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

To: Wyätt Gwyön who wrote (135985)	7/23/2008 4:16:04 PM
From: Jim McMannis	Respond to of 306849

I idea was...put a little down, rent it out and wait for appreciation. Now it's wait for depreciation.

To: Wyätt Gwyön who wrote (135985)	7/23/2008 4:30:28 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 306849

real wage growth is not negative here, Wyatt and you know it. One huge problem is this horrible fiscal mismanagement and dollar crash has caused indian salaries in india to be around 65-70K. A few years ago they were 15K. Now we have engineering wage inflation again. And we were in a deflationary climate for 20 years that is reversing. Yes mortgage rates are rising... due to inflation. Are you claiming that this time real estate will NOT work as a hedge, as it has every time in the past? My place rents for 200x mortgage. Thats perfectly reasonable. A 700K place might rent for $3400 is my guess- the rental numbers start to break down at those higher price points.