Bay Area real estate is driven by big and small mom and pop investors and chinese as well. If the economy outlook is not rosy will people buy real estate knowing there may be another low? I know its a hard asset, but will you jump the gun and buy real estate? that should drag down prices by curbing the overbidding etc. It need not fall too much just need to stabilize a bit.
Right?
Hey, just like the flight to gold and treasuries, I can see people just going enough with stocks letâs put the money in Bay Area real estate instead. Would love thatâŚ
You canât live in stocks, gold, or bonds. People need a place to live. That means there will always be renters and/or buyers. The stock market corrects 25-50% every 5-7 years. How many times has real estate corrected by that big of percentage?
Well, never at least here right??? Ok, I am all in⌠buying properties today!!! 
This is my view/guesstimate (i.e. no supporting evidence)
Between yesterday +230 DOW and today -500, only one political event happened. Brexit is just volatility. UK is staying away from Euro, no physical material change like Downturn or Economy issue.
Whatever stocks I purchased are all the stocks I already own except PYPL (which was in my watch list to buy at low). Morning to now, there is a good jump on my return.
After Chinese economy got hit, the 2nd biggest, we are still good. UK is fifth largest economy and booming to fourth position soon.
âAAPL revenues as an example be impacted if POUND is getting hammered like thisâ. These impacts will go away when UK GDP is strong. My guess work is EURO will be affected, but not UK GBP (now -9% will recover soon).
IMO,The impact may not be big as some positives and some negatives will be there.
In addition, I am bullish as long as FED is keeping the rate intact. If US GDP is good and companies are doing great with US markets, we will be fine. This means DOW will not be touching 16000.
The only true regret is that I did not have so much money to buy today. Time will tell me whether I am right or wrong, but I hold those for long term as ETFs are less volatile than stocks.
Read this
Jill,
Obviously, I like to talk in extremes, but you have to admit the stock market is rigged to a certain degree. The small time investor is usually not prevy to IPOs and quite frankly pseudo inside information. An average joe can much much easily raise his/her financial stature with real estate. I like to use my former tenant as the perfect example. Immigrant, fairly poor guy with family. Has contracting skillz though. Well, he saved up enough money and bought his little home and it has literally gone up $100k to $200k with what he has done to it in a matter of a year or two. He wants to trade up and buy bigger and can actually do it with the equity achieved. No gimmicks, just real, sweat equity.
I seriously doubt your real estate appreciated at as high a rate as the stock market so the % correction is relative. There are also more expenses incurred with owning property. In the long run, most people would do better in stocks than on real estate.
Hmmm, did the insiders already know before the little guy to get out of the market pronto???
Again, small sample, but personal experience I have heard of quite a few people getting burned big time in the last crash to the point of no return, yet I have never heard of a real estate investor doing poorly or even remotely poorly over the long haul.
Again, small sample, but personal experience I have heard of quite a few people getting burned big time in the last crash to the point of no return, yet I have never heard of a real estate investor doing poorly or even remotely poorly over the long haul.
Maybe in Bay AreaâŚnot in Detroit.
Analogy is Apple vs Nokia 
Historical data says a diversified stock +bond portfolio will give a much higher return than real estate over the long haul.
Roy321,
I will stick to investments where I feel I have more of a fighting chance as a small guy, that are tangible and more interesting to me. I will buy a ton more golden age comic booksâŚ
Roy321,
I will stick to investments where I feel I have more of a fighting chance as a small guy, that are tangible and more interesting to me. I will buy a ton more golden age comic booksâŚ
Absolutely. We should do what we feel comfortable with.
In Singapore, old or new, are obsessed with owning RE. It is believed that there is no land to build in Singapore but it didnât stop RE prices cut by half over 10 years, recovery is spectacular though, double in 1-2 years after bottom. So, if you have staying power, even if you bought at the wrong time i.e. ATH, you would still make, just much less than those who can make godly timing.
So long you learn from it is ok. We canât change the past but can influence the future.
hanera,
I may one day take you out to lunch (maybe to that chinese place Manch raves about in San Jose) just to pick your brain about Singapore and Malaysia. I wouldnât mind retiring there for half the year since my inlaws are there. I know it is hard for foreigners to buy in Singapore (and it is expensive) but there must be a way to do it before pricing heads north.
Depends on time period. AAPL investors burn badly from IPO to 1996. AAPL investors make indecent return since the return of SJ to 2011. Those who bought in 2013 are crying.
Plenty of bankruptcies during 2008 downturnâŚ
Rigging is everywhere, including real estate, wherever money is involved.
Stock market is volatile. HFT adds further volatility and most of them algorithmic driven.
When stocks are getting hit, down the lane in six months you will see in real estate. It is a cyclic event.
I am real estate heavy with 80% of NW in RE, while 20% other side.
Here many people focused in real estate alone thinking stocks are not so great like real estate. I thought the same when I was panicked by volatility and lost year after year. But the truth is there are many wonderful opportunities are there for growth outside of real estate.
Whoever discounts stocks, especially in USA, they are missing great opportunity. Even after so many years, I am not seasoned, but trying to get there.
For example: When we see a house, we do not buy everything or we do not take orbitary decision, but take time to buy and finally make an offer.
If we employ a similar strategy, well careful analysis process, Stocks ROI is exceeding RE.
Jil,
Yeah, and from the market tanking the last time too. I knew a small businessman in the city. Very successful business in the city. Many years and he frankly had almost a monopoly. Granted, he did not follow sound advice about diversification, yada yada yada and was all in on stocks even at his ripeful age. Lost it all. He was an old man at the time and it was really sad to see a successful man reduced to nothing. Died, very poor and maybe on the streets. Leave the stocks to the big guys and insiders. I will do it my way and have been. Properties are all cash flow positive and at very low interest rates. I should be able to join my buddies in early retirement but wife is expensive.
World is changing very fast, no asset, including cash, is safe. Try to diversify as much as possible.
Donât buy in SFBA only, buy somewhere else like Singapore.
Donât buy hi-tech stocks only, buy utilities too e.g. PCG and ED. ATH today.