December 28, 2007

OK, pretend you're a realtor...


Nooo, not the part about having been a failure in your past careers so you ended up slinging houses...

Noooooo, not the part about having no understanding of economics or business...

Nooooooooo, not the part about being embarrassed to admit what you do for a living...

No, for today's exercise, simply pretend you're a realtor, and tell us why we should buy a $600,000 1-bedroom "luxury condo" in Miami, San Diego, DC, Boston, Tampa, OC, Sacramento, Phoenix or any other of our favorite bubble cities.

Tell us why we should buy that depreciating debt-trap even though it's significantly cheaper to rent.

Tell us why we should invest in real estate and not in stocks, bonds, currencies, commodities, cd's or any other asset class.

Tell us why you think the crash is over, and the media is just making it all up.

Have at it. Convince us. Give us your 21 reasons. Or hell, just one.

Good luck!

75 comments:

Anonymous said...

This is a temporary dip. With the declining dollar foreigners will soon be engaged in bidding wars to buy homes throughout our glorious country.

shaun said...

one word should do it:

hyperinflation

personally, i think deflation is more likely, but others see hyperinflation in the cards. if you expect hyperinflation, acquiring debt, especially long term debt, makes sense.

panicearly said...

When you own, you are making a commitment to the neighborhood..to your wife..to the nation.
You are telling your boss..hey im here to stay..give me those extra hours, unpaid..im commited to our well being..

ok now where is that cyanide capsule i got laying around here somewhere

Shakster said...

Look-I just heard that the excess inventory is not going to be enouph because We are building more new Casinos on the strip in Las Vegas,and Reno.
It's gonna be a BOOM!
I predict a severe housing shortage too.Where will all those highly paid casino employees live?
Plus,just like the last boom ,the government ,and NAR will have new reports out that will outline the incredible shortage of homes,somewhere between 2,and 3 million per year will need to be constructed to keep up with demand.Demand will be here shortly in a monster wave of new comers,immigrants,and job seekers who know Las Vegas is a wonderful place to live.
Yep,any minute now.
There it is!! Remax just sold 2 homes!!
BOOOMMMM ONNN!!!

Anonymous said...

Tell us why we should buy that depreciating debt-trap even though it's significantly cheaper to rent.

Tell us why we should invest in real estate and not in stocks, bonds, currencies, commodities, cd's or any other asset class.


Simple: the US economy's tanking and taking the rest of the world with it, stocks are going to lose 50% of their value in nominal terms. But that's not even the best part. A rising world population is running up against physical limits on resources, so the prices of food, energy, and just about everything else are going to keep going up. Once inflation takes hold your bonds and cash are going to be worthless, too. Rents are going to skyrocket. The only thing that's gonna be worth anything is physical stuff. You can't easily stockpile most commodities because they take too much space and don't store well - the exception is precious metals. So sure, buy some of those, but you can't actually use them. At least with this here condo you will have your shelter taken care of, and even better, you get leverage. Yes, that's right, leverage. Just try to get a bank to loan you $500k to buy gold and they will laugh their asses off. But with this here beauty, you can get $600k worth of physical goods for only $100k down. Even better, you can lock in a low 6% interest rate and really stick it to the bank (or whoever takes over your loan in bankruptcy) when interest rates go to double that. Yessirree, this is the deal of a lifetime, but you gotta act now now now!!!

Did that work?

Anonymous said...

WAIT KEITH !

You forgot D.C. !

Heck - we had TONS of condo's at 600K!!

You need to buy one because!:

DC is the Capital of the Free World!
DC has ALL the Government jobs!
DC Real Estate NEVER goes down!
EVERYONE wants to live in D.C!
People make more $$ in D.C!

NOT! (said in your best Borat voice!)

(ooppss - by the way - RE is already tanking here- even inside the beltway, much to the horror of all those who own inside the beltway!!!)

Anonymous said...

