Think About Investing in Real Estate: Seriously.

[SilverEconomics]

I agree 100% The value is in tangible items not paper! The US is going to continue to allow immigration and the population is going to expand. Costs to build will most certainly go up via inflation. I have recently began to research the foreclosure and auction market looking for bargains. They are every where and the larger the house the better the discount. I agree also that the debt system has placed the discount rate in a corner.

Great Video!

[musarman]

Thank you for the video and insight.

Please can you suggest some pointers for ditching my paper cash to get something like gold with it's intrinsic value. You know, to avoid the pitfalls etc.

[Michael7477]

I think many are missing the point of this video. Goldintel is not saying you should rush out and buy property. All he's saying at some point it will make sense to grab a property bargain. Gerald Celente and Marc Faber are advocating for real estate as well. Because property has intrinsic value like gold or silver. Get into hard assets. I believe a few acres or a modest home are a good bet in the long term. An overpriced granite & marble palace with swimming pool could be a mistake.

[MACKATTACK1970]

This month the foreclosure rate was 98,700 homes, that's 3,290 homes per day and 137 homes PER HOUR.

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Coupled with the fact that 67% of foreclosed homes are not being released, not put on the market for sale because the banks fear if they do that the housing prices will plummet even further equals a housing glut for many years or decades to come.

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If you want to purchase a house that is fine but be ready to lose your downpayment and be upside down in that home for a LONG LONG time.

[TimothyADonaghue]

There is not a chance in HELL that housing prices are going to go up over the next ten years. If anything, they are going to continue going down.

[GoldIntelligence]

@TimothyADonaghue Haha. You sound like the type of guy that thought real estate was never coming down a few years ago.

[tesskansas]

What are you reading from?????

Do you really think that the govt. would be handing out $8k to recent buyers if they were planning for housing to go up?

The operative phrase here is "AT SOME POINT."

It will be about "where's the beef - not the house."

Interesting video to think about --- yet, I am not buying.

[GoldIntelligence]

@tesskansas The gov't giving tax breaks to buyers was absolutely designed to prop up housing prices. Why else would they have done it.

Also, I said that the market will bottom in a couple years or so. I wouldn't go out and buy a house now either. I would just start thinking about it. So when they ultimately look dirt cheap, you'll have a gameplan.

[dannydarias1]

One stupid question I have for you. We have a ton of people without jobs. How in hell do you suggest that we will see hyperinflation with no jobs? Am I the only to see deflation?

[GoldIntelligence]

@dannydarias1 I don't see hyperinflation for another 5-10 years. I'm sure we will see affects of deflation and inflation until then as the Fed prints money in response to the current deleveraging and overcapacities in the economy. The employment situation won't matter that much. Did Argentina, Zimbabwe, or the Weimar Republic have full employment when they experienced hyperinflation? Far from it.

[dannydarias1]

@GoldIntelligence So let me get this straight. The US will print to pay their debtors, which will create hyperinflation?? Is that what you are expecting will create hyperinflation? I thought we have been selling the Chinese tons of treasuries so that they can come and sell their cheap crap in the US? My view is that the US has maxed out it's credit card and the debt will SHRINK, not continue to expand. I believe the top is in. Shall I provide proof of this?

[GoldIntelligence]

@dannydarias1 Huh?  How could our debt possibly shrink? Our budget deficits are growing larger every year. We would need a budget surplus for the debt to shrink. The fact that China is buying less long term treasuries only means that we will have to do more quantitative easing (money printing) because our entire economy is based on borrowing. Also, we have a $50 trillion problem with unfunded social liabilities. Do you think they will cut Medicare and Social Security?

[dannydarias1]

@GoldIntelligence I am not the smart one here. So let's give credit to Yelnik, Mish, and Denninger. yelnick . typepad. com / yelnick / 2010 / 07 / peak - debt . html

[GoldIntelligence]

@dannydarias1 Mish agrees that the debt will be an enormous problem in 5-10 years, he just doesn't think it's a problem at the present time. I agree with him.

