debt in retirement

[pb4uski]

.... Neither here nor there, facebook here in Raleigh NC is now showing ads for real-estate builders and buyers seeking capital from the public at 15% IRR, 5 year investment, 50k min. Last time I saw these kind of signals in common places was the billboards in vegas before the crash. Wondering if we are entering phase 3 of the real estate cycle now, the fed is raising rates after all.

Visiting relatives in Austin for the holidays and one thing unique struck me... a couple people in the last few days have said that real estate here is a good investment because 'it never goes down"... and warning bells are ringing in my head.

 

[aja8888]

Visiting relatives in Austin for the holidays and one thing unique struck me... a couple people in the last few days have said that real estate here is a good investment because 'it never goes down"... and warning bells are ringing in my head.

The next warning sign is "anyone can get a mortgage with nothing down".

 

[Scuba]

Yeah I remember when I moved to CA in 1990 and people said real estate never went down here. The early 90's and 2008-2010 proved that wrong, although certainly in the long run real estate has been a great investment in CA.

 

[RobLJ]

DW just paid off the new Silverado loan on the first payment. She objected to the 2.9% rate--but it had more to do with her retiring early next year and wanting to be debt free.

+3 - I've done that. Make one payment and done.

-ERD50

 

[Sunset]

The question is will people interested show up...

I used to work at a bank... one of the guys on our floor was responsible for putting in bids for closed banks... this was a LONG time ago, so not the last round of bank failures....

He said that every time he went to put in a bid for a bank he had two bids... the one he calculated it was worth the the bank and $1... when it was time to hand the bids over if nobody else was in the room he handed them the $1 bid.... said the bank got a good number of closed banks doing this...


So maybe do what is needed to qualify to bid and if nobody comes or if there is little interest you might get a great deal...

Another story of the same lucky event for someone:

When we were looking at the White House, just down the street we went for lunch, a nice big old hotel building about 1 block away. In the basement is framed newspaper clippings about how the owner went there to buy some clocks during the auction of the hotel.
Nobody else showed up for the auction, so he bought the entire building for a ridiculously cheap price, instead of some clocks.

 

[97guns]

Yeah I remember when I moved to CA in 1990 and people said real estate never went down here. The early 90's and 2008-2010 proved that wrong, although certainly in the long run real estate has been a great investment in CA.

Those were buying opportunities, if you had bought during those downturns you can pretty much withstand the next crash. Moms duplex was purchased for $280k now valued at $975k, brothers Austin duplexes purchased for $50k now around $200k, my homes bought for $80k now valued at $280k... there’s gonna be a lot of heads rolling before mines even knocked off my shoulders