I AM a salesman of 25 years (NOT used houses). I have been in the same industry all this time selling to similar customers building a solid reputation for honest dealings. That said, if I were forced at gunpoint to sling used houses now, I would:

1. Be totally prepared and upfront with the prospect about all aspects of the property, including recent past sales and current owners financial standing. No lies and no blow jobs.
2. Know the area, stregnths and weaknesses.
3. Prepare a time line and an expectation and performance checklist with rigid timelines regarding the property.
4. Reccomend the prospect meet with a professional of their choice at their expense, preferrably an accountant (a REAL one-Enrolled Agent or CPA minimum, not some guys aunt who went to H&R Block school..) and/or attorney.
5. I would insist any serious client bring their financials to the table with the understanding that any bullshit proffered gets them thrown out of my office forever and thrown under the bus with other local sellers.
6. Deliver the promises and expectations as outlined in the aforementioned document. Any problems during the transaction be articulated immediately and solved.

Jeezus, how smart do you need to be to do a good job and steal $ 6% from from every sucker you deal with? AND build a client list and referral base at the same time.

F*cking Realtors are so stupid and dishonest liars. That is why they have killed their trade for the future.

Stay home desperate housewives!

ps: Buy my new book, only $29.99 title "How not to be a douchebag realtor"

Shade'n'Freud said...

If you don't buy, I'll blow my brains out at your baby's baptism...so do we have a deal?

Malcolm said...

OK… you did say pretend:

$600k for a 1 bedroom luxury condo is actually a very good deal; and frankly, a wise investment, for several reasons:

1. Bubbles are about perception. If I choose to believe that there is no bubble, then there is no bubble.

2. Now that the baby boomers are getting ready to die off, there will be a consolidation of assets down to their heirs. Since I’m getting lots of “free money”, I have to do something with it before it burns a hole in my pocket.

3. For the cost of some 2-by-4’s and some dry wall, I can convert my one bedroom into three bedrooms. And as everyone knows, a three bedroom luxury condo is worth more than a million, so I’ll make a hefty profit.

4. My realtor uses “her head” to sell, and it’s been a while since I got any action.

Edgar said...

I need the comish!

Anonymous said...

No, no - leave it to the professionals.

JOE IGNAT will set you straight!

http://tinyurl.com/2eypor

Anonymous said...

Anon #1 nailed it right off the bat, great work.

The pitch that I have seen working down in Southwest Florida is that things have already dropped significantly, and now with the declining dollar, Europeans will jump in and hold prices, tempted by Florida weather and price reductions (close to 50% if you factor in the currency differential).

And, to be truthful, there seems to be an awful lot more people with English accents hanging around the Naples area these days...

Anonymous said...

'Cause I need to make the payment on my beemer, and my kid's braces?

Anonymous said...

Pro athletes live in your town, iPods are selling, and the NAR reports home prices will go up next year

Now pay me 6%

Realtors are your Friend said...

Your grandkids will never pay anything cheap like $600K. In the perspective of time this will seem like a bargain.

50 years ago people thought houses were expensive at $24K for a townhouse in New York City. Today that same property is worth more than $3 million.

Veronica Lodge said...

RE: Tell us why we should buy a $600,000 1-bedroom "luxury condo" in Miami, San Diego, DC, Boston, Tampa, OC, Sacramento, Phoenix or any other of our favorite bubble cities.

Only the immortal words of W.C. Fields would convince a Realtwhore's pigeon to buy into a collapsing real estate market:

"Don't be a luddy-duddy! Don't be a mooncalf! Don't be a jabbernowl! You're not those, are you?" -- Buy the $600,000 luxury condo!

V.L.

Anonymous said...

Pretend I'm a REALTOR?

lease lexus
get fake boobs
go to glamour shots for photo
join churches
lie
make money

Anonymous said...

No understanding of business or economics. Well, when the guy who cuts your hair has to go to school longer than an RE agent, this is what happens. The last time I checked, no one ever went bankrupt from a bad haircut.

pround realtor said...

You guys suck.I screwed over several people during the run up in 2006-06.What a bunch of dumb asses out there.They couldn't balance their checkbook if their life depended on it.I guess that is why it pays to get educated.If you are ignorant you have sucker written all over you.Thank you to all the people who made me a rich realtor.I am going to china to screw some more people.

AmazingRuss said...

