All Forum Posts by: Kevin Yeats

Interesting discussion.

If you want to consider housing from a purely investment point of view, home ownership is certainly much different than other investments in large part due to the transaction costs, maintenance costs and information costs and taxes.

Buying a stock or bond or commodity as an investment entails a transaction cost at both the time of purchase and sale - usually small relative to the size of the transaction. A brokerage firm may impose small ongoing maintenance costs. As to the information costs, I can now look up the stock quote or price of gold or interest rate on my cell phone 24/7/365. This allows me to sell the stock almost instantaneously (and almost around the clock) anytime I feel that the value has reached a peak -- or I can buy more if I feel it will go higher from the current price. Of course there are tax implications at least with the sale of the investment.

No so with housing - large transaction costs at both ends. High maintenance costs regardless of the house's current value. Very high information costs to determine its value at any point in time as well as determining the value of any repairs now or in the future. And politicians love to tinker with tax incentives with many aspects of housing and many of these tax breaks also influence a homeowner's income level or may not be available at certain income levels.

Of course there are "psychic" returns to owning a house - the ability to be left alone, the ability to change your surroundings (paint, wallpaper, landscaping etc) without needing approval from the owner.

I have to raise the issue on the point of FORCED SAVINGS. What if that is NOT what a person wants? What if a person wants a more nomadic life - living in one area or city for only a few years and then moving to a different local? Athletes? Landscape painters? Writers? If that is someone's choice of lifestyle, does this FORCED SAVINGS aspect of homeownership curtail that person's choice especially given the high transaction costs?

A man's wealth is measured by those things he leaves undone."

- Thomas Jefferson

(Note: applies to women too)

My guess as to the probability of BO giving GWB credit for anything positive is < 1%

You will have to tell me how close I came. I won't watch the speech ... I have to wash my mostly nonexistent hair then watch the paint dry someplace.

Charles, you are correct.

Some friends visited the Galapagos and were are thrilled with the trip as Rich is.

They told the story that their guides pointed out the "vegetarian sharks."

Did you see any vegetarian sharks?

Try calling FIRST thing in the AM. Like 7 AM

If you take all the economists in the world and laid them end-to-end you still would not reach a conclusion.

The replies above make my point. Real Estate markets are very local. What happens in other states or in other cities really does not affect my real estate (so directly). Strong or weak markets overall may affect interest rates but I don't control them. I only control my own efforts.

Bottom line: It does not matter what economists or politicians or gurus predict or pontificate. If I provide goods or services that people want at a price they can afford and at which I can make a profit, then I will be fine.

Confession: I'm a recovering economist.

I think they are correct

Stop managing people down; start coaching them up.

- Bryan Dodge

www.BryanDodge.com

I met Bryan Dodge several years ago and became a real fan of his message and his determination. In fact, I put him at the top of my Most Impressive list. You can find some of Bryan's words of wisdom on Facebook and on YouTube and of course, Bryan's website.

Disclaimer: I receive no compensation for the above message.

I agree with the previous posts. Try either 1) calling a charity or 2) holding a garage sale. You could even outsource the garage sale.

I would not offer free beer for obvious reasons.


The "free stuff list" on Craigslist reminds me of a story. A guy wanted to get rid of a working refrigerator since he bought a new one. He moved the old unit out to the tree lawn and put on a sign that read FREE.

The fridge sat there for days.

He finally put on a sign that read $50 and the fridge was *missing* the next morning.