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You can make the market timing argument for any property. Like I said, I bought in Detroit area in Jan '08. Look at the numbers, the timing was awful. The pu
by jeffepp 16y ago
You can make the market timing argument for any property. Like I said, I bought in Detroit area in Jan '08. Look at the numbers, the timing was awful. The purchase itself, was not.
- ryanwaggoner 16y agoTrue, though buying for appreciation is much more speculative, in my opinion, as opposed to buying for the return of a stream of cashflow.
- mechanical_fish 16y agobuying for appreciation is much more speculative, in my opinion We need to say this louder and stronger. Examine the chart at the bottom of this article: http://motherjones.com/kevin-drum/2010/08/chart-day-housing-prices-wwii http://motherjones.com/kevin-drum/2010/08/chart-day-housing-... Then try, as hard as you can, to realize that if you've been paying attention to house prices over the last decade you've been training yourself to think that this epic once-in-a-lifetime bubble is "normal" behavior for real estate prices. It isn't.
- jeffepp 16y agoThis only scales if the value of the property appreciates and allows you to refi and purchase another property with the equity. If the value goes down, the cash flow will as well.
- ryanwaggoner 16y agoActually, for income real estate, it works the other way around: value is determined almost entirely on the cashflow of the property. As a result, you can control the appreciation of the property by improving the income of the property.
- holychiz 16y agoJeff, how can you possibly make $$$ in the Detroit area, buying '08 ?!!! can you give us some numbers to clarify? thanks.