{"id":2003,"date":"2007-10-05T12:04:44","date_gmt":"2007-10-05T19:04:44","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2003"},"modified":"2007-10-05T09:55:34","modified_gmt":"2007-10-05T16:55:34","slug":"youll-lose-money-if-you-buy-a-house-which-house","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2003\/youll-lose-money-if-you-buy-a-house-which-house\/","title":{"rendered":"You’ll lose money if you buy a house? Which house?"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>):<\/p>\n

\u00a0
You’ll lose money if you buy a house? Which house?<\/b><\/p>\n

Jim Cramer, a clownish buffoon who screams for a living on cable TV, went on the Today show last week and said, “Don’t you dare buy a home now. You will lose money.”<\/p>\n

The clownish buffoons in the National Association of Realtors have no faith in your ability to discount hyperbole, so they denounced Cramer’s remarks as “misleading, inaccurate, and inappropriate.”<\/p>\n

Ya think?<\/p>\n

A steady mantra of the NAR during the housing downturn has been to insist that all real estate is local. My friend and fellow real estate weblogger Dan Green (TheMortgageReports.com<\/a>) amends that obvious truth by pointing out that all real estate news is granular — national trends say nothing about local markets, and lower overall prices in the Phoenix area are consistently belied by steady appreciation in high-demand neighborhoods. And not all bad news is bad: 2007 is the worst year in real estate since 2002 — but 2002 was a very good year.<\/p>\n

Here’s the real truth: All real estate is particular. You’ll lose money if you buy? Nonsense. The right rental home will pay for itself no matter happens to home values.<\/p>\n

Don’t buy a home? Which home? A few weeks ago I was in a trashed house that was listed at $200,000 below market. We estimated that it need $50,000 to bring it back to turn-key condition, with a four-month span of time between purchase and resale. Even allowing for errors in our estimates, the house would net out to between 200% and 300% cash-on-cash return in one third of a year. Do that three times and $50,000 capital becomes as much as half-a-million dollars in a year’s time.<\/p>\n

All real estate is particular: Which buyer? Which seller? Which house? Which ownership strategy? Which anticipated return? If you’re looking for a residence you intend to occupy for less than three years — rent. You’ll almost certainly lose money buying now. But there is a ton of money to be made in particular real estate transactions right now — provided you Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link): \u00a0You’ll lose money if you buy a house? Which house? Jim Cramer, a clownish buffoon who screams for a living on cable TV, went on the Today show last week and said, “Don’t you dare buy a home now. You will lose […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6,5],"tags":[],"class_list":{"0":"post-2003","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-investment","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":679,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/679\/content-piracy-on-the-renet\/","url_meta":{"origin":2003,"position":0},"title":"Content piracy on the RE.net . . .","author":"Greg Swann","date":"November 25, 2006","format":false,"excerpt":"An aggregator weblog called Real Estate Chatter is resyndicating the feeds of these 25 real estate weblogs:Altos Research Real Estate InsightsAppraisal ScoopCarnival of Real EstateMike's Corner Web 2.0 For Real Estate ProsNAR in the Newsrealestate.com.au News & ViewsOverseas Property Blog :: guide to international real estate investmentPressReal.comSeattle's Rain City Real\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2830,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2830\/while-the-national-real-estate-market-is-soft-google-pay-per-click-real-estate-advertising-still-going-strong\/","url_meta":{"origin":2003,"position":1},"title":"While The National Real Estate Market Is Soft – Google Pay-Per-Click Real Estate Advertising Still Going Strong","author":"Doug Quance","date":"March 24, 2008","format":false,"excerpt":"Is Your Online Marketing Costing You Too Much? As one of those with an online presence, I am always interested in how others attract \"eyeballs\". Back in the early days of Google, I proudly staked my claim on some choice keywords in their pay-per-click program - which brought me a\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1538,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1538\/an-renet-taxonomy-identifying-types-of-real-estate-weblogs\/","url_meta":{"origin":2003,"position":2},"title":"An RE.net taxonomy: Identifying types of real estate weblogs","author":"Greg Swann","date":"June 14, 2007","format":false,"excerpt":"This is a first strike at a taxonomy of real estate weblogs. Taxonomy is the science of categorizing things. Of course, not everything can be neatly categorized, but the elucidation of categories can focus the mind, helping us to understand where certain weblogs might fit, which are hybrids of two\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":346,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/346\/how-i-feed-my-hungry-mind-my-opml-file\/","url_meta":{"origin":2003,"position":3},"title":"How I feed my hungry mind: My OPML file . . .","author":"Greg Swann","date":"September 18, 2006","format":false,"excerpt":"The other day I highlighted some real estate weblogs that I read every day, and, while that article is true, it's not the whole truth. The Republic gives me all of 350 words in which to map whatever universe I see behind my eyes, so I end up focusing on\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1056,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1056\/real-estate-carnivals-nigel-swaby-wins-carnival-of-real-estate-investing-our-own-allen-butler-wins-carnival-of-real-estate\/","url_meta":{"origin":2003,"position":4},"title":"Real Estate Carnivals: Nigel Swaby wins Carnival of Real Estate Investing, our own Allen Butler wins Carnival of Real Estate . . .","author":"Greg Swann","date":"February 19, 2007","format":false,"excerpt":"BloodhoundBlog was this week's host of the Carnival of Real Estate Investing. Nigel Swaby from the Salt Lake Real Estate Blog was this week's winner, with Creative Financing - Conversion to Traditional Mortgages. We had a total of seven entries and four judges: Michael Cook, Cathleen Collins, Jeff Brown and\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":337,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/337\/here-are-some-blogs-that-stay-on-top-of-real-estate\/","url_meta":{"origin":2003,"position":5},"title":"Here are some blogs that stay on top of real estate","author":"Greg Swann","date":"September 15, 2006","format":false,"excerpt":"This is me from today's Arizona Republic (permanent link). I wish I could deliver an SEO boost to the weblogs mentioned here, but I doubt that will happen. First, the paper didn't create links for the web-based version of this story. And second, the Republic hides everything behind a for-pay\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2003"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2003\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}