Reply #20: I will do that, J. [View All]

[cliss]

While I'm happy for you that you have only seen price appreciation, I am not convinced it will go on indefinitely.

Real estate prices are caused by many things. Some good, but not all good. I've read that because our manufacturing base is really small now, capital is desperately looking around for something to invest in. There is nowhere for it to go, except in residential real estate. Greenspan is hugely responsible for this gigantic real estate bubble.

Also, I'm really worried about the 2 financing giants; FNMA and GNMA. These two entities are corrupt to the core. Think of a tree that looks OK, but when you get really close, you see holes drilled in the trunk from maggots and such. They're trying to keep a lid on this because this issue alone could create a real estate free-fall. We don't know.
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I agree with you about the "fringe" investors, the ones who get in "on a hope and a prayer". It worries me because there are some real estate "biggies" who encourage these Two-bit investors to get in, even if they have to sell Grandma's teeth.

These people are leveraged to the hilt. I believe they are goaded on by these Real Estate Marketeers. You see their ads in the Sunday paper "make millions on real estate", "buy rental houses for $0 money down", or "buy investment real estate". THESE people sit on the sidelines and wait for these Small Time investors to fold. Then they move in like vultures and pick up the pieces.

Caveat Emptor. Buyer beware.