Real estate might be bottoming out
Bob Morris @ Mar 30th 2008 06:15 - Category: Credit crisis
Vulture funds are buying SoCal land at 15 cents on the dollar, planning to hold 3-5 years, then sell at a profit.
A savvy real estate investor friend in L.A., after years of not finding anything to buy because prices were so high, is just now starting to maybe buy a few houses in the San Fernando Valley for, say, $390,000 that were $650,000 eighteen months ago. (These homes are bank-owned or foreclosures and there are so many of them they are driving all prices down.)
He is also a buy-and-hold investor with a multi-year time frame. When real estate finally bottoms out, it will be because people like him started buying. When you think about it, a vulture fund is about the same as a long-term value investor - buying cheap, holding for years, then selling for a gain.
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Ten Bears on 30 Mar 2008 at 11:08 am #
Found a very good, very thorough, analysis yesterday: The Bottom in Housing.
Dil Egitimi on 04 Apr 2008 at 5:34 pm #
does anyone knows if there is any other information about this subject in other languages?
Fat Mike on 10 Apr 2008 at 8:16 pm #
November of 2008 will be the beginning of the upcycle.