Dawoof, I Believe everything you tell me as nothing has indicated otherwise. Personally 90% of my assets are tied up in real estate. I did not buy at the peak adn got some decent deals. I can survive much longer than most with the equity I currently have, but if the trend continues for 5 years or more I am going to be completely bankrupt. I cannot imagine being in the position that most home owners are in. One thing that I will keep pristine is my credit so if the market collapses completely I will be on standby to buy more. Kind of like buying a stock at $10 and then seeing it drop to $2 and buying more so that your average cost is $6.
While i like what Ron Paul has to say, I do not know if he would be in a position to change anything.
While i like what Ron Paul has to say, I do not know if he would be in a position to change anything.
wvu, if 90% of your assets are in real estate, do yourself a favor and take at least half of your other assets, buy both physical gold and some stocks that mine precious and base metals and then pray that some very smart financial people in this world are completely wrong.
The market is telling us all that real estate is toast. This isnt an opinion I have, its what we all can clearly see via the price action of the major homebuilders, banks, and most importantly mortgage insurance companies.
The market is telling us all that real estate is toast. This isnt an opinion I have, its what we all can clearly see via the price action of the major homebuilders, banks, and most importantly mortgage insurance companies.
I still dont see why this has to be depressing.
Simply buy the insurance policy and you no longer have much to worry about and if you buy enough insurance, this so called disaster could actually benefit you.
Its the people that really have no way to protect themselves, their assets, and their relative spending power that should really be worried.
he said he has 90% in real estate.
put at least half of the other 10% (id put all of it) into precious metals. *edit
holysmoke, all the speculators are going to be wiped out.
when this happens, the govt will probably keep printing money, so precious metals are going to keep going higher and will eventually go up more than most people can imagine, so he will be ok.
if everyone has a million including yourself today and 5 years from now, just about all of those same people are bankrupt and you only have 10% of what you had before, are you really worse off? NO, you have gained.
put at least half of the other 10% (id put all of it) into precious metals. *edit
holysmoke, all the speculators are going to be wiped out.
when this happens, the govt will probably keep printing money, so precious metals are going to keep going higher and will eventually go up more than most people can imagine, so he will be ok.
if everyone has a million including yourself today and 5 years from now, just about all of those same people are bankrupt and you only have 10% of what you had before, are you really worse off? NO, you have gained.
I see.
I got out of real estate and put my money in PM's. I mean all of it. I got rid of my paper certificates too. I think TSHTF soon and paper of all kinds will be worthless.
I don't even think slv and gld are safe. If I don't have it in my possession, I fear I don't own it.
I wish I started hoarding gold in 1981 after it was so low. Don't we all.
I never knew gold was a hedge against inflation. Oh well. I will teach my kids this very important lesson, and they will be wealthy because of it.
I got out of real estate and put my money in PM's. I mean all of it. I got rid of my paper certificates too. I think TSHTF soon and paper of all kinds will be worthless.
I don't even think slv and gld are safe. If I don't have it in my possession, I fear I don't own it.
I wish I started hoarding gold in 1981 after it was so low. Don't we all.
I never knew gold was a hedge against inflation. Oh well. I will teach my kids this very important lesson, and they will be wealthy because of it.
The market is telling us all that real estate is toast. This isnt an opinion I have, its what we all can clearly see via the price action of the major homebuilders, banks, and most importantly mortgage insurance companies.
While I don't disagree with you, I do think you are far to pessimistic regarding real estate. Commercial real estate, retail, industrial and apartment or multi-family housing, as an investment is certainly going through an adjustment, capitalization rates are up form 2006, but not the doom and gloom you seem to be spreading. As an exapmle, I presently have a listing of a $14M asset-a business park which is receiving tremendous interest and will sell very near to that number. The buyers in this market segment are not fools, nor are they neophytes of past downturns in the real estate cycle. Apartment can be bought with nearly 10 capitalization rates which puts cash on cash, first year returns over 12% in todays interest rate environment. Foreclosed folks need to go somewhere and apartment living is the obvious and usual choice by necessity-demand will drive rents up. So, I think the real estate market is cycling down, but one must look at segments of the market and not bunch the whole into one.<!-- / message -->
While I don't disagree with you, I do think you are far to pessimistic regarding real estate. Commercial real estate, retail, industrial and apartment or multi-family housing, as an investment is certainly going through an adjustment, capitalization rates are up form 2006, but not the doom and gloom you seem to be spreading. As an exapmle, I presently have a listing of a $14M asset-a business park which is receiving tremendous interest and will sell very near to that number. The buyers in this market segment are not fools, nor are they neophytes of past downturns in the real estate cycle. Apartment can be bought with nearly 10 capitalization rates which puts cash on cash, first year returns over 12% in todays interest rate environment. Foreclosed folks need to go somewhere and apartment living is the obvious and usual choice by necessity-demand will drive rents up. So, I think the real estate market is cycling down, but one must look at segments of the market and not bunch the whole into one.<!-- / message -->
You guys are in Miami....people here in Ohio where I live dont have the type of money rich people have there.
Just wait until these so called rich people there realize they have in fact taken a real haircut owning real estate, and not being in precious metals and if they dont act soon, they could and most likely lose it all, yes all of it.
They will scramble like a school of fish when a rock hits the water to get their money out of dollars, out of real estate, and into precious metals.
The one good thing for us gold/silver bulls is there isnt enough to go around and most of us arent going sell them a single ounce until after its already sky high.
Those etfs gld and slv are not safe and people should definitely avoid those like the plague. Either buy the actual metal or only invest in the best mining shares and preferably companies hq outside the United States.
The low you should be concerned with isnt 1981 or 1971 when gold was about 35 per oz. The low to watch is early this decade which was 255 per oz or so. That price will never again be seen.
No need worrying about past lows now, for the horse is out of the barn and it has a long way to run. Plenty of money still to make for people getting on board now.
Real estate will have its day in the sun again, but for now and until it really tanks for several years, its yesterdays news and new speculative capital should not be invested in the sector.
Cheapseats do you remember the days when newlyweds lived with inlaws?
What happens to these apartment investments if that type of thing again becomes the norm?
Of course there will be money made SOMEPLACE in real estate by SOMEONE, but for now Im not buying anything until I see some real pain for a lenghty period of time.
Still too many guys like yourself that arent convinced this isnt a massive top, fueled by easy money, and misunderstanding that everyone cant get rich doing the same thing.
Have you ever thought about that people like myself feel the same way about guys like you cheerleading the same song and dance about real estate as you feel about my supposedly doomsday predictions.
Whats ironic is you guys keep cheerleading eventhough the storm clouds have moved directly overhead. Put the pom-pom down for a while and look around you, past your nose.
What happens to these apartment investments if that type of thing again becomes the norm?
Of course there will be money made SOMEPLACE in real estate by SOMEONE, but for now Im not buying anything until I see some real pain for a lenghty period of time.
Still too many guys like yourself that arent convinced this isnt a massive top, fueled by easy money, and misunderstanding that everyone cant get rich doing the same thing.
Have you ever thought about that people like myself feel the same way about guys like you cheerleading the same song and dance about real estate as you feel about my supposedly doomsday predictions.
Whats ironic is you guys keep cheerleading eventhough the storm clouds have moved directly overhead. Put the pom-pom down for a while and look around you, past your nose.
