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Old 16th February 2007, 02:02 AM
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Sell your house, buy IDNs.

The trend is now confirmed. Sell your house, buy IDNs?? :o


Source: http://money.cnn.com/2007/02/15/real...ex.htm?cnn=yes

Record home price slump
Fourth-quarter report from National Association of Realtors shows largest price drop on record as markets with price declines now outpace those with gains.
By Chris Isidore, CNNMoney.com senior writer
February 15 2007: 6:46 PM EST

NEW YORK (CNNMoney.com) -- The slump in home prices was both deeper and more widespread than ever in the fourth quarter, according to a trade group report Thursday.

Prices slumped 2.7 percent in the fourth quarter compared to the fourth quarter a year earlier, according to the report from the National Association of Realtors (NAR). That's the biggest year-over-year drop on record and follows a 1.0 percent year-over-year decline in the third quarter.

In addition, 73 metropolitan areas reported a decline in the fourth quarter, compared to a year earlier. That outpaced the 71 that saw a gain. It was both a record number and percentage of markets showing a decline in the group's quarterly report. Five markets saw prices unchanged.

That decline was a far more widespread than the third quarter, when only 45 markets reported drops and 102 saw gains, or the second quarter when only 26 saw a year-over-year slump in prices. The national median price was still showing a year-over-year gain in the second quarter.

The most recent median prices are down even more: 3.4 percent since hitting record highs in the second quarter. Almost three-quarters of the markets, reported on by the group, saw declines in median prices over the past six months, with eight reporting double-digit declines.

Vacation markets, where investor-buyers had driven up prices during the building boom of 2005, were particularly hard-hit.

The Sarasota-Bradenton-Venice, Fla., market saw the biggest year-over-year decline in the fourth quarter, with prices plunging 18 percent.

When looking at the change between the fourth quarter and the second-quarter peak, the Palm Bay-Melbourne-Titusville, Fla., market saw the biggest drop, with median prices plunging 19.5 percent.

But the weakness in prices wasn't restricted to those kinds of markets. Springfield, Illinois, reported a 16.2 percent drop in the fourth quarter compared to the third quarter, the biggest decline during that time frame, along with a 10.4 percent decline compared to a year earlier.

Still, the trade group statement said it believed that the worst was over for the drop in prices.

"Examination of data within the quarter shows home prices stabilizing toward the end," said a statement from David Lereah, the NAR's chief economist. "When we get the figures for this spring, I expect to see a discernable improvement in both sales and prices."

Part of the decline in prices was attributable to the drop in sales pace. Total existing home sales, including single-family and condo, were at a seasonally adjusted annual rate of 6.24 million units in the fourth quarter, down 10.1 percent from a 6.94 million-unit level in the fourth quarter of 2005.

And the slower pace of sales, coupled with investor-buyers from 2005 trying to sell homes and condos they had bought, created a glut of homes on the market, according to other real estate readings, which also fed into the decline in home prices.

NAR President Pat Vredevoogd Combs, a Grand Rapids, Mich., realtor, admitted the group doesn't expect to see a big gain in 2007 statistics.

"Right now, buyers are responding to seller pricing and incentives, and there's a bit of a pent-up demand as a result of buyer hesitation during the second half of 2006," she said in the group's statement. "We're not looking for big changes, but a gradual rise in sales and home prices is projected - that will be good for the overall housing market and related industries."

She said that since most homeowners stay in a home six years on average, a look at five-year price gains shows most homeowners are doing OK despite the recent weakness. The median five-year price gain is 41.8 percent, according to the group's figures.

The nation's leading homebuilders have all reported declining prices for new homes, which are not captured in this report. KB Home (Charts) reported a net loss of $49.6 million, or 64 cents per share, for the fiscal fourth quarter ended Nov. 30, earlier this week. Other leading builders reporting weakness in prices include Lennar (Charts), Pulte Home (Charts), Centex (Charts), D.R. Horton (Charts) and Toll Brothers (Charts).

The most expensive market in the latest report was San Jose-Sunnyvale-Santa Clara, Calif., where the median home price $760,000. That was up $20,000, or 2.7 percent, from a year earlier but down $19,000, or 2.4 percent, from the third quarter and off $35,000, or 4.4 percent, from the second-quarter peak.

The cheapest market was Elmira, N.Y., where the median price was $78,400. That was off 0.5 percent from a year earlier and down 16.2 percent from the third quarter, which is when prices there peaked.