This "bubble" is a figment of liberal socialist douche bags imagination, rammed down our throats by the liberal media. They want us all to live in solar powered cardboard boxes, eat only tofu, and ride the bus so muslim terrorists can blow us up.

If you don't buy now, your brain has been destroyed by the liberal media, your sexual orientation is in question, and you hate America. You are weak willed and stupid.

Just think of how angry those stinky commie freaks will be when they see you parking your brand new Ford Expenditure SUV in the garage of your massive stucco estate. Think how irked they will be at the non-environmentally friendly styrafoam trim pieces that give your house that exclusive faux-mission architecture look.

For a mere 2/3 of your sure-to-rapidly-increase salary (yours your wifes', and that of your teenage children), you can lay claim to a cornucopia of things that you won't have time to enjoy, but will make the libtards grind their teeth with angst and envy.

Are you a red blooded American male, or some kind of coward sissyboy? Man up! Sign these papers!

apple pie said...

Good question keefer,
Why would someone pay that kind of money for a 1 bed condo.

The bigger question that baffles my mind is why people pay this kind of money
to buy a flat in Europe, when you know that your income potential will never really outpace inflation.

Its like consciously adding yet another generation to the history of the poor masses.

Things are gonna get real ugly accross the Atlantic.

happy homeowner in the stix said...

Well, when all those baby boomers up north retire, they are all gonna move here. Yessiree. An' those Canucks won't be able to get here fast enough once winter kicks in next year. Heard it's gonna be a cold one, global warming or not.

You don't have to shovel sunshine, you know!

This place is gonna be a gold mine! How do I know? Well...you gots tortoiseshell granite countertops and stainless steel appliances in that deluxe kitchen! It's a professional chef's dream with that pot filler over the stove. You gots a double vanity and steam shower that exudes soothing aromatherapy oils in the master suite! It's got one of them bidet things, so it will appeal to Europeans, or anyone who wants company while they take a crap.

There's stained concrete in the kitchen and bath that looks like leather, and exotic Vietnamese maple floors! Whoops, sorry, I meant Venetian maple. An' I bet you could squeeze in a media room here somewhere.

Besides, lookit the view! It's a million dollar view!

Sure, three fourths of the units are empty, but think of it this way. You can blast Coldplay all you want and there aren't any neighbors to complain about it!

C'mon, let's write up an offer for 595k. No, a lower offer won't do. You don't want to offend the builder....

Anonymous said...

Everybody wants to live in California!

Tyrone said...

Tell us why we should buy that depreciating debt-trap even though it's significantly cheaper to rent.

It's so simple....

Suzanne Researched This!!!

Anonymous said...

Anonymous said...
This is a temporary dip. With the declining dollar foreigners will soon be engaged in bidding wars to buy homes throughout our glorious country.

Oooh yeah,
The great myth that people in other countries are better off then we are.

Here is a little myth buster for ya.
When the American consumer slows down, those foreign rich folks you’re talking about
will likely not be soo rich anymore.

And BTW I am curious, what country do you think has a richer population than we have?

Or are you just suggesting that the US dollar will be the only paper currency to decline and foreign currencies will somehow remain strong?

keith said...

I'm gonna add one myself - this one seems to have worked the best in London:

"IF you don't buy now, you'll be priced out forever - you'll never be able to afford a home here"

We all know how that turned out

devestment said...

OK, I’m pretending I am a realtor.
Today I will.
1) Go to lunch.
2) Not get any calls.
3) Not answer the calls I do get from creditors, (thanks caller ID).
4) Go to open houses and inspect the contents of medicine chests, file cabinets, and underwear drawers.

k.w. - southern ca. said...

The crash hasn't even gotten into full swing yet.

Now, prime loans are seeing a rise in defaults.

The problem is not contained to any one sector of housing ... it's across the board, and it's only going to get alot worse.

Anonymous said...

I recently re located to Minneapolis. The neighborhood where I live has approximately 25-35 homes for sale (12 block radius) and since October 2007 not a single home has sold. The same neighborhood also boasts about 10 foreclosures.

REALTORIZZLE said...

Historically low interest rates!!

Great selection.

Wine and cheese. Go for the brass ring. Embrace your inner yuppie.

Show that you have arrived.

Wow.. I sold myself...

