Nothing terribly memorable on the Fox shows this AM.
Jim Rogers never said "balderdash" :>(
On Cashin In, real estate:is it a bubble was discussed for the 257th time.
This week's real estate junkie made the usual arguments in favor of taking all your money and using it to buy all the properties you can, using interest-only mortgages, because your income will go up over the years and so will the value of the real estate, so why not?
I exaggerate a little, but only a little. The usual answers were given, that sure, if your income keeps rising, and the property values rise, it will work out, but what if either of those things doesn't happen.
It got me to thinking--I know a few people who have "flipped" vacant lots around here for 50% or more profit in a few years, as well as people who have sold homes for similar gains (or even bigger ones) in only a couple years. Again, if your income and home value go up a lot, it doesn't matter what you do--interest only, high down payment, low, whatever--you're gonna do okay.
The whole thing reminds me of nothing so much as the Nasdaq in 98 and 99--go long anything, and you look like a genius. Just don't be margined to the hilt in March 2000 . . .
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment