lock-up provision, I'd certainly be selling my AIMCO stock if I were one of these builders. aimco.com finance.yahoo.com housingfinance.com