Comments on: The National Housing Survey and the real estate bear market A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: JeremyOlm Mon, 16 Sep 2013 04:00:22 +0000 This comprehensive guide is definitely worth a read to help clarify any doubts pertaining to the issue of homeownership. Some homeowners have a tendency to just follow others or the current trend. If their friends or relatives have invested on a property, then they would just follow suit without much prior research on the subject. That is why it is always important to seek advise from a credible estate agent who can provide credible information in regards to the ongoing property market and whether or not investing in a property at that moment of time would be worth the money.

By: AlbertSparks Mon, 25 Jul 2011 04:01:28 +0000 When making investment, it is important to go to a company that has built a strong, continually evolving management, brokerage, and leasing organization which compliments its development and investment activities – one that has a good e-commerce system or EPOS system. They must have completed real estate projects with a reputation of experience, market knowledge and timely response, supported by a state-of-the-art reporting system.


By: MathieuBCN Tue, 12 Jul 2011 07:49:40 +0000 Yes, surveys continue to show that 86% of Americans believe that they are better off owning than renting. Home ownership reinforces family stability, responsibility, asset-building and self-esteem. Homeownership gives families a “stake” in a community, and thus, builds stronger communities. Homeowners live in a community four times longer than renters. Moreover, home ownership helps communities with public benefits such as increased tax revenues, greater private investment, and stronger and safer neighborhoods. Home ownership creates economic impacts for transaction-related jobs, sales taxes and property tax revenues. I guess this is why home ownership need not always bring about negative economic and social impacts to a country. Nevertheless, the market for apartment renting is on the rise; there are numerous companies set-up to offer conducive apartments in Barcelona, China and the united States especially.


By: FriendsRomans Fri, 16 Apr 2010 00:40:54 +0000 Investors wouldn’t buy homes and condos to rent if it were unprofitable to do so. In DC, investors are buying up inventory because with 20% down, almost any purchase nowadays is rent-able for decent profit. My home returns around 12% per anum — about half of that in cash, the other half in principle paid by others. This number will only grow each year, on average.

As far as homes still being overpriced — it’s true. But his argument that the market MUST capitulate is wrong. Here’s why —

The high number of underwater mortgages will buoy the market for years and years. Yes, many will continue to default, driving prices down, but most will not. These people who can’t afford to sell below a certain inflated price point apply upward pressure to the market. And fewer homes on the market as a result of 25% of mortgages being underwater decreases supply, redoubling this effect.

The foreclosure rate is at a historic high near 0.6%, but the 25% of borrowers who are underwater and making payments will keep the prices above historical averages for years to come, even if some potential buyers are priced out of the market as a result.

Welcome to a long flat market period, followed by a bull market. Buy now, before he starts charging. In DC, prices for single family homes are already trending upwards, year on year to the tune of about 5%.

By: ezra567 Wed, 14 Apr 2010 03:43:12 +0000 this whole thing is so simplistic
what about maintenence costs on house esp here in NE, with older stock, this is lot of money
here in newton MA, with $$ homes, a house, triple net as they say, doesn’t cost more then an apt, for what you get.
i have a yard that the kids love to run in, a great k5 school down the street, space to store grocerys bought cheap in bulk on sale, etc

has anyone noticed that population is going up ?
the most intelligent post is the person who noted tht surveys like this are stupid – someone calls you up when you are in arush getting dinner ready and you answer a unch of stupid questions, often from a person with a strong accent, hard to follow.
why is the psychological desire to own a home not a valid thing of value ?

By: tamarah3 Mon, 12 Apr 2010 03:43:16 +0000 Your experience renting must be very different than ours.

We are renting again after having owned a house, sold it, and then moved. We can’t wait to buy another house. It is such a better deal for us. In this rental, which is very cheap, we can’t put up a fence to keep our children out of the street. We’re not allowed to paint the interior. We aren’t allowed to hire pest control to come and spray for bugs. We are allowed to have a cat because we pay extra money. It’s not OUR HOUSE.

We are currently in the process of buying our next home. It’s 700 sq. ft. bigger and will cost us the same amount as our rent. Only that will be mortgage, escrow, taxes, and HOA. For the same dollar amount every month. The first things we plan to do are remodel the bathrooms and change the windows. Which we can, because we’ll own it.

Renting is not the end of the world. But it definitely gets in your face every day that where you live is not really your place.

By: TFF Sat, 10 Apr 2010 23:46:47 +0000 There are two fundamental distinctions between owning a mortgaged home and renting. First, the cost for a fixed-rate mortgage will never increase. This offers a level of cost-certainty that renters do not enjoy. Second, a mortgage is for 30 years. Renting is forever.

Paying cash for a house is a terrific idea (and reduces your financial risk), except for the slight problem that most people need to save for decades to accumulate that kind of capital. And it makes more sense to take a mortgage (as long as you can afford it) than to hope your investment returns will make up for the profit your landlord is making.

Buy when you need the house, and when you can afford it without risk. If you can’t come up with a 20% downpayment, or if your ownership costs are greater than what you would be comfortable paying in rent, then you probably are taking on more risk than you ought.

By: davejones Sat, 10 Apr 2010 18:43:05 +0000 The idea that you “own” a home when you take out a mortgage is the source of all this psychological misunderstanding.

The idea of “owning” something has been, and will always be, appealing to people, and rightly so — it implies that the thing is yours to do with what you will, and no one can ever take it away from you. That’s pretty appealing when you’re talking about a basic human need, shelter, that you need and always will.

The problem with “owning a home” via a mortgage is that it’s not really ownership in the sense most people think of ownership psychologically. People with mortgages are still renters, it’s just they rent the money to buy the house instead of the house itself. The their financed house is hardly secure.

If the discussion here were about owning a house in cash vs. all the other options, people’s opinions wouldn’t be so misguided. It’s the trickery of calling a mortgage “owning a home” that’s the source of all this misconception.

By: TFF Fri, 09 Apr 2010 00:15:56 +0000 I don’t live in NYC and I’m not in the market for a million-dollar anything, but then neither are most of the people in the survey.

In most places, at most times, it has been possible to buy a home with a 20% down payment for an initial cash flow that is at worst 25% greater than the cost of renting a similar property. Pay that mortgage for 30 years and you own the property free and clear, and can live rent-free in retirement (or cash in your equity and move to Florida). Run the numbers and you will find that this is the rough equivalent of an investment plan that returns 4% above inflation after tax.

Now consider the investing savvy of your typical household. Doesn’t that return look pretty good? You might be able to beat that in the stock market — but not without substantial risk. Owning your home is as low-risk as you can get, as long as the cash flow is not substantially worse than what you would be paying in rent anyways. Make the payments for 30 years and you will have a low-cost place to live in retirement. Guaranteed.

Of course it all comes down to price. It wouldn’t surprise me if the NYC market were still insane, as many markets have been for the last six or seven years, but it is likely that most of the people surveyed did not bother to carefully price their market before responding. Most places, most times, owning your home is a sensible and low-risk savings plan.

By: usabda Wed, 07 Apr 2010 19:49:59 +0000 >>I think what we’re seeing here is a mindset utterly conditioned by the massive, decades-long bull market in housing.>>>

No, what we are seeing is a mindset utterly conditioned by decades of government subsidies of home ownership…