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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: steve from ihub who wrote (43253)	1/7/2013 9:31:09 AM
From: robert b furman	Read Replies (1) \| Respond to of 219267

Yes, I was transferred from Chicago to Houston in September 1981. I lost my entire 20% down on my Chicago house I had purchased in early 1978 (sold it to GM as Chicago was being called a rust belt area in recession - had to rent in Houston. Sold my only new Corvette I had bought the previous year in 1980 year,rented for 18 months and bought my second new home in March 1983. Thought I had a real deal with a 13% 30 year mortgage.One of the big good differences and we can thank Bernanke for that.Low interest rates allow principle accumulation and that is what is going on now.Accelerating a long term delevering of household debt. P.S. I was told I had paid too much for my Chicago home and there was no government program to bail me out. I just took the lump and started saving all over again. In 1985 I refinanced that 2nd new home @ 8. 58% for 15 years paid it off in 1992. The houston housing market had held up robustly as there was an energy spike that greatly benefitted housing in Houston.Eventually a energy collapse destroyed the real estate market in Houston - but I did not have to sell my home and worked through the decline. The long term nature of real estate is important to know and understand. There are ggod times to buy and bad times to buy. Now is a very excellent opportunity for those not in real estate to buy what they want to live in for a long time. I'm not saying buy multiple places as I thinnk local governments will be forced to tax more and more their landowners.Pension obligations and / of inflation will be costlt to land holders and rentors both. I had gone from being levered because it was smart due to inflation - to never wanting to be in debt again. I also was not in control of my destiny since I was working for GM and they expected you to jump when they said jump "view it as an investment in your career. That was a lesson as well. Heck no wonder I'm getting gray - I'm old enough to remember all this crap.LOL Bob