Must buy NOW.. Must buy NOW!!!

REALTOR's are my friend. I will get a Holiday Card every year. Fridge magnets with my new friend's picture.

610K. Don't want to be overbid...

AMERICAN DREAM. NOW.

The VIEW!! There is such a VIEW!!

UP. UP. Investment. Community. Bling. Buy now! Show off.

I am cool. I am condo.

Frank@Scottsdale-Sucks.com said...

When you own, you are making a commitment to the neighborhood..to your wife..to the nation.
You are telling your boss..hey im here to stay..give me those extra hours, unpaid..im commited to our well being..


LOL! That is priceless! What page from the NAR spin book did that come from? ;)

From reading the comments here, it appears that people are still drinking the NAR kool-aid. Pretty funny, yet sad.

I love the comment that in 50 years it will seem a bargain. Guess what buddy, people have bills to pay TODAY. Moron. Only a realtor would say something that stupid.

Anonymous said...

With the declining dollar foreigners will soon be engaged in bidding wars to buy homes throughout our glorious country.
--------------------

Yes, we have millions of Illegal foreigners who go by the names of Pedro, Jose, and Manuel and they are ripe and ready to make million dollar purchases on beachfront property.

Ed said...

NOW IS A GREAT TIME TO BUY

end of story

Anonymous said...

because i researched it.

Anonymous said...

In 30 years, the average house will cost $10 million. Oops, Lawrence Yun already used that one.

Anonymous said...

Buy a $600,000 1BR condo?

I feel like a sucker renting one for $1700.

SeattleMoose said...

Sorry to ruin the party but AFFORDABILITY is the bouncer to the Bubble Party. Since wages didn't go up with house prices and all the dodgy loans have dried up (i.e. back to traditional loans 20 Down/30 Yr Fixed) almost nobody can get into the party.

So even if they wanted to, the average infestor of the last few years could no longer...infest.

When I think of the phrase "RE Agent" I think of vinyl records and 8 track cassettes.

Rom said...

Buy Downtown L.A.!!!

No one wants to live in the suburbs with 2 hour each way commutes, no entertainment, no quality restaurants, and way too much focus on family. Young professionals and empty nesters want the sophistication a real downtown has to offer and downtown L.A. is it.

From the soon to be constructed city park to the recently completed Nokia/LA Live to the Staples Center and Disney Theater downtown L.A. is L.A. at it's finest.

Live Work and Play without ever having to get in your car! Why throw away $2500+ on rent when you can own in Landmark Buildings, with killer views, bamboo flooring and stainless steel designer kitchens. L.A. is a global city and you can get in at the beginning of the great downtown!

----

Sales pitch off. DT L.A. has one grocery store, tons of homeless people, women don't feel safe walking the street, the metro doesn't go to the airport or the beach, there's one movie theater, the Kings are the worst team in hockey, HOA fees are very high, prices are as high as very established areas that young people crave such as Hollywood or West Hollywood, you can get units of the same quality in Koreatown (minutes away) with more services and a more stable future (K-town is growing and the Koreans keep coming) for $100 K less than downtown.

borkafatty said...

Hey folks welcome please come in look around look around.....what?

Oh that, that is a blood stain...from the previous owner who shot himself in the head cause he was upside down on his note... forget it..please come take a look at the master bath...lots and lots of cheap..er!

I mean expansive upgrades....What?

Oh the rope hanging from the ceiling...

That is where his wife hung herself due to the $50,000 in credit card debt...

But really no big deal...take a look at these Granite counter tops....nice huh!....

So what do you think???

( Please God just one sale Please God.........PLease......God)

Um......hhhhhheeeeeelllllloooo!!!!! where did everybody go??

Anonymous said...

"Have you seen the flash animation intro on the developer's website? Whoops, gotta run. Tanning salon appointment."

Anonymous said...

>> I recently re located to Minneapolis. The neighborhood where I live has approximately 25-35 homes for sale (12 block radius) and since October 2007 not a single home has sold. The same neighborhood also boasts about 10 foreclosures.

You chose pooooorrrrlllyyy...

Anonymous said...

