Real Estate market Is Getting Bubblicious
There is one part of the property market Barrack said he still likes: self-storage facilities, which require little capital investment and don’t show any signs of slowing demand.
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Until Interest rate is hiked, current trend will continue. Rents are beyond reach as renters demand is high. Less than 1M homes are going fast. Financing/refinancing are getting easier nowadays.
Thanks Obama
Self storage has always been my favorite. .still have one left…pays 10% cash on cash…
Rumor has there would be a rate hike in Sep.
IMO, These Rumors come and go, stocks go up and down based on Rumors, perfectly fine, but rate hike will not be there. Like Manch said, rate hike will be on topic when S&P reaches beyond 2500. Rate hike will not come, as I mentioned early in another thread, until Feb 2017.
Here is someone’s reply in reddit for rate hike.
“Barrack is also serving as an economic policy adviser to Republican presidential nominee Donald Trump.”
No thanks.
These fund guys aren’t good with investment. What they are good at are getting people part with their money. The 2 and 20 is what make them rich.
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Sep rate hike is virtually 0% chance. I think the soonest is December, after the election. Why raise just before the election and potentially help Trump?
The pace of hikes is going to be really slow. And the past hike has proven to be non event. In fact mortgage rate has turned lower. Is the yield curve still inverted? Haven’t paid much attention lately.
Underwriting is still tough. That’s the real story. Not the mortgage rate, which is still incredibly low. Give me some NINJA love!!
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Yes, we have seen mortgage rate came down too.
But, we can not call it Past hike non-event. It had created impact to entire country.
Economy is not ready for next rate hike. If hiked, Lay offs may continue and job hiring will stop. Let us wait and watch.
If I want to guess more we may not get any rate hike until end of 2017. If there is any hike, it can not happen before Dec 2017 or rate hike may not even happen. It is very difficult for FED to hike rates and economy itself find trouble without rate hikes.
I do not want to be too much political here or hot discussion on this controversial issue.
If Clinton is elected, she will not let the rate to be hiked. She will (try) not let the economy go down from current phase. This is essential for her next win.With the way Trump is helping her, she may even get entire democratic Senate + Congress. She can implement whatever she proposes.
If trump comes, he will reverse many things, but local jobs or mfr gets boost if he maintains the promise he makes to people.
On any case, either comes, economy is not sound for rate hike.
Self storage has no tenants rights laws, nothing much to maintain …rents as high as apartments for a stucture that costs third of what apartments cost to build…location is key…must be in a highly visible retail location. …plus potential for land banking…requires onsite management with a managers unit onsite…
What? Obama serving as advisor for Trumputin?
Oh, the other Barrack…OK…makes sense…
Is he in the establishment economic team Trumputin gathered last week? They are all the traditional Joe the plumber, Shmuck the janitor, Carlos the painter, right? 
Storage is a good business, have you asked the price for a unit? Man! Those guys are thieves! 
Here is the first lay off details coming,9000 to 14000, likely be declared soon.
Some people have been known to live in their units…Best price are in Tracy and eastward…
[quote=“Jil, post:9, topic:677”]
If Clinton is elected, she will not let the rate to be hiked. She will (try) not let the economy go down from current phase. This is essential for her next win.With the way Trump is helping her, she may even get entire democratic Senate + Congress. She can implement whatever she proposes.
[/quote]If that is the case, Fed should raise rate before election.
Minimum impact on RE, no?
Minimum is right (on my guess) as they are not major RE players these days. Presently, Apple, Google, Facebook like companies are major RE buyers.
Why rate increase? Do you want real estate prices to come down so that we all buy? In fact, most of the people waiting for prices come down may not buy.
When rate increases, no one can really face the pressure. Take for example, 2008-2012, very less buyers and competition was low.
Like Manch said or Elt1 suggested, buy whenever you are eligible or affordable buy a home, hold forever. This is the best for BARE.
The damage for many and/or the benefit for some is done in the housing sector. Specially in the BA, many people no longer qualify for a home, that’s adding the incentive of a lower interest rates, imagine if the rates go up?
I said many years ago, that in the government intervention as we witnessed, uncle Sam could have done a better use of his money by controlling who got what. From CEOs paying themselves yuuuuuuuuge bonuses, to Realtors, you name the skills, profession and status getting their dough, but the original intended beneficiary didn’t see the rewards. Many first time wannabe homeowners got left behind.
I can’t complain. I got helped by the system. But still, I could see some kind of desire from housing programs to spend the money no matter what. People who weren’t supposed to be helped (economically speaking) got rewarded because the more they earned, the better deals they got.
I know for many I don’t make sense, but I lived and felt the pain of many people who got left behind.