Comments on: Weekly Roundup – Have We Hit a Housing Bottom, or is a Double Dip Inevitable? http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/ Promotional Codes, Coupons & Deals + Money Saving Insights Sat, 26 May 2012 00:58:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Frugal Dad http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42318 Frugal Dad Tue, 08 Jun 2010 21:23:40 +0000 http://frugaldad.com/?p=5554#comment-42318 @R A Williams: So you are not in favor of something like 50/50 financing? I don't have enough to pay cash for a property, but with some addtional savings I might could scrounge up 50% down, which might put me a little closer to a cash-flow positive territory. I'm with you...100% down is the ultimate way to go! @R A Williams: So you are not in favor of something like 50/50 financing? I don’t have enough to pay cash for a property, but with some addtional savings I might could scrounge up 50% down, which might put me a little closer to a cash-flow positive territory.

I’m with you…100% down is the ultimate way to go!

]]> By: R A Williams http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42317 R A Williams Tue, 08 Jun 2010 20:20:40 +0000 http://frugaldad.com/?p=5554#comment-42317 I like investment real estate and own a bit, but people have to understand that it's a cash flow negative investment unless the property is purchased for cash. Also, this commitment to the property generally lasts twenty years or more unless you're in the very unnatural situation in which the property prices increase dramatically causing people to "flip" an investment property, or unless the tax laws encourage property flipping, as the US laws currently still do despite the chaos caused by speculative flipping. (I think the homeowner's exemption to the capital gains tax will most likely go away soon but no American believes me.) Having a regular payment to make is bad news in a volatile economy, so I'm not taking on any new long-term financial commitments right now. If I come into a sizable piece of cash and I don't need to kill debt, I may scoop up a small property by buying it outright but I won't commit to a mortgage. I like investment real estate and own a bit, but people have to understand that it’s a cash flow negative investment unless the property is purchased for cash. Also, this commitment to the property generally lasts twenty years or more unless you’re in the very unnatural situation in which the property prices increase dramatically causing people to “flip” an investment property, or unless the tax laws encourage property flipping, as the US laws currently still do despite the chaos caused by speculative flipping. (I think the homeowner’s exemption to the capital gains tax will most likely go away soon but no American believes me.) Having a regular payment to make is bad news in a volatile economy, so I’m not taking on any new long-term financial commitments right now. If I come into a sizable piece of cash and I don’t need to kill debt, I may scoop up a small property by buying it outright but I won’t commit to a mortgage.

]]> By: Money Reasons http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42139 Money Reasons Thu, 03 Jun 2010 17:17:42 +0000 http://frugaldad.com/?p=5554#comment-42139 I think that the housing market doesn't have the knee jerk reaction that the stock market has, so I think it is little easier to predict. Actually excluding present times, the market has traditionally gone up and up. I think (and hope) that this blip, while major, will be temporary, and we'll continue the slow rise as we've done traditionally. My dilema is: do I purchase real estate for investment purposes or not... Some say this might be a once in a lifetime opportunity. Unfortunately, in the location that I live, it may not be as good a deal as more popular places. I think that the housing market doesn’t have the knee jerk reaction that the stock market has, so I think it is little easier to predict. Actually excluding present times, the market has traditionally gone up and up. I think (and hope) that this blip, while major, will be temporary, and we’ll continue the slow rise as we’ve done traditionally.

My dilema is: do I purchase real estate for investment purposes or not… Some say this might be a once in a lifetime opportunity. Unfortunately, in the location that I live, it may not be as good a deal as more popular places.

]]> By: Frugal Dad http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42138 Frugal Dad Thu, 03 Jun 2010 16:59:17 +0000 http://frugaldad.com/?p=5554#comment-42138 @Rob: I do wonder if the investing landscape has made a dramatic shift after the "lost decade" from 2000 to 2010. It seems, at least in the short term, that ideas like buy and hold, or set it and forget it, are outdated - maybe even downright dangerous. I am out of the market for now, but looking to get back in. When I do, I plan to increase the amount of homework I do regarding the companies I choose to invest in, and the underlying companies my mutual funds invest in. @Rob: I do wonder if the investing landscape has made a dramatic shift after the “lost decade” from 2000 to 2010. It seems, at least in the short term, that ideas like buy and hold, or set it and forget it, are outdated – maybe even downright dangerous.

I am out of the market for now, but looking to get back in. When I do, I plan to increase the amount of homework I do regarding the companies I choose to invest in, and the underlying companies my mutual funds invest in.

