Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Amy J who wrote (11818)	7/28/2003 2:54:03 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Amy, as a long-time observer and participant in the real estate market, my advice to my 24-year-old son has been and remains to buy a house (not a condo ever and a townhouse only if that's all he could get) WHENEVER AND AS SOON AS POSSIBLE, so he doesn't have to someday bore his kids and grandkids with stories about the 30-year, 6-percent interest rate he let get away many years before. My 24-yr-old isn't ready/willing/able to buy right now, but if he was, I'd drop everything, fly down to his city and get started right away on helping him find something to buy. Funny thing is, his girlfriend's father is a CPA and has been telling his daughter the same thing for the past two years---buy a house as soon as she can. It isn't always what you pay for a property that counts. It's what you do with it after you own it. People who delay or neglect to build up significant equity in real estate are most likely the ones who might have some regrets in the foreseeable future.

To: Amy J who wrote (11818)	7/28/2003 3:04:47 PM
From: Tradelite	Read Replies (2) \| Respond to of 306849

Amy, for the "housing haircut" to occur, it will require many people selling or attempting to sell their homes to a public unwilling or hesitant to buy. Supply/demand. There's no denying that low interest rates have increased affordability and prices, but how a changing stock market or a flat real estate market will encourage homeowners to suddenly ditch their homes and run for the nearest rental, or will cause newly formed households to avoid buying homes, is something I will have to see to believe. Could happen. Just don't think it will. Everyone else seems to be basing their beliefs about the future of real estate on factors which I think might not be relevant at all. To each our own....