Despite the record weakness, there were some markets that showed strong price gains. The best was Atlantic City, N.J., where the median price was $339,800, up 25.9 percent compared to a year earlier.

Defaults: The latest woe for housing Top of page

Last edited by touchring; 16th February 2007 at 02:10 AM..
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Old 16th February 2007, 09:26 AM
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Re: Sell your house, buy IDNs.

You are dealing with snake oil salesmen. Smoke and mirrors and BS to motivate people that this is a good time to buy. Prices still have some shaking out to do at least in our market. According to most Realtors, "Now" is ALWAYS the time to buy. In the article, it states that housing is down 3% but fails to state that the same houses went up 15%- 25% the year before in many markets so this is simply a market correction that was not unexpected.

"Now" is always a good time to buy cars in US also, they have steals and deals, year end clearances, rebate sales, employee pricing for "everyone", below sticker price sales, 3% below dealer invoice sales. blah-blah-blah It NEVER ends, just like with real estate sales pitches and ads.

You might want to get a graph of home values to see the real facts, real estate has been probably the best investment in the US over the long haul. Just ask the Donald.

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Old 16th February 2007, 09:30 AM
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Re: Sell your house, buy IDNs.

Perversely, this will make people less inclined to risk money on IDN.

Everyone trying to get into the market should have been remortgaging their house six months ago.

Incidentally, Frank Schilling is on record as having sold off rental property to buy domains. The case with IDN is if anything even more compelling.

World of warning though. Female partners are unlikely to share this perspective, if you are thinking of moving them to the trailor park. Of course, if you were thinking of trading in anyway, well now could be the time.
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Old 16th February 2007, 12:36 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by bwhhisc
You are dealing with snake oil salesmen. Smoke and mirrors and BS to motivate people that this is a good time to buy. Prices still have some shaking out to do at least in our market. According to most Realtors, "Now" is ALWAYS the time to buy. In the article, it states that housing is down 3% but fails to state that the same houses went up 15%- 25% the year before in many markets so this is simply a market correction that was not unexpected.

"Now" is always a good time to buy cars in US also, they have steals and deals, year end clearances, rebate sales, employee pricing for "everyone", below sticker price sales, 3% below dealer invoice sales. blah-blah-blah It NEVER ends, just like with real estate sales pitches and ads.

You might want to get a graph of home values to see the real facts, real estate has been probably the best investment in the US over the long haul. Just ask the Donald.

Real estate investment is influenced by macroeconomics and government policies, as long as credit is cheap, banks lend freely, prices will keep going up.

Land scarce Singapore has only about 800 sq foot of liveable land for every person, yet prices remain stagnant from 1997 to 2004, after the government imposed a maximum 80% credit curb on mortgage loans and sale taxes. Speculation is dampened, prices fell, and banks in Singapore are very quick at foreclosure. The moment prices fell just 10-15%, banks start asking mortgagees to pay up the 10%-15% so that the loan amount will always be 80% of the property valuation. When mortgagees fail to top up on the 10 or 15%, the property goes for auction.

Quote:
Originally Posted by Rubber Duck
Perversely, this will make people less inclined to risk money on IDN.

Everyone trying to get into the market should have been remortgaging their house six months ago.

It's still not too late to free some cash for domains.

Last edited by touchring; 16th February 2007 at 12:53 PM.. Reason: Automerged Doublepost
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Old 16th February 2007, 12:53 PM
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Re: Sell your house, buy IDNs.

My experience suggests that ordinary house buyers have no rationale on valuation of realestate. They generally buy the best they can afford. There ability to pay along with the rest of the market is determined by the availability of credit, so to a large extent Touchring is right. When credit become expensive or it being rationed by lenders then housing booms come to an end. As with many markets, the bull runs tend to go way beyond fundamentals, so boom generally turns to bust.

The big problem is that consumers spend according to their wealth and the rate they feel it is increasing. A big knock on in the real estate market often reflects across the rest of the economy, resulting in a slow down and often recession.

In todays, environment reponsible governments will bring more credit on stream to prevent an economic slow down, once and only once they are confident that inflation is under control. In recent years the supply of cheap goods from the Far East whilst damaging the current account have helped keep inflation under control, so countries like the US have been able to carry on spending borrowed money without an inflationary backlash. The China factor, however, is now well factored into the situation, and America can now longer count on its economic dominance to shore up the currency against a legacy of mismanagement.

