When Will Housing Market Bottom?

By: Frugal Millionaire Monday, June 30, 2008 7:03 PM

Article Author

Bio and Articles
Author's Website

Vote for next session

The next market session will close:

Ed Ross who just had a book “Forecasting for Real estate Wealth: Strategies for Outperforming Any Housing Market”, is saying that NOW is the time to buy and jump back into the housing market. It is my personal opinion that anyone claims such given the preponderance of evidence against him or her is just irresponsible. Yeah, housing prices always go up if your investment horizon is to hold it for more than 20 years. Oh no, 20 years was not a typo.

Home as an investment vehicle is no different than any other kinds of investment, subjected to considerations of risk versus return. The best advantage is obviously that it affords you the leverage power of 5X to infinite X (if you put zero down, or even doing 125% financing) without the danger of getting a “margin call” (until you cannot make the mortgage payment). As I have explained in “Leverage: the secret of making big money”, those are the major reasons of why your home could be your best investment.

Bookmark:
Email
Print


7/3/2008 12:47:34 AM your call by Steve Dice I think your call on the bottom, is right on the button. And August 2006 is right on to..Thats the month and year I dumped my stocks and focused on precious metals...Im very pleased I did. Reply Rating: (0) (0)
7/3/2008 12:47:55 AM your call by Steve Dice I think your call on the bottom, is right on the button. And August 2006 is right on to..Thats the month and year I dumped my stocks and focused on precious metals...Im very pleased I did. Reply Rating: (0) (0)
7/7/2008 6:16:46 PM Aren't you just guessing? by Mark Seems to me like you're just using the old addage ('RE cycles are 7 years long'). 2006 + 7 = 2013. Not exactly rocket-science. Now, you might be right in the end, and time will tell, but this country might not recover if we drop another 15-20% from the current levels. Perhaps it's not so bad to be purporting 'a good time to buy' rhertoric purely to avoide, or minimizing the negative psychology our country is 'seeing' in the media/news, which is only perpetuating the length and severity of the downside. Do you want to be 'right' or do you want to help point this country in the right direction? Be careful about creating self-fufilling prophecies, because while you might be right, you'll be the last one standing on the top of the ship's deck as we ALL go under and drown. Not what we should be rooting for. Just one man's opinion. Reply Rating: (0) (0)
7/3/2008 12:47:34 AM your call by Steve Dice I think your call on the bottom, is right on the button. And August 2006 is right on to..Thats the month and year I dumped my stocks and focused on precious metals...Im very pleased I did. Reply Rating: (0) (0)
7/3/2008 12:47:55 AM your call by Steve Dice I think your call on the bottom, is right on the button. And August 2006 is right on to..Thats the month and year I dumped my stocks and focused on precious metals...Im very pleased I did. Reply Rating: (0) (0)
7/7/2008 6:16:46 PM Aren't you just guessing? by Mark Seems to me like you're just using the old addage ('RE cycles are 7 years long'). 2006 + 7 = 2013. Not exactly rocket-science. Now, you might be right in the end, and time will tell, but this country might not recover if we drop another 15-20% from the current levels. Perhaps it's not so bad to be purporting 'a good time to buy' rhertoric purely to avoide, or minimizing the negative psychology our country is 'seeing' in the media/news, which is only perpetuating the length and severity of the downside. Do you want to be 'right' or do you want to help point this country in the right direction? Be careful about creating self-fufilling prophecies, because while you might be right, you'll be the last one standing on the top of the ship's deck as we ALL go under and drown. Not what we should be rooting for. Just one man's opinion. Reply Rating: (0) (0)

Post Comment

Name:

Alert for new comments:

Your email:

Your Website:

Title:

Comments:

The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.

Related Stories