A Question for the Economists and such

TNOE

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Thu Nov-11-04 03:34 PM
Original message

A Question for the Economists and such

So with the dollar at an all time low, and gold at a 16 year high, exactly what do you expect the result will be on real estate? Hold or try to sell quickly (apt buildings)?
Thanks.

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dirtyduck

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Thu Nov-11-04 03:35 PM
Response to Original message

1. where's Paul Krugman when we need him?

I can't believe he is gone until January!

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BlueEyedSon

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Thu Nov-11-04 03:37 PM
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2. I think your question has more to do with interest rates, which are rising

That makes it harder make payments on a big mortgage..... I would expect demand to become soft....

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TNOE

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Thu Nov-11-04 03:39 PM
Response to Reply #2

4. This is housing for Section 8

wonder if the government would cut off their funds -

I suspect it could happen, maybe sooner rather than later.

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BlueEyedSon

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Thu Nov-11-04 03:57 PM
Response to Reply #4

6. Is that relevant? The buyer would probably still take a mortgage and

be affected by the cost of money.

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TNOE

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Thu Nov-11-04 04:06 PM
Response to Reply #6

7. I just have no knowledge of real estate whatsoever

so may be a dumb question. But SO is really hurting financially, self-employed, business sucks and has sucked for a couple of years, barely hanging on. He has 2 apts. which he rents to mostly Section 8, and one house. He has had all the properties up for sale for several months now, with no interest. So I'm just wondering what would be the best course for him - as I personally believe the economy is going to crash - hold on? or sell at a loss? Which I doubt he will do, or if there's a crash best to have rental property?

Like I said, I just have no understanding when it comes to real estate matters.

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BlueEyedSon

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Thu Nov-11-04 04:28 PM
Response to Reply #7

8. maybe tha fact that it is "section 8" makes it less desireable to

buyers. For example, it the rent he can collect capped? If so for how long.... till the end of the leases... longer?

I only know simple single-family home-type stuff

call a realtor!

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KurtNYC

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Thu Nov-11-04 03:38 PM
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3. I like real estate

and I love the Looney (Canadian dollar, even over the Euro). I don't see a downside to owning real estate.

If it is income property and we hit some hyper inflation, I suppose you could be locked into charging the same rent even after a major currency devaluation. But owning propery in general should be about the best one can do.

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Inland

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Thu Nov-11-04 03:39 PM
Response to Original message

5. Geez, we don't know that sort of crap.

Dollar at a low makes our assets cheaper for foreigners to buy. But the low dollar comes from the fact they don't want to buy our assets and therefore don't want our dollars. Low dollar might make the Fed raise rates to keep the dollar up. That might depress demands for real estate.

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