|
|
|
|
| Author |
|
|
Driver
|
Quote:
__________________
1987 Venetian Blue (looks like grey) 930 Coupe 1990 Black 964 C2 Targa |
||
03-10-2009, 10:44 PM
|
|
|
Registered
Join Date: May 2005
Location: Lake Oswego, OR
Posts: 571
|
Quote:
So your sales are way up and month's supply is way down? That is not common, at least in most of the West. Are they REO's? Apparently Michigan is having a fire sale of Bank-owned properties that makes the sales numbers look good. Prices here have not dropped enough. Oregon shot up after most other places had already hit highs and seems to be taking it's time in falling. It's coming though, places are just sitting with no buyers. Some January Portland info: From the peak market of July / August 2007, median and average sale prices have fallen 16 and 17% respectively. Home values across the Portland metro area have returned to January 2006 levels on average. Year-over-year average sale prices are down 13.3% from 1 year ago, and the median value is off by 10.7%. At January’s pace of sales, it would take a whopping 19.2 months to clear available inventories. The 732 closed sales in January were the lowest ever recorded by RMLS going back to 1992. The town I live in and a comparable neighbor town (West Linn) have an average days on market of 268! |
||
|
03-10-2009, 11:06 PM
|
|
|
Registered
Join Date: Nov 2000
Location: AZ
Posts: 8,414
|
Quote:
|
||
|
03-11-2009, 10:21 AM
|
|
|
Canadian Member
|
Eric you nailed it
 6" between your ears, that's all it is, that's all it ever was! |
||
|
03-11-2009, 10:26 AM
|
|
|
Registered
Join Date: Nov 2000
Location: AZ
Posts: 8,414
|
Quote:
Quote:
Quote:
There will always be stubborn/clueless sellers as well (including banks/asset managers) that will not listen to reason. Of course there are also clueless/shady agents that will promise said sellers that they can get those lofty asking prices, just to secure the listing. If a property sits on the market for 200+ days it is overpriced, bottom line. The only exceptions would be for specialty properties, or those deep in the "luxury" market sector. Even then it usually doesn't take that long if priced correctly. |
|||
|
03-11-2009, 11:11 AM
|
|
|
Canadian Member
|
couldn't agree more Eric. Yudda Man!
Congrats! |
||
|
03-11-2009, 11:14 AM
|
|
|
|
Registered
Join Date: Nov 2000
Location: AZ
Posts: 8,414
|
Quote:
|
||
|
03-11-2009, 11:40 AM
|
|
|
Driver
|
Quote:
I agree with pretty much the rest of what you wrote, and appreciate your input as an insider in the industry. But your comment I pointed out doesn't really fit in as proper objective evidence to support the OP's question of whether or not he should jump into real estate at this time.
__________________
1987 Venetian Blue (looks like grey) 930 Coupe 1990 Black 964 C2 Targa |
||
|
03-11-2009, 02:24 PM
|
|
|
Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
|
Quote:
Via Center for Economic Policy and Research publication, The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble Quote:
Quote:
Owning real estate is a great wealth builder, but it is but one facet of wealth building. Also, timing does matter. Lastly, I hope the OP buys a home because he wants to fulfill needs and wants that do not revolve about "my home is an investment." Buy it for looks. Buy it to impress chicks. Buy it because you enjoy fixing things, but don't buy it if the only reason is, "beats paying rent." |
|||
|
03-11-2009, 06:56 PM
|
|
|
Registered
Join Date: Oct 2005
Location: Magnolia State
Posts: 7,548
|
Quote:
Residential home ownership certainly has intrinsic value: stability, security, etc. If it appreciates fine, but it ain't an investment in the true sense. Having bought my first home at a relatively young age (23) I can attest as a general rule you get a lot more trim than if you are a renter. Chicks dig the thought of a nest. 
