|
|
|
|
| Author |
|
|
Custom User Title
Join Date: Oct 2002
Location: Miami
Posts: 4,294
|
1970s real estate drivers
OK old timers- I have to put together a little summary report on factors contributing to real estate prices and activity during the 1970s. The items I have already touched on:
* Less capital available to invest due to inflation coupled with static income tax brackets and whatnot. * Pre 1980s, so this means that with commercial properties depreciation had to be spread out over many more years than currently. * deficit spending, 'nam. etc. This is a work in progress, so I'll add more as I go, but figure some of you were actually alive during the 70s and might have some first-hand info to share. I'm kind of writing this in a cause-effect kind of way, if that helps. |
||
04-12-2006, 04:46 PM
|
|
|
A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
|
PROP 13 in CA....
__________________
Copyright "Some Observer" |
||
|
04-12-2006, 05:00 PM
|
|
|
D idn't E arn I t
|
early 70's -Introduction of FHLMC (FREDDIE MAC) - infusion of government backed funds to commercial banks for lending against homes.
Baby boomers, DINK's etc. wanting bigger homes. Then, Prime rate was a mess by the mid 70's as well. Rates soared, buying and selling stopped. Killed a lot of activity for years. rjp
__________________
In the movies only bad guys sleep in king size beds. |
||
|
04-12-2006, 05:47 PM
|
|
|
Dog-faced pony soldier
|
Is there some sort of comparison/lesson regarding 70s real estate pricing and current-day pricing? What's the final objective?
__________________
A car, a 911, a motorbike and a few surfboards Black Cars Matter |
||
|
04-12-2006, 05:52 PM
|
|
|
Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,655
|
My dad built apartment buildings in the 70's.
If a project would pencil out as a break-even, the banks would lend money. Inflation gave you a profit. A huge percentage of apartments were built in the 70's. |
||
|
04-12-2006, 05:57 PM
|
|
|
Registered
Join Date: Apr 2005
Location: cascade mtns,WA.
Posts: 884
|
I believe it was 74 when good ol tricky dick removed the gold standard and as they say the rest is history. That was the start of inflation as we all know it today, it allowed the fed reserve to control money from their perspective.
Then in the 80's during the reagan yrs he gave us the luxury tax which killed alot of businesses in the boating industry. IMHO it was the 74 removal of the gold standard that killed us.
__________________
gatotom 76-911s-sold went to motherland 13-A4 2.0T Quattro S 96-Chev 1500 4x4 88 Sabre 38 mk 2 sailboat |
||
|
04-12-2006, 05:59 PM
|
|
|
|
Custom User Title
Join Date: Oct 2002
Location: Miami
Posts: 4,294
|
Thanks for the information so far guys- I'm researching more on some of your comments.
As for the objective of this, I am a new Commercial Real Estate Investment Agent, and as part of our training a group of us have each been charged with identifying what was going on in each decade. The idea is that by doing so, we will have a better understanding of our clients. I see the value in it; by knowing what was going on in the period of time where somebody bought a building, it says a lot about where they are coming from. On a side note, I am extremely impressed with the company I am working for. This is a first for me! They are really putting me to the grindstone to make sure I know what the hell I am donig, and for that I am thankful. |
||
|
04-12-2006, 07:01 PM
|
|
|
Cars & Coffee Killer
Join Date: Sep 2004
Location: State of Failure
Posts: 32,246
|
Glad to hear things are working out. Sounds like you've found a good place to work.
__________________
Some Porsches long ago...then a wankle... 5 liters of VVT fury now -Chris "There is freedom in risk, just as there is oppression in security." |
||
|
04-12-2006, 07:08 PM
|
|
|
Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,902
|
I bought commercial real estate in the early '80's...I'm not talking REITS, I bought actual "dirt". One of the happiest days of my life was when I sold it in the early 90's...
__________________
"Now, to put a water-cooled engine in the rear and to have a radiator in the front, that's not very intelligent." -Ferry Porsche (PANO, Oct. '73) (I, Paul D. have loved this quote since 1973. It will remain as long as I post here.) |
||
|
04-12-2006, 07:31 PM
|
|
|
D idn't E arn I t
|
Just keep your chin up. It can be a cutthroat business....
Think of it like pulling a slot machine, get two deals to land at once and then life is good.... Just keep your foot to the floor and in 5th until you hit it! rjp
__________________
In the movies only bad guys sleep in king size beds. |
||
|
04-12-2006, 07:41 PM
|
|
|
Custom User Title
Join Date: Oct 2002
Location: Miami
Posts: 4,294
|
Thanks for the encouraging words!
I just read something interesting about 1031 exchanges. Prior to the 'Starker Decision' in 1979, the exchange had to happen SIMULTANEOUSLY!!! I will remember this when investors cry about only having 45 days to identify and 180 to close. HAH! |
||
|
04-12-2006, 07:44 PM
|
|
|
D idn't E arn I t
|
This industry can set you for life.
I worked briefly with this one dude- who closed several apartment complexes - $1MIL commission in one year... Oh, BTW, that was ONE transaction. My loan processor arranged financing on another complex in January - $78K in commission for him. One deal, 3 months to close. He's not an agent but a loan guy. Yes, his YTD as of 2/1/06 was like $83K I love Real Estate.. rjp
__________________
In the movies only bad guys sleep in king size beds. Last edited by RANDY P; 04-12-2006 at 07:51 PM.. |
||
|
04-12-2006, 07:48 PM
|
|
|
|
Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
|
Quote:
|
||
|
04-12-2006, 08:17 PM
|
|
|
Registered
Join Date: Apr 2000
Location: Mid-life crisis, could be anywhere
Posts: 10,383
|
+2
__________________
'95 993 C4 Cabriolet Bunch of motorcycles |
||
|
04-12-2006, 08:39 PM
|
|
|
Registered
|
Quote:
|
||
|
04-12-2006, 08:58 PM
|
|
Boxer engine, 6 gears, big wing: it's a GT3!
1981 ?! A Red one... 3.0
Balla special
P car
OK, a girl that identifies as a car. Good enough?
Porsche Z06
P truck orsche
