Comments on: What If The Real Estate Market Doesn’t Recover?

By: Julie Ziemelis

Julie Ziemelis — Tue, 21 Jul 2009 17:17:45 +0000

Just have to say that I bought investment property in 1999 and we are still renting it cash positive even in the downturn. I own a home that I will live in for quite some time and its still at a value higher than I originally paid for it in 2001. Homeownership is still one of the best wealth creators we know. My renters have given me over $300,000 in the last five years. Money I have and they don’t. Real estate is still a good investment. “They are’nt making more dirt” a Realtor friend of mine said. Buying in a desirable market and holding onto the property for the long haul is just good business sense.

By: Jason DM

Jason DM — Sat, 21 Feb 2009 00:01:34 +0000

I agree with the first comment – appreciation is not needed to make money, but brians is some that can come of use

By: annunci immobiliari

annunci immobiliari — Sun, 15 Feb 2009 15:47:55 +0000

real estate market sure will recover for a simple reason: there are always a person looking for a home…

By: Property in Italy Guy

Property in Italy Guy — Sat, 14 Feb 2009 20:22:43 +0000

I speak from the other side of the pond (the UK) but I’ll add my tuppenny worth given that what’s happened in the US has caused a domino effect the world over.
I think the issue of how far prices have to fall depends on how high they rose during the bubble years of the 1980s and 90s.
Take the UK, where in effect we had an unsustainable boom inflated by reckless credit. Prices are between 15-20 per cent down on their Autumn 2007 peak and experts think we have another 15-20 per cent reduction to come.
On the other hand, take Italy, where much tighter lending restrictions during the 90s meant far fewer mortgage-holders and a much more modest rise in values. Italian prices fell by a much more modest 5-6 per cent in 2008 and it’s generally agreed the Italian real estate market is better placed to weather the credit crunch than most in Europe.
Real estate will recover, but much more quickly in some countries than others.

By: Chainless

Chainless — Sat, 07 Feb 2009 20:48:49 +0000

I thought people bought houses to live in, raise families, come home after work and rest, have a place to sleep? When did it become an investment, as if I were buying commercial property or rentals that I plan to make a profit off of? The 30-year mortgage was designed to keep the working masses in debt. You have that mortgage, you probably won’t quit your job on a whim. By the time you’ve paid that baby off, you’re old and you’ve paid nearly twice as much as the house was worth when you bought it. You sell it and you’re lucky if you get your money back. That cash in the bank would at least have earned something, if not much, but something. If you can’t pay for your home in less than 10 years, don’t do it. Don’t be a slave to the bankers and a system that is slanted in favor of the rich.

By: Lee Ali

Lee Ali — Wed, 04 Feb 2009 23:20:19 +0000

Housing is the KEY to the economic recovery. Since real estate is their largest investment, American don’t feel too good when their real estate prices are down. Not necessary to sell the properties, but being able to pay for things, such as, medial emergency, entrepreneurial activities, kids college education, etc.

Entrepreneurship takes a big beating when their is no equity in real estate to pledge against start-up loans.

Therefore I urge people to buy the excess real estate inventory to spur the economy. I wrote the two blog posts recently:

http://www.bankfreeinvesting.com/blog/?p=179
http://www.bankfreeinvesting.com/blog/?p=169

I hope that your Twitheads out there will Tweet the articles for the sake of the economy.

By: derl

derl — Wed, 04 Feb 2009 21:20:01 +0000

the economy won’t recover until people start working again, the longer people stay unemployed the worse things will get, the bad thing is the trickle down effect that takes place from one industry to the next and with uncertainty in your job most people are cutting a big portion of their spending. i don’t see the real estate market picking up anytime soon, those who do buy real estate have saved money for awhile and many have lost these savings in the stock market and 401k

By: Randy

Randy — Wed, 04 Feb 2009 01:44:09 +0000

“See if you can address any of the actual issue we are discussing here”

Better idea… don’t feed the trolls.

By: Keenan

Keenan — Wed, 04 Feb 2009 00:28:01 +0000

“A Real American”
“Just more unpatriotic negativity from liberals who hate America, and the troops.”

Is this a joke to personify and caricature just how absurd and clueless the desperate and discredited American Right (who are more accurately called the American Wrong) have become?

If you are for real, dude, can you show is if you actully know anything? That is, other than worn out right wing cliches and memorized talking points from the Bill O’Reilly Faux News commedy show?

Hey, I’ve got an idea for ya: See if you can address any of the actual issue we are discussing here, and then try to say something of substance. M’kay?

By: Joshua Dorkin

Joshua Dorkin — Wed, 04 Feb 2009 00:05:05 +0000

@A Real American – Can you please tell the rest of us unpatriotic folks how the Real Estate Market suddenly recovers in the next few months? I guess anyone who is realistic about things is now an American Hating Liberal. Sad…..

By: A Real American

A Real American — Tue, 03 Feb 2009 23:35:35 +0000

Just more unpatriotic negativity from liberals who hate America, and the troops.

By: Randy

Randy — Tue, 03 Feb 2009 23:22:07 +0000

“There is a point where home prices are low enough, probably somewhat below comparable rent values, in which people will buy the houses (if they have the means) regardless of the potential loss, just to have your own place to live in. That can override their fear of losses in the future value value of the house.”

This is true if much of the work in the future is govt and/or local to a region. I suspect that the bottom would be when rents are just slightly higher than the true costs of ownership and this would start to attract those with local work (store owners, govt employees, etc) to the housing market. On the other hand, for much of the wired population, being mobile, in other words, switching cities every 3 to 5 years, may be the only way to stay marketable. That could be the professional class of the future and if so, then homeownership will definitely take a back seat to securing mobility. People will need the option of packing one’s bag and being able to move, within a few months notice. And now, with all the excess condo build outs, there are plenty of apartment complexes to be converted towards, in the near term future. All and all, it points to a major bear market in RE.