Atlanta REI

Friday, June 16, 2006

Stick that in your pipe and smoke it!!!!!!

Climbing interest rates and cooling speculative demand is putting pressure on the housing boom, but as long as jobs continue to be created and builders curb production, the sector will experience a soft landing, according to Harvard's Joint Center for Housing Studies.

"Strong household growth, combined with record incomes and wealth, will lift housing investments to new highs next decade," Eric Belsky, executive director of the center, said in the news release.

Two quotes from an article published on the RealEstateJournal.com http://www.realestatejournal.com/buysell/markettrends/20060615-hoak.html

I love the nay sayers who have posted comments on other real estate investor's blogs. You can hear the jealousy in their comments. They are mad at the world or disgruntled because life just isn't fair. I ask why would someone find it compelling to post a negative comment to someone's blog slamming their success? These are probably the same people who expect the government to take care of them.

The way I see it is if you are investing in real estate for the long term you will do just fine. Any person who bought a property just in the hopes that it is going up 20% next year and thought they were going to sell it aren't investors. I call those people speculators. I know investors who have been buying and selling houses since the seventies. They survived unheard of interest rates, gas shortage, and three economy collapses. Today they are very wealthy and doing just fine. Why? Well I guess all you nay sayers will just have to sit back and watch to find out as I continue to buy houses below market value, fix them up, and hang on to them for LONG TERM appreciation. Oh, and I only assume an average appreciation of 5% per year in my models.

3 Comments:

  • Exactly. I've talked to family members, friends, and co-workers - almost ALL of them point out the negatives of RE investing, and never the positives. They'd rather talk about how tenenats will trash your place than talk about the cashflow you're receiving each month, and the tax advantages at the end of the year. They'd rather talk about the insane risk of putting a few thousand $$$'s down for a property than inquire how much net profit you expect to make on the backend.

    Fortunately, in almost every case, you can choose to listen to them or ignore them. I always choose the latter. It's funny, but one friend in particular (whom I've dicussed on my blog more than once) STILL only sees the negative no matter how much I've tried to get him to see the positives.

    RE will rise and fall - it's all apart of econimic and other cycles. It's a part of doing business. Will we see 20%, 30%, 50% or more drops in market values across the board? No. If we were to see that, this country would implode on itself given all the other factors in our economy, and RE would be the least of our worries.

    By Blogger Steve, at 5:59 AM  

  • AMEN BROTHER! :))

    By Blogger Dunwoody, at 2:42 PM  

  • You guys are nuts. Real Estate will collapse...just kidding! ;)

    I see these kinds of comments on my blog all the time. In weak moments of self-doubt, I let them get to me, but now I just shrug them off. That said, I do believe the market will flatten it's appreciation curve, which is important not to ignore, and that information is valuable in deciding what rehab projects to choose, and which ones to avoid.

    By Blogger Seattle Eric, at 9:48 AM  

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