The Basics of Real Estate

[ReCycled]

I've been following housing prices and the market for years as an interested bystander. I've also made modest amounts of money in the past 5 years on 3 properties that has helped fund my retirement. But when I talk to people about the market there is an appalling lack of fundamental knowledge on economic basics, and how real estate fits in. You know -  the "You better buy now because they are goin up every day". Here is an excellent video done by Humboldt University that explains all the fundamentals if you're a new buyer or thinking of speculating. There are 3 parts to the lecture. The interesting part of this was the lecture was done in Nov/2006 - the exact peak of the market, and the point where the decline started to freefall.


http://www.youtube.com/watch?v=uyOWuczlJCA
 

[jägermonsta]

Thanks! I'm actually going to be buying a house this year too. 

[ReCycled]

Thanks! I'm actually going to be buying a house this year too. 

I guess maybe the video is more about speculation and real estate "bubbles" than a primer for buying a house. For what its worth, prices are still in decline and will probably level off in a year or two. With a recession looming that may hurt them even more. But if its a home you want to buy, go for it. Interest rates are so low that it would make sense to lock into a long term mortgage, than play the variable rate game. Make sure you don't use all your cash for the down payment. You'll need a few thousand for lawyers, closing costs, moving costs and stuff to buy when you first move in. Also budget your monthly cost for all your utilities, property taxes, house insurance etc. In terms of value, the preferred pecking order is: Fully detached with large lot, fully detached, semi-detached, townhouse, condominium and mobile home. This will be a factor as to future desirability when you go to sell.

And enjoy your new home.....
 
 

[Art]

In terms of value, the preferred pecking order is: Fully detached with large lot, fully detached, semi-detached, townhouse, condominium and mobile home. This will be a factor as to future desirability when you go to sell.

True about the value pecking order, but I'd rather live in a trailer home on 10+ acres than in anything atached.

[[BTF] Reflex]

true that

[ReCycled]

True about the value pecking order, but I'd rather live in a trailer home on 10+ acres than in anything attached.

Hmmm...I agree about the space and privacy, but the mobile would still be an impediment to a future sale. I have seen some very nice pre-manufactured homes that look great, but there is a stigma attached to them. I guess the primary value is in the land.