Comments on: DB: Home prices have more to fall

By: grim

grim — Wed, 17 Jun 2009 15:49:57 +0000

New thread, up!

By: JayB

JayB — Wed, 17 Jun 2009 15:46:46 +0000

So Deutsche Bank says, “Financial firms have cut more than 183,000 jobs in the Americas in the global credit crisis, driving down prices and rents in the New York area.”

And Wall Street Journal says, “The Labor Department says financial-services firms shed 30,000 jobs in May and have lost nearly 600,000 jobs since December 2006.”

That’s the problem with statistics in the news and why I never really believe them. WSJ at least cites the DOL. Where does DB get their 183,000? There’s a huge gap there.

By: goonsquad

goonsquad — Wed, 17 Jun 2009 15:46:45 +0000

To those with experience, what’s a good rule of thumb for maintenance expenses on new construction? Would 1.5% of purchase price per year be about right?

By: Stu

Stu — Wed, 17 Jun 2009 15:42:18 +0000

Julia,

Seems not to be a good deal to me at all. Especially with that location. I too am no expert though.

By: skep-tic

skep-tic — Wed, 17 Jun 2009 15:34:03 +0000

I saw a fat middle aged dude on the beach last weekend wearing those tight euro bathing shorts. he had a smoking hot mid-20s trophy girlfriend with him.. made me wonder whether she had played a joke on him by convincing him to get dressed like that. might just have been french though.

By: Julia

Julia — Wed, 17 Jun 2009 15:33:04 +0000

To [163]

The rental income of 5K is from two apartments. We are not planning to live there in the near future.

Julia

By: Al

Al — Wed, 17 Jun 2009 15:33:02 +0000

anyways,

Disclaimer:

I have no idea what I am talking about.

I only operate with high school math.

If RE investment needs more complicated models than compound interest and percentages to calculate why it is going to make money – I think it is not going to make money.

I have never invested in RE in my life. (except in stocks).

Enough real estate advice from somebody who has never invested in RE due to being too chicken…

I am off for the day.

By: Al

Al — Wed, 17 Jun 2009 15:28:02 +0000

Julia says:
June 17, 2009 at 11:18 am
[105] continued.

We are able to get the house for 700K. The tax is 15K. Monthly rental income 5K.

Al, Stu, 3b
I would like to know your opinion.

Is it for both units?

Or for one and you will live in the other?

Do the math.. at 6% loan 42,000 Interest + 15,000 taxes = 57K/12 – 4750/month.

so you will have 250$/month to pay for … insurance, repair, rental fee’s if you going to use realtor, I am sure I am missing quite a bit here as well.

how much is insurance for a rental? how much is umbrella liability insurance?

But what do I know – I do not own any rental because every time ai look at the prices they just do not make sense to me.

and most importantly how long can you carry on paying this 4750$ if you get no rent – ???

By: Al

Al — Wed, 17 Jun 2009 15:19:44 +0000

On the right side of Site’s main page there are tax tools. – you can check tax records, notices of sales and lot records. Check who is the deed owner on he house for rent. Lease should be signed between you and the deed owner of his official representative.
County clerk offices would have up-to date info. For small builders info and registration you need to go to http://www.njba.org/. and so on.

I also asked realtor who placed couple of offers for me to check sales history on the house, and also check GSMLS for the owner’s name/company name – to see if he has other significant assets besides the house.

By: Julia

Julia — Wed, 17 Jun 2009 15:18:23 +0000

[105] continued.

We are able to get the house for 700K. The tax is 15K. Monthly rental income 5K.

Al, Stu, 3b
I would like to know your opinion.

By: 3b

3b — Wed, 17 Jun 2009 15:17:27 +0000

#155 Al: Understood. I would not have a problem as a rental/investment property at the right price, but I woule never live in it.

By: lisoosh

lisoosh — Wed, 17 Jun 2009 15:13:59 +0000

Shore Guy says:
June 16, 2009 at 11:19 pm

“The car or middle-aged guys who think they are “all that”?”

The car. I’ve never test driven a middle-aged guy who thinks he’s all that.
Hopefully I never will.

By: Al

Al — Wed, 17 Jun 2009 15:13:50 +0000

With regards to #154 – Grim are you still in “No hyper-inflation will happen in USA” camp?? With goverment spending accelerating/debt mounting/manufacturing disappearing?

What is backing up thouse dollars? houses?

P.S. I do not call 20% /year hyperinflation. I am talking Zimbabwe style. At least 100% month.

By: foraccounts

foraccounts — Wed, 17 Jun 2009 15:13:21 +0000

Thanks for the case study Al… pretty informative to me as a newbie on this board. Would you mind sharing the info about the sources of your research that you mentioned you learnt on this board? Thanks.

By: Sean

Sean — Wed, 17 Jun 2009 15:12:04 +0000

Here the short paper from the Council on Foreign Relations, some interesting graphs dated June 5, 2009.

The Recession in a Historical Context.

http://www.scribd.com/doc/16417774/Current-Recession-in-Historical-Context