patrick.net

I just invested more money into my mutual funds and my 401k. I will add more this year.

Knew too many people (boomers) who lost their ass in both real estate and equities either because they timed their exits wrong or through blind faith/insouciance. I never really understood the American obsession with either, and for the most part, invest in what interests me. I have a 401K and some other crap, but I never look at it.

Investments to date: my wife's career; artwork; rare auto parts; rare hi-fi/recording components/parts; running shoes.

Oh! and I just paid my taxes for the year, so tack that on as an investment in the country. Huzzah!

Austinhousingbubble says

Investments to date: my wife's career; artwork; rare auto parts; rare hi-fi/recording components/parts; running shoes.

You should try the bacon of the month club for your parents.

http://www.thepignextdoor.com/bacon/traditional.html

Excellent investment as well for that old maid aunt.

I hear you Roberto. Most of the good stuff has dried up. Lots of SFH still available in central phoenix/south mountain though. But I'm still skeptical about buying rental properties now that the government is on their way to that foreclosure-to-rental conversion plan. That's going to dump a ton of properties onto the market when it hits and (most likely) drive down rents.

EightBall says

You should try the bacon of the month club for your parents.

http://www.thepignextdoor.com/bacon/traditional.html

Excellent investment as well for that old maid aunt.

never touch the stuff.

I just realized that the stocks I bought last year doubled in value this year. LOL.

APOCALYPSEFUCK is Tony Manero says

Just freeze-dried my third ton of potatoes.

Restored a Vietnam-era flame thrower.

When cannibal anarchy hits, I'm going to be rich in what matters: durable foodstuffs and ordnance.

Hahahahahahaha..

Homes and condos will drop another 30-50% in the west. One year of slight increases in prices when the Fed is spending trillions to temporarily keep mortgage rates way too low and unsustainable is not a trend. When rates return to fair and are market driven, home prices will collapse again. It's coming.

Just checked trulia. 18,617 foreclosures on the market (auctions and bank owned only) better buy quick. LOL Total boom coming.

roberto,
You really think it's a bad idea for an outsider to try to invest there? I was just briefly looking at 4-plexes and more on redfin in Phoenix, and it seems like the numbers are great, but it worries me that they almost seem too good to be true. Wouldn't it be possible to find someone out there to help guide me to areas that are ok, or is that unrealistic?

bubblesitter says

I just realized that the stocks I bought last year doubled in value this year. LOL.

bubblesitter says

I just realized that the stocks I bought last year doubled in value this year. LOL.

The problem is the stock market can fall harder and faster than the real estate market.. look at 2008. On the other side of the coin it can rise just as fast also...

The thing is..if your predictions of another 40% drop in the housing market come true... The stock market is going back to 6000 or below... People predicting higher interest rates should know people will flee the stock market in mass numbers in the coming years... if interest rates rise.

Boomers won't have any equity left to tap from their homes, so they will quickly start withdrawing in large quantities from their 401Ks for basic necessities... Right now they are still funneling into the market because there's no where else safe to put their money.

This will change if housing crashes again... and interest rates rise... It's like a see saw.. .right now we are back close to 2007 stock market highs... as if everything is magically better.

swilliamscc says

When rates return to fair and are market driven, home prices will collapse again. It's coming.

And the stock market will crash around that time too... People think low rates are just helping the housing market... Low rates are the only reason the stock market is back close to peak levels too!

Ok people the 'when rates rise' question is a joke. They wont and cant raise rates. Interest on national debt would destroy the empire.

I predict rates will be super low like this the rest of our lives. Like Japan.

The FED will raise THEN lower the rates just enough to churn the loanowners into one refi after another to extract the maximum in banking fees from the debt sheep (see last 30 years of rates see sawing up and down but always down even more).

Roberto is gonna do very, very well because he knows his farm and manages them himself.

Los Angeles Owner says

The problem is the stock market can fall harder and faster than the real estate market..

I sold my stocks,now try selling your house. :)

Wow, cheap taxes, and lots of home for the money, hard to find in my area, having some larger rentals is not bad at all, if you price em just right your always going to have tenants.

I have 3 houses rented out in Gilbert that I bought between 2002 to 2004. Each one started out as my primary residence and when I bought the next one I rented out the old one. The market in AZ started going crazy in 2004 so I stayed put in the 3rd house until two months ago when I moved into my 4th and started renting out the 3rd. The rentals are all about 10% underwater now, but for each one the rent covers the total mortgage,insurance,tax,HOA & prop manager so I'm not worried about them being underwater. Each rental is 3bed/2bath ~1700sf in nice residential areas and I get between $1200-$1400 rent. Each time a tenant has moved out I've found another within a week or two.

In hindsight I should have sold them near the peak, but hindsight is 20/20. I agree with Roberto that at today's prices, you can't go too wrong when the mortgage is $600 and the house rents for twice that.

What a coincidence. When I was new to the game. I liked to exaggerate. Saying I bought so many houses. When in fact it was not true. Trying to inflate the market. I thought it was a good idea of course. However buying 10 over the course of time (the good times). Might have Ment at the present time. I really bought one and had one under contract. Hard cash dosen't always mean its a good deal of course they loose out to. Yet to be bent over the closing table. (its the HARD part in HARD cash.). Inflated markets just not going to happen of course. Keeps going south day after day.

I watch as Zillow and Trulia try to inflate the market every once and a while. Investors are fast fish sometimes learning by osmosis. I know some really smart ones. Then again I've seen some really transparent ones.

One more time rates are bullshit. Its the amortization.

Real Esate is an interesting game. All the boys I know. Some well known big boys. They aren't doing as much as one would think. Anything a investor hates is equity loss. Especially on a turn, making payments. They payments cause jitters. Mostly the experinced don't care and wait for the landing.

ArtimusMaxtor - MasterPP your hometown investor rapper.

One more point. If you aren't paying cash, you are renting from the bank. Stop saying I own. You don't own a thing until the bank can't take it from you for missing one payment.

$500 a month in expenses and nothing put aside for repairs. Only makes money because you are doing the work yourself. Sounds like a bad investment to me.