tag:blogger.com,1999:blog-2992740250270600844.post7031169823591884644..comments2024-03-24T05:26:32.964-07:00Comments on Advancing Time: The Great Housing Debate-"Housing 2.0"Bruce Wildshttp://www.blogger.com/profile/10181323607060607040noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-2992740250270600844.post-72837337859899109902015-12-18T04:09:25.413-08:002015-12-18T04:09:25.413-08:00Call this a comment or a late footnote; a while ba...Call this a comment or a late footnote; a while back I wrote a piece delving into some very real numbers concerning housing. The link to that article can be seen below. It may surprise those who see housing as a strong market.<br /><br />http://brucewilds.blogspot.com/2015/05/real-facts-and-numbers-about-housing.htmlBruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-25584826198931130542015-09-23T05:54:31.982-07:002015-09-23T05:54:31.982-07:00The artificial housing market has always been driv...The artificial housing market has always been driven by malinvestment. Malinvestment is a mistaken investment in wrong lines of production, which inevitably lead to wasted capital and economic losses, subsequently requiring the reallocation of resources to more productive uses. "Wrong" in this sense means incorrect or mistaken from the point of view of the real long-term needs and demands of the economy, if those needs and demands were expressed with the correct price signals in the free market. Artificiality low interest rates created by the Fed and Government backstopping housing purchases distort price signals and lead to malinvestment.Anonymoushttps://www.blogger.com/profile/09050524007787379020noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-49160768422594639102015-09-08T15:08:33.772-07:002015-09-08T15:08:33.772-07:00When you say it is harder to maintain full occupan...When you say it is harder to maintain full occupancy, from your tone I have a feeling it is getting much harder. Sadly for me I'm close to a huge new subsidized student housing complex build for what they call our "regional campus." Thanks for your comment.Bruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-33539782192923279842015-09-07T23:31:33.570-07:002015-09-07T23:31:33.570-07:00I too own apartments and the overbuilding is insan... I too own apartments and the overbuilding is insane. My CC overrides zoning laws, passes a building moratorium, and ignores studies it commissions that say to quit building, but then they start another project and come up with some reason the rules they just passed don't apply. I have been able to maintain 100% occupancy, but it is getting harder to do. The only reason is I have good locations near campus, but still I have tenants that are not students and are in the prime age to buy houses, but might as well be on Pluto. I'm trying to get my partner to buy me out or sell out and split the assets.<br /> My late father, who started this business, said something I'll never forget "When money is cheap, they will build whether its needed or not". As the years go by we realize just how true some of the things our parents told us.chazzhttps://www.blogger.com/profile/11039483494805931221noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-39420763557798724832015-09-03T17:57:17.257-07:002015-09-03T17:57:17.257-07:00Thanks for your response Bruce. You make many goo...Thanks for your response Bruce. You make many good points, some of which I've been thinking of, and other's which I hadn't thought of. Based on your articles, I figured you'd have some good thoughts on the matter. <br /><br />My spouse is on board, but like me, we both want to make sure the numbers make sense. For example, the taxes are double from our current house, so that's sobering, but it has a seperate mother-in-law suite, which we would have our nanny live in, and thus save money in pay (or rent out to a someone). That's how we picture lessening the financial impact. <br /><br />Thanks for the negotiating tips/realtor tips. And the realistic advice that there are other good deals around the corner, especially given this recessionary economy (even if they don't call it that). Georgehttps://www.blogger.com/profile/16892747365762049506noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-71236595665530175742015-09-02T04:09:53.230-07:002015-09-02T04:09:53.230-07:00Tough call George, A lot of factors go into a deci...Tough call George, A lot of factors go into a decision like the one you face. That is a lot of house and with it will come a lot of maintenance and overhead. A large house is a sizable commitment that must fit your lifestyle. I liked the fact you got a good deal on your current home and are not afraid to do some of your own work. Thoughts other than that;<br /><br />*Hows secure is your income and is your significant other on board?<br />*Will you be going in debt? Mortgage rates are low, inflation will help you, deflation painful<br />*While I often work with Realtors they are not my friend, many are incompetent and all are commission oriented<br />*It is important you don't get stuck with two houses or have to take an unexpected hit or your current home.<br />*Housing values are location and driven by the local market.<br /><br />Looking for a great deal and negotiating an even better price is part of work that should not be avoided. In all the years I have been involved in such things I have found you can never go wrong offering less and softening the offer with a good reason. In doing so it is important the seller gets to hear that reason. This house has been on the market for a long time and the seller is motivated, always offer far less and make concessions that cost you nothing.<br /><br />Don't allow yourself to be seduced by your ego into buying a house that will wow people because 50,000 years from now nobody will care. You should remember this is not the last good deal out there, another is just around the corner. Sorry I couldn't be more help. The article below delves into how values constantly shift. Good luck with your decision.<br /><br />http://brucewilds.blogspot.com/2012/11/what-is-something-worth.htmlBruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-90240606914965449292015-09-01T20:23:22.463-07:002015-09-01T20:23:22.463-07:00Bruce,
I've been reading your blog for some t...Bruce,<br /><br />I've been reading your blog for some time now.<br /><br />I've been debating if this is a good time for us to upgrade to another house, or keeping waiting.<br />We’ve owned our current house for around 4 years, bought it in 2011, and got almost 15% under ask (guess it was a buyers market then) and put about $30K in upgrading both kitchens, replacing all wood paneling with plaster veneer, upgraded electrical, lights, dimmers, upgraded basement game room with a projector and recessed screen, etc. Our friend, a real estate agent, says we can get about $80K or more above what we paid. The house up the street, similar to ours, but with one less full bath, just sold for $281K. The up to $350K market is pretty hot here in Pittsburgh <br />We want to upgrade to a larger house with 4 bedrooms, flatter yard, pool, etc, looking at around the $450 to $500K range. However, after looking for a few months, it seems a lot of houses in the above $400K range sit for quite a while, and aren’t as hot here. I wonder if it would be wiser to see how the housing market plays out before buying. We’ve found one house we really like at $550K, which we may be able to get at $500K. So, I have mixed feelings about waiting too long and losing it. But then again, it’s been on the market for almost a year now, so perhaps I shouldn’t worry. <br />Georgehttps://www.blogger.com/profile/16892747365762049506noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-52802640447227329902015-08-30T14:41:28.901-07:002015-08-30T14:41:28.901-07:00This article is an overview of why we should not b...This article is an overview of why we should not believe that we have a solid and thriving housing market. It sounds like we are both on the same page when it comes to how government, and mostly big business is misallocating capital. Bruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.comtag:blogger.com,1999:blog-2992740250270600844.post-45279880714356080242015-08-30T09:49:28.725-07:002015-08-30T09:49:28.725-07:00I do not really understand what you are trying to ...I do not really understand what you are trying to communicate in this article. Government and Business are no longer concerned with the future when they can grab the profits and run....now. The feds money will continue to flow into unproductive channels until the spigot is turned off. Michaelhttps://www.blogger.com/profile/03996718032520935223noreply@blogger.com