Topic: The real estate bubble (Read 437 times)

The situation is a bit different in my country, especially in the capital. People tend to move to cities from country side, mainly to bigger ones. There are more opportunities, better wages, etc. It generated a boom in prices on the real estate market. Buying one is a thing, but rents are crazy high. Meaning if some has enough savings it is not that difficult to invest to flats considering the relatively fair conditions in credit rates. So it can be often the case that you spend half the amount for paying back the credit monthly, than paying a rent to someone else, and you will never see that money again.

Real estate is a guarantor, because a bank can go bankrupt or be removed from a license and people lose their money, and real estate is always priced.

Their thinking only exists in a certain time and is not sustainable. They use all their possessions to enjoy, what will they do to sustain life? I think we need to be thorough in our decisions. As the future is so long, work and generate more revenue streams. For a better life.

In my country, apartment is not really popular, only on a few big city.  Peoples prefer on landed house.  Every year, real estate price still record significant rise both new and old one.  But the price of the old one still higher because the now real estate usually build at the new area which is relatively far from town, lack of facility etc.  Here in my country, people getting married, buying a house, raise children, buy a car, then buying another house.  I don't see a sign of real estate bubble here.

Privately owning a parking building, especially within the city, is not available in my country. What you can do is to buy a vacant lot then have it available for rent of parking space. It's not so popular in my country but it can be found in some places especially in cities where finding parking is hard and putting up a place would be profitable. It's actually quite expensive so I would like to believe that these parking space owners are gaining huge profits.

Here in my country, land is usually appreciating especially in places where its developing. It's ideal to buy land as early as possible because it's expected that in the future the value of the land will  likely get higher. Since not every area is urbanized in my country, there are still many places where there is the potential to become developed.  It's not a bubble and real estate is a good investment because you will gain some profit unless the taxes eats it up.

As far as I can see the real estate market is very similar to the crypto market. The real estate market is a kind of pumping and pouring. If you want to invest in these markets you should learn a lot before investing.

    The value of real estate is base on the area location where it built. If the area is for commercial then there is a tendency that the old model real estate will become higher in value as time goes by despite of many renovations needed. But if the area is residential or something far from the rural area the value is much cheaper.

In my neighborhood it is literally a dream for people because it seems to be a passive income for them did you can do almost nothing in order to gain that money which is just increasing your monthly earning personaly.

However, unlike equity bubbles, the addition of new buyers to the ecosystem actually increases the value of the underlying token. The value (given fixed supply) is simply a product of scarcity, which is going to be directly related to how many people hold the currency. an additional buyer of tesla stock does not increase the long term cash flow of the underlying business, but each additional speculator who decides that bitcoin is valuable increases the underlying value of the bitcoin network.

Thats not the way it works mate. It works on the basis of demand and supply. Every real estate belongs to someone around you and it doesnt mean that its value is decreasing over the time. Its actually rising a lot because demands is ever growing for even piece of land around the corner. This is because land masses, other real estates are remaining the same while population is ever growing and thus it creates perfect demand and supply here and thus makes it valuable assets over the time. This is known to real investors and I guess you shovel follow what your friends are telling you.

But, I believe the way bubble works is not this quickly.
Yeah, we are in the biggest bull run of everything in our time, stocks are great, crypto is great, real estate is great, everything is going great and we are all doing better because of the bull run but we are still trying to fix the upcoming crisis before it reaches us. You need to realize the profit before that happens and as long as you do not have anything under your hand that can lose value in a burst than you are fine.

If you are buying and selling three houses at once like some crazy Americans did back in 2008 than yeah you might be in trouble but if you just maybe get something small and try to find a buyer quickly than you will be fine.

Great idea, I haven't considered it mainly because finding a good parking spot for sale in the city is hard and bigger spots are very expensive. Also, it would require some automation like parking meters, unless you want to stand there all day. With enough money though (a million USD) it would be a much better choice than 2 villas for rent. It would generate similar passive income and be much more robust and maintenance free.

Well everything has its risk. Certain stocks could be affected by floods and earthquakes depending on what you are holding. A war for sure would have an impact on pretty much everything else as well.

Maintaining a small 3 room apartment is not that much of a nightmare. We aren't talking about a villa with a pool, a garden, vegetation, a couple bathrooms.. just small city apartments which will always have a demand. You can get them in places known to never be affected by earthquakes or floods, just study the area before buying. Fire or gas explosion is always there tho, but that's life.

