wow. I am in the wrong country. This sort of stuff wont happen in the UK for 18months-2years. But cant wait.
Rental property is the way to go right now. For years landlords were struggling to rent because of the real esate boom. Now these people need a place to live. They will likely have to rent. If you come across a good deal, you have to act quick; otherwise some other investor will come in and steal the deal from you.
outside some slum properties i've searched all over the panhandle of fla which saw 5-7 fold increases in prices over the past 10 years and the best prices i can find is maybe 40% off the peak which only takes prices back to 2004 which is a terrible deal. i would think prices will eventually fall back to 98-2000 as credit is very hard to come by
I'd prefer to just buy real estate stocks when I think they have hit the lows. They'll go up 300%+ once they have hit rock bottom, and you don't get the headaches of being a landlord, plus you have all the benefits of exchange traded stocks i.e. liquidity, constant pricing, diversification etc. The appreciation on the stocks will dwarf any appreciation on the underlying properties, and you don't need to use any leverage. Being a landlord also sucks - huge amounts of time, headaches, hassle etc...and that's if you have *good* tenants. Landlords earn - aka wage slave for - every single $ they eventually make, 20 years later when they sell the place. It's a full time job and a boring, stressful one at that. Flipping right now is probably a great opportunity, use cash to buy cheap from distressed sellers, then flip around in 1-3 months. But that's another full-time job. Personally I'm a trader, not a landlord or real estate flipper.
Thanks for the info. I've been buying houses for investment for 30+ years. I know what comps are. LOL. OldTrader
Why 98-00 time? So when do you anticipate the low for residential property? Official stats (BS probably) suggest that home sales are baseing now.
1998 was when the parabolic move in nasdaq stocks started and when the fed started lowering rates heavy in 2001-2002 real estate started going parabolic as people fled stocks. nationwide prices are back to 2004 which is only about 2 years giveback from the peak in 2006. but remember we'll have some false strength that will give people hope along the way. REMEMBER AT LEAST 30% OF PEOPLE WHO BOUGHT HOMES IN THE BUBBLE CAN NO LONGER QUALIFY FOR MORTGAGES. thats a very big % of people who caused this bubble who are now gone which means demand will suffer for years. throw in rising unemployment and you have an even bigger diaster coming
joeyata1, Good analysis. That is a long way off then. So in % terms how much further is there to fall?
We've got about 60 former Mortgage Brokers who are bird dogging or wholesaling using their contacts with Asset Managers at the Banks around the country to circumvent the RE Agents (who know jack squat and are a a big pain in the ass in this process). It's all about the numbers. Any other bird dogs or wholesalers want to contact me....feel free to PM.