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: John Vosilla who wrote (38205)	8/16/2005 10:10:27 PM
From: Riskmgmt	Read Replies (1) \| Respond to of 306849

" Question is what is next? Which booms are going to occur that aren't discounted in the current price?" John that question keeps me awake at night and has for the last few years. That is what is good about these boards, the ideas and discussion. We all have different experiences and knowledge to bring to the table so that collectively we should have a much clearer picture. What is and has been, the place to be, the trend, since this board started, is R.E. 90% of the people posting on this thread believe that we are in a RE bubble and it is about to pop any day. Most of us believed that 3 years ago too. Since, by definition, what is next, occurs after what is, is no more. Then maybe "what is next?" is the wrong question. The fundamental reason most here think that R.E. is in a bubble, as you point out, is valuation. In most areas of the USA it is too high, the yield too low. Okay, we conclude it is overvalued, just like the tech stocks in 2000. So perhaps the question should be "What is undervalued?". Given the demographics of the hispanic population and the valuation differential between English speaking countries, USA, Australia, UK, Bahamas, Jamaica etc., and other parts of the Caribbean, Central and South America, I conclude some of these places are undervalued. Fly over country in the USA may be too. Have you checked out yields there? We need some other measure than they are cheaper than __ bubble area. From my experience if Dallas was 1/4 of the price of California I'd still rather California to live. But with rentals I'd go where the best returns were and of course estimated appreciation.