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


To: John Vosilla who wrote (33108)6/11/2005 12:42:34 AM
From: X Y ZebraRespond to of 306849
 
And I guess Florida isn't really muggy? South Florida with now over eight months of endless summer has to be the muggiest place in the US. At least if you live in Houston or North Florida the muggy season lasts no more than five months <g>

worse... there are cockroaches, gazillion bugs, and it is inundated with people with new jersey accent on vacation... -gg

i mean if people buy in such areas... man am i sitting pretty... i am no where near such ugly places....

As for cap rates on the commercial side, you are right it is much more reasonable than residential these days though in bubble markets like Florida cap rates of 4-6% are a fool's game. Remember before the last downturn cap rates at even 9 or 10% were a recipe for disaster once the construction boom died, tenants bailed, vacancy rates skyrocketed and credit was tightened.

yes, i agree... 4-6% is nuts... so i do not touch them...

cap rates are a reflection of the willingness of investors to take risk... so lower cap rates, higher selling price in the 8% plus region, begin to make sense.... (but there are better, except you need to really look for them)...

AND in the midwest, you can get better cap rates... (but higher vacancies and low possibility for land appreciation)

the point is....

you can get as bad a cap rate if you make a dumb decision...

but the point also is....

WHERE are you going to get a better rate of return?

stocks ? HA HA HA HA HA ... (good luck, as you get your head chopped off by the 'innocent market maker' who claims that the stock market is the last bastion of Laissez Faire Capitalism... -ya sure, if i am protected by the comfy spread, i wil claim the same bs) *roflmao* oh and don't forget... they give 'stability' to the market and avoid huge fluctuations... what crock and bs!!

the market had a golden chance to give access to riches to the common man... and the greedy insider pigs blew it... i doubt the stock market will become a significant investment vehicle for the common man.... who really knows, and i certainly don't care to find out

Bonds ? HO HO HO HO HO yeah right.... go ahead and put your money there and see what happens...

foreign stocks ? gold ?.... futures ?

so where ?

as for real estate...

if you do your basic homework, don't do stupid things, and don't get over your head with debt...

there is no market that can give you the balance of a considerable appreciation with decent cash flow... and the ability to sleep at night...

of course much depends on each individual's strategy, segment diversification and other common sense business practices...

but hey... it is a free country, a free market and....

don't forget... it is a bubble out there and it will explode... -g