It would seem that this time the party is really going to come to an end. Good timing George, in election year. The worry is of course the Republicans will consider that jeopardising economic stability for electoral salvation is a risk that they are willing to take. God bless America!
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Last edited by Rubber Duck; 16th February 2007 at 02:07 PM..
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Old 16th February 2007, 01:34 PM
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Re: Sell your house, buy IDNs.

Listen to what the general population is doing. Then do the opposite.

These stories are meant for the general population.
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Old 16th February 2007, 01:41 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by thefabfive
Listen to what the general population is doing. Then do the opposite.

These stories are meant for the general population.
I think you are what is technically known as a Contrarian.

Sound strategy, but not for short-term gain.
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Old 16th February 2007, 01:44 PM
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Re: Sell your house, buy IDNs.

What I am saying is that these articles are not very useful for real estate investors because they don't tell you the true conditions. They are just more ratings.

Selling a house now will have missed the peak by over a year.
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Old 16th February 2007, 01:52 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by thefabfive
What I am saying is that these articles are not very useful for real estate investors because they don't tell you the true conditions. They are just more ratings.

Selling a house now will have missed the peak by over a year.
True speculators predict or promote trends rather than follow them.
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Old 16th February 2007, 01:58 PM
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Re: Sell your house, buy IDNs.

And true investors are not swayed by temporary market conditions.
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Old 16th February 2007, 02:22 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by thefabfive
What I am saying is that these articles are not very useful for real estate investors because they don't tell you the true conditions. They are just more ratings.

Selling a house now will have missed the peak by over a year.


So, you are saying the peak will be next year? Sounds right if one considers that it will take about a year for foreclosures from subprime loans to put a drag on the general market.

On the general economic front, demand is bouyant, and so the irony is that even though the real estate market is slowing down, the Feds can't lower interest rate. And with the weak US dollar, and rocketing budget deficit, the reality is in fact they can't wait to raise rates? Am i correct?

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Old 16th February 2007, 02:34 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by touchring
So, you are saying the peak will be next year? Sounds right if one considers that it will take about a year for foreclosures from subprime loans to put a drag on the general market.

On the general economic front, demand is bouyant, and so the irony is that even though the real estate market is slowing down, the Feds can't lower interest rate. And with the weak US dollar, and rocketing budget deficit, the reality is in fact they can't wait to raise rates? Am i correct?
No, that is precisely NOT what he is saying. Read it again, carefully!
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Old 16th February 2007, 02:37 PM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by Rubber Duck
No, that is precisely not what he is saying. Read it again, carefully!

Oh! I read too fast again.

Yes, i know, trying to sell a house in a bear market is 10 times tougher than in a bull market, even if it's just 6 months earlier.
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Old 21st February 2007, 05:21 AM
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Re: Sell your house, buy IDNs.

A little note: This article is old, july 22, 2005. Half right, half wrong?


Source: http://www.sfgate.com/cgi-bin/articl...carollloyd.DTL

Rich House, Poor House
Financial guru Robert Kiyosaki has turned bearish on the boom he helped create

by Carol Lloyd, special to SF Gate

Friday, July 22, 2005

You read the real estate-to-riches books and finally took the plunge. You pulled the equity out of your home and bought another and then another. Despite your income of $45,000 a year, now you're leveraged to the tune of $1.7 million and loving every minute. Because when the properties appreciate you'll have made the nest egg of your dreams.

Then you log on to your investment guru's Web site and discover this stunning news: Your real estate dreams are soon to be dust in the wind.

If you want to be smart, buy gold coins.

Such may be the roller-coaster ride of advice for the followers of Robert Kiyosaki. His books -- "Rich Dad, Poor Dad" (1997), "Cashflow Quadrant" (1998), the upcoming "Rich Dad's Before You Quit Your Job" (September, 2005) and nine other titles authored by him and his "Rich Dad Advisors" -- have dominated the best-seller lists for years, selling over 24 million copies in 44 languages worldwide. His infomercials, lectures and classes have reached millions more. This year he was one of several superstars at a two-day, 46,000-person event in Los Angeles called Real Estate Wealth Expo, with this slogan: "One Weekend Can Make You a Millionaire." He's played live at Madison Square Garden, chatted up Oprah on her show and hawked his ideas on everything from CNN to PBS pledge drives.

The essence of his thinking is one of simple financial literacy. Learn about money. Educate yourself financially and you too can learn what the rich have known for eons: Don't work for money, let money -- via the right investments -- work for you. Grow your assets. Shrink your liabilities. But unlike many investment gurus, Kiyosaki, a Hawaiian-born surfer who describes himself as old hippie and environmentalist, despises standard financial planning advice: earn, save and buy a nice collection of mutual funds to supplement your Social Security. Instead, he preaches self-determination through entrepeneurship and for him that has often meant investing in real estate.

