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

To: J. P. who wrote (11766)	7/25/2003 11:29:48 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<All of the sudden you have a big overleveraged depreciating asset. >> And one of my points, which I didn't articulate very well apparently, is that a person doesn't generally get stuck with an "overleveraged depreciating asset" if he keeps the property for enough years and manages his own money and borrowing in a sane manner. Which all goes back to the point about not buying real estate as a short-term investment. Only a lucky few EVER do that successfully. To the extent that easy credit drew unstable buyers into the housing market, tougher credit eventually will even things out for the market in the long run. I'm holding my real estate for the long run--couldn't care less if it depreciates this year or next. But come to think of it, I can't really worry about whether it will go up at all. I need a home and there is no future in renting one. I believe the majority of recent homebuyers are thinking the same thing. Kinda like that dishwasher we just had to buy when the old one crapped out this week. I didn't want to buy a new dishwasher and I certainly didn't like the price, but what more desirable choice was I given?