Thread: Don

We are far from the bottom. The Alt-A mortgage notes are at 50%= default rate. Some say it will be as big or worse than the sub-prime crisis.

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Yes, we are far from bottom but maybe we are on road to recovery too, courtesy our govt,

The thing is none can predict where the property prices will go, what we do know is that the ones who get the value for money homes will still make money, and the ones who have money but no experience to invest will still lose money.

that is probably the diff between two.

[QUOTE=GovGuy;59991]Yes, we are far from bottom but maybe we are on road to recovery too, courtesy our govt,
QUOTE]

So am I getting this right.

Do you feel that the Govt has slowed down the impact of the bottom or
Do you feel that the spending and what the Govt is doing to the banks right now are helping the bottom from happening?

[FONT=Times New Roman][SIZE=3]We are at only 5% of the spending for the stimulus money but more

[QUOTE=RedCarpetSchool;59997][QUOTE=GovGuy;59991]Yes, we are far from bottom but maybe we are on road to recovery too, courtesy our govt,
QUOTE]

So am I getting this right.

Do you feel that the Govt has slowed down the impact of the bottom or
Do you feel that the spending and what the Govt is doing to the banks right now are helping the bottom from happening?

[FONT=Times New Roman][SIZE=3]We are at only 5% of the spending for the stimulus money but more

As a whole I would agree but it is definitely market specific.

It's anybody's guess really. Most areas I'm looking at still have 10-12 months of inventory though suggesting that the market will continue to decline until the inventory gets to below 6 months.

There's still twice the supply there is the demand, the market will always self correct no matter how much the gov. meddles with it.

During recessionary times like what we have at present, real estate values plummet. Foreclosures are at a record high. Homeowners desperately seek out buyers just to stay financially afloat. Buyers hold on to whatever cash or credit they have like a lifesaver and wait out the storm. Banks and lenders start asking for souls of your children as collateral for loans. While traditional entrepreneurs scream death, a new breed of savvy investors take advantage of the situation and of the rock bottom prices and make offers on every available real estate deal they set their eyes upon.

Sooner or later, the recession will break and guess what happens to real estate prices?

Originally Posted by shubh

Every one associated with real estate business is considering this period as the safest period to invest

Hmm... I have never heard that any particular time was the safest time to invest. I will say that this time is the most AWESOME time to invest, as deals are abundant beyond anyone's dreams, but like any other time in history, buying the right investments over the wrong ones is the key strategy to success.

If you know what you are doing, and understand real estate investing, you will be able to make wise investments and throw away the poor ones. For example, even though houses in Detroit, MI are basically being given away, due to the failing auto makers; Detroit would not be my first choice to invest in... I would say for the time being it is not safe to invest there. On the other hand, investing in Phoenix, AZ, where the house prices are falling because they were just over-priced (during the "free mortgage giveaways") and there is not an external reason for the dropping of prices (as in Detroit, where job loss is HUGE,) I would rather invest in Phoenix.

Now, that is not to say that all investment in Phoneix are safe. Far from it, but as in any investment, as long as you do your due diligence, understand how you are going to handle the investment and how you are going to expect the investment to grow is not based on "hope" but strong and very believeable expectations, you will fare well. Just buying low, in a declining market is not the key, unless you understand that the market will appreciate and will be in high demand in the near future.

Long winded, I know, but hopefully I shed some light on some of the mis-understood.

Later!

Michael.