Me as a realtor.... Ok, selling "homes" in 10 easy steps, using logic that will appeal to morons (i.e. 99% of the public):

1) God commands you to be rich.
2) Jesus wants you rich, too. And fuck, Muhammad, The Angel Moroni and that green Hindu thing with 6 arms says the same thing. "Get rich" say all the supernatural entities.
3) But God hates moneylenders. (Read the fucking Bible if you doubt this.)
4) And if you invest in any financial instrument you are, in effect moneylending. Do this and you are going to hell fast, sucker.
5) Therefore the only path to Heavenly Wealth is via Real Estate.
6) Good News: you can live in your investment! Get rich while avoiding rent.
7) Ergo, buying houses is the best way to both get rich and go to heaven.
8) Even Better News: the market has fallen. You can get those houses cheap!
9) Best News: you can constantly take money out of this Heavenly Investment. You can buy multiples SUVs with this money and tool your lard-filled ass around the hood, thereby showing everyone just how Rich you are.
10) Now just fill out this form. And don't worry about the fine print. Should anything ever go wrong, the government will bail you out with taxpayer money.

How's that?

Anonymous said...

"Buying a one bedroom condo like this is like adding more "flair" when working at your waitressing job a Chotskies. Now some folks around here use a little more flair, and we like encourage you buying a 600K condo and having more flair. You do like flair, don't you?"

Anonymous said...

the kool aid man takes a beating
tinyurl.com/2sbyjx

6% is for SUCKERS said...

Buy because I owe $45,000 for the rolling billboard with my glamor shot picture on the side. Please...Buy Now Sucker...Buy NOW!!

Anonymous said...

anon @6:22pm

Yes, the US dollar will decline relative to other currencies (which will also decline relative to oil/gold/whatever actual limited resource you choose).

It's as a sure a bet as can be that the Yuan will appreciate against the Dollar for example. As sure a bet as that the US was in a housing bubble in 2005...

Oh, and Luxemburg, Norway, Qatar, Iceland, Ireland, Switzerland, and Denmark all have higher GDP per capita than the US.

Ain't your average realtor said...

I am a bitchen realtor.I love to sniff panties in the dressor when I do open houses.One time I caught a client doing herslef with a 12" friend.God I love being a realtor.Where else do you get to screw so many babes?

Jennifer said...

Monkey see! Monkey do!

Flagg707 said...

Well duh, because Suzanne researched it.

Anonymous said...

WTF!!! My wifes nephew just got into realtwhoreness and has been pressuring me to buy a house. ONe house in particular that he keeps trying to pimp to my wife was asking 380K over a year ago, its in forclosure, and no they are asking 220k (I'm in Tucson).

He said make an offer, I said 140k tops. He said no way. Now he keeps calling me again saying housing is ging back up and we will be priced out forever unless we buy. I aint that fucking stupid. I told him wait a year and houses we be a dime a dozen. He thinks I'm full of shit but just look at Ohio. I have a friend who went to some auctions there and they are going for pennies on the dollar.

Az is overbuilt, no one has jobs, prices are crashing, yet he seems to think everyone nad his brother are buying up the good houses now and only shit houses will be available in the future. Yea...

Fucking idiot has no clue whats coming down the pipe... maybe he should put the pipe down...

Anonymous said...

Because if you by now it shows you have BIG BRASS BALLS!

Anonymous said...

Anonymous at 6:22

"Oooh yeah,
The great myth that people in other countries are better off then we are."

Rank Country GDP/capita Year

1 Luxembourg 102284 2006
2 Norway 79154 2005
3 Qatar 70754 2006
4 Iceland 62976 2006
5 Ireland 58883 2006
6 Denmark 57035 2006
7 Switzerland 56711 2006
8 Sweden 47069 2006
9 United States 45594 2006

(Wikipedia)

And sinking fast...

DC gal said...

free whine and cheeezzz for life! Oh and its WHOLE FOODS whine and cheeeezzzz so its organic.

Anonymous said...

Well they aren't making anymore land right?

Of course you're buying a HOUSE(which they are making lots more of) not land so ummm....

Hey look over there! Bunnies!

DaveO said...

Tell us why we should buy that depreciating debt-trap even though it's significantly cheaper to rent.