But now, in the past couple of months, the man -- whose engaging financial parables have coaxed millions of ordinary under-earning boobs (including yours truly) into the real estate market -- has become a major bubble-blower. On richdad.com, which contains a forum for his casual and dedicated followers (including those who pay $100 a year to join his "INSIDERS" club), he's begun posting articles that caution against what might be called "surreal estate exuberance." He cites the Economist at length, including the assertion that "the global housing boom is the biggest financial bubble in history." He confesses that he's currently dumping real estate that produces no cash flow (from rental income) and going "long on gold and oil."

Curious about why one of the foremost real estate boosters had begun to sound like a survivalist in the Utah desert, I caught up with Kiyosaki by phone at his home on Waikiki Beach.

"Don't get me wrong, I'm still buying real estate," he told me, adding that he was in the process of buying seven new properties but that he wasn't buying anything in expectation of appreciation. "I'm an investor, not a speculator. ... I want it to cash flow."

He knows that many others have not been so prudent. "I'm worried about people using their houses as ATM machines," he says, referring to those homeowners who have refinanced their homes to buy cars, remodels or simply more real estate. "And I'm worried about all the people who are flipping properties [those who buy properties in order to immediately resell for a profit] -- that's really stupid right now."

But didn't his books -- despite all their sound financial advice about reducing liabilities and increasing assets -- probably help fuel this real estate craze?

"I think it's so," he concedes.

To be fair, Kiyosaki hasn't recommended that people leverage their homes for real estate riches. One of the key tenets he hammers away at is that a home is not an asset but a liability. "A lot of people think of their homes as real estate," he says. "I don't play games with my home. I own two houses and I'm very attached to them, but I don't get attached to my real estate investment. It's just 'Show me the money' -- if it doesn't cash flow, then I sell it."

The problem is that real estate -- especially as depicted in his books -- stands out as one of the few investments available to cash-poor individuals that can still return an income and long-term profit. Most of us don't have water rights or enough capital for a hedge fund. We don't have successful inventions that bring in royalty checks every month.

At least that's the message I took away when a review copy of "Rich Dad, Poor Dad" fell on my desk in 1998. I recall opening the barely copy-edited, self-published book with a tinge of sympathy. With writing like this, who is this guy going to convince?

But by the next day, I'd read the book cover to cover and committed to changing my ostrich-like attitude about all things financial. I didn't want to be a millionaire, but owning a little wedge of real estate seemed like a better idea than what I had been doing: nothing. Houses were something I could subject to my creativity and fantasy world. They also were something that I felt somehow secure about borrowing on -- even though I'd sooner chop off my earlobe than buy a stock on leverage. Since it was 1998, it was a good time to mistake his advice as Real Estate 101.

Although Kiyosaki's advice may have helped inflate the real estate bubble, he wants me to know that his influence has also had more positive effects. In Australia -- the country with the greatest number of readers per capita of "Rich Dad, Poor Dad" -- the government has decided to create a national program for teaching financial literacy to children. "I would like to take credit for that," he says, "though I don't have any proof."

The real culprit behind the real estate bubble, he contends, is the federal government. "They're printing too much money," he says. "It's Gresham's Law: When bad money enters the system, good money goes into hiding."

Kiyosaki believes the U.S. government has devalued the dollar, weakened the economy and created such distrust of the stock market that people have sought more secure ways to invest their money. And that has driven up real estate values.

"There's been enormous inflation," he explains. "Greenspan walks around saying there's no inflation, but that is based on the Consumer Price Index. They've taken all the assets out -- housing has gone through the roof, my steak has gone through the roof, oil has gone through the roof. In 1997, the price of oil was $10 a barrel -- now it's $57. If that's not inflation, I don't know what is."

Kiyosaki's solution is to invest in oil, gas, gold, silver -- whatever might be a hedge against the coming financial crisis.

If this sounds a little on the eccentric side, the fact is that Kiyosaki has always been something of an iconoclast. "I never diversify, I never get out of debt and I never save money," he explains, adding that he doesn't put much stock in the stock market either. "Do you know why they call them broker -- because they're always broker than you are."

