Topic: The real estate bubble - page 2. (Read 419 times)

Only if you don't maintain them and find someone willing to restore them. For instance, if you had an old Ford Mustang, like 1970 and kept it in your backyard, it would still most likely be worth a lot of money, but if we count in inflation, it wouldn't be that much more than it costed 50 years ago. On top of that it would be rusty and need a new paint job, new wheels, and all rubber parts would have to be replaced. So the car would be undrivable without at least 10k USD being thrown into restoration. It's not a great investment.


If you take ad valorem tax  into account, owning a real estate can potentially bankrupt you. Imagine having to pay 1% of its value a year as tax and the government decides to value the property ridiculously high. This can suddenly happen if something that adds value to your property is built nearby. For instance, the area around your land becomes a national park, which means that nothing can be built, so you will never have noisy neighbors or a factory built nearby. If the value of your land doubles so will the tax. This is an extreme situation but we all know that strange things have a tendency of happening in the most unexpected moments.


I'm actually not sure about this part. Just a couple examples that could make your apartments completely worthless:
A natural disaster (flood, earthquake)
A problem caused by tennants (fire, gas explosion)
A war

Sure, you can insure them, but this will reduce your earnings and the insurance will never cover 100% of the damages.

I am noticing a lot of real estate agent scattered in the streets forcing their way to sell the a house or a condominium. 

Yes it is not normal anymore. It is not a panic either. I guess people just got to think that there is better option than just letting it rot in a bank. I also prefer it that way. I've bought a house also thinking the price is getting larger every year which actually does.
My Uncle bought one near where I bought mine and its price is just half than what I am paying for right now. That is just 3 years of a difference.

I guess it really depends on where the house will be.

The problem begins when too many people are trying to buy houses for rent or to swap and the market crashes. You're left with properties that nobody wants to rent out or buy, or in case of swaps nobody wants to pay you the price you expected and you have to pay the bills as the owner, so keeping the property on the market for years is going to bankrupt you.
Also, the demand might be decent now, but since average Joe is buying a property for rent, we'll at some point have dozens of people owning more than one property and trying to rent out, which won't probably end well for them as they will be left with properties that aren't making them money, but have to be maintained.


Yes, those aren't downtown apartments. There are many factors to consider, one of them being construction materials. Older buildings are made of bricks, at least here in Europe. The newer ones are prefabricated and built within months. If you compare 50 year old buildings to the new ones, for the same price you're getting underground garages, terraces, huge panoramic windows, and cheaper per square meter than a 50+ year old downtown apartments.

I live in a fast growing industrial town in my country where you can find construction project every where but I think it's still far from real estate bubble.  Yes, lot of people buying for second or third house but the price still rise every year.  Industry and urbanization make the town grow bigger and bigger.

i suppose it seems the same happening in my country. No cheap house and land keep getting expensive and all people trying to get a house for invest or for living. I do think real estate still good investment but its not for everyone. The real estate price getting expensive and it takes a lot of money to buy a proper one for investment.

I own a lowcost housing project in our country which is quite cheap when I bought about 2011. Price has almost doubled already base on the selling price of my neighbors. I'm not selling it though but I rent it out. The newly developed housing projects and apartments are going to be lesser in selling price because they are developing them in the outskirts of the cities. The lesser its price when you buy the property while its not yet built.

The attractive of real state investments is within the fact that even if it went to 0 (which obviously would never happen, because a place to live will always have some value, of course unless the place wherein the real state resides goes full Chicago or something disastrous happens) will always have some value to it. No matter what the market says, you can still live there. If you are holding a stock and it collapses, you have nothing, same for a crypto and so on. This is why real state will always be desirable.

It will always be attractive to have something which you can milk for passive profits, in this case, having a nice portfolio of apartments. This comes at the cost of having to keep up with any problems that could happen with the renters, being a landlord is a job. I have never been a full time landlord but that's what they say. It is sure a less time consuming job that the average wage slaving one tho, and you could always hire someone to do all the paperwork. If I had the money I would try to own at least 4 apartments in big cities which would deliver a rent high enough to not have to work and live pretty comfortably. These will ALWAYS have a demand. In a globalized world there will always be people willing to pay for it. Many exchange students come to these cities if no locals want to rent it. There is a big demand. Just try to get them in places without troublesome people so you don't have to lose sleep over some fucktard destroying the furniture or whatnot.

If this is of any guidance:



It may be smart to keep focusing on improving your Bitcoin holdings and forget about real estate for now. Our time to own nice houses will come. We may be able to pick up some really cheap deals while Bitcoin as at 6 figures or more in a couple of years.

It depends on someone living in a country. If someone who lives in a developed country, then I will agree with you that real estate is a bubble that will explode if many companies make real estate.

So as real estate prices will decrease because many people already have homes to live in, and remember that the population of developed countries is very little so that it will provide opportunities for the future.

However, if someone who lives in a developing country and has a large population, then real estate is a long-term investment place. Community economy will change slowly and they will buy real estate for live in or just for rent.

