CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Thursday, January 01, 2009
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- Top Earners Are the Vital, Economic Activists
- Capitalists On The Way Up; Socialists on Way Down....
- Economically Possible? No. Politically Possible? Yes
- The 2012 Pelosi GTxi SS/RT Sport Edition
- Why Detroit Has a Bad Union Problem; Entrenched Ba...
- Markets In Everything: Sell/Exchange Gift Cards
- Volatility Index Coming Down From Oct-Nov Peaks
- Markets In Everything: Wearing A T-Shirt for Profi...
- Real Gas Prices Approach 7-Year Low, Saving U.S. C...
- Notebook Computer Sales Beat Desktops in 2008:Q3, ...
8 Comments:
311 Sandtree Dr
Palm Beach Gardens, FL 33403 $60,000
2 Bed, 2 Bath, 1,338 Sq Ft
Property Type: Condo/Townhouse/Co-Op
$60,000 is what they are asking today 1/1/09
$59,900 is what it sold for Jan. 1980
The RE narrative that RE always goes up, its a great time to buy, RE is a investment, buy and hold and other steams of information from the banking and RE financial media PR machine are running out of greater fools. RE prices are set at the margin's and low interest rates is another sign of low demand.
Mark,
I wonder how comprehensive that data is. My parents got a 30-year fixed rate mortgage for about 4% in the late 1960s.
Lineup32,
Over the long term, real estate, if bought for a reasonable price (e.g., a home price of 3x the average income for the area or less) tends to appreciate inline with inflation. Considering that the average home buyer is only putting 20% or less down, that can end up being a pretty good investment, due to the effects of leverage. The tax advantages are an added bonus. They key, as with every investment, is to buy at the right price.
When I bought my place, back in 2000, I figured that the cost of owning it (with a 8.5% mortgage at the time) was the same as renting, even before taking into account the mortgage interest deduction. That made it a no-brainer.
Lineup - that example you give is utter nonsense.
DaveinHackensack: you didn't buy a house you bought a mortgage.
Kevin: based on public records.
Provide the link to the public records lineup - I don't believe it.
Kevin your link to the Palm beach property.
http://www.co.palm-beach.fl.us/papa/aspx/web/detail_info.aspx?p_entity=52434219030000062&geonav=Y&styp=general&owner=&city=-1&zip=&method=subdivision&cidx=-1&sdiv=5243421903&sdivnam=SANDTREE%20-%20Palm%20Beach%20Gardens&stno=&pdir=&st=&strnm=&sufx=&ptdir=&cty=&rng=&twp=&sct=&blk=&lot=&book=&page=&tangid=&condo=&condoname=&use=&usnam=&sloc=&prd=&pedir=&podir=&famt=&tamt=&fsqft=&tsqft=&srt1=&srt2=&srt3=&stpage=0&adlfilter=
Kevin: not sure that link works very well. Put the address in Google search and one of the links offered will be Palm Beach county property appraiser site, click on that link and find the address listed. Then find the ALL Sales tab which will show sales back to 1980.
311 Sandtree Dr
Palm Beach Gardens, FL 33403 $60,000
2 Bed, 2 Bath, 1,338 Sq Ft
I learned something valuable from Robert Kiyosaki:
I approach things with a "how can I profit from this?" perspective.
Unfortunately, I'm not seeing any way to profit from these "record low level" mortgage rates.
Post a Comment
<< Home