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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2102)	3/15/2004 1:55:44 PM
From: Jim Willie CB	Respond to of 116555

excellent housing bubble article, rich data / jw

To: mishedlo who wrote (2102)	3/15/2004 9:16:31 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 116555

Over about the past year, a large apartment complex a few blocks from where I live has sold off the units as townhomes. I even know somebody who got a loan to buy and rent out a house--I don't know is this was done to speculate on the housing boom, or to generate income, but I doubt that you can come out ahead very much with that trick. I suppose it is a bet that the house is going to appreciate more than the rate you pay on the loan, well, maybe. Uh oh, major brain cramp here, so you put 200k into a place, that money costs something like 5% or 10k a year, and you only pull in 10k a year in rent...plus you still have to pay property tax and take into account occasional repairs and such. I don't get it, somebody help me out here. Anyway, I know my assessment went way up this year, so I suppose folks are making money on this sort of thing. I called the county and had them come out so I could talk them down a bit however<g>. I was able to get them to take about 15k off, saves me a few bucks, but I'm sure the county computers will take that back next year. I would prefer that my house not appreciate.