Real estate is always needed.  You will have children, they need somewhere to live.  Therefore, many choose the direction of investment as real estate.  Very convenient, because you can take time and earn income.

i feel like i live in a different world after reading this topic. suffice it to say that it is not a developed country and the inflation rate is high!

not everyone is going to buy real estate and there will always be people who want to buy it so there is always demand and there will always be others who want to rent.
it also depends on where the real estate is. for instance in big cities and capitals there is always going to be a demand and increase of real estate prices.
there is also the case of Up and Coming Neighborhoods. it is an investment after all and you always want to invest in something that has a potential of rise or is already rising instead of buying something that might rise or not! it is like buying altcoins, you don't want to buy some altcoins that is already big and pumped. you buy an altcoin that has not yet been pumped and is starting to get hyped up.

i have seen cases of houses that were old but more expensive but that was because of the location of them and the demand for that location but generally speaking the new ones, specially the brand new ones that nobody has been in yet is always higher.

Over here, the same thing is happening that the only achievement that is worthy of celebrating as a young man or woman is when you have a form of real estate investment to your name whether land or building to the extent that when you buy a car as a result of necessity before owning a property, you must be a foolish man. This your observation is a very valid one in that here, we have housing deficit and at the same time, there are empty apartments all over the place in certain areas of the country because of the cost of building and investor want to earn their returns faster and move on to something else. Eventually, it is the cabals who are in charge of sale of lands and building materials get to win at the end.

However, its good to invest in real estate but one needs to be strategic about it. Development happens, cities move, a business centre today can be a deserted environment tomorrow but in the midst of all this, some cities would continue to be in existence and those are the areas that would always turn out returns on investment and even when there is a bubble, it won't burst because as the city continues to grow, the need for housing becomes a necessity for countries that are in the peak of their development process.

Maybe it is not really a bubble, remember land is limited and people each day are born.

There will be less and less people who will own lands for future to lease, the land price will increase overtime. Unless we have a world war 3.

Is this a new trend at all? I mean, I'm sure the overwhelming majority of people wants to own a home at some point, so it's not like the demand is only for people who want to rent out their 2nd or 3rd apartments.

Real estate is generally sound for as long as you have an actual need for it. There may be more supply than demand in some areas now, but who knows how long it will stay that way. It's kind of like Bitcoin in that sense, where we know it will not be enough for everyone somewhere down the line. For as long as you're not putting all your eggs in the real estate basket, you should be relatively safe. This is one investment where "inherent value" is very relevant.

At least not in my place though. Houses bought years ago can still be sell at a premium price and those buyers are willing to do invest some re-modelling and get it ready to be rented. I have 2 houses in my neighborhood which was bought at a high price and the new owners are now renting it, and the thing is people are willing to get it even if the rent price is very high. That's why the rich becomes richer here. I myself bought a apartment 10 years ago and now its worth like 4-5 times its original price. Others though would make a bank loan and have the house rented and then the monthly rent pay goes to the mortgage. So I guess the demand is pretty high here that people are still willing to buy premium houses have it rented or just pure investments.

In other words, debt.

It also applies to the stock market and other sides of the world economy. Everything is largely based on debt and we have enough historical evidence that these debt bubbles always pop. It may take a while before it pops and it's impossible to point out when it will pop, but it will pop and for that reason people should use Bitcoin as hedge to be on the safe side. If everything implodes you won't be as much affected as those who haven't taken any steps to lower their exposure to this shitty system.

It has never been easier for people and businesses to take out a loan (easier than before the credit crisis years ago), even if you aren't capable of paying it back or have no (partial) collateral. Even people with their own money are no longer saving it due to the extremely low interest rates; this money ends up in the same pool as where the debt money lands in. No wonder everything is badly pumped up right now. It's a great time for sellers, but not for buyers trying to make a buck. The risks are not worth it anymore.

There is a guy named Peter Schiff

https://www.youtube.com/user/SchiffReport

He is one of the best about Government macroeconomics

He almos endorses everything about this topic

*dont mind the bs that he talks about cripto

There are quite a few automobiles that appreciate in value (limited model high end brand models).  Owning a house can be a major headache and in the USA you never really own your house.  The U.S. government can take any piece of property they want.  How can you ever truly own something if you are basically paying rent (property tax) to the government.  So ownership in most places is just an illusion

The only factor that is pumping the real estate bubble are the mortgage loans.
If the are no mortgage loans,the real estate price will remain low and this will have a positive socal effect.Young famillies with children will afford bigger houses at a cheaper price/or lower rent.
We are heading over to a new real estate/financial crysis,because of the banks.

In addition to crypto-currencies, I'm still engaged in real estate, buy and then resell. I have in the country and in the region, there are no problems with the purchase of new or old apartments, we have near the sea ))) a Resort town, in the summer a lot of tourists. Therefore, I do not experience such a difficult problem as the author. I also want to say that real estate is a good resource that can reliably save your money. Most importantly, your apartment, land, house etc. were very promising. For example, sea, ocean, lake, forests, new trails, mountains, etc.

Real estate has been the go-to of people who want to make some serious buck for the past 10 years, at least back in the Philippines. Crop fields are slowly being bought and turned into subdivisions, apartments, townhouses etc. and I start to wonder whether they have these units sold or are they creating buildings to waste? The lucrative amount of money made in real estate, alongside the amount of credit needed to develop the land is staggeringly astonishing, and one way or another, it has to implode from within. As for your situation, I still think it depends highly on where does a developer want to start his/her estate. Typically, the metros is a good starting point in creating such apartments because the demand is high, while countrysides, on the other hand, are mostly built houses which is straight up being bought by people who have the means to do so.