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Asset Deflation 13: Sell Your Real Estate Immediately!

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moh malekpour

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http://www.safehaven.com/article-9465.htm


"I always felt very secure and very safe with real estate. Real estate always appreciates." ~ Ivana Trump

Before we begin our next hair-raiser, I notice a lot of people scratching their heads as global stock markets decline in the face of a "strong global economy." What you are seeing is the "pricing in" of approximately $2 trillion of lost homeowner equity in the U.S. (soon to be $3 trillion, then $4 trillion and so on). And it's only a matter of time before that equity squeeze wreaks havoc across the economic board and takes down the stock market and commodities, too. Picture a five year old trying to beat back an elephant with a Wiffle bat -- eventually that will be the metaphor for a declining global economy trying to chase from the living room the growing, immovable force that is asset deflation.

Meanwhile, sell your real estate now. Sell it now. Now. Get rid of it. All of it. Even if you can't get 2005 prices (and you won't). Get what you can now, set the money safely aside and buy the property back (or one like it) several years from now, for a lot less money.

You might make a case to retain your personal residence, particularly if you bought it prior to 2002 and/or have a very large equity (60% or more). You need to live somewhere, and that stability (and home ownership) can be worth more than money. But whatever equity you can pull out of any other property now will pay greater dividends later on, when the mother of all credit/liquidity crunches -- continuing to unfold right before our very eyes -- makes safe cash King in a way few of us can fathom right now.
 

Restrain

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It all depends on the market. In Dallas, values are stable to slightly increasing. In other areas, the market is increasing, while others (Riverside Co, CA) are falling like rocks (25% so far).
 

cworthy

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You reckon?

It all depends on the market. In Dallas, values are stable to slightly increasing. In other areas, the market is increasing, while others (Riverside Co, CA) are falling like rocks (25% so far).

So you don't think Dallas Austin, and Seattle are late to the party? How could anyone think purchasing is a good idea now and read the news?
 

TJSum

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Devils Advocate comment. The best way to "invest" is to buy when everyone else is selling and sell when everyone else is buying. I have no crystal ball, just an extremely rough guess, but some of the local areas that have been hit the hardest, buyers (investors) are starting to make their move after sitting on the sidelines for two years, it could be a sign that in these areas at least, the bottom could be near. Just a wild guess, but it is always darkest before the sunrise :)
 

Lloyd Bonafide

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In some areas, it's a little too late to sell. I have seen some areas where SFRs and condos have dropped in value by 40 to 50% in the last 2-3 years, with some properties back down to values not seen since 2002 and 2003. These areas are still declining, with many REOs on the market and many more coming, but I don't think they can drop by another 20%. That's the extreme, but many areas in San Diego and Riverside Counties have dropped by more than 30%.
 

Greg Bell

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Devils Advocate comment. The best way to "invest" is to buy when everyone else is selling and sell when everyone else is buying. I have no crystal ball, just an extremely rough guess, but some of the local areas that have been hit the hardest, buyers (investors) are starting to make their move after sitting on the sidelines for two years, it could be a sign that in these areas at least, the bottom could be near. Just a wild guess, but it is always darkest before the sunrise :)
Good time to buy.Market looks like 1930-1933.Great dead cat bounce and then , ooops it fell of a cliff.Proceed with caution , this sucker is tanking big time.Quick , buy some beans and ammo...:new_2gunsfiring_v1:
 

DTB

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The author was spot on with his gold predictions in 2005 so why start doubting him now? :rof: :rof: :rof:
 

Big ole Boy

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Puzzeling is people who can not see hard times .

There will continue to be those people out there who will completely ingnore the macro economic picture which includes our government, newspapers and yes ...... appraisers who still have a steady work flow .....

..... we have built a valued universe with creative math for so long that the psychosis runs through the most accomplished of appraisers .....

..... ancient men have spoken for eons about the "desire" of the "Flesh" ....

... which is nothing more than an intellect which is tied to physical needs and will see the universe in that vane .......

..... the spiritual man, on the otherhand, is an intellect that transcends the physical world and his/her own bones and flesh and can see a larger and more comprehensive financial at work ........

.... we are reaping an unraveling of creative math ..... and the flesh will have none of this ...... it will go kicking and screaming ......

..... but purifying is the day of a temporal reckoning ......

... the "financial spirit" of intellect will decouple itself from the old self that is a sick body of old, dead math .......
 
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