 RE Peak? (by RathdrumGal [ID]) Mar 17, 2019 8:05 AM
 RE Peak? (by JB [OR]) Mar 17, 2019 9:12 AM
RE Peak? (by GKARL [PA]) Mar 17, 2019 9:14 AM
RE Peak? (by myob [GA]) Mar 17, 2019 1:25 PM
RE Peak? (by myob [GA]) Mar 17, 2019 2:15 PM
RE Peak? (by Oregon Woodsmoke [ID]) Mar 17, 2019 3:06 PM
RE Peak? (by DJ [VA]) Mar 17, 2019 4:20 PM
RE Peak? (by moby [IN]) Mar 17, 2019 4:35 PM
RE Peak? (by LisaFL [FL]) Mar 18, 2019 3:29 AM
RE Peak? (by Robert J [CA]) Mar 18, 2019 7:31 AM
RE Peak? (by RathdrumGal [ID]) Posted on: Mar 17, 2019 8:05 AM
Message:
There is an article over at ZeroHedge that foreclosures are way up in the pricey markets and that RE may have peaked. Inventory is way up. My gut has been telling me RE is too expensive for several years. What do you think?
--98.146.xxx.xxx |
RE Peak? (by JB [OR]) Posted on: Mar 17, 2019 9:12 AM
Message:
RE is high, but it won't hit the fan until we go into the next recession IMO. Then it's going to get nasty! --24.20.xxx.xxx |
RE Peak? (by GKARL [PA]) Posted on: Mar 17, 2019 9:14 AM
Message:
I think in selected markets, RE prices have run ahead of well ahead of income growth. The article doesn't say what's behind the foreclosures, but I'm thinking it's high prices and a simple lack of income. We never really recovered from 2008 in the real economy. Asset prices recovered, but the job situation has remained moribund. Having said that, I don't think that the entire market moves in the same way. I think this is more a higher end phenomenon. I think your basic workforce housing type property will be okay mainly because these haven't seen a huge upswing in price. This could be an opportunity to pick up some nice property. Early yet for that though. --64.121.xxx.xxx |
RE Peak? (by myob [GA]) Posted on: Mar 17, 2019 1:25 PM
Message:
Hit the top mark or not makes no difference to a RE investor. When pricing is to high-- stop buying. When foreclosures are up start buying (and on the cheap).
Here in our area: maybe 4 years ago rental signs were everywhere-- lots of them and we had to adjust rents and deposits. Now no "4-rents" signs. Prices are up-- time to catch up on what was lost. It's just the cycle and as an investor buy low and rent out high always works.
Last few house's were on the market less than a day. There's just no home's for rent. People are moving out of Yankee land and high cost of living and moving south. I put my caters glove on to welcome them.
Remember people coming from high cost area -- see our southern prices and can't believe how low our high prices are? --99.103.xxx.xxx |
RE Peak? (by myob [GA]) Posted on: Mar 17, 2019 2:15 PM
Message:
forgot to do my Hennie Pennie the sky's falling!!!!! --99.103.xxx.xxx |
RE Peak? (by Oregon Woodsmoke [ID]) Posted on: Mar 17, 2019 3:06 PM
Message:
The market will hit a peak sometime. Real estate runs a cycle: up, then down, then up, then down again.
It's difficult to make an accurate prediction of when the corner will be turned.
The foreclosure thing doesn't make much sense when real estate is selling for high prices the minute it hits the market. It makes much more sense to sell and get your money out instead of going into foreclosure. --98.146.xxx.xxx |
RE Peak? (by DJ [VA]) Posted on: Mar 17, 2019 4:20 PM
Message:
I'm seeing more foreclosures than a few years ago, but not as many as a few years before that. I hope there are more coming - one of my favorite things to buy. --68.10.xxx.x |
RE Peak? (by moby [IN]) Posted on: Mar 17, 2019 4:35 PM
Message:
Local prices have outstripped local wages, all we need is some hikes in interest rates. --68.60.xxx.xx |
RE Peak? (by LisaFL [FL]) Posted on: Mar 18, 2019 3:29 AM
Message:
I'd say yes and no. I can't believe how prices have recovered in my area. Seems overpriced once again. I'm looking at it as an opportunity to downsize as I would like to retire one day. I sold just four last year and was hit with a high tax bill but can't avoid that.
But it is also true what MYOB suggested. The people from up north can't believe how cheap our houses are compared to where they came from and they do keep coming. I'm glad I picked up my second home a couple years ago in GA which I hope to make my only home one day.
That being said, I just helped my son pick up a house to live in outside a military base in GA that is full of houses that have lost value. I warned him he will lose money on it based on what I have seen. Just like the seller is doing just to get rid of it. --216.186.xxx.xx |
RE Peak? (by Robert J [CA]) Posted on: Mar 18, 2019 7:31 AM
Message:
In different parts around the nation prices may vary a bit. But during my 40 years of investing in income property, I've seen 3 cycles.
From the early 70's to 1990 prices on SFR went from $50K to $250K. Then from 1990 thru 1997 prices dropped from $250K down to $165K. Then from 1997 to 2007 prices went from $165K up to $575K.
Then from 2007 to 2011 prices fell from $575K down to $300K.
Then from 2011 to 2019 prices went from $300K to $600K.
People are crazy and over pay for their first property to live in that drives up the price for everyone else.
Now with apartment things have moved along the same road as single family homes. Except now an investor has to put 60% down to break even -- crazy.
During the many cycles I've sold high and waited until the market bottomed out and then re-invested. Still keeping my best properties. Only selling my junk inventory.
Remember the Federal Long Term Capital Gain Tax is now 20%. The recapture payback on depreciation is at 25%. Here in California the State tax is up to 13.3%. And if you make over 200K, then you have to pay 3.8% on the affordable care tax too. MEANING, if you sell you will be taxed to death.... and then your buying power will be reduced.
--47.156.xx.xx |
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