interesting take on things

[markbrad]

Here is an article I thought worth the read. He points out how tucking your cash in your back pocket and holding it there is maybe not such a good idea. I have wondered about this myself, and now I see someone else sees it that way too and points it out in a newspaper. Wonder what others thoughts are on this? I know it is really easy to take a let`s wait and see attitude, but maybe it pays if we all do a little bit (like what was happening a couple of weeks ago when we sent letters to the gov`t) perhaps we can make a change? I am interested to hear other comments

http://www.cbsnews.com/stories/2008/12/21/...in4680489.shtml
btw how do you post a link here so you just click on it and get sent right to the page?

Mark

 

[mcgregok]

People have been spending. Thats what keep the economy going for so long. There is only so many TV`s you need in your house. These corrections are how wealth is transfered to the next generation. Without a correction now and then the next generation would have a hard time affording anything. Can you imagine homes all being worth 1 million dollars and the average household income is $80,000. These downturns are necessary.

 

[markbrad]

I understand that downturns and corrections are necessary. I for one could not see the sustainability in the pace we were holding for the last couple of years, but tucking your head under the pillow like some people are doesn`t help keep things balanced. I know the pedulum swings back and forth, but if we keep our heads about us , does the backswing have to be as extreme?

Mark

 

[Thomas Beyer]

QUOTE (mcgregok @ Dec 21 2008, 05:31 PM)
...Can you imagine homes all being worth 1 million dollars ...


yes I can .. it is called inflation !



Over 40 years the average Calgary home has appreciated over 5% annually on average, despite NEP, despite oil crisis, despite economic slumps in the 80's and 90's .. almost 6% actually on average .. from around $20,000 in the late 60's on average to over $350,000 in 2007/2008 .. so can I imagine another 200% increase in perhaps 25 years to an average home being over $1,000,000: QUITE EASILY !!!



I think that all this bailout money, these worldwide easy monetary policies of low interest rates, government bailouts and balance sheet stimulation is even more inflationary than before !



The trick with real estate is to get there .. and that is possibly only if you have enough income from rent to cover all your holding costs, such as: interest payments on mortgage, utilities, taxes, repair and maintenance, insurance, management ...



This 40 year view is viewable for REIN members, incl. attachment here [or I can e-mail it if you are not (yet) a REIN member or browse this forum for education or decision making purposes only]



http://myreinspace.com/rein_members_only1/Members-Only_Discussion/81-6621-50_Year_Calgary_House_Price_View.html

 

[invst4profit]

I hope all our renters ignore this report. I would rather they pay there rent then spend there money on unnecessary junk.
We all expected a serious correction and from my perspective the deeper the better. As a investor I am positioning myself to take advantage of it hopefully and in theory the worse it gets the more profit can be made by those properly positioned.

 

[Thomas Beyer]

QUOTE (invst4profit @ Dec 22 2008, 07:18 AM) I hope all our renters ignore this report. I would rather they pay there rent then spend there money on unnecessary junk.
We all expected a serious correction and from my perspective the deeper the better. As a investor I am positioning myself to take advantage of it hopefully and in theory the worse it gets the more profit can be made by those properly positioned.
indeed .. if you have the cash to buy, the access to cheap credit and the ability to manage once you own it !!

 

[invst4profit]

The one item I have the least amount of control over and could ultimately prevent me achieving my final investing goal is available credit.
I figure I have 2-4 years to personally prepare for what I want to do so short of a total financial melt down I hope to have everything in place.