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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (27738)	4/27/1998 3:28:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

MMV,buy a mobile home then you can always relocate to the hottest RE mkts-g- In general, I expect a decline in real estate prices to more than offset higher rates. With RE location is everything some areas are hot some have yet to recover to their 1987 peak prices especially condos. consider how much you could rent a home for does the potential rent cover a substantial portion of the expenses. In general if the aftertax expense is about what you would pay in rent and you think you will be there a while buy. Also consider the RE agent takes 6-7% when you sell .One way to hedge yourself is to put little down and then if the property values plummet you can walk away. Money and credit have been about as easy as it can get and have inflated prices so when it gets tighter there is plenty of downside. The great post war(WWII) RE inflation game was helped by many onetime events and i don't expect a repeat of making easy money in RE. I expect the negative wealth effect from falling stk prices to be substantial. Good luck Mike

To: Cynic 2005 who wrote (27738)	4/28/1998 11:13:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

MMV, I absolutely have no idea on houses vs. mortgage rates. I don't own a home, though I do have a little raw property, but I've always paid cash. It seems to me that one half of the equation always whacks the potential buyer. Dobbs is a permabull and he would be stupid to be otherwise. After all, this guy was NOT a star during the bear markets. What's there not to like about overpriced stocks? A lot, including the fact that people are being paid salaries and bonuses with this inflated currency and any market crash could find them earning less than minimum wage. <G> But the Dobbs' of the world never catch on to anything they don't want to catch on to. MB