Topic: Used cars and real estate market very volatile and a lot people will fomo in - page 2. (Read 463 times)

Yes that's right, it is a crypto asset that is durable, cheap, easy to buy and all activists accept it unlike altcoins which are high risk but not including stable coins, OP mentioned while waiting for the decision to reduce interest rates and see the trend to cars and real estate. interest rate decisions cannot be confirmed for a long period of time and can be possible at any time including a matter of weeks from now, meaning that it can change with the announcement. I think that the asset (usdt) is following the real currency even though it is in the form of crypto digital assets.

Bitcoin is a role model in crypto, which means that if I am aiming for investment, of course saving some part of my portfolio for the long term is a good choice. But for temporary funds that are very liquid and even a matter of hours ahead and will sell it better in the form of usdt, just adding to the used car business and real estate, all types of investments are good, but for me it can be grouped into several parts and my future planning:

1.Very important and very easy to liquidate (usdt crypto)
2.Important and some local payment acceptance (used vehicles)
3.Large-value assets that match function, price and price competition (real estate and property)
4.Small-medium value assets with local transactions (gold and precious metals)

When it comes to advantages all of these assets are not about being fast and durable or popular, it is our certainty in choosing but if you plan and own all of them, it's great. While waiting for interest rates to normalize, perhaps. 

real estate investment is good when the population density is high everyone is looking for a housing and if we have one for rent then we will get passive income other than that the value of the land kept on increasing, but if its in the region where population density is kinda low then having land will become liability if not taken advantage for agricultural or anything that could utilize the lands after all the land price would just stagnate meanwhile used cards more likely gonna be still selling at region with low population density. this is why in investing we should know before hand all the thing that we gonna invest after all every region differ in what judged to be valuable and regardless of the region i still think that owning both of them still a good thing not necessarily to become an investment but more of to become a posession and basic needs.
however with the presence of cryptocurrency investment that linearly growing i just think that i just better off investing in crypto like bitcoin.

I believe that real estate is relatively safe because you can rent it out and always will be, unless there's war, or the property gets damaged somehow.

Let's say you have money in a bank. That's going to generate a loss even if the bank offers you decent interest because that interest will always be lower than inflation.
If you buy a house and rent it out it will pay for itself. Even if you offer it 50% below the market price it's still going to cover all the bills and generate a profit, even if the property doesn't appreciate in value. That said, every physical property will appreciate as long as it's not damaged or vandalized because the government prints money. As long as they print everything will be priced higher and we know they can't stop printing because that's what Keynes had taught them to do.

Housing market certainly is at high and there is a possibility that we see a crash from there. There are houses that are priced at high but if the owners of it want to sell it quicker, they have to decrease from the asking price. That's common but that's how the market in real estate nowadays. People wouldn't think of buying real estate now because they're so expensive.

It differs where you're located. There are cars that are appreciating but they're like rare cars and limited edition, the collectibles. I'm not into the 2nd hand cars but that's what at least I know of.

While that is true but this differs from the location. No doubt about real estates that are found in good locations.

I don't know which side the used cars and the real estate became volatile. My understanding and knowledge is that if the value of a brand new car decreases over time, what about used cars, they are even lower and we do not yet know how many problems there are with secondhand cars.

But it's the opposite of real estate, where as time passes, its value increases. So, it means that it is better to use investment in real estate at any time and depending on the place you will buy real estate.

Real estate investment is still profitable here in my place that is why it is my second choice of investment aside from Bitcoin and precious metals. I personally don't like cars because of the fact that it is undoubtedly a liability.

I don't understand why you put Cars in this list together with real estate and bond market. The other two are investment but Car is not, Car could be a used as a productive tool, but a certain thing is that Car is liability. You need to spend more money on your car for gas and maintenance. And most of the time if you own a generic car, the price will keep declining.

While real-estate and bond is an investment, those two can gain value.

I know that the global market is interconnected but some sector of the economy has relative experience based on different country. The Chinese real estate market is in a mess because of bad debt and constant population decline. In my country, the real estate market is flourishing especially in cities. The real estate sector is experiencing this boast because of increasing population and rural-urban migration.

The used car market is also a prosperous sector in my country because the majority of the population of my country depends on used cars. Due to the low standard of living most people cannot afford brand-new cars. So investing in the used car business is not a bad idea for people who have experience in the business. So I accept the fact that we cannot generalise about these two sectors because every country has different experiences.

Is it advisable to hold a centralised coin for a long time? It would have been better to keep Bitcoin for a long time because it is decentralized which makes it more secure.  

For me between the used car market and real estate is a price that not everyone knows, I think the market for these two types of assets from between sellers and buyers, as well as the location and conditions affect the fluctuation of the item even though it may be of equal or greater value. Indeed, it may be more affordable than half or a quarter of the price than new but with no interest rates, the price tends to be even greater and may only differ by a few % from the price of the asset, also falls into the category of hobbies and collections because not everyone likes it apart from its function, meaning that some people prefer to store in other assets that are highly liquid. Real estate is better and people think it has a high selling value, but it could also be because the inflation eroded factor also affects the selling and buying value even though it is the same, only the nominal difference when you first buy it.

Quite a lot of people are in this business, it's not even a new business, but if the person is a buyer and is only consumptive for themselves, of course they will feel what the buyer feels.

I prefer to hold in usdt crypto because it can DCA retain value and sell faster than other investment securities.

