The real estate market is in a wierd place...

[tbeer22]

I don't know if it's like this where you live..... But where I'm from the real estate markets are doing shitty. It's not a buyer's or sellers market. My dad once told me how a friend of his bought an Inn or Suite Hotel or something and converted all the rooms into apartments or condos.

Is this the right time in the market to do this?? Are there a lot of obstacles or hurdles to overcome???!? Where the experts at!?!? let me hear it....

[akula]

dude.

just listen to your words: "Is this the right time in the market to do this?"

this is deeply flawed thinking, because what you are suggesting is nothing more than gambling. except here you bet on time. besides, trying to time the market is scientifically proven to lose you money. just do a search on "timing the market".

we are talking about professional asset allocation and it's not timing the market but time in the market which is what determines the successful achievement of personal financial objectives.

as a matter of occupational predisposition, I have nothing against discussing real estate or other asset classes - but it would help if....well, there's a lot of books in your library you may be interested in.

look for "personal finance" or something...don't look for "how I made 100000000 trading residential property"

just stick to the textbooks they issue to financial planners.

are you interested in real estate or something?

[tbeer22]

My dad had a small real estate development company, but dismantled it recently. They couldn't afford rising costs in timber and other resources in addition to paying the workers and insurance and all that. Took to much time to develop small residential neighborhoods, now that the real estate market is so soft in southern california I thought maybe renting apartments would be a better way to do the real estate play. I don't really think this idea is as risky as flipping houses...

[akula]

well. there you go.

strictly speaking - because real estate is a long term (7 years +) investment - there is no such thing as a good/bad time to invest.

it doesn't matter when you invest but it does matter what you're investing in and for how long. Likewise it's important whether you are negatively or positively geared.

so that's basically the answer to your question: based on 60 odd years of trend data on real estate prices - it doesn't matter when you invest, but other factors are critical if you are to generate a good IRR with this venture.

so, what do you want to talk about?

[Steve]

Tbeer - Lumber prices are at an all-time low. The market in Southern California may be soft for $1million houses, but cheaper houses are still selling.

[rufaacom]

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