[dannydarias1]

@GoldIntelligence And yeah... It is shrinking. Deficits dont mean crap when everything else is falling apart. You guys look at whatever makes the hyperinflation crap look better. China not buying treasuries does NOT equate to money printing. the Fed ain't printing shit. Ohhhh I love your comment about the 50 trillion... So are we paying or are we NOT paying it... If we pay it, hyperinflation and collapse, if we don't deflation. What do you think will happen? Yes, they will cut everything.

[GoldIntelligence]

If you think the debt is shrinking, you clearly have no clue what you are talking about. And yes, foreigners buying less of our debt does lead to money printing. We started quantitative easing last year because there weren't enough buyers for our debt last year. Alan Greenspan recently said in his op-ed in the Wall Street Journal that the Fed will print endless dollars to buy treasuries and monetize our debts. Watch Marc Faber's recent presentation on Youtube. You will learn something.

[dannydarias1]

@GoldIntelligence No.. Marc Faber will not tell you what he knows. Otherwise he wouldn't be a successful investor. You will soon realize what I am telling you for yourself. The Fed is not printing one dollar. Nothing. The debt is shrinking as well. And we are in a deflationary spiral. We are close my friend, very close.

[Ranger4564]

@dannydarias1

Deflation is reduction in supply of money. So prices come down, consumption comes down, increases unemployment, a downward spiral can ensue.

Inflation is increase in supply of money. So prices go up, consumption might go down, increases unemployment as employers try to reduce costs, an upward spiral of pricing.

Hyperinflation is a rapid increase in prices, usually caused by an excess level of currency. It's not related to jobs or unemployment per se. FED printing is trouble.

[dannydarias1]

@Ranger4564 Fed printing means ZERO, nada, iota, if that money does not make it to the hands of me and you. There are a few ways that can happen. Banks lending to people whom they know will not pay it back (leaving banks bankrupt again), the FED sending me and you a $1 MM check. What is the possibility in y our view that any of these will happen?

[GoldIntelligence]

@dannydarias1 I agree with your points however you aren't considering a couple other things. 1) Our debt load will increase substantially over the next few years. At some point, foreigners will not be able to support our economy by buying treasuries. That means we will print our debts away, 2) The Fed doesn't have to lend to banks, they can print money and lend it out themselves, bypassing the banking system. Bernanke has written TONS on the subject.

[dannydarias1]

@GoldIntelligence LMAO. I agree with you. The government will print, and that money will go to itself. How much will they print and will they print more money than the credit that is getting destroyed. Let's say they print another trillion, how do you think Americans will feel? Do you think people will just stand by and let it slide? Let me put it this way, it ain't happening. Plus doing that will destroy the only power the Fed has, controlling the money supply.

[dannydarias1]

@Ranger4564 Keep dreaming and believing this "Fed is printing" crap. The Fed is a private company and looks out for itself. It bailed out the banks when the banks threatened its survival. Are you suggesting that the Fed will print to bail the American people out? If that's what you think, than I suggest waking up just about now. The Fed ain't printing anything, zero, nada. Why not, because it doesn't need to. The gov is borrowing, people are broke, and the banks are liquid. Why would they print?

[GoldIntelligence]

@dannydarias1 They've been bailing us out for years. How about the bailouts of Fannie and Freddie? That was the Fed. They've already been printing tons of money to monetize the Treasury's debts. It's called quantitative easing. There's a lot more coming. Do some research on your own, get the facts straight, and then come back and post something that makes sense.

[LeeRyan2930]

in 2-5 years

[PricklyPete10]

Great video! Think of it this way, if you take out a mortgage today, it will be in 2010 dollars. The bank hedges this fact with interest. How ever a 4% mortgage is likely not to keep up with the falling value of the dollar. There are many more factors because real-estate is not a commodity/money. However, where else can the common man take out a 500,000 bet for such a low interest rate?

[PricklyPete10]

Great video! Think of it this way, if you take out a mortgage today, it will be in 2010 dollars. The bank hedges this fact with interest. How ever a 4% mortgage is likely not to keep up with the falling value of the dollar. There are many more factors because real-estate is not a commodity/money. However, where else can the common man take out a 500,000 bet for such a low interest rate?

