Bruddah IZ
DA
Did he deny that his home was a liability until he paid off his loan from the bank? Seen it hundreds of times. But there is no way that a savy RE guy doesn't know about the function of PMI or tax deductible interest.
Essential Economics for Politicians
- Thread starter Bruddah IZ
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- finance too
Still waiting for you to answer the questions. Answering questions with questions is not an answer.
Just in case you didn't know, these "little eras" happen about every 12 years or so. Also, you were the one who posted like an idiot that it's a "fact" that you always make money in real estate in So Cal. Don't blame me for your ignorance.
it’s a fact that it’s almost impossible not to make money owning so cal real estate. Sorry if you got caught playing over your head. Sounds like you must have. I have bought and sold several times since the late 80s. Read up, Torros. Learn about location. Don’t buy things you can’t afford to hold. Learn from your mistakes. You’ll do great! Maybe you and Iz should team up and buy a cool little cottage in San Pedro. It’s gonna happen next. Don’t buy a condo. I may go in with you!
Still no answer? Predictable.
I believe your questions were, effectively, if I bought high and sold low did I lose money? Yes I would have! I didn’t think you were serious in asking such a stupid question. Like I said, go find a nice property and buy it. But only if you can afford to hold it. You will make money. Choose wisely. I can help you.
Bruddah IZ
DA
Bring your 25% down payment with you.
Bruddah IZ
DA
At least you’re talking about buying an asset now.
Or 20%, but you can split it.
Bruddah IZ
DA
Rental?
Down payment. 20%. Normal and customary for a residential home mortgage. But only for the 30 years that I’ve been buying houses in LA County. Maybe you know different.
Bruddah IZ
DA
Investment properties are usually more than 20%.
Bruddah IZ
DA
Unless you an T are moving in together
Bruddah IZ
DA
That way you can buy 20% worth of equity. Lol.
Hypothetical OC home purchase in early 1980's = $ 50,000.00 @ 17 % x 30 years = $256,622
Current OC Speculative Value of same home paid off in 2010 = $ 650,000.00 to $ 875,000.00
If someone was able to purchase and retain three homes at the above purchase price thru
that time period and paid them off thru the conventional system they would have at the
minimum approx $ 1.2 million financial value at present + all the rental income from 2010
forward til now. That is just a simple example " Messy "....
So buying a house then when the interest " was " 17 % would still be a HUGE gain.
Buying one now @ 17 percent would only happen due to ( I Guess ) Double Rotten credit.
If someone purchased three homes in the 1980's and paid them off in 5 years the " Extra "
value can be discerned with the above numbers. Purchasing a Home right now on the
bubble is not a smart purchase in my opinion at all.
Renting is a viable option until the market drops, then purchase if a value increase is
anticipated on the horizon. Which I do not see in the near future.
Purchasing Retail property is another whole animal that factors in many many different
values and costs.....
Still the same basic principal is applied.
Bruddah IZ
DA
GM, Bailouts, and the Importance of Bankruptcy in Market Economies
Proponents of corporate bailouts miss the importance of loss and bankruptcy within a market economy.
Saturday, December 15, 2018
Oluwatobi Walker
Loss and Bankruptcy
The market economy is commonly referred to as a “profit system.” While true, this description misses the bigger picture. The market economy is more accurately described as a “profit and loss system” in which profits and losses steer scarce resources (i.e. labor and capital) from less able entrepreneurs and inefficient industries to more able entrepreneurs and more efficient industries. If anything, the loss (and bankruptcy) part is probably the most important one.
Entrepreneurial profits signal the creation of value due to accurate entrepreneurial foresight and judgment of consumer needs and wants. As a result, labor and capital are steered into industries that promise high rates of profit from less efficient industries. This helps to increase production, which in turn helps bring down prices of products and services until the rate of industry profits comes in line with the average rate of profits within the economy. This seamless process goes on and on, with some industries expanding while others contract even as the overall economy expands.
Proponents of corporate bailouts miss the importance of loss and bankruptcy within a market economy.
Saturday, December 15, 2018
Oluwatobi Walker
Loss and Bankruptcy
The market economy is commonly referred to as a “profit system.” While true, this description misses the bigger picture. The market economy is more accurately described as a “profit and loss system” in which profits and losses steer scarce resources (i.e. labor and capital) from less able entrepreneurs and inefficient industries to more able entrepreneurs and more efficient industries. If anything, the loss (and bankruptcy) part is probably the most important one.
Entrepreneurial profits signal the creation of value due to accurate entrepreneurial foresight and judgment of consumer needs and wants. As a result, labor and capital are steered into industries that promise high rates of profit from less efficient industries. This helps to increase production, which in turn helps bring down prices of products and services until the rate of industry profits comes in line with the average rate of profits within the economy. This seamless process goes on and on, with some industries expanding while others contract even as the overall economy expands.
Trump's bankruptcies ended up being bailouts, but thanks for the lesson, Cubicle Man.
Bruddah IZ
DA
You’re welcome. But I feel like I failed you because bailouts are not bankruptcies. Kinda like a home is not an asset.
Apparently bankruptcy is a progressive idea.
In order for an economy to prosper it needs investment and investments are risky.
The risks benefit the economy.
Forgiveness of debt encourages investments and risk.
https://www.quora.com/Why-is-bankruptcy-important-for-an-economy