This is what will eventually stabalize the housing market..

[bokworker]

came across this article and wanted to share it. With market returns on fixed income investments so low a 10-15% return on rental properties looks pretty good. The repricing process is painful but eventually the money goes to where the value is...

http://realestate.yahoo.com/promo/vulture-investors-are-back-and-making-a-bundle

[nathanm]

came across this article and wanted to share it. With market returns on fixed income investments so low a 10-15% return on rental properties looks pretty good. The repricing process is painful but eventually the money goes to where the value is...

http://realestate.yahoo.com/promo/vulture-investors-are-back-and-making-a-bundle

Wonderful, a new bubble.

[bokworker]

Wonderful, a new bubble.

How do you figure that is a new bubble? Is investment in any asset a reflection of a bubble? The article pointed out that returns were based on cash flows of rents and assumed no price increase in the underlying asset. People have to live somewhere and frankly, this si the first time in a while that owning a house can be more financially prudent than renting... that's not a bubble.

[waterboy]

I wish they hadn't used the perjorative "vulture". In fact they seem to be performing a necessary function.

[nathanm]

How do you figure that is a new bubble? Is investment in any asset a reflection of a bubble? The article pointed out that returns were based on cash flows of rents and assumed no price increase in the underlying asset. People have to live somewhere and frankly, this si the first time in a while that owning a house can be more financially prudent than renting... that's not a bubble.

Everyone rushing headlong into one particular class of asset is a bubble. We've seen quite a lot of them in the last decade.

[Hawkins]

The housing market...   

I'm not an expert on economics, but something about this graph just doesn't look right:

http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp

How much lower can rates go? I think we are heading for another huge economic downturn.

We were a growing economy driven by credit-cards and rising property values. Now that both are gone, I fear the worst is yet to come.