Must read article for first time homebuyers. Get Ready to Be Upside-Down on your Mortgage!
http://tycoonreport.tycoonresearch.com/articles/526554861/login.html
I think first homebuyers should pay attention to above article written by editor Ethan Roberts.
Globally Lower interest rate is the main reason to buy houses by first homebuyers. They do not have sufficient knowledge to analyse future trends other factors relevant to housing market. Suddenly rents are falling in many countries.
Experienced and top real estates investors do not want invest in property now according to their analysis and experience. .
I think if somebody really wants to buy houses, it is better to buy at least 20% below the average prices in some countries to avoid falling risk in the property market during next three years. Otherwise, you should invest in undervalued houses for the long run.
Any other thoughts. Thanks.
Additional Information:
Ethan R. Thank you for your answer. I was wondering why you are silent these days.
I said Dubai would be more vulnerable to property collapse last year. I think some countries in pacific Asia region including China, Honngkong and Singapore real-estate sector will be more vulnerable in the future.
Next crisis will begin from some other countries due to real estate speculation and currency carry forward plus currency speculation. I think sometimes that we will have asset and currency crisis in the future in a different way.
Least home affordable countries such as Australia and New Zealand also will also have risk of depreciating home value sooner than later. Now speculators are trying to speculate house prices without any fundamental reasons. How can they expect bubble house prices in 2007 and 2008 again within the short period? I think this will lead to another crisis.
Do you think we will have sustainable housing market recovery in USA and UK during next there years? Thanks.
Best Answer
4085 points
EthanR answered 2 weeks ago …
I can't answer for the UK, but in the USA I think most of it depends upon the unemployment rate. Property prices have already come back to affordable levels, particularly among foreclosures and short sales. Interest rates have fallen to around 5%, and some weeks lower. These are both good for the housing market. We have a home buyer tax credit in place.
However, there are large segments of the population that do not have jobs, still have outstanding debt, and so can not qualify for loans for quite awhile. Many of them are living with relatives.
The good news is that savings rates are up and people are trying to avoid tacking on more debt. It will be an interesting Christmas, for sure! So all in all, I think the housing recovery will take quite awhile, but the market will continue to be a good one for investors. That's because the rental market is still strong in many areas, and good quality homes are being scooped up for 30-40 cents of the 2006 peak prices.
Answers
4085 points
