Comments on: I went to a foreclosure auction http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: zerosleep73 http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/comment-page-1/#comment-4709 zerosleep73 Sun, 26 Oct 2008 18:10:21 +0000 http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/#comment-4709 The last part of your article was interesting. In a run away inflation scenario, buying real estate now with minimal down might be a good investment. Even if prices of homes may depreciate, it might be a bargain if inflation is over 10 percent a year for the next 30 years. Your mortgage debt will be inflated out of existence! The last part of your article was interesting. In a run away inflation scenario, buying real estate now with minimal down might be a good investment. Even if prices of homes may depreciate, it might be a bargain if inflation is over 10 percent a year for the next 30 years. Your mortgage debt will be inflated out of existence!

]]> By: Romeo 61 http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/comment-page-1/#comment-4153 Romeo 61 Thu, 24 Apr 2008 21:38:21 +0000 http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/#comment-4153 The problem is not investing in real estate right now or investing in tech during the dot com bubble. The problem is putting all your eggs in one basket. There is no reason why the bursting of the dot com bubble should have wrecked one's finances for a couple of decades. There is no reason why the current real estate crash should wreck one's finances for a couple of decades. If one was sufficiently diversified then the pain would be felt but wouldn't kill you. The problem is when investors go "all in." When they do, they cease to be investors and become gambling idiots. The problem is not investing in real estate right now or investing in tech during the dot com bubble. The problem is putting all your eggs in one basket. There is no reason why the bursting of the dot com bubble should have wrecked one’s finances for a couple of decades. There is no reason why the current real estate crash should wreck one’s finances for a couple of decades. If one was sufficiently diversified then the pain would be felt but wouldn’t kill you. The problem is when investors go “all in.” When they do, they cease to be investors and become gambling idiots.

]]> By: Kirk http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/comment-page-1/#comment-4150 Kirk Wed, 23 Apr 2008 13:22:48 +0000 http://www.1stMillionAt33.com/2008/04/i-went-to-a-foreclosure-auction/#comment-4150 You are exactly right. Housing probably hasn't hit bottom. When you go to an auction and there are only a hundred folks there, then you know we hit bottom. I also agree that your friends may be setting themselves up for a rough patch by purchasing so many rental properties. When you experience a boom where prices doubled in less than 8 years, a 10% decline is not enough. Also, if rates do rise, then prices will have to fall as affordability, which is still out of whack, will get worse. I wrote on my blog about Wachovia's recent earnings conference call. Their risk management executive said they expect the bottom in mid-2009. Since banks have a vested interest in getting through this mess, I would add at least a year to this projection, maybe more. What was interesting is they aren't calling a bottom now like many banks. You are exactly right. Housing probably hasn’t hit bottom. When you go to an auction and there are only a hundred folks there, then you know we hit bottom. I also agree that your friends may be setting themselves up for a rough patch by purchasing so many rental properties. When you experience a boom where prices doubled in less than 8 years, a 10% decline is not enough. Also, if rates do rise, then prices will have to fall as affordability, which is still out of whack, will get worse.

I wrote on my blog about Wachovia’s recent earnings conference call. Their risk management executive said they expect the bottom in mid-2009. Since banks have a vested interest in getting through this mess, I would add at least a year to this projection, maybe more. What was interesting is they aren’t calling a bottom now like many banks.

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