[TadRapidly]

GOLD is also cheap against GOLD. ;-)

[dave777blaster]

housing is still too high

country places with land you can use for growing your own food is the real ticket.

[billyjoebobway]

if the bilderberg group gets their way, the decrease in population will leave a ton of homes on the market many years....yes, the extinction of humans....

watch and learn....

i have been buying G/S since 2003, I purchased my first gun 3 years ago...now I have 6...I am storing food, water and ammo...my wife thought I was nuts in 2003....but now she sees...that gulf oil leak is a planet killer....God Bless, I hope your right and things turn around

[justgetsome]

I think you have a good strategy but I still can't see paying 2.5times for something over 30years; that's what a house is a life sentence no different than jail time. Recently I had to put a new roof and a septic system on my rental house, if you add the interest payments, the afor mentioned repairs, general repairs and taxes, I have not made a profit on this house even with it so called doubling in 10years, having good renters that pay and I don't even live in this place. Imagine if If did?

[mikef8080]

Great video! I share almost the exact same opinions. It's a tough call right now: take advantage of the ultra low rates and risk the house value dropping?... or wait a year or so for house prices to drop but risk losing out on the great rates. I think we can all agree on massive inflation... just no way to know how soon it will be before it pushes house prices upward.

[GoldIntelligence]

@mikef8080 Thanks. I think the beauty of the housing situation is that it is a slow-motion train wreck so if you are a buyer, you can take your time and make sure you get the best possible deal.

[tirmen8er]

housing isnt even close to being done crashing. horrible advice. dont buy for another year, atleast

[squizzbutt]

@tirmen8er Please listen to the entire video. He is saying you can buy very cheap within the next couple of years. I'm waiting to buy, and realize the expiration of the homebuyer tax credit means the market will rely more on TRUE market forces. But with banks not touching residential housing yet and Freddie Mac carrying the burden, that means the market is still being artificially inflated. I'm guessing after FINREG, the next thing will be to shrink Fannie & Freddie, driving prices even lower.

[GoldIntelligence]

@tirmen8er If you took the time to listen to the video I said that I think home prices will probably decrease nationally over the next 2 years. It doesn't mean you shouldn't start educating yourself about the housing market now if you are thinking of buying in the future. Also, I don't recommend buying at retail prices, there is plenty of distressed real estate to be had.

[squizzbutt]

Obama promised at the recent G20 meeting that by 2013 the USA will cut it's deficit in half. Now I'll believe it when I see it, but if our GOV does actually get religion and start acting responsibly that will mean some short term pain in this country for a number of years. That will most certainly mean lower home prices as home ownership will not be a priority or thought of as an investment. Like you, I also believe housing will fall another few years, so patience is the key here.

[143DREWID]

Limitless variables this time. Duration of each, may be torturous.

[halfasheep]

Look for affordable homes around the Gulf. Next to a hospital might be wise move.

[squizzbutt]

The same John Paulson who is part of the Goldman Sachs lawsuit??? Not that he was wrong about housing a few years back.

[Saywhatyoumust]

@squizzbutt - I think you might mean the scumbag Hank Paulson.

[squizzbutt]

@Saywhatyoumust No, it's actually John Paulson who was involved in the current Goldman Sachs lawsuit. He was the one that came in and supposedly picked the crappy mortgage securities which Goldman packaged off and sold to some poor schlub, while Paulson shorted that bond knowing that the underlying securities were losers. Time will tell what the truth will be.

[GoldIntelligence]

@squizzbutt Yeah, Paulson is named in the suit but is not an actual party in the suit. The guy is smart and has been right on everything over the past few years, including gold.

[squizzbutt]

@GoldIntelligence Well, I'm actually with you on gold and silver, but Paulson joined the gold party pretty late in the game (unless you think the gold run is in it's early phase). Your video nails it though. I just wish you would have pointed a more reputable investor other than Paulson (Jim Rogers, Peter Schiff, Marc Faber to name a few who saw the housing bubble and gold run), as I think it's quite possible he's going to come out of this Goldman suit with a seriously tarnished reputation.