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|Subject: Re: Real Estate investing a smart move||Date: 3/24/2011 11:24 AM|
|Author: JAFO31||Number: 68705 of 77078|
<<<Because she does not want to recognize the reality of the marketplace.>>>
"Well, that's entirely possible but YOU try telling my 76 year old mother that the piece of real estate she's been pinning her hopes of a cushy retirement on for the past 10-15 years may not be all-dat..."
Thanks, but no thanks. I have enough of my own relatives like that.
"For the first 50 years she was investing in real estate, all it ever did was go up. I don't think she foresaw it could tank like this. She used to tell me RE was a sure thing...."
Then she has been incredibly lucky and not paying attention (no offense intended) but California, Colorada and Texas all experienced downward real estaet prices in the 1980s, and SP has written about similar issues in Seattle (though I do not recall if it was the 70s or 80s). The 1986 tax law severely impacted much commercial real estate, too.
"She resides, by the way, in Michigan. If you look at CNN yesterday you'll see that it's the only state, out of 50, where the population actually decreased in the past 10 years. More people left Detroit due to unemployment and foreclosures than left New Orleans after Hurricane Katrina, and they're bulldozing entire neighborhoods. Detroit went from the 4th largest city in America to the 18th...Mass exodus...yes, the worst possible place to own real estate right now. Highest unemployment rates in the nation, IIRC."
Sorry to hear that. It is difficult for me to imagine. There is another regular poster who posts from and about Michigan and Michigan real estate prices.
"25 years ago the auto industry was rock-solid, though, so who knew?"
1986? Honda and Toyota had already made huge inroads by then, and US car manufacturers were lagging is design and hardly paid any attention to gas consumption. Chrsyler had already been bailed out by the Federal government. I do not think that end was necessarily written, but I would hardly have called it sock solid either.
When GM crashed, their suppliers crashed, people lost work, malls and small businesses crashed, houses repo'd, vicious cycle...
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