The used car market is business but real estate is for investment so I don't know why both came into comparison in the first place. Real estate is still profitable and it highly depends on the city we are talking but the future is highly uncertain and with some of the revolutionary ideas there won't be any need for people to huddle up in the city, they can do whatever they do at any place if there is an internet connection.

so much underestimation for used car market by the people but its actually quite profitable market, usually these used car dealer got their used car from people that don't bother selling their car and the complicated process by their own and just brought their car to these dealership and give very cheap prices. usually it just needs some detailing as you stated and we are already talking about whooping 20% profit from initial capital if im not being parabolic but thats the truth, the market for used car are quite good market for now not too saturated either its just matter of finding a good secondhand car that are having super cheap prices and we are already talking about profit but yes the cars need to be sold within short amount of time definitely not more than half a year for it to retain value but regardless if we got the car at much cheaper price we still have many rooms for negotiation.
overall used cars market are just as good if not better than real estate market tbh.

A practical used car dealership is one of a successful business for decades but it needs experience, someone with zero knowledge starts a dealership just because they have money then they will fail but one who has at least 5 years of experience in the field can buy a car for 5K and do some detailing work and sell it for 10K in less than a week.

because of the pandemic there was a decrease of buyers in cars since a lot of people lost their jobs or had experienced financial challenges now because of this, most car companies opted to supply less newly made cars which of course resulted to a lesser supply but a higher price after we’ve come back to normal and people are once again buying cars, these newly made cars are only now slightly used so of course they’re not going to sell when they’ve only used it for a short amount of time and even if they sell it, they’re going to sell it for a high price because of its condition so if you’re an interested buyer of second hand cars this is bad news for you because for you to buy a cheap used car, you’re gonna have to buy a much older model made pre-pandemic

Don't know much about the real estate business, but would say that it's having some growth slow down since the inflation started. People are working hard on maintaining their wealth and properties and many buildings put out for sale are not getting better deals promising to pay a high amount. I won't be surprised to know that they're having low sales across the world. But one good aspect of real estate is that this is the right time to buy so that when the bullish run begins those who have properties can sell and earn huge profits. So if people fomo on real estate do you mean missing out on buying at a low price? However, the dealers in the real estate business understand how the market works and know how to handle any situation associated with the risk. They can wait till it gets bullish and then begin to sell, I don't think they'll be running out of business. The problem would be not making high profits like during the bull time.

As for the car business, the value doesn't have any chance of being profitable. As the rate of impounded cars are being sold for cheap prices to citizens, the governments are making banks off seized cars. Many people prefer going for the impounded cars due to the lesser rate in price. Hence affecting the growth of the car business. Secondhand cars thrive as well, hardly would you see a buyer going for new cars. The price of a new car is very high, and when the owner wants to sell, he'd get a low-price proposal. Comparing both markets, real estate would survive any market crash that would happen and easily bounce back to making huge profits. As the longer the property stays the higher the price, in most cases. But the car business keeps depreciating every day, and it's not worth venturing into during a time like this, so the term "Fomo", doesn't fit into the car business. There'll be nothing to miss out on whether the market price is low, or car prices don't increase instead they depreciate.

If we try to make a connection with mortgages and interest rates it might get complicated and it will only happen at that point, but look at consumer expectations and I don't think car dealers will go out of business, because people are looking more at the used car market because people's ability to buy new ones is currently limited, especially as consumers tend to choose economical options where they don't spend more money to buy a new car.

If the used car market reacts to interest rate variables, it should flourish when interest rates are high, as people will tend to buy used cars instead of paying $30,000+ for a new car, so it is illogical for it to react positively to interest rates.
Real estate is linked to mortgages and interest rates, and we will see positive movement starting in 2025 if the current conditions continue.

Yes, this is a fact. Since the car and real estate market is mainly linked to the economy, it is naturally affected by economic factors such as recession and inflation, so it is very natural for it to be volatile.

But since paper currency constantly loses its value, it would be a good idea to buy a property or a car to maintain the value of your money. This is better than keeping your money as paper money or keeping it in banks.

For me, of course, the best thing is to buy Bitcoin or gold. Whether it is for the purpose of investment or long-term reserve storage, gold and Bitcoin will be my preferred choice in the long term.

Isn't it that the real estate market is still in the bubble even if we've gone through the pandemic for which will make the value of the houses down due to everyone had difficulties with their living when it has started?

I guess things are totally back to the normal but with these high prices of real estates. It's just going to be a matter of time when most people will have the same thought of not buying these expensive real estate that has been priced in by the realtors.

In most places, there should be a suggested pricing in based on the area of it but because of realtors, agents + taxes, sellers are putting a lot of margin from it that's crazy to consider.

Fomo into used cars and real estate? What does that even mean, as it makes zero sense? People are always buying used cars, year after year, decade after decade, it's not some new sort of trend or idea you've discovered - nor is it in any way likely to happen in correlation with a rate cut. Real estate is the same, there will be more people buying when rates come down but you don't need to be a rocket scientist to figure that out, it's harder for people to borrow money when rates are high as there are more affordability checks and difficulties borrowing. Deadcat bounce is not relevant to this situation, nor have you understood what it means based on the rest of the things you've said, better to stay away from terminology when you don't know what it means.

From the way i see it, used cars and real estate are not as that volatile, their prices are not to be regarded as being volatile because for something to be rated in this category, it's price must rise and fall and do this often or under a continuous process, most people into these category kind of business are the type that make currency exchanges in running the businesses, but if it's something that you make use of the USD without making conversions to local currencies to run your business, it may not be as that volatile like the foreign exchanges.