Buy a Property cheaply

Discussion in 'Economics' started by Humpy, Apr 16, 2008.

  1. Humpy

    Humpy

    Surely if one lives in the USA and has some spare cash NOW is a very good time to buy property, with extra low prices and people being forced to sell.
    One person's disaster can be another's goldmine ?
     
  2. Will be cheaper in a year and cheaper a year after that. Good time to lose money buying property in the bubble markets. They have a long way to go to revert to the mean.
     
  3. PaulRon

    PaulRon

    Why buy on the way down?

    "The trend is your friend"
     
  4. Bob111

    Bob111

    extra low prices? i did not see a 100$ drop in my area since 2005. in fact-builders just started new site right next to a huge power line. prices? single house starts at 1.3M..new 2 bed condo-600K. average household income-90K
     
  5. Agree.

    Extra low prices? Nope, not even close.
    We are still above the previous housing bubble highs. We are still way over priced.

    [​IMG]
     
  6. Some commercial property in Japan dropped 95% during their great unwind.
     
  7. Humpy

    Humpy

    Should have been there and bought a couple of skyscrapers !!
     
  8. What would be a good way to short this market or a correlated one?
     
  9. Rocko1

    Rocko1

    The trend is usually not your friend when expected to mean revert, :D
     
  10. pitz

    pitz

    Building costs have dropped in half. Property is nowhere near cheap in the USA yet.

    Let me know when unlevered property net rent yields are similar to MBS yields. Until then...
     
    #10     Apr 16, 2008