]]> By: Thisiswhyubroke.com http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42135 Thisiswhyubroke.com Thu, 03 Jun 2010 15:49:31 +0000 http://frugaldad.com/?p=5554#comment-42135 Once Europe blows up..we'll get our double dip. http://thisiswhyubroke.wordpress.com/2010/06/03/why-im-fed-up-and-why-you-should-be-too/ Once Europe blows up..we’ll get our double dip.

http://thisiswhyubroke.wordpress.com/2010/06/03/why-im-fed-up-and-why-you-should-be-too/

]]> By: Bob http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42127 Bob Thu, 03 Jun 2010 13:30:29 +0000 http://frugaldad.com/?p=5554#comment-42127 Here in Florida we have a real estate depression going on and the only reason it has survived was the tax credit. The only things selling are vulture sales. I am a lawyer for a few hundred condo and homeowner associations and every day we get 30+ new mortgage foreclosures served on the delinquent owners, I say her we were first to crash, last to recover, maybe 30% down from here as all the foreclosed inventory and shadow inventory comes on line. And I'm a Cubs fan, ever hopeful!!! Here in Florida we have a real estate depression going on and the only reason it has survived was the tax credit. The only things selling are vulture sales. I am a lawyer for a few hundred condo and homeowner associations and every day we get 30+ new mortgage foreclosures served on the delinquent owners, I say her we were first to crash, last to recover, maybe 30% down from here as all the foreclosed inventory and shadow inventory comes on line. And I’m a Cubs fan, ever hopeful!!!

]]> By: Rob Bennett http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42122 Rob Bennett Thu, 03 Jun 2010 11:19:47 +0000 http://frugaldad.com/?p=5554#comment-42122 I think the two things (the stock market and the housing market) are connected. People don't buy houses when their retirement portfolios are wiped out. I think that another stock crash is not quite inevitable but close to it. The reason is that market prices always return to fair value after they have risen to insanely dangerous levels and we are only about halfway back from the insanely reckless business of the late 1990s. After the next stock crash, the housing market will probably collapse too. I believe that <i>after</i> the next crash we will be entering the Golden Age of Middle-Class Investing because Buy-and-Hold will be finished and we will all be open to learning all the wonderful things we should have been learning about how stock investing works from the academic research of the past 30 years. That's <i>if</i> the next crash doesn't bring on the Second Big Depression. If it does, then all bets are off on just about every money plan that any of us has made. We live in interesting times. Rob I think the two things (the stock market and the housing market) are connected. People don’t buy houses when their retirement portfolios are wiped out.

I think that another stock crash is not quite inevitable but close to it. The reason is that market prices always return to fair value after they have risen to insanely dangerous levels and we are only about halfway back from the insanely reckless business of the late 1990s. After the next stock crash, the housing market will probably collapse too.

I believe that after the next crash we will be entering the Golden Age of Middle-Class Investing because Buy-and-Hold will be finished and we will all be open to learning all the wonderful things we should have been learning about how stock investing works from the academic research of the past 30 years. That’s if the next crash doesn’t bring on the Second Big Depression. If it does, then all bets are off on just about every money plan that any of us has made.

We live in interesting times.

Rob

]]> By: finallygettingtoeven.com http://frugaldad.com/2010/06/03/weekly-roundup-have-we-hit-a-housing-bottom-or-is-a-double-dip-inevitable/#comment-42120 finallygettingtoeven.com Thu, 03 Jun 2010 10:43:15 +0000 http://frugaldad.com/?p=5554#comment-42120 I think we are now skimming the bottom of the market and everyone knows that when you hit bottom there is no way to go but up. I believe we will begin to recover (i have to believe, being a real estate investor). Will we ever get back to the values that we saw just a few years ago before the bubble burst, maybe. We humans tend to have a short memory span and when and IF the whole economy starts to recover, housing will too. We will go back to what we are used to, the over-consumption, the waste, the stress of long working hours. All that and more will begin to drive the values once again back in the right direction. We will start running in a full sprint marathon only in time to once again trip over one of our own shoelaces and fall flat on our faces. I think we are now skimming the bottom of the market and everyone knows that when you hit bottom there is no way to go but up. I believe we will begin to recover (i have to believe, being a real estate investor). Will we ever get back to the values that we saw just a few years ago before the bubble burst, maybe.

We humans tend to have a short memory span and when and IF the whole economy starts to recover, housing will too. We will go back to what we are used to, the over-consumption, the waste, the stress of long working hours. All that and more will begin to drive the values once again back in the right direction. We will start running in a full sprint marathon only in time to once again trip over one of our own shoelaces and fall flat on our faces.

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