Be Very Careful if you are buying a house!

[Riverfrog72]

Never bought or sold a home? Why are you giving advice?

[TheCashistrash]

No jobs means No real estate market. Prices will keep going down mainly due to no jobs. If hyper inflation creeps in that may help stabilize the housing prices but unlikely if there is huge amount of people unemployed. Hyperinflation is going to kill the dollar but you will see fuel costs food and other necessities rise along with inflation. Best place to put your money will be in commodities.

[mnap128]

Nice vid...too bad the majority didnt see your point of view many years ago....

[CrackerJackLee]

a house is not an investment - it is a debt - a loser game. buy a house to live in - that you like. if you want profit, then flip houses - where you buy & sell within months. if you buy and hold, your profit is really inflation. think about it. there is no gain. and when you buy your new house, all your "profit" gets rolled into that. BUY A HOME - FLIP A HOUSE. and upon retirement, the market may be against you. real estate agents have you fooled into house-poor zombies with $ signs in your eyes

[CrackerJackLee]

that being said, some do make a profit - but it's like a crap game. you wouldn't gamble 250K on a roulette table but you spend your whole life as a wage slave to end up no further ahead.

[tdawgee]

so,who has cash to pay for a house ??

You ???

[rickvanman]

Canada looks just like England this time of year!

Great advice as always Derek - I think the same principals appy over here too.

Thanks for sharing.

[spoonman73]

Agreed. However, that is because the housing market had already topped (July 05) when this index came out. But, if you look at the IYR,HXB they follow the same path as the stock market. Major lows 11-21-08,march-09,july-09 same as NASDAQ, DOW, SPX,NYSE etc. Using this same logic, could we not infer that housing may be bottoming as we speak? Just as it topped with housing stocks in July-05. Always trust your charts- not fundamentals.

[endlessmountain]

I disagree in not trusting the fundamentals, for mixing the two together seems the best.

With people not able to afford houses and increase foreclosures it is very obvious that housing is not bottoming. However, I use inflation adjusted to get true realities on where it is going. For if inflation goes way out of control you can get more accurate readings.

[spoonman73]

fair enough

[spoonman73]

Are you referring to the XHB? Housing stocks topped in july 05 preceding the housing crash. With the stock market as a leading indicator, it looks as if the housing bottom is being put in right now. Also, William Oneill has stated that the stock market bottom is in and that we are in a recovery phase.However, even though he is a genuis I don't deny the possibility that this could be a bear market rally as the market is deviant. And the more they cheer on CNBC, the more nervous I get.

[endlessmountain]

IYR is the best ETF I know, and the homebuilders came out in 2006 and only managed to gained around 2% from its original open and fell from the outset.

[spoonman73]

What measurement or index are you using to determine a housing bottom?

[endlessmountain]

i am in need of charts to determine. Real Estate ETF is ok, but it would be based on foreclosure, buyers and all these factors. I know that it is a long way from being better, that a real economic recovery needs to happen for this to be true.

[Chicagodogs0]

Bernanke is in a tough spot. They will stop QE in Oct. Because the falling dollar will increase gas prices and kill any so called recovery. Also if the dollar falls below 70 the bottom can fall out and send us into a depression. The so called free market will have to increase interest rates=more forclosures, more layoffs, more bank failures and more bank bailouts. We'll go into a severe depression either way. Just slower with rising interest rates than the bottom falling out with QE

[afsoldr]

Here's my thought on this, and I say this having bought a house and an acreage parcel 2 years ago, and just sold my other house a few months ago.

If you buy now at a fixed rate, assuming you have a cash reserve, put the cash reserve into the metals, minimum down on the house, and then, when the inflation runs off, you could possibly pay the house off for what a can of coke costs in the future, or maybe a couple ounces of silver/gold.

[endlessmountain]

correct. Putting over 50% of your assets on property would give you difficulties, as going broke means you have to sell quicker. By having gold and silver in your house, with all the other things that can generate revenue makes it a good purchase.

The point has always been the same. We only have so many days to go with this dollar. It could be a 2 year death cycle we live through. I don't know if it gets Zimbabwe rates of growth.

If Bernanke stands true and stops buying in OCT = COLLAPSE

[dgmoocher]

Thanks for making me feel better about renting!

[merryxster]

Sound advice as usual. Could you please recommend a book on the Mayan calendar for someone who is totally ignorant on the subject? It would be greatly appreciated.

[bjmccullough]

I just bought 2 apartments here in central Tokyo with cash. They are now rented and provide me some income but the reason i bought them was an inflation hedge. good advice derik from nikei Bruce.

[slobomotion]

Your usual genius. :)

Shared WIDELY.

Greetings from France.

[Kingratass]

im currently looking at 20 acres for 50k in city limits, wooded with wetlands and a creek...there are reasonable deals out there

its also possible that housing/real estate will go back up due to inflation, but not as fast as food, energy, and other commodities (especially gold/silver/etc)

[PREPAREORSUFFER]

i think renting and purchasing gold and silver is your best bet !!

[SamuraiCommando]

Unless you are buying farmland for a good price. You need water rights and a good domestic well. Food production is a excellent hedge.

[thirdcoastguy]

Derek, if a person had the money to purchase a house would he/she not be better off investing it in gold now............and buy the house later? You know, after the gold appreciates and the house depreciates?

[endlessmountain]

yes, that is a good strategy. Like I said, if you buy a house with cash and it is a good investment based on what you are using it for.

The point of the video is to mention that buying houses is mostly a bad investment now. That is why i said the 90-95% because sometimes it is not.

For most people, waiting to buy a house is the smarter move.

[whiskerchild]

How true it is. I know a couple who just bought a house a couple of months ago- gawd, I hope it works out for them.

[maybecominsoon]

If you are buying a house, think of it as a HOME not an INVESTMENT

[cdmcl3]

well-quaified and good advice!

[thane17]

There's such a surplus of houses right now and its going to take a LONG time for the market to absorb them, likely a decade or more. Many of the bank owned properties are not even on the market because they know they can't sell them, so those eventually will further saturate the market. And yeah, the increase of interest rates, i'd stay far away from real estate right now. Sure its better than the dollar, but theres much better places to put the money

[tonapah141]

my man Derek.... that Hat alone, you're wearing... validates everything you're saying.... peace out

[apuleius84]

Thanks Derek. I believe you bro. They keep telling us this is the best time to buy a house!!! However, Interest rates are expected to go up in the future. Please do not take a mortgage with an adjustable rate. stay away of the water!!

[tonapah141]

not... stay away from tha water..." stay away from tha kooLaid"

[gjljhjb1]

its working now brother

[bsaorders]

The HD version works fine - youtube issue

[gjljhjb1]

video not working...

[endlessmountain]

I know... I have tried to get to work, and have only once.

It says an error has occurred and am not sure why.

[SamuraiCommando]

Alot of videos having been doing that lately