Comments on: Homebuyer beware: the real estate game lacks fair play http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/ Wed, 08 Feb 2012 04:44:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Neil Steadman http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-58264 Neil Steadman Sat, 06 Feb 2010 23:33:02 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-58264 I am not a speculator nor the son of a speculator, but leave the guys alone unless they are doing something illegal. Government intervention in the marketplace got us into this mess. The more it intervens now the worse things will get and the longer it will take to recover. I am not a speculator nor the son of a speculator, but leave the guys alone unless they are doing something illegal. Government intervention in the marketplace got us into this mess. The more it intervens now the worse things will get and the longer it will take to recover.

]]> By: Doug Fowler http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-57860 Doug Fowler Sat, 30 Jan 2010 18:45:00 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-57860 Wow. I consider myself a long term investor (30+ years) and have cared about the properties we've owned , and the tenants who live there. Why is it that if someone invest their hard earned money into an investment in order to make a profit, even a quick profit, they are demonized? There have been speculators in every business and they happen to serve a vital market function. Can you imagine what the stock market would be like withhout speculation? The seller of the property didn;t have to sell it to the speculator if he had a better buyer, did he? The buyer of the property won't buy if he has a better opportunity, will he? Please, let the markets be the markets. Don't confuse the perfect storm of recent too-laxed underwriting standards and blame speculators or investors. If a particular speculator acts illegally then take him to task. but don;t throw the baby out with the bathwater. Respectfully Submitted, Doug Wow. I consider myself a long term investor (30+ years) and have cared about the properties we’ve owned , and the tenants who live there. Why is it that if someone invest their hard earned money into an investment in order to make a profit, even a quick profit, they are demonized? There have been speculators in every business and they happen to serve a vital market function. Can you imagine what the stock market would be like withhout speculation? The seller of the property didn;t have to sell it to the speculator if he had a better buyer, did he? The buyer of the property won’t buy if he has a better opportunity, will he? Please, let the markets be the markets. Don’t confuse the perfect storm of recent too-laxed underwriting standards and blame speculators or investors. If a particular speculator acts illegally then take him to task. but don;t throw the baby out with the bathwater.

Respectfully Submitted,
Doug

]]> By: Schahrzad Berkland http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-56678 Schahrzad Berkland Wed, 20 Jan 2010 21:27:24 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-56678 I see plenty of speculators in San Diego, and they are of two types. First, flippers who buy junky old cheap homes under $250k, fix them up, and resell at a profit. I've never known of a flip that did not invest equity in improving the property. Second, speculators who mistakenly think this is the bottom, so they are buy/hold guys, renting out the property and getting the cash flow while waiting for appreciation. The flipper can only charge the market price. The prices are going up because we have a 2.4 month supply of homes in San Diego (take out the $1mil and up homes, and it's just over 2 months). Supply is low because banks/fgov't conspire to prevent 90+ day delinquent homes from getting NODs and turning into REOs (REOs are bad politics and would expose the banks as insolvent). Demand is high because go'vt low interest rates and FHA low down lending. I just don't see the flippers playing enough of a role to reduce the supply. Regular sellers don't prefer the cash-paying flippers, since they want the max price. I had a $180 cash buyer who won over $220k FHA buyers, so yes, the banks prefer cash even if they get less money. That makes no sense. I am not a flipper, I think real estate is too risky. I see plenty of speculators in San Diego, and they are of two types. First, flippers who buy junky old cheap homes under $250k, fix them up, and resell at a profit. I’ve never known of a flip that did not invest equity in improving the property. Second, speculators who mistakenly think this is the bottom, so they are buy/hold guys, renting out the property and getting the cash flow while waiting for appreciation.

The flipper can only charge the market price. The prices are going up because we have a 2.4 month supply of homes in San Diego (take out the $1mil and up homes, and it’s just over 2 months). Supply is low because banks/fgov’t conspire to prevent 90+ day delinquent homes from getting NODs and turning into REOs (REOs are bad politics and would expose the banks as insolvent). Demand is high because go’vt low interest rates and FHA low down lending.

I just don’t see the flippers playing enough of a role to reduce the supply.

Regular sellers don’t prefer the cash-paying flippers, since they want the max price. I had a $180 cash buyer who won over $220k FHA buyers, so yes, the banks prefer cash even if they get less money. That makes no sense.

I am not a flipper, I think real estate is too risky.

]]> By: joe speculator http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-55614 joe speculator Wed, 13 Jan 2010 22:25:48 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-55614 Homebuyer beware: the real estate game lacks fair play I do agree with the author's premise of this article in that the market for ALL homebuyers lacks fair play. The bogeyman was incorrectly identified, however. Politicians in collusion with bankers are distorting the market pricing mechanism using our tax dollars. Fannie, Freddie, REO inventory buildup, changing accounting rules, tax credit kickbacks to favored homebuyers, etc. These are the real dangers to all homebuyers. Homebuyer beware: the real estate game lacks fair play

I do agree with the author’s premise of this article in that the market for ALL homebuyers lacks fair play. The bogeyman was incorrectly identified, however. Politicians in collusion with bankers are distorting the market pricing mechanism using our tax dollars.

Fannie, Freddie, REO inventory buildup, changing accounting rules, tax credit kickbacks to favored homebuyers, etc. These are the real dangers to all homebuyers.

]]> By: joe speculator http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-55612 joe speculator Wed, 13 Jan 2010 22:16:11 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-55612 The author of this article lives in an economic fantasy-land and/or has an agenda. Government intervention is the problem, not the solution. The only role of government regulation is to provide a consistent, level playing field with respect to fundamental market transparency. Favoring one group over another, no matter how noble the goal, will always result in more problems than the supposed 'good' that was supposed to happen. Speculators serve a very useful purpose in allowing market clearing price discovery and providing capital to otherwise illiquid markets. If you do not like speculators, get your cash, go to the auction, outbid them and put them out of business. The author of this article lives in an economic fantasy-land and/or has an agenda.

Government intervention is the problem, not the solution. The only role of government regulation is to provide a consistent, level playing field with respect to fundamental market transparency. Favoring one group over another, no matter how noble the goal, will always result in more problems than the supposed ‘good’ that was supposed to happen.

Speculators serve a very useful purpose in allowing market clearing price discovery and providing capital to otherwise illiquid markets.

If you do not like speculators, get your cash, go to the auction, outbid them and put them out of business.

]]> By: Joe Smandovitch http://firsttuesdayjournal.com/homebuyer-beware-the-real-estate-game-lacks-fair-play/comment-page-1/#comment-54767 Joe Smandovitch Thu, 07 Jan 2010 18:52:53 +0000 http://blog.firsttuesdayjournal.com/?p=2331#comment-54767 There seems to be a problem with your website. On other sites, the information I get is usually wrong and unusable, but on this site everything actually makes sense and is very well written. Why is this? Thank you! Thank You, Joe Smandovitch There seems to be a problem with your website. On other sites, the information I get is usually wrong and unusable, but on this site everything actually makes sense and is very well written. Why is this? Thank you!

Thank You,

Joe Smandovitch

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