British Columbia Housing Blog: Housing, not a good place for your money. - US

Saturday, January 27, 2007

Housing, not a good place for your money. - US

4 comments:

Anonymous said...: This guy is the Portfolio manager of PIMCO .... then I will never invest in what he manages ...
Are you serious Rent rather than own ... That fact makes no sense, even with a 10% interest rate.

Rent is money out the window, plain and simple!; January 27, 2007 at 8:54 p.m.
Uncertain Buyer said...: Buying an over-priced house is money out the window as well, especially in a declining market.

You currently can rent for a lot less in this market then buying. Not to mention the cost of all the interest, tax's and upkeep of a home.

RE has the potential to crash and it has in the past. The Vancouver Market has been slightly declining since last summer. This tells me we are at the top of this market cycle.

RE has only appreciated, at best 5% per/year. This is only due to the last few years having unusual gains. If omit the last few years it would probably be more like a 2-3% gain per year. So an investment returning 10% would put you way ahead. At this point in time putting your money into an investment, other than RE is far more prudent. As this Money Manager has obviously done. He sold at the top and will buy again at the bottom.

I am in a position where I could buy right now. I sold my house a couple of months ago, which I have owned for quite a few years.

I will be renting for awhile until the market regains it strength. I don't feel confident there will be anymore gains, I am actually seeing RE declining.

We had an extreme run up in RE the last few years. RE increased far greater than normal appreciation in a short time. It is now at a point where it is unsustainable.; January 27, 2007 at 9:33 p.m.
Uncertain Buyer said...: On a million dollar home 20% is $200,000. Not bad in my book. Plus he would have invested his gained equity hich will be making more money. In the end he may end up with an extra $250,000 in his pocket.

Hard to say though, this year will tell a lot about how badly the RE Markets are going to decline.; January 27, 2007 at 9:52 p.m.
wizardofozziejurock said...: anon said: "Rent is money out the window, plain and simple!"

Well, then interest payments are money out the window, plain and simple!

The problem is that these matters really aren't plain and simple. But continue to believe what you will.; January 27, 2007 at 10:16 p.m.

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