Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Housing certainly remains a problem. Take a look at downtown Chicago. Rents continue to ramp to ridiculous levels (and even for places that ain't great), and yet someone could get a niceish (nothing great and basic/small, but not terrible and location, location, location) condo on Lake Shore Drive *directly* across of the Lake and a few blocks North of the Michigan Ave. shopping area (a few minutes walk, tops) for $69,900. A comparable rental in nearby blocks is generally around $800-1000 a month. There's tons of listings nearby for $50-150K. Much of it people could never, ever have imagined 5-7 years ago. Some have great views.
However, it's gotten to that point where buying should be more appealing than renting, but it's not happening and rents keep going up. I can't imagine too much more downside for housing, but at the same time, I don't see it bouncing back soon. It would not surprise me if housing and all the issues surrounding it take a good 5-10 years to work themselves out.
You're also going to see more upset as people turn to renting their houses and renters may take not care of the property well (or at all), upsetting neighbors, condo boards limiting rentals, etc. etc. etc. Banks may continue to be tight on lending, yadda yadda, etc.
Additionally, in terms of dorms, anyone seen student housing costs at some colleges these days? Insane.
With you Scott. Many valuations around the country defy reason. Buffet on cnbc today mentioned the housing "depression" - inferring it's the main cause of the lethargic economy and weak stock market.
Wondering what Price- where mainly invest- might have that's heavy into home builders and things like Home Depot that would do well on a rebound. Other than TRREX, which I own, not sure what else would fit the bill.
these kids are so lucky...I wish I would go back to college again, then use all my perkins loans and even get more loans to live these luxurious lifestyles! Then I would graduate without a job for a while and college unemployments fees. Then I'll probably vote for the Pres ****... he'll help to pass law that will forfeit all my student loans and get more bail outs to pay for these loans after couple of yrs.
HA ! "Then I would graduate without a job for a while and college unemployments fees. Then I'll probably vote for the Pres ****... he'll help to pass law that will forfeit all my student loans and get more bail outs to pay for these loans after couple of yrs. "
YA ! Keep up the bailouts of everything and everyone; and not unlike the old Soviet Union, we (the gov't) will indeed provide a job for everyone.............you wouldn't mind standing at an apartment building all day long and sweeping up here and there; just the old booze bottles, cigs and discarded syringes, eh?
Reply to @hank: Thanks. I don't know about homebuilders (especially luxury) as I think you're going to see a change in housing over the next decade, with older people (baby boomers, etc) looking to downsize/move into retirement homes, and a view on housing that is less about excess and more viewing it as a utility - what are my priorities, what do I really need? If I'm getting a big place, do I really want to maintain it, heat it/cool it, etc? I mean, if you watch HGTV or one of those sort of channels, there was (not sure if anymore) always a housing show where some 20/30-something couple is getting some ridiculous 2,500-3,000 sq ft apartment for 2 people because they "wanted some space". You're going to see older people who want less expenses and don't want to have to maintain an enormous space.
I do think that apartments in great locations that are cheap and convenient (near amenities, near transit, etc) will do well over the next 5-10 years, but unfortunately, there's no way to easily invest in that in a liquid and broad (yet direct) fashion. There's no private equity/publicly available RE fund for the average investor.
I do like Lowes (and to some degree Home Depot) for the longer-term, but neither are currently on my shopping list. I do think REITs will have trouble if things turn sour again in terms of high debt and meeting interest payments.
Reply to @Maurice: Maybe they could have the little animated paper clip from Microsoft Office do a little warning about not taking the computer in water.
Reply to @johnN: John, no one gets unemployment compensation if they haven't worked at a job and been laid off. If that was a key point in the logic of your, um, exposition, as it appears to be, you might want to rethink/reword it.
Not to worry. No laptop uses 120vac directly from the mains. All use a low voltage, supplied from a power supply module located either at the outlet itself or at some midpoint in the power supply cord.
Still pretty stupid though... one little slip and bye-bye laptop. "The tub ate my homework?"...
The young'in in the tub could give new meaning to the near holiday song regarding "ches-nuts" roasting on an open fire.... Even though low voltage, you know too; that there is a lot of potential for a good jolt for a direct short/draw until the power supply popped and/or one presumes the outlet is code and is GFI and that kicked. He might be surprised to find the potential of a direct short of - and + across a good path for current flow. Perhaps a 9vdc retangular battery, as used in smoke detectors......place both posts of one of those at the tip of the tongue and learn about low voltage and electron current flow.
Probably make him sit up and take notice, for sure! The trick in the "older but wiser" thing is to manage to get old without killing yourself in the process.
Comments
However, it's gotten to that point where buying should be more appealing than renting, but it's not happening and rents keep going up. I can't imagine too much more downside for housing, but at the same time, I don't see it bouncing back soon. It would not surprise me if housing and all the issues surrounding it take a good 5-10 years to work themselves out.
You're also going to see more upset as people turn to renting their houses and renters may take not care of the property well (or at all), upsetting neighbors, condo boards limiting rentals, etc. etc. etc. Banks may continue to be tight on lending, yadda yadda, etc.
Additionally, in terms of dorms, anyone seen student housing costs at some colleges these days? Insane.
Wondering what Price- where mainly invest- might have that's heavy into home builders and things like Home Depot that would do well on a rebound. Other than TRREX, which I own, not sure what else would fit the bill.
HA !
"Then I would graduate without a job for a while and college unemployments fees. Then I'll probably vote for the Pres ****... he'll help to pass law that will forfeit all my student loans and get more bail outs to pay for these loans after couple of yrs. "
YA ! Keep up the bailouts of everything and everyone; and not unlike the old Soviet Union, we (the gov't) will indeed provide a job for everyone.............you wouldn't mind standing at an apartment building all day long and sweeping up here and there; just the old booze bottles, cigs and discarded syringes, eh?
Take care,
Catch
I do think that apartments in great locations that are cheap and convenient (near amenities, near transit, etc) will do well over the next 5-10 years, but unfortunately, there's no way to easily invest in that in a liquid and broad (yet direct) fashion. There's no private equity/publicly available RE fund for the average investor.
I do like Lowes (and to some degree Home Depot) for the longer-term, but neither are currently on my shopping list. I do think REITs will have trouble if things turn sour again in terms of high debt and meeting interest payments.
Still pretty stupid though... one little slip and bye-bye laptop. "The tub ate my homework?"...
The young'in in the tub could give new meaning to the near holiday song regarding "ches-nuts" roasting on an open fire....
Even though low voltage, you know too; that there is a lot of potential for a good jolt for a direct short/draw until the power supply popped and/or one presumes the outlet is code and is GFI and that kicked.
He might be surprised to find the potential of a direct short of - and + across a good path for current flow. Perhaps a 9vdc retangular battery, as used in smoke detectors......place both posts of one of those at the tip of the tongue and learn about low voltage and electron current flow.
Take care,
Catch