__________________
Jim 1987 Carrera 2002 BMW 525ti 1997 Buell Cyclone cafe project 1998 Buell S1W: "Angriest motorcycle I've ever ridden." |
||
|
03-11-2009, 07:28 PM
|
|
|
Canadian Member
|
OK Due, I just got a mental picture of that and it wasn't good; sorry. Ha, ha.
|
||
|
03-11-2009, 11:55 PM
|
|
|
Canadian Member
|
Majority of renters wealthier than home owners? Now that just cuts the cake.
In EVERY business plan there's only room for one dream AND that's the guy that owns the joints dream..... everyone else is contributing to that dream. When you rent, 99/100 you're paying somebody elses mortgage payments, thank-you very much! Show me one thing better than RE for investment? Seriously, one thing? I'm not talking about a theory, I'm talking about proof from someone who's done it. Your personal residence is not an investment, its your home, but I don't know one single rich guy that doesn't have a RE investment portfolio, and I know lots of rich guys. I could very well be wrong but I've studied wealth building all my life and practised it for just as long; I'm a student of the business that loves everything about it. Show me an idea to make some mulla and you'll see my tail feathers cause I'll be after it like $hit on a $tick. Wealth Building 101 1. Have your own business(es) 2. Learn everything you can about building wealth in RE 3. Dont put your money anywhere that you dont have control of it, ever.  Note: I know there are some specific examples of home owners that lost their shirts in RE, but really...... when you buy a house for a zillion dollars that only costs a few hundred thousand to develop and build........ is that really an example of someone investing in RE? |
||
|
03-12-2009, 12:16 AM
|
|
|
|
Canadian Member
|
Quote:
PS: It DOES beat paying rent! Especially if you do it right (put down a proper deposit, amortize the loan for max 15yrs, but 10yrs is better) |
||
|
03-12-2009, 12:23 AM
|
|
|
Team California
|
Quote:
That said, the answer to his question is, "depends". There is no absolute yes/no answer to the question ever and especially not now. Can he afford the nut? Is his income guaranteed? (Not lose house to foreclosure- you lose EVERYTHING). Also, I personally believe that you should never, never buy anything that you cannot get your $$ back fairly easily from if need be. There are countless scenarios where people could buy a house right now and literally be the only buyer on earth for that property at the price they paid right now. There are millions of people upside down in their primary residences right now, some by huge percentages. Also lots of people who decided to become landlords/RE investors who've gotten their clocks cleaned and lost whatever savings they had plus ruined their credit that in some cases they spent a lifetime accumulating. Show you one thing that has out-performed RE as an investment? On average? That's easy. The NYSE. Up until 6 months ago, over the last 40 years, it's outperformed RE if you are talking about owning a home as opposed to some land development scheme that paid off bigger. Right now the NYSE is in the shytter but so is RE in the U.S. I know people in commercial as well as residential RE here. We're in a full-scale depression and it's going to get worse for quite a while before it gets better. Hell, GM hasn't even gone out of business yet. It's only March 12, 2009.
__________________
Denis |
||
|
03-12-2009, 03:10 AM
|
|
|
Canadian Member
|
Quote:
Calm down buddy; where in the world did I come off as telling you that you don't know what you're talking about? If I did, my bad.  This rent vs: own issue has been debated here for years and I've not participated in the debates, nor am I interested in doing so either. I took some securities courses, I actually sell investments too. In the mid-80's I was a partner in a stock trading/investment company that did well for the most part; it certainly was a cool business. I can't say that I've invested as much energy into the stock trading markets as I have into the RE investment markets; but I do have a decent background in both. Just my opinion, and I'm happy to debate this with anyone that made over 7 figures doing what they're talkin' about, but RE beats investment gambling hands down, just my opinion. I know that you're very successful and you certainly have my respect from your many posts; what drives me crazy is when people give advice about making money and they have no frickin' idea of how to do it. I teach business to high school students and as you can imagine, my lessons are often challenged by parents and teachers; so far so good though. My goals are not to dissuade the student, but give them the options through education. The FACT is that many of these kids are heavily influenced by their parents, its such a shame, cuz it aint that hard. My philosophy has always been "walk the talk" and listen to those who have "done it". I've yet to embark on anything that was an "invent the wheel" type of business, so find someone who has done it and copy them. 50 years ago a car in the driveway, a home and a white picket fence meant the guy was successful; that's not the case today, you have to dig a little deeper, ask some questions, get some facts. I've always been willing to share the facts; Heck, I'll give someone my spreadsheets if it'll help them? Less than 1%, its a rule, sad but true, breaks my heart. I took a $100K in the 80's and moved it up to $600K value just trading/investing in stocks when I hit this "one" that was just awesome. I moved all my money into it and it skyrocketed right before it plummeted; almost went broke on that puppy. I've also had similar losses in RE. There's a learning curve to everything. I'm not trying to get into a debate, seriously I love to make money and would love to learn from those that have. Take a look at what our host Wayne has accomplished in his few years, its amazing. I would have to define my greatest success as being my ability to always pay my bills; I've had some real losses, near bankruptcies, but I always paid my bills and I always will. Success goes to the one that knows how to lose, hands down. So please accept my apology if you thought I was challenging you or anyone else for that matter (other than POP, ha), that was not my intention. Thanks for your post.
