Rents During The Depression
Does anyone know what rents did during the Great Depression? We all know that property values dropped, but did rents do the same? If so, by what percentage?
Does anyone know what rents did during the Great Depression? We all know that property values dropped, but did rents do the same? If so, by what percentage?
I have my rifle and plenty on ammo. LOL
I always said that the man with the gun was the last to go hungry
If you followed the dotcom boom and bust, or for that matter Dutch speculation in tulips, you would have to expect a correction is coming--the euphoria of profit starts to suck in the uninformed masses hoping to make quick money. The same kinds of things can be seen in real estate, in my opinion--rapid appreciation, speculation in markets such as Florida, "new-fangled" mortgage products that help feed the fire. There will almost certainly be a correction.
If so, where to invest? I have thought about selling off some of my real estate and keeping the proceeds in cash or paying off/down other mortgages so that I can squirrel away money to use post-downturn to buy up cheap real estate. If I had had a few thousand spare dollars during the RTC scandal I would be quite wealthy today. Washington DC real estate was going for pennies on the dollar (OK, maybe 50, but pennies). It has now appreciated ten fold in about ten years.
Of course, if you think the bottom is really going to fall out, buy gold and lots of canned goods and a few acres in the hills with its own fresh water supply...
I pray for a RE crash.
The investment opportunities would be tremendous.
[addsig]
i will kill myself[ Edited by ryand on Date 03/11/2005 ]
1. Pay off mortgage on my home, so it is free and clear.
2. Read really fast and hard about farming and raising my own chickens... (think Great Depression)
3. Wait for the home prices to hit rock bottom, and start scooping them up, and renting them out (people will have lost jobs, losing jobs for most people means no roof over head any more, must rent!!!)
4. Enjoy life on the farm....
5. Milk some cows while waiting for market to recover
6. Upon recovery, sell off some of the rentals and RAKE IN THE MOOLAH!!![ Edited by LadyGrey on Date 03/11/2005 ]
Oh yeah,
http://www.latimes.com/business/la-fi-econ15mar15,1,5627030,print.story?coll=la-headlines-business&ctrack=1&cset=true
Very interesting.
Newsweek has been putting out some interesting articles regarding the dollar as well. Put these two together, plus Greenspan retiring and we may have the workings of a bubble burst.
Regal,
With the decline in the CA market - who got hit the hardest? Did the investors start to sell fast or was it single homeowned that started to worry and wanted out?
I would figure if you did it right (maintain cashflow) you could have weather the storm.
Hi Hoober.
Yeah, if it cashflows ok you can hold for the cycle. I would think that if you owned for, say, 4-5 years, you could do ok. The problem is if you ever need to sell during the downward trend of the cycle.
If you bought an investment property with a negative, neutral, or even small cashflow in the last year or so, you might seriously consider selling if you think the market is turning.
Great stuff guys. Regal - thanks for the info on how it may go down. Very helpful
Hi Jesse,
I see you are new to TCI,........first of all welcome.
Secondly, it would do you well (as well as many others that post messages in this forum)l to read what each forum is for.
Random Ramblings is for everything EXCEPT real estate.
I suggest you post this in the proper forum in order to get the best answer for your situation.
warm regards
NC
In that case, the answer to your question is definately, maybe.
If you sell - where will you live?
If we were to sell our condo we would end up renting a 3br house for less than our curent mortgage until prices went down. With that info, any advice
Good point Ron - you will drive yourself crazy try to time the market. Go find your next good deal.