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: Les H who wrote (29447)	4/12/2005 11:13:42 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

RE:"i then checked the realtor web site for rentals in that complex. the rental listings range from $ 1200 to $ 1700 per month. how does one make a profit on a unit that costs $ 500,000, where the real estate taxes are $ 300 to 400 per month and the condo maintenance fees are another $ 300, when you can only expect rental income of $ 1200?" You can't. When the music stops it's over. Only there will be a lot more thant one less chair. Seen it happen before.

To: Les H who wrote (29447)	4/13/2005 11:41:47 AM
From: Les H	Respond to of 306849

Excessive Asian Reserves techcentralstation.com

To: Les H who wrote (29447)	5/2/2005 1:39:11 PM
From: Les H	Read Replies (1) \| Respond to of 306849

Overextended Investors Could Cause Correction In Housing (Dow Jones 04/13 17:34:47) By Janet Morrissey Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Raymond James analyst Rick Murray believes there may be a glut of overextended real estate investors in the housing market, which may lead to a price correction and pullback in demand. "Investment sales have been a key driver of the housing market in the past few quarters, and, in fact, the past two to three years," said Murray, in a note. He said this "inflated level of demand" has been driving home prices up in recent years. Murray estimates there are more than 5.1 million vacant housing units either for rent or for sale, and as many as 6.5 million homes that are vacant for part of the year because they are second homes. This represents a "potential inventory overhang" - which contradicts the home builders' argument that inventories are low and the industry is facing a housing shortage. "With nearly 12 million empty housing units in the U.S., we find it implausible to conclude that there is a housing shortage of the magnitude that would drive the recent levels of price escalation," he said. Murray suspects a large number of these owners are inexperienced or overextended investors in the single-family rental market. "The investor has overpaid in anticipation of future price appreciation," he said. If they can't get high enough rents to cover mortgage, taxes and insurance costs, he predicts a "significant" amount of housing may return to the for-sale market. This would affect prices, as well as demand for new housing, he said. This "hidden inventory" is larger than at any time in the past 10 years, Murray said. He maintains a cautious stance on the sector. -By Janet Morrissey, Dow Jones Newswires; 201-938-2118 (END) Dow Jones Newswires April 13, 2005 17:34 ET (21:34 GMT)