Several reasons:

1) It's a buyer's market, but hurry because it will be a seller's market soon.

2) Largest inventory on record, resulting in wide selection. The selection won't last forever!

3) Interest rates near historic lows; won't stay low forever; better hurry before they go up.

4) Renting is just throwing money away; why not use that money for the mortgage instead?

5) All real estate is local. The majority of markets in the US are still going up in price, not down.

6) 2008 should be the rebound year, especially during the spring selling season. Prices will bounce back and continue to go up at that point. We are at a bottom now.

Yes, none of these reasons are logical or sensible, but expect to hear them from realtors, the media, and their ilk.

Dali said...

anonymous
"Or are you just suggesting that the US dollar will be the only paper currency to decline and foreign currencies will somehow remain strong?"

Your currency is becoming fiat.
Hell, you haven't used cash for 50 years. Your all about debit and credit right from rag mama to the fed.
What's it, 14 trillion and counting now?

Anonymous said...

What do you think of the fractional ownership component, it is starting to pop up on a lot of highend home properties, example for 2MM you can live in a 12MM estate all taxes fees maintence paid for, you can live there for 2 months out of evey year.

Do you think this new idea will keep the prices up ?

Anonymous said...

"This unit is a steal at twice this price! They aren't making these anymore, NO SIRREE!!! They can't, The builder Folded.

Honestly, you have to buy this unit. I only have 4 packs of Ramen and one kidney left!"

RE Agent said...

It's a new paradigm, and everybody who doesn't buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $10,000,000 starter home in 15 years. They will live in tent cities, and Hondas.

This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.

christiangustafson said...

Keith, it's posts like this that make HP the essential bubble blog. Superb, sir!

Anonymous said...

America is the greatest country in the world. Foreigners put their faith in us and the real estate market won't get any cheaper. This is a buying opportunity. You should always buy on the dips. Come on, it takes courage to buy when other's are so pessimistic but this the point where you will make lots of money hand over fist.

Anonymous said...

God is not making any more land! If you are renting, then you are just throwing your money away!

Anonymous said...

because lereah said so.

Anonymous said...

I WIL NOT pretend I’m a realtor. There are enough people pretending already!

edd said...

Le scenario …
Tomorrow, or in a decade or so, the
weight of USBS will cause a 1200 km
tear in the Pacific floor that will shear through at least one undersea solid methane field,
causing sublimation of megatons
of solid methane(no,not meth)
into tropospheric vapor.

This might result in detonations
on the gigaton scale, but at the
least, it would turn the current
global warming crisis into
something closer to Waterworld.
[cue 'Night on Bald Mountain']

Then dry land and dwelling prices would spike into the methanized stratosphere, payable only in food
and weapons.

Got cammies and flint ?
Where's nuclear winter when
you need it ?

average joe said...

check out this link

http://www.greenmarkinvestments.com/wholesale_homes.htm?page=6&pagegroup=1

50 cents mansions asking price is 12MM ? I thought he was asking 20MM for it.

Now that site is a wholesale homes site, do you get a 50% discount when you buy homes at wholesale ?

If you buy a mansion for half off can you live in it ?

Anonymous said...

Rank Country GDP/capita Year

1 Luxembourg 102284 2006
2 Norway 79154 2005
3 Qatar 70754 2006
4 Iceland 62976 2006
5 Ireland 58883 2006
6 Denmark 57035 2006
7 Switzerland 56711 2006
8 Sweden 47069 2006
9 United States 45594 2006

(Wikipedia)

And sinking fast...

------------------------------

Oh please.

Norway and Qatar's current wealth is due to oil a $100 as both are huge exporters of oil. Switzerland and Luxembourg have always been at the top of this list. Both are little more than a safe haven for money laundering. Their combined GDP is smaller than most US states.

Iceland? OK sure whatever. If I want to live in ten below weather I'll pack up my bags ASAP. Ireland? Can you say housing bubble twice the size (relatively speaking) of the US housing bubble? Their 2006 GDP was all built on housing. In 2007 and 2008 those numbers will drop by huge amounts.

Stop listening to all the dailykos loons out there and do a little thinking for yourself.

randy said...