Last edited by 911Rob; 03-12-2009 at 11:17 AM.. |
||
|
03-12-2009, 11:12 AM
|
|
|
Canadian Member
|
Quote:
some permit processes are great, but most are just cash grabs controlled by gubmint imo; but like I said, I won't go there. Cheers |
||
|
03-12-2009, 11:23 AM
|
|
|
Registered
Join Date: Oct 2006
Location: Colorado, USA
Posts: 8,279
|
Does it seem like a good time to buy a house in SF to you?
|
||
|
03-12-2009, 12:20 PM
|
|
|
(the shotguns)
Join Date: Feb 2006
Location: Maryland
Posts: 21,563
|
in a big picture, long term, macroeconomics kinda way the only way to become truly rich is to own a limited resource. one might add to this 'with increasing demand or dwindling supply'.
land is one. oil is another. follow this and you'll be okay....LONG term. long term could be longer than your lifetime. either stick with this or be a rock star/software guru.
__________________
***************************************** Well i had #6 adjusted perfectly but then just before i tightened it a butterfly in Zimbabwe farted and now i have to start all over again! I believe we all make mistakes but I will not validate your poor choices and/or perversions and subsidize the results your actions. |
||
|
03-12-2009, 12:43 PM
|
|
|
not as smart as I think
Join Date: Oct 2006
Location: Northern California
Posts: 769
|
There are certainly deals to be had in the Silicon Valley where the mortgage payment (on a fixed loan) is less than rent for a comparable space. I believe that makes a strong case for buying vs. renting.
__________________
1978 911SC stock-SOLD 1985 911 Carrera Stock |
||
|
03-12-2009, 12:46 PM
|
|
|
Registered
|
Matt, I(Wifey and I) have bought and sold houses in the immediate past, meaning recently. We both were in real estate all our careers, and do know something about it. Since you are asking, I will say that yes, right now can be an excellent time to buy, depending of course on your local market and your ability to get a mortgage, which you state is good. Remember, a house is where you live, bring up your family, maybe retire in. Try to pay it off as soon as possible-don't borrow against it for any reason-it's where you and your family live.
A lot of people right now are rejecting all the talk about residential real estate being an investment. Investments are about other things. Don't think of it as an investment you will carry a ton of money out of, that implies speculation. Sure it's nice to make something on a sale, don't get me wrong. Speculation is not something you do to your family. Speculate in gold or stocks or bonds or commercial real estate. Or spoons(collectible spoons of course-early model 1911, etc). So look around, find something that catches your eye, something that seems doable, and do it! Many markets are so beat up right now that many sellers will take any reasonable offer(it may be the only one they will get). I see this thing turning upward at any time, although I have been wrong before 
|
||
|
03-12-2009, 02:00 PM
|
|
Ducati
1987 Porsche 930 3.3T
1974 w/89 Look Porsche 911 Cabriolet 2.7 L Rebuil
993 TT
1984 Porsche Carrera coupe
993