Like most influential self-help gurus, Kiyosaki's power lies in his charm, which is at once self-effacing, brash and disarmingly straightforward. This has allowed him to walk both sides of the street -- as an altruistic educator who shares his knowledge with the average wage earners whose pain he feels and as the calculating, unabashed Machiavellian player who lives to win. In this sense, his sounding the alarm bells about the real estate market may be anything but altruistic. It may be, simply put, good business.

"Please crash, so I can buy some more," he says with a hardy laugh. "I want it to bust anyway. There's more opportunities in a down market."
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Old 21st February 2007, 07:58 AM
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Re: Sell your house, buy IDNs.

maybe i'm just too cynical, but I have always thought the only people likely to get rich quick out of attending a get rich quick seminar, or buying a get rich quick book, tape, CD, DVD, or whatever else they conjour up next... is the guy talking the BS on the podium.

If on the other hand you get off on paying a guy to reminisce about the good 'ole days and how lucky he was and how rich he has become, and how you are a chump for missing out, then great, toss him another $100 bill if it makes you feel better.

there are rarely any short-cuts, and when there is, if you're not amongst the first to find out about it, buying the short-cut advice mass-production style is surely a load of poppy-cock.

sorry - i just dont buy it.

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Old 21st February 2007, 08:22 AM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by Alphamale
maybe i'm just too cynical, but I have always thought the only people likely to get rich quick out of attending a get rich quick seminar, or buying a get rich quick book, tape, CD, DVD, or whatever else they conjour up next... is the guy talking the BS on the podium.
Robert Kiyosaki like all motivational speaker BS a lot - anyone who goes into commodities in 2005 would have lost money!

But i think the cashflow theory he proposes is used by some of us for the domain and website PPC business. He stance being that as long as his property pays for the interest, he would most probably keep them regardless of market direction - in that he is an investor and not a speculator.


And btw, now he is going back on his inflationary predictions!


Source: http://finance.yahoo.com/expert/arti...chricher/24515

Posted on Friday, February 16, 2007, 3:00AM

All booms eventually go bust.

We all remember the stock market crash of 2000, and most of us remember the real estate crash after the implementation of the 1986 Tax Reform Act. Today, many people are anticipating another real estate crash.

Unfortunately, despite our understanding of booms and inevitable busts, it's always near the top of a boom that "dumb money" buys in. Currently, this has set the scene for a potential market bust of which few people are aware. I'll describe it today's column, and advise how best to prepare in my next column.

Express-Lane Inspiration

About a year ago, I wrote a Yahoo! Finance column warning readers that the real estate boom was over. How did I forecast the end of the boom? I got my hot tip from the cashier at my local Safeway supermarket.

While she was tallying the cost of my apples, broccoli, and steaks, she handed me her new real estate agent's card and invited me to call her for my next real estate investment. Moments later, I was home writing that column. As my rich dad used to say, "When dumb money chases smart money, the party's over." Needless to say, many real estate agents and investors wrote me nasty notes.

I'm not a hundred-percent certain where things are going today. Most economists are forecasting a strong economy, but economists worry me more than newly minted real estate agents. Most seem to be happy that inflation is in check; when I hear that inflation is in check, I begin to think about deflation, and as most of us know, deflation is much, much, worse than inflation.

An Inconvenient Truth

In the simplest terms, inflation occurs when there' too much money in the system. On the flip side, deflation occurs when there are too few dollars in circulation. When that happens, prices start to fall. For example, in inflationary times, prices of houses go up. In deflationary times, prices of houses come down. If prices of houses begin to drop too fast right now, it could be 1986 all over again.

I wrote a column in 2005 about how I love debt and my credit cards. The trouble is that most people do. Today, you can qualify for a loan to buy a house simply if you're alive and breathing.

The strong economy we've been experiencing for years has thus been built on dumb money -- in addition to smart money -- borrowing more and more. Even the U.S. government has had a field day borrowing money to do such things as fight a war and attempt to rebuild Iraq and Afghanistan rather than rebuild our country. And the inconvenient truth about debt is that it has to be paid back.

A Certain Ratio

For the next two years, I'm cautioning people to watch their ratios between good debt and bad debt, and keep liquid reserves such as cash, gold, or silver.

Good debt is debt that makes you rich. An example of good debt is the debt on the apartment houses I own. That debt is good only as long as there are tenants to pay my mortgages. If tenants stop paying their rent, my good debt turns into bad debt.

Most people don't have good debt -- all they have is bad debt. Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.

