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

To: Tradelite who wrote (84641)	8/11/2007 12:39:42 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 306849

>>Meanwhile, I saw that Asian fellow whose name I can't remember who wrote "Rich Dad, Poor Dad" on Neil Cavuto's show yesterday. He says he's buying apartment buildings in Las Vegas. He sees great opportunities there because of new-job creation, which he says is going great-guns.<< I think he's a year or two too early. Cap rates still pencil out at about 4-5%. Rents are holding but although sales have slowed and inventory's risen, prices haven't come in enough to make it work, IMO. Ditto Phoenix. Renting's a hell of alot better than buying when the roof leaks, or the washer breaks or yer pipes spring a leak. It's not a one-way street.

To: Tradelite who wrote (84641)	8/11/2007 7:34:20 PM
From: Live2Sail	Respond to of 306849

<<I will gladly take the trade of buying a house 20% lower even though I have the same payment. Taxes will be lower; insurance will be lower; I can pay down principal faster if I come into money; lastly, rates will have room to fall, and I can refinance. So bring the prices down rising rates!>> ______________ Others have put the same positive spin on that situation, and left out a few questions and potential negatives. If prices are falling, would people dare to buy at all? Would you be able to sell to anyone if you need to? Will the bargain-hunters actually know when they've found a good deal, or keep waiting for a better one to come along? Can they refinance their higher rates, as you suggested, when prices are falling? And who can say rates would actually fall, anyway? You're changing the discussion from "your payment is going to be the same if prices drop/rates rise, so you might as well buy now" to "L2S, will you have the sack to buy in a down market?" The answer to the latter is questionable, the answer to the former is they are definitely not the same thing. Thought to myself about all the people who think renting is becoming a better option than owning: Hmmmmm.....I hate it when I pay rent to a guy who's getting richer and richer--and building HIS equity--on my money, and charging me regularly for any increase in his taxes, insurance, utilities and maintenance. <<gg>> That has not been the case for me. My wife and I are very happy about the freedom that renting has bestowed on us as far as work and family.