real estate is fading quickly as a path to wealth?

What do you think of this article on yahoo finance today?
http://finance.yahoo.com/real-estate/article/106238/The-Future-for-Home-Prices
Even after brutal lessons about real estate's risks, many feel it's their best shot at affluence. Find out why some experts want us to start thinking differently...

:roll:

Edited: 06/26/2010 at 06:31AM

James Hiddle

Real Estate Investor · Altus, Oklahoma

2515 posts
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Icon_minipost Dec 02 '08, 10:34 PM

Just more BS that gets shoved down the throats of everyone.

Edited: 06/26/2010 at 06:31AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4295 posts
43803 Influence
15 Awards

Icon_minipost Dec 02 '08, 10:50 PM

I started 08 with the goal to make 1 mil in RE in the year after being retired for 30 years. I was close to on schedule until the lending dried up. I was also going to shelter all the income and pay no taxes. Then, write a second book, " How an old retired fart got back into RE, made a mil and paid no taxes.
Then I would wait for my audit notice(would be my 3rd) win the audit and then write my 3rd book " How I beat the IRS at their own game"" Damn Lenders.

Edited: 06/26/2010 at 06:31AM

NC Mark

Real Estate Investor · North Carolina

1086 posts
7096 Influence
8 Awards

Icon_minipost Dec 02 '08, 11:03 PM

Succesfully investing in real estate is simple; not easy, but the fundamentals are simple.

I don't consider my personal residence an 'investment' other than a nice place where I want to live. I paid full pop for it and I'm sure it has declined in value. I don't care because of many other intangible returns I receive.

Folks who buy a personal residence or invest in real estate for appreciation are speculating, to me.

When one buys real estate for a significant discount one has a built-in cushion. When one buys using the 2% rule or something similar, one ensures a cash flow. Simple to understand, not too simple to accomplish.

As for demographics, well, that's why I invest locally, because I try to be an 'expert' in my local community's demographics.

Edited: 06/26/2010 at 06:31AM

Tony L.

Real Estate Investor · Lakebay, Washington

48 posts
2 Awards

Icon_minipost Dec 02 '08, 11:08 PM

What do I think? As a homeowner agree with much of the article but as investor holding propreties long term with demand for rentals can not agree. Property prices dropping, great for the long term rental investor. As for available money to fund your investments, there's alway a way if your willing to work at it.

Edited: 06/26/2010 at 06:31AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Dec 03 '08, 01:53 AM

This article is largely dispelling the myth that if you just buy a house and hold it you'll be rich. Yes, if you buy a house and pay it off, it will be a nice nest egg. And if you hold if for 30 years, its almost guaranteed to go up in value. For most folks, though, that would not make real wealth.

I also would say I do not consider my own residence an investment. Its purchase was not based on any financial analysis of what would give me the maximum return.

Edited: 06/26/2010 at 06:32AM

Jon Holdman, Flying Phoenix LLC

Brian Smith

· Ohio

25 posts
11 Influence

Icon_minipost Dec 03 '08, 11:08 PM

I agree an investment needs to pay me today. My house is not an investment. If it makes me $s someday -bonus. As far as the article is concerned - Phooy! Anyone who does have a good idea what's going on is holding their cards close to the vest. The rest of these morons should just go away.

The best cure for high prices is high prices.
Therefore the best cure for low prices is low prices. I think when we get to the bottom (probably a ways to go). Then you will see a quick return to pre-decline values. It's happened before tell me why it won't happen again?

You only lost money if you sold it.

Edited: 06/26/2010 at 06:32AM

Gary Hawes

Real Estate Investor · Myrtle Beach, South Carolina

46 posts
194 Influence

Icon_minipost Dec 04 '08, 01:17 AM

S.O.S

Edited: 06/26/2010 at 06:32AM

Lynn Z

689 posts
392 Influence
2 Awards

Icon_minipost Dec 06 '08, 03:07 AM

Every expert looks powerless today when trying to explain how every aspect of our economy has gone broke all at once.

Why should the unknowns of real estate investing be any different? It's a huge game and very few play it well. The ole 80:20 ratio applies in this business as well as others.

Edited: 06/26/2010 at 06:34AM