Perhaps you could look at parking spots. You can rent them too and they have next 0 maintenance since it's just a small rectangle of cement. The % of danger of flood is much higher too, since they are underground. But even then... assuming your car isn't there, the person renting it will have the problem, not you. If it floods, it will dry, again it's just concrete, nothing of value on your name is lost. Parking spots seem like a winner in terms of passive income. Im not sure how taxes go in these, but there should be a good demand for parking spots in cities.

I know a family that owns an entire parking building next to an airport and they make millions out of it. They've had it for years and family keeps inheriting it. A money making machine.

Having an entire building is maybe overkill for most of us, but with 20 to 50 spots you could be very well off. When BTC goes to $500,000 or so you will be able to afford a bunch of these with a single BTC.

That's a scary chart if you ask me. It looks like it's preparing for another dive off the edge into the abyss. Although things are a bit different this time as the FANNIE MAE (https://www.investopedia.com/mortgage/fannie-mae-loans/) projects aren't shilling out money in every direction like they were before the last crisis.

Anyone who's seen or read The Big Short remembers how easily the banks were handing out mortgages for houses at that time. It was like those free cheese stands at the supermarket. Then the banks were packaging the non-performing loans as AAA and selling them to susceptible Scandinavians (among others). There's no way that something of that magnitude will repeat itself, but a similar instance could occur if there are too many empty houses and not enough renters. They're getting ahead of themselves.

I remember a similar case here, but with someone who just didn't want to leave, and rightfully so. Eventually that person got paid what he wanted for his property and left to see how it later was reduced to dust.

It was far more expensive and time consuming to get that person to leave through a legal battle, so they went with the easiest option. As last person standing you can achieve quite a lot if you don't let them scare you off.

I'm however not sure how friendly the situation would be dealt with in Asia and Africa. People's rights there are of less value and you probably lose more by playing hard game if you're unwanted.

High land prices and high housing prices are far-reaching, not only hindering the sustainable development of the economy, overdrafting the future economic development space, and more importantly, as the burden of the family continues to grow, the happiness index of the people is decreasing day by day, and the social instability factor will be greatly increased.

In my country, the older buildings are deliberately devalued, and most of the people buy it, but only to find out that the building will be soon collapsed by a bulldozer.

Yeah and other countries are promoting tourism,including mine and making the cost of living go only more higher.  


I see why things are totally opposite in the EU.


Yeah don't do that. It seems to be a go to thing for a lot of people in my country and people do successfully do it, but its not ideal. Some people buy a 3 BHK and rent the two rooms and boom, they don't have to get a job. And the apartments will only be in demand, if they have their working environment around them, with essential stores around. You could earn a fuckton of money, but be careful, subletting is not allowed in some places.

Yes, I see this pattern and most of them are influenced by popular financial coaches that they can follow and watch his tips on youtube.

If you know who that person is, he said "real estate is the best investment". And that is giving encouragement to most that everyone must get into real estate no matter what.

Lot and property appreciates, this is the assurance for most. You get the property, you can rent or live on it and if you're done you can sell it still with good price, it's the new modern gold.

Not only you are surprised about the building boom. I researched the real estate market in my country (Russia, Moscow and the nearest places) and the situation is absurd because developers build new houses but most part of people cannot afford to buy a flat for themselves in that houses and some part of houses stay almost empty. Moreover in the national currency prices are growing a little but in dollars the prices has fallen down in two times yet. Despite of the prices falling people still  consider that buying a flat is a good investment. I am waiting that prices on flats in my country will be dropped in dollars again. I even do not mention that houses often are build so near each other causes a lot of troubles.
So, buying a real estate is not a good investment in my country at the current moment of time.

It has gone too far now. It has forced a lot people to rent instead of buying a house, which on its own makes sure that even the rent of most houses has gone up due to the demand. I remember how the average rent in the private housing market was around $900 on average per month, but has gone up all the way to $1300 and I don't think we have seen the peak yet. If you have a decent enough income you might comfortably pay that $1300 per month, but for a lot people it's near impossible to cough up that much money and still have a decent life. I know people who struggle to make ends meet just because of their crazy high rent....