Discussion in 'Economics' started by Joab, Feb 2, 2008.
"Doing" real estate?
Thank you for the education. But why do I need to use zillow or speak to a real estate agent?
go to realtor.com
this is house in tarzana listed for 489K
this is details on the same house from zillow
estimated value 623K. Is this home owner is out of his mind offering his house for 134K below zillow estimate?
info from zillow
last sold 9/02/2005 for 699K this is exactly 30% drop.
let me know and I will find you more withing minutes.
looks like home owner got tired doing laundry all alone and went back to renting.
the ceo of toll brothers agrees with me....about their bieng no light at the end of the tunnel
he said he is NOT SEEING ANY LIGHT AT THE END OF THE TUNNEL
and he said that today ......i said it on this blog yesterday
so do you all still think im negative ........if so ok.......g
real estate will drop 30 percent from here....
we all know by now you cannot be serious. also i must set the record straight to those (therefore, not directed to the option trader) who are contemplating real estate investments that have no experience. i will not and most likely cannot prove that i hold a good deal of properties, both residential and commercial. but nonetheless, i do, as i believe kiwi will understand.
this is no sure thing by any stretch. i have posted many times, it can take 20 years before you are profitable. it is unethical to state anything else. i receive much in rental and lease income (and lot's of headaches to collect it), but real "trading" can rival the best of real estate. yes, property is good, but not a sure thing.
Why all this gloom and doom? Had read the following:
What do you all say?
Opportunity is there. If buying forclosure at the right price (below market value) and selling at a proft (BUT STILL BELOW MARKET VALUE) then yes, its possible to make money right now in a bad real estate market.
We're closer to the 3rd inning than the 9th in the unfolding real estate correction, and the lowering of interest rates will do nothing to alter that basic fact when twice bitten banks and lenders tighten credit standards to such a severe level, all because they can't know where the bottom is, and are rightfully reluctant to lend more money on an asset base that is in depreciation mode.
Why lend money on depreciating assets, no matter what the spread, when the borrower depends inherently on APPRECIATION (or at least stability) to service the loan?
Go loan the next panhandler you see a thousand dollars and have him sign a promissory note (with a business purpose affidavit) agreeing to repay you that money along with 40% interest.
day77, don't be so stubborn.
Banks will and are now making fixed rate loans to owner occuppied home buyers....
Anyone who thinks lowering interest rates doesn't help real estate is simply economically challenged....
The market will go back to the traditional fixed rate "conforming loan".....
The owner occuppied home loan does not depend on appreciation....silly assumption....fixed rate self-amortizing loan, duh....
Where I live, it is only recently that a borrower could re-finance or put a second lien on an owner occuppied home....
It will take some time, more in some locations, less in others...
But, rest assured, banks will make the loans....much more due dilligence...more documentation....
A lot more "local" loans.....not securitized....
A lot more speculators/investors/flippers in the market than anyone realized.....that is where bulk of foreclosure coming from..
thereby driving the home values down even further...
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