Right now, real estate is better than stocks

Discussion in 'Economics' started by detective, Feb 27, 2008.

  1. BTW 50 year mortgages!!!!!!!! WTF!!!!!!
     
    #11     Feb 27, 2008
  2. Opportunities exist in every market for the person willing to do their homework.
    The title of this thread is very general (real estate vs. stocks)

    In GENERAL terms neither is better than the other and certainly not now. And again, depends on your time frame.

    So to say one is better "Right now" is pure and utter ignorance.
     
    #12     Feb 28, 2008
  3. The only problem with real estate is that its relatively illiquid. There is a lot of pessimism out there, prices have come down, and those properties that never really felt the huge boom, like apartments, are going to maintain good value and rise. Buying rental properties like apartments is a better bet than buying stocks. When people don't have enough money to buy houses, they have to stay in apartments.
     
    #13     Feb 28, 2008
  4. I totally disagree. The entire real estate market has been in a <i>de facto</i> fire-sale mode for over six months.

    As the EUR/USD has just crossed 1.51, as a European I would feel stupid not to take advantage of this situation.

    Real value of American residential property has dropped precipitously, and to a foreigner the value you're getting for your money is enormous.

    I bet you were bullish a year ago when housing prices were at an all-time high.

    I'm happy, there are good deals out there and if you have the cash it's worth for the long term. I mean, maybe prices may continue dropping in the next three months but over the next 20 years you can't expect it to continue.
     
    #14     Feb 28, 2008
  5. I have not been bullish on real estate for 7 years. Yes I saw prices sky rocket and even profitted from it. But it had to end.

    When I hear everyone and their sister getting their real estate license and "flipping" houses it's time for caution.

    So in effect you are calling the bottom in real estate due to currency rates. Come on!!

    Nothing has fundamentally changed within the US economy and the shakedown in real esate is just starting and going to get "worse", if you view declining prices as worse.

    Sure we'll get a rally in this market or that market here and there, but it won't have any legs.

    It takes some time for these Macro cycles to run their course and people can hang on for a bit longer, but eventually you have to pay up for the "easy money" spending so many Americans enjoyed. I even did. But I never backed myself into a corner either.

    We have tried and tried to prevent this, but the writing's on the wall.

    It's just common sense.
     
    #15     Feb 28, 2008
  6. le140

    le140


    How do you find PRE-foreclosure? I am scaling in on the rental property starting this year and would like some advice.

    thanks,
     
    #16     Feb 28, 2008
  7. What area/state are you looking at?
     
    #17     Feb 28, 2008
  8. like most third world countries the average joe doesn't have to be able to afford the higher costs, he will be forced (by prices) to make sacrifices, he will have to cut on clothing and food to be able to pay the high rent (since he couldn't pay the high mortgage)

    but one thing average joe can do and must do so we can have a healthy economy is to; keep dreaming

    dreaming about a better life in the next few years, higher wages maybe, lower prices and higher standard of living, he can dream all the way to his grave, like every other average joe did before him

    one thing to keep in mind when studying the economy is the distribution of wealth, how it has been distributed and how those who own the largest portion circulate the money they own,

    the average joe is more like a sheep, eat, sleep, give your life to your master and die, his only responsibilities as a good citizen are to; 1. work 2. pay taxes 3. eat and sleep on time so he can work the next day 4. spend the money earned 5. reproduce 6. feed the offspring and last but most significant 7. always be wishful and hopeful, dream of a better tomorrow

    when in reality there is no better tomorrow, except for those who come on tv, so they can keep giving breath to his dreams and feed his hopes so they never die, that's it, that was all his life

    it is when those idiots stop dreaming that they will start thinking, but in the end i could care less, for all this will only fall on deaf ears, and on those who already know this shit

    most people don't learn anything, not even the pain they suffer in their lives teaches them, not even a million reincarnations, nothing, that is what they are; sheep, they can't be what they aren't

    the average joe's life is there to be fucked with, like that of a lab rat
     
    #18     Feb 28, 2008
  9. le140

    le140

    Northern Cal
     
    #19     Feb 28, 2008
  10. Higher wages don't come from workers demanding them. They come from undersupply of workers (and I don't think thats an issue here).
     
    #20     Feb 28, 2008