The Housing Market

If you have been speculating in real estate, there’s a good article to read over at Fortune.com about Tom Barrack,”The King of Real Estate.”

Then Barrack launches into a parable. “I feel totally safe playing polo on a field full of pros,” says the bronzed 58-year-old. “But when amateurs are all over the field, someone can get killed. They have more guts than brains. They charge after every ball and don’t know when to hold back.” It’s the same with the U.S. real estate market right now: “There’s too much money chasing too few good deals, with too much debt and too few brains.” The amateurs are going to get trampled, he ex

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2 Responses to The Housing Market

  1. Emtpy Spaces says:

    actually he’s talking about commercial investments. for the most part residential should be a safe bet IF you can cashflow with 5% down and a long term fixed rate loan.

    I’m getting 16% to 40% return on my Cash through some of my investments.
    http://moneyshaker.blogspot.com/2005/10/living-off-dividends-or-how-to-invest.html

  2. A guy says:

    “for the most part residential should be a safe bet”

    Your kidding me! Let’s see here, the price of housing has skyrocketed nationwide, whilst incomes have stayed flat or declined, and the price of energy has rocketed too. Hm, and considering how energy drives everything, and how low priced oil has given us historically low cost of goods, so maybe the cost of goods will be rising very soon. Do you really think these high housing costs are sustainable in this equation?

    Oops, just checked with my real estate agent. The house we just sold, he estimates, has just retreated in price about $15k, based on an analysis he is doing for another client, that’s 3% in one month!

    Bubble? Nahhhh :)

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