On our home, my wife, Kim, and I keep a 25 percent debt-to-equity ratio. In other words, our debt is 25 percent of the home's value. Unfortunately, many people have an 80 percent or higher debt-to-equity ratio. That means the debt on their home is 80 percent and their equity is only 20 percent.

On our investment properties, we carry a higher debt-to-equity ratio. To protect ourselves, we have cash reserves to cover the expenses of the properties. For example, in case all the tenants leave and no one is left to pay the mortgage and expenses, we have separate funds for each property, with enough liquidity -- i.e. cash, stocks, and bonds -- to carry the building for a year. Unfortunately, the dumb-money crowd has no reserve funds for their properties.

Where Deflation Does Its Damage

In a deflationary market, the value of your home can drop. If the value drops, the bank may call in your loan. Even if you've never missed a payment, and even if you're ahead on the payment schedule, the bank can call in your loan if they feel the value of the property is lower than the loan amount.

For example, say you buy a house for $100,000 and put 20 percent down and borrow $80,000. If the market deflates and the value of your home drops to $70,000 (because everyone else is selling their homes to get out of debt), the lender may ask you to pay the $80,000 you owe immediately.

If such deflation happens, cash will become king. There will be half-price sales on BMWs, expensive restaurants will close, and people will be out of work. And anybody who caters to people with dumb money will be in trouble. As I said before, deflation is much worse than inflation.

Smart Money, Bad Times

The good news is that during deflationary times, smart money reenters the market, so crashes are great for smart people with smart money. Instead of listening to the optimistic economists, then, you should eliminate bad debt and improve your debt-to-equity ratios on good debt.

Most important, study; if you want to be smart, you need to learn. I'll discuss what you should study in the second part of this column. For now, be aware that if deflation comes and there's a recession, it won't have much effect on the poor. Instead, it'll punish middle-class people who think they're rich because their houses and stocks have gone up in value.

I'll explain more in a couple of weeks.

Last edited by touchring; 21st February 2007 at 08:56 AM..
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Old 28th February 2007, 08:24 PM
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Re: Sell your house, buy IDNs.

http://www.rgemonitor.com/blog/roubini/180573

Is the Sub-Prime “Garbage” 6% or Rather 50% of the Mortgage Market? And the Worst Housing Recession in Decades...
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Old 1st March 2007, 01:01 AM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by Drewbert
http://www.rgemonitor.com/blog/roubini/180573

Is the Sub-Prime “Garbage” 6% or Rather 50% of the Mortgage Market? And the Worst Housing Recession in Decades...

Never trust the media - it's all a spin.

Anyone who lived in Asia will have known that real estate busts and boom are part of the cycle, 10 years swing up - price double/triple, and 5 years swing down - price halved - are part of the game. Once it falls, the vicious cycle kicks in.

Price falls -> Foreclosure auction -> Price falls even more -> More foreclosures auctions

Last edited by touchring; 1st March 2007 at 01:15 AM..
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Old 1st March 2007, 09:44 AM
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Re: Sell your house, buy IDNs.

Quote:
Originally Posted by touchring
Never trust the media - it's all a spin.

Anyone who lived in Asia will have known that real estate busts and boom are part of the cycle, 10 years swing up - price double/triple, and 5 years swing down - price halved - are part of the game. Once it falls, the vicious cycle kicks in.

Price falls -> Foreclosure auction -> Price falls even more -> More foreclosures auctions
That is nonsense. The West has only learnt how to control inflation and the boom/bust scenario in the last 20 years or so. The lessons learnt have only spread to the rest of the globe comparatively recently.

The lessons have been learnt. Both Russia and India now have inflation under control. Japan has learnt that bust is just as dangerous as boom. The stock market correction in China was simply in anticipation of the Chinese authorities intervening to prevent a bubble.

As ever your arguments lack profound analysis.
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Old 1st March 2007, 12:06 PM
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Re: Sell your house, buy IDNs.

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Originally Posted by Rubber Duck
That is nonsense. The West has only learnt how to control inflation and the boom/bust scenario in the last 20 years or so. The lessons learnt have only spread to the rest of the globe comparatively recently.

The lessons have been learnt. Both Russia and India now have inflation under control. Japan has learnt that bust is just as dangerous as boom. The stock market correction in China was simply in anticipation of the Chinese authorities intervening to prevent a bubble.

As ever your arguments lack profound analysis.

So, by that, you mean there won't be bust since it's possible to control it? So far, the Western world has avoided bust by printing money and giving out credit in a run away train manner. Indeed, this seems to work as we speak.
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