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

To: David Jones who wrote (5903)	10/4/2002 8:27:49 PM
From: Tradelite	Read Replies (2) \| Respond to of 306849

<<If prices do back off a-la 1990 buildable bare land takes a beating. That's been my experience at least. >> That's exactly what the big builders (name brands known to this thread) did in my area during the early 1990s. They had the cash to pick up bargains and have been making money on that bargain-priced land ever since. Amazing to me that people are still shorting this group of stocks, but I wish them well, as I'm not participating in that game.

To: David Jones who wrote (5903)	10/4/2002 9:52:00 PM
From: MSI	Respond to of 306849

Seems as though one should be borrowing all one can get but then what do you do with it? That's the question -- I'm looking at income property in underserved areas, but it'll take patience. If prices do back off a-la 1990 buildable bare land takes a beating I'm counting on it... <g> do a little putting around and check out some retirement candidates 'towns'. A good approach for the next several decades IMHO

To: David Jones who wrote (5903)	10/4/2002 11:22:21 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

Retiring debt while money is so cheap as i mentioned to you before, due to the current low inflation rate, money is NOT cheap in real terms; only in nominal terms. in real terms money remains quite expensive. the fact that nominal rates are low reflects the low growth, low inflation environment. people can get seduced into thinking this means money is cheap when it is not. because... Seems as though one should be borrowing all one can get but then what do you do with it? precisely. money may seem "cheap" but the return on capital is very low. until prospective returns are high, i see no reason to build up debt. the thing that's scary about a real estate crash is that once the market peaks and becomes illiquid, there may not be a lot of price continuity until distressed-sales levels. this is a problem with all illiquid markets.

To: David Jones who wrote (5903)	10/5/2002 2:43:07 AM
From: Skeeter Bug	Respond to of 306849

david, sometimes doing nothing is the best thing. after all, if everyone else loses 40% and you made 2%, you made out like a bandit!