When there are blood on the street, buy property

Discussion in 'Off-Topic' started by Ramius75, Oct 22, 2007.

  1. Ramius75

    Ramius75 Deity

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    There is a saying that when there are blood on the street, buy property. So what i want to ask is. Is there enough blood on the street already.

    I really like to know more about the property situation in the USA since we heard so much about the sub prime meltdown.

    Alan greenspan also reportedly said that we should expect more downturn in the USA properties. So what i like to ask here is, beside the Sub prime sectors, what about other USA properties like housing in the city, Housing in the high value estates and the office space rental. Did they also fall along with the sub prime ? or are they still holding onto their values.

    What are the future of USA real estate ??
     
  2. Godwynn

    Godwynn March to the Sea

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    Adjustable mortgage rates will continue to reset well into 2008. I would hold off until then.

    I believe it was Warren Buffet who said to buy when there is blood running in the streets. (Referring to Wall Street.)
     
  3. Shylock

    Shylock Hey smiling strange

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    Quick English lesson. "Is" is more commonly used. So "What are the future" should be "What is the future".
     
  4. Ramius75

    Ramius75 Deity

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    Most of the quotes point to Baron Rothschild. but i think its a valid and simple observation no doubt.

    Now, of coz the million dollar question is. when will it bottomed ? So hows the sub prime issue affecting the housing prices here ?? Good ? Bad ?? couldnt get any worse ?
     
  5. Ramius75

    Ramius75 Deity

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    yes, i did noticed it, but too lazy to change. not my 1st language after all :D
     
  6. Whomp

    Whomp Keep Calm and Carry On Retired Moderator

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    The problem subprime created was a broad credit crunch. Jumbo rates popped 1 1/2% over conforming rates in August and have narrowed to about 3/4%. This rate was typically 1/4% to even prior to August.

    That's a lot of higher end buyers that were taken out of the market.

    The majority of subprime defaults (~70%) were speculators in the hot markets. Florida, California, Arizona, Nevada and surprising to me Portland have been brutal. These markets went up like a rocket and are coming down in similar fashion.
     
  7. Mark1031

    Mark1031 Deity

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    Well we are currently burning through a little of the market backlog in San Diego.:(
     
  8. Japanrocks12

    Japanrocks12 tired of being a man

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    Prices here keep falling
     
  9. The Yankee

    The Yankee The New Yawker Retired Moderator

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    I agree. It won't really ease up until 2009, when those 2006 ARMs (and even early 2007 ARMs) and their two/three-year teasers are done. But then, you'll still have all the residual effects of that massacre. That will take some time to sort out, as well. Then you'd have to wonder when construction would pick up and how many existing homes would be bought, also.

    We still have a bit to go, I'd say.
     
  10. Cheezy the Wiz

    Cheezy the Wiz Socialist In A Hurry

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    There must not be a lot of blood on the streets in Maryland, prices are through the freakin roof.
     
  11. The Yankee

    The Yankee The New Yawker Retired Moderator

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    And some other places have had the bottom fall out from under them. Yeah, it does depend on the area, but it is definitely widespread.
     
  12. skadistic

    skadistic Caomhanach

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    Depends on the area in MD too. Some are up some are down some are steady. Just around my 'hood there is a sideways movement in anticipation for the influx of 5000 families to Ft. George G. Mead when the BRAC orders go through. In my immediate condo complex the units are selling only 5k under their peak 6 months ago. Thats after a near 100k raise in the year before the peak. And unless you got pink walls ( like the place across the street) units sell in a week or two. They use to sell as soon as they go on the market.
     
  13. GarretSidzaka

    GarretSidzaka Deity

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    it seems to me that, here in arizona, there was a long period where properties where getting grossly overvalued. houses that were worth, oh i'd say maybe $180K where being valued and listed for $250K+. And i know there was alot of sub-prime lending, coz one of my homies (and not rich either) was able to buy his house.

    The result of this ridiculous price skyrocket was this: no one freaking bought the stupid houses. I mean, the neighborhoods that were holding supposedly $250K houses weren't good, and the houses where themselves made in the early 80's.

    People were listing their houses for many months without sale, and the only ones that got bought had lowered their prices below the "market" and people sold at a "loss".

    Another result of the sub-prime lending was many foreclosures occurred when people started not being able to pay for huge monthly mortgage payments. (I am happy for this, because I enjoy corporations getting punished, but sad when people lose their homes, which unfortunately they couldn't pay for in this crap crap poop economy)

    This all stems from skewed government policies and vaunted, sacrosanct corporate interests.
    come'on you right wingers, tell me its not :p
     
  14. The Yankee

    The Yankee The New Yawker Retired Moderator

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    So a corporation that got away with handing out ARMs to people that wouldn't qualify otherwise is from a government policy?
     
  15. Whomp

    Whomp Keep Calm and Carry On Retired Moderator

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    Heh. Well of the 38 "highest risk" lenders in this country are gone.
    Problem is the pain on the 70% of defaults still lies on the speculator who will deserve everything he gets.

    In Arizona, this become crystal clear to me when a college buddy in Tucson told me 3 years ago he was looking for a place in Scottsdale. They found a place for about $250k on Scottsdale C.C. Problem was they were outbid at$300k. That guy bought it sight unseen (Cali) and he put it in the market at $450k and sold in weeks and it happened again (sight unseen Cali spec'er). By the time the year was up the price was $1 mill.

    That's not normal and people who spec'd got everything they deserved. Piggyback or not.
     
  16. Narz

    Narz keeping it real

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    It's only the tip of the iceberg. We're about due for a depression. The whole country is in massive debt. The derivatives market will crash like the price of baseball cards from the 80's and 90's. As the economy worsens people will spend less money on useless crap they don't need & entertainment, things will spiral downward for awhile most likely. Throw in peaking oil extraction rates and... well, lets just say we're living in "interesting times".
     
  17. The Yankee

    The Yankee The New Yawker Retired Moderator

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    Arizona's just been one crazy market.
     
  18. Leonel

    Leonel Breakfast Connoisseur

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    Kind of makes sense. Buy up property while prices are low.
     
  19. Narz

    Narz keeping it real

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    Unless they continue to fall.
     
  20. GarretSidzaka

    GarretSidzaka Deity

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    yeah, i fear a depression. Thanks G. Bush! just in time for you to leave office [pissed]
     

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