WOW 43% HIT ON Your House!

[Peter Hansen]

Could a house really drop 43% by 2011......who knows? .....but in some areas this may be true . Mr Addsion Wiggan of course is trying to sell you his publication ......I do not subscribe to it , and will not ......but if you do and are not satisfied he will return the $99 yearly subscription price up to the LAST day of your subscription.
Well if you believe that houses are headed lower ......merely BUY Profunds Ulta Short ETFs .....specifically SKF...It Ultra shorts Financials, and SRS it ultra shorts Real estate.

Here is the Pitch ..... it is an interesting read and U will learn something .

http://www.isecureonline.com/Reports/SUR/ESURHB07/?o=1401183&u=17555048&l=836213

[billyjoe]

Pete,
I remember someone once said it was good that house evaluations weren't published daily like the stock market or people would panic and nobody would ever stay in the same house for a year.

-------------billyjoe

"Happy days are gone again"

[New-born baby]

I believe it, but before 2011. How about 2008?

[IIC]

43%...Is that all??? http://www.financialsense.com/editor...2007/1124.html

[jiesen]

Pete,
I remember someone once said it was good that house evaluations weren't published daily like the stock market or people would panic and nobody would ever stay in the same house for a year.

-------------billyjoe

"Happy days are gone again"

Yeah, but unfortunately, we now have Zillow.com to remind us every day of exactly how far our home values have dropped since 2005.

[Peter Hansen]

Latest News On Housing

This too shall pass.........and housing will get better ......but in the meantime some difficult roads lie ahead. READ THIS"

The U.S. housing market will fall into deep recession next year, with home prices dropping up to 35%, says Moody’s today. A report from Moody’s Economy.com estimated home prices will fall, on average, 13% from their 2006 peaks by early 2009. The report also suggested that some markets in Florida and California will fall as much as 35%.

"This is the most severe housing recession in the post-World War II period," said Mark Zandi, the report’s author.

Click here to find out if your house could be worth 43% less by 2011.


This morning, luxury homebuilder Toll Brothers posted its first quarterly loss in 20 years.

"By many measures," Chairman Robert Toll said in a statement, "Fiscal 2007 was the most challenging of the 40 years that Toll Brothers has been in business. 1974 was perhaps rougher, but the difficult times only lasted one year."

[mrmarket]

There's no place like home.

[skiracer]

Did you ever notice how a sector comes back with a vengenance after it has taken a really bad one to the chin. Countless occassions and this one will be the same. The politians, especially the Republicans, are going to have to give some relief to these people. That will result in a feel good attitude and the people will keep their houses and the home builders will come back strong. There is a big factor here that most blue collar workers and small traders miss because they just don't understand the concept of buying low and selling high. The rich have advisers that are on top of the underlying important issues that govern the economy and make the cycle swing to the upside again. That is where you will find their money everytime. They get in and buy low after situations like this and the next thing you see is the stocks in those sectors start to rebound. The rich and knowing are already in at the bottom and now the retail guys are just getting around to noticing that the builders have been and are moving up again. The rush to get onboard will result in the stocks in that sector to move even higher and the rich will benefit and get richer.
I don't know if this is a bottom in the housing and home builders yet but I am certain that it will rebound to previous tops again and the rich will get richer off of it because they will buy in low and sell again high. We as small guys spend to much of our time anticipating and dwelling on the collaspe or deterioration when we should be salivating over the coming bargains and be ready to pounce on these lower prices. It is the law of trading or most anything else. Buy low and sell high and don't dwell on the negative.

[riverbabe]

Buy low, sell hi

As long as you have enough CA$H to buy in at the right time.

[IIC]

As long as you have enough CA$H to buy in at the right time.

Rich people don't pay with cash

"Leverage to the hilt"



.

[skiracer]

Rich people don't pay with cash

"Leverage to the hilt"



.

Rich people buy in whatever way is the most advantageous for that particular situation and in the fashion that their high priced advisors advise them to. But I do agree that the best way is to use others money if you can as long as the carrying charges are not prohibitive to your making money on the principle. Leveraging has it's pitfalls and can take it's toll if you do not have the money to back up the leveraging. Most rich people will leverage to the hilt but have the money to pay off the debt if it goes that way. They do not gamble with leveraged money. They can pay in the end.

[IIC]

Rich people buy in whatever way is the most advantageous for that particular situation and in the fashion that their high priced advisors advise them to. But I do agree that the best way is to use others money if you can as long as the carrying charges are not prohibitive to your making money on the principle. Leveraging has it's pitfalls and can take it's toll if you do not have the money to back up the leveraging. Most rich people will leverage to the hilt but have the money to pay off the debt if it goes that way. They do not gamble with leveraged money. They can pay in the end.

Well...admittedly I was exaggerating...But I do believe in leveraging whenever practical

[skiracer]

Well...admittedly I was exaggerating...But I do believe in leveraging whenever practical

couldn't agree with you more Doug. But the people that get in trouble leveraging to the hilt are the ones who don't have enough cash to pay for the borrowed (leveraged) money when it come time to do so if necessary and this is what has become a problem in our country and our mindset. I use money other than my own whenever I can do so but I have enough to pay for the borrowed money just in case. To many people in this country don't have the backup money to pay for their leveraged borrowing and that is what has happened with this subprime borrowing fiasco that is going on now.

[Peter Hansen]

Time To Buy Homebuilders?

I don't have the answer for that question ......but Tate Dwinnell apparently does . His best pick is NVR along with 4 others.
I am sure you will find this report interesting reading .....Check it Out!

http://selfinvestors.com/mail/link.php?id=75c1aa1homebuilder

[IIC]

couldn't agree with you more Doug. But the people that get in trouble leveraging to the hilt are the ones who don't have enough cash to pay for the borrowed (leveraged) money when it come time to do so if necessary and this is what has become a problem in our country and our mindset. I use money other than my own whenever I can do so but I have enough to pay for the borrowed money just in case. To many people in this country don't have the backup money to pay for their leveraged borrowing and that is what has happened with this subprime borrowing fiasco that is going on now.

What burns me up most is "Where was the Gov't when these predatory lenders were flourishing"?...It was no secret what was going on and the outcome was obvious.

Here's an example...I may have posted this before and I can't remember exactly all the dollar amounts but here is the basic story:

About 1 to 1 1/2 years ago my wife told me that her aunt was buying a condo. She wanted to know if I would look over the docs.

So, she brings them over...She had already put up some kind of deposit...$3,000.

After reading thru them I figured out what her payments would be and was able to come fairly close to what her taxes and insurance would run.

Besides closing costs there would be no down...It was not an adjustable and the interest rate was about mid point for the time as I recall. of course the developer had set her up w/ the lender.

OK...End result...she would have about $300 a month left over after her payment etc...including her estimated income tax deductions.

How was $300 supposed to cover the rest of her living expenses?

Well, she didn't buy it...FORTUNATELY...ended up buying a much cheaper one...Took quite a bit to get that deposit back too.