Dali said...
Your currency is becoming fiat.
Hell, you haven't used cash for 50 years. Your all about debit and credit right from rag mama to the fed.
What's it, 14 trillion and counting now?

1)Dali, is yo mama a llama?

2) Behind the greenback there is a force called,
Creativity, Productivity and a drive to succeed.

3) The fossil fuel deposits underneath your dry land and underneath your Self-destructive societies, is being drained by your rulers, and the proceeds are used to keep you down.

wc said...

In NYC realtors are telling people that Europeans are ready to buy - after all they're 1/2 price for someone with Euros. They're also telling people they can cash out and move to the suburbs where things aren't moving and there are bargains to be had. To a certain extent there is some validity to this - but I am starting to feel NYC slipping a little. Friends that live there are no longer living under the illusion that their homes are worth as much as they were a few years ago. Also while the suburbs are still cheaper than the city - there is not as much of a windfall if they want to live in the nicer communities in Westchester, Long Island or Jersey. I'm not sure if they just haven't done their homework or what but some of them are moving into areas with mediocre to bad schools - which is fine if you have no kids but does little for resale value. Also history has a tendency to repeat itself. In the 80's the Japanese bought up NYC real estate just before it tanked. Let's see what happens to the Europeans in the 00's.

Anonymous said...

ICEMAN,

"Since you are visiting this place today, I could tell your a person of great intelligence".

$600,000 is a bargain for this place, imagine all the wonderful parties you could have here.

There is plenty of available parking (only 6 of 300 units sold)
and what an excellent view!! (drug dealers and hookers in background)

This area is booming there is no crash.

Nonsense, of course it is affordable and you can always refinance in a year.

(Client starts walking away.....)

WAIIITTT!!!!
THE CHINEESE ARE GOING TO INVADE US IF WE DONT SELL 4 MILLION HOMES THIS YEAR. BE AMERICAN DO YOUR PART FOR YOUR COUNTRY, THERE IS GOING TO BE AN ANNOUNCEMENT IN 45 DAYS SO YOU HAVE TO ACT FAST BEFORE HOME PRICES GO UP!!!!

PLEASE PLEASE PLEASE YOU HAVE TO BUY NOW OR WE WILL ALL DIE.!!!

MY ASSISTANT BLOWFLY WILL SUCK YO @@@@!!!!!

Anonymous said...

In response, the US used to be ranked
first or second in gdp/capita, and the reason it's ranked ninth NOW has much more to do with the weakened dollar vis-a-vis other currencies rather than who's sitting on oil, etc. The dollar index has declined 38% since 2002 (63% against the EURO).

Don't know what the future will bring, but that's where we ARE.

Not sure what dailykos has to do with it, karnak.

Anonymous said...

Which country is $9 trillion in debt? Soon, we will be just like the FB's and the entire country will default just like Brazil and Argentina did in the 1990's. We will become a banana republic where people carry around bundles of $5000 bills to buy groceries and there will be little personal credit. Who's fault is it? Mostly the lenders who gave credit to deadbeat ghetto and trailer park trash so they could move into flimsy McMansions and buy a bunch of plasma TVs and other assorted crap. What do you expect to happen when you give heroin to loser junkies?

Anonymous said...

Fractional ownership? They have a name for that; Its called a timeshare, and may be the only market more in the dumps than housing. On most of them for the annual "maintenance fee" alone you could stay in a nice Best Western for a week and not have the loan for the inital purchase.

bob said...

Tell us why we should invest in .... stocks, bonds, currencies, commodities, cd's or any other asset class.

Because there's not telling what will happen to thse (possibly excepting the CDs) with everybody saying we're going to hell, but nobody agreeing on whether we're going to inflation-hell or deflation-hell.

Admittedly they will all do better than real estate near term.

But here's a funny thought - if we have a hyperinflation, what is the hedge against that - perhaps a house?

Nah! That would be crazy. (Disclaimer: EVERYTHING IS CRAZY! I'M CRAZY!)

bob said...

My wifes nephew just got into realtwhoreness

Wow, what a great career move.

Actually I like it - I bought a house in 11/2005, now I know of somebody who has worse timing than me!