Doom And Gloom Stories
For the past 12 months I have been seeing periodic "doom and gloom" stories in the news about a comming crash in the real estate market.
I just finished reading a book called "The Comming Crash in the Housing Market," by John Talbot. He makes a fairly convincing and seemingly well supported argument.
I wanted to hear what members of the Creative Investor website had to say about this topic.
Hello!
Ok, here' s my take -simple as it may be.
If I own real estate which I do, and the market goes... the tenents will stay pay rent, right? Right. Will the properties still be "worth" the same? No.
Property, like the dollar, increases and decreases in value according to their given markets.
Now, in regards to all these doom and gloom folks... Some people just refuse to be content.
Thanks
OTW :-D
I too have heard a lot of these tales lately. The strongest arguement that I've heard is that foreign investors will stop buying us bonds as we're overleveraged (as a nation) and it will collapse the dollar, and we'll go through a 15 year recession. Many compare us to the Japanese market 20 years ago and say that we're doing the same thing and we're going to get the same result.
I have not studied this issue thoroughly. People have been preaching similar stories since the 60's. It may happen, it may not.
If you believe it, it's probably a good time to flip, rather than buy and hold. Until someone shows up with a more reliable crystal ball, I'll keep doing what I'm doing. If the market does drop by 50% many of us will, barely get by and have some tough years, or loose everything....and then start over again in an "adjusted" market.
In anycase, there will alway be a demand for RE.
Does anyone know what happened to rent levels in Japan after the crash?