Topic: Used cars and real estate market very volatile and a lot people will fomo in (Read 289 times)

Just wait until they don't make gas cars anymore and when PE firms now own all the single family homes in the world. I hope it doesn't get to that but at this rate the cars and gas will take a very long time to go completely, but shoot when they do the cars will be considered collectibles and sold at extremely high premiums. W/ the housing rates the way that they are it's definitely a hard time to get in rn ngl.

REIT is good commercial real estate for example QATAR Dubai ...those will make greatest return specially the commercial ones shopping malls.

There is no guessing If you know the markets large instutions invest in btc on 2024 but price not going up much because of they keep it sideways not full bull mode

I guess posts like these are a testament that investment giants are doing a good job of keeping people second-guessing their decision to invest in properties out of fear of market volatility. The average investors keeps waiting and for the right time while the giants take that opportunity to collect real estates.

This is why we should never look buying cars as investment since we cannot get anything with it unless if we gonna use that car for transportation business since for that we can possibly get some nice income thru passenger will rent our car. But its for personal use or to show up your financial status well maybe we cannot get that since each year the value of car decrease so we can't get anything good with that on investment perspective.

But for Real estate I can say that we can get the value of our money here especially if we are in highly urbanized city since for sure that the value of our asset will rise over the time especially it located at prime location since we can really get the best of our money thru investment over the time since we can possibly earn a lot when we sell this asset.

Volatile times are when there are the best investment opportunities. It doesn't really matter if it's stocks, bonds, real estate or crypto currencies. Large changes in price means that some investors are going to lose a lot of money, whereas others are going to make a big gain. The main difference between real estate and other assets is we usually have to use debt to buy a property. Once there are large amounts of debt involved we are stuck with the interest rate for a few years, but that will change eventually  over time with the Fed decisions. The high interest rates are going to turn a lot of new property deals in a loss and there will be some cheap deals to be made for investors with enough capital. It's all about the willingness to take the risk of buying when everybody else is selling and vice versa.

To be fair, used cars (or real estate or any other asset) doesn't really "go up in price" but more like fiat is losing value due to inflation. Which means that a car that worths 10 thousand dollars, being worth 15 thousand dollars right now, doesn't mean that it went up in price, it just means it's the same price but what 10 thousand dollars could buy back then could be bought with 15 thousand dollars today. That's the thing, at the same time a box of eggs may have gone from 10 dollars to 15 dollars as well.

This is why investing has been easy in the last 4 years or so, because things are going up, it's the act of making more money than the fiat value loss that would be the most important thing and many miss that, and used cars won't make you that.

Meh, I'm skeptical of technical analysis of any sort (actually, I'm a non-believer) but it doesn't take all of that TA mumbo-jumbo to realize when people are starting to jump into any market--the only thing you need to see in a chart is an upward trend. 

Used cars have been going up in price for quite some time if I'm not mistaken, as has real estate.  And Christ, it's become so expensive to even rent an apartment I'm surprised the number of homeless people hasn't spiked hundreds of percentage points.  People who own real estate and rent it out must be making a killing.

Yep, REITs are great for people like me who don't want the hassle of buying property and paying all of the fees, taxes, and maintenance costs associated with land ownership but want to invest in real estate nonetheless.  And if you're a dividend investor, most of them pay out crazy amounts and some of them pay monthly.  So for those of you who haven't heard of them, do a little research and see if they're for you. 

Same here! I chose real estate as one of my other investments here in our country, as we know that real estate value appreciates from time to time and It is one of the best type of investment here. Just like you, I don't have any plans on buying brand new car and If there's an instances that I'll be needing it in the future, I prefer buying a secondhand one rather than a brand new because I am able to buy much lesser value of a car in a good condition and besides, there's nothing wrong buying 2nd hand items.

Land getting scarce and cards will be switched to electric maybe this the reason the market gonna very volatile. But I think this gonna happen like a year or so in car market, because i do believe that electric car is getting cheaper and charging stations are going everywhere.

and real estate is going to volatile all year around in fact REIT and other real estate investment app are going to popping up everywhere and people can start invest in 1$ even tho for young people like me would be very hard to own a house

In my way of thinking real every business needs an experience and active mind because every single field of business is highly volatile. The price regularly goes through changes. Everybody cannot do better business without knowing what to do and i just think that a person in a business of used car will be more profitable as compared to real estate market business.

At start car dealer will gain 10% or less profit or may be sometimes they loss some money but as they become experienced in such field then they will be able to enhance their profitability through used car business. Money and knowledge are compulsory elements which play a bigger role in a successful of businessman.

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.  

Simply put, markets are changing, and your analysis is accurate. Do not oversimplify. A fed rate cut might impact market liquidity and investor feelings, not simply hope. People are eyeing secondhand automobiles and real estate like golden goose, but it's a high-risk endeavor with uncertain rules. Your timescale for a real estate and car bull market may be too optimistic. Due to global economic uncertainty and changing consumer behavior, market dynamics are more complex than ever.

Next, a "deadcat bounce" in real estate is good but controversial. It signals a short turnaround, but it could be the start of a longer downturn. Overconfidence may blindside people, especially in real estate. But let's not ignore smart investors who are positioned themselves for the long term. These players know that diversifying assets and techniques is vital to survival. Your predicted shakeout and liquidation will happen, but it's not the conclusion. A filter separates wheat from chaff. The smart investor sees turbulence as an opportunity. Cash flow rules in this disorder.

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.

Used cars? Really?

Secondhand properties I can understand and get behind,but I don’t think there’s a market for used cars now unless we’re talking about luxury cars or muscle cars for that matter, and even then we can’t guarantee that since the car industry depreciates in value every year more drastically than the smartphone world.

As a businessman I get the idea behind setting up a used-car dealership. But as a customer or perhaps a flipper? You’ll have better chances flipping NFTs and cryptocurrencies cause no one’s gonna buy your 80k mileage Toyotafor higher than its set , even if there’s historical relevance to it. No one’s gonna buy the car that Michael Jackson used to go to grocery once or whatever the fuck they sell items in the auction for nowadays.

You can not generalise those types of market, I am not familiar with the used cars market but I am a bit familiar with the real estate market and one thing is that you don't generalise the real estate market.
There are factors that affects the value or situation of real estate market and the biggest factor is it's location if it's a sorted after location the value of it is expected to grow, but other factors like the condition, previous owners etc can also play part in the value.

Totally agree with your assertion because real estate and housing in 2023 was a bumpy and rough one as purchasing power across the globe kept decreasing year on year same happened with used cars in 2023 as people prefer to maintain what they have now than buying another, either new or used, and 2024 won't be any different as most countries are going through recession that is difficult to curb

Everybody waiting for fed rate cut like new hope.
A lot people will fomo in to used cars and real estate market.
But the estimated real bull market for real estate and cars will be about 2027-2028.
Until then will be very volatile market (long. wicks short wicks) a lot real estate investors and car dealers will be liqutated out of business.
If real estate will be on chart then we are at "deadcat bounce" now

Now it's very difficult to understood because assets will not move correlated together.
We gona see one of the biggest shake out + liqutation of capital.
Cars specially used cars + real estate+bond market+sp500 Will be very volatile.
Now many people taking those assets for granted they are confident specially real estate and that's how many will lose money because all the guards are down.

Don't take my words as truth If you can't connect the same dots together in your own mind.