I don't know.
Originally Posted by Bronco_Beerslug
Got to have a set to trade these days anyway.
I don't think there is bottom yet either but there are properties out there that are hard to pass up. I bought a another bank owned two years ago and am glad I did. The price on a lot these places are so low that they will pay off nicely someday.
You can always fix them up just enough to rent for now (to cover your expenses) and sell down the road.
A chic I know is pulling $5,000-10,000 per month from trades while her husband baby sits around the house.
I am into real estate investing as well but I am extremely cautious.
Why Home Prices Have Much Further To Fall
26 comments | January 31, 2012
There has been a deluge of articles recently about the upticks in the housing data. The consensus is that these data points are surely pointing, finally, to a bottom in the depressing decline of real estate. Let me acknowledge that I do not dispute the improvement in the data regarding home starts, permits, pending sales, etc., however, let's be clear that all of these data points are still mired at very depressed levels. So, while optimism is certainly always a welcome thing, for the average American, the world is quite different.
(Note: I suggest a review of recent posts on Housing Is Not Affordable and The Margin Effect for more background on why housing is going to be in the trenches much longer than expected)
The point I want to specifically address today is home prices. After the past few bloody years of price declines, and repeated calls of a housing bottom each year, 2012 proves to be no different with yet more calls for a bottom. However, why shouldn't there be? Home prices have declined, according to our NAR/Core Logic Composite Index (an average of the two), by a whopping 36%. Interest rates are at their lowest levels ever and you can still get low down payment mortgage if you can qualify. (That last part is a bit tricky though.) Therefore, the assumption is that if home building is stabilizing then it is only a function of time until home prices began to rise as well. Right? Not so fast.
People Buy Payments - Not Houses
When the average American family sits down to discuss buying a home they do not discuss buying a $125,000 house. What they do discuss is what type of house they need such as a three bedroom house with two baths, a two car garage and a yard. That is the dream part. The reality of it smacks them in the face, however, when they start reconciling their monthly budget.
Here is a statement I hae not heard discussed by the media. People do not buy houses - they buy a payment. The payment is ultimately what drives how much house they buy. Why is this important? Because it is all about interest rates.