There's a point, IF you believe that houses and tech stocks are similar....I don't. But time will tell. Certainly one thing is true....there was a type of mania in certain parts of the US in terms of the housing. And there was mania in terms of tech stocks. I doubt that implies that subsequent performance MUST be the same. Keep in mind, all houses have earnings (ie rent), where all tech stocks don't. And then too, as trite as it sounds, people still need to live somewhere. Rent in my area is currently higher than the equivalent mortgage payment. Obviously on the coasts the opposite is true. The thing that gets housing prices down significantly is employment problems in the area. Otherwise, people stay in their house...or at least that's what history says. OldTrader
I deferred toward the consensus by lowering the figure from $5k to $2.5k. As I recall, you lobbied for $2k, so what's your problem? You have a hard time letting go of the past. Must be an old timer thing.
Rent is higher than mortgages in your area? So do you live in hell or some place less pleasing than hell by chance? ;-) I cant believe that even exists anywhere half decent. Where I live, you cant buy a house and rent it without a nice negative cash flow, not even close.
My problem? You mean other than the several snide shots you've taken at me in the course of this thread? That said, seeking out expertise is always a good idea. You might try Marshall and Swift if you are truly interested in repair data. OldTrader
That's right my friend. Rent is higher than the equivalent mortgage payment in good part of the Midwest. Probably in large parts of the South. That's why these generalized discussions of real estate are usually off base, because a guy from San Francisco believes every other place in the US is the same. Not true. Now, whether you believe the Midwest is "hell" is up to you...I live in a large city in Missouri...I think it is very pleasant. OldTrader
Ah ok, I seem to remember you mentioned homes in the OC and was shocked anything like that existed in california any more. Thats easy to believe in the mid west. High demand areas like SoCal are a different world, thats for sure. In your area, you still have the option of buying and renting property at a profit instead of a loss.
Ive seen similar around this area. http://www.sacbee.com/content/homes/re_news/story/14252568p-15068651c.html Starting to smell like a blow off top. They better hope a selling panic doesnt kick in similar to the buying panic driven by low rates.
I moved to the Midwest from Orange County in the early 90's. Frankly, I can't recall a time when you could have bought and rented at similar prices in Orange County. Yet, people have made a great deal of money in Orange County as you know, I daresay more than most folks in the Midwest have made on their real estate. So clearly being low prices relative to rent is not the only criteria that is important when looking at real estate. People have always thought that California was too high, even after WWII. And yet people who bought at the last peak in 1989-1990 for example, have done well if they held on through the dip that followed. OldTrader
Rent or Buy? Decision Depends on Geography, Finances and Lifestyle http://www.washingtonpost.com/wp-dyn/content/article/2006/05/05/AR2006050500757.html
Countrywide, Quicken Say Rising Rates Spur Mortgage Refinancing http://www.bloomberg.com/apps/news?pid=10000103&sid=aY3ug006EEZ8&refer=us