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Subject:  Re: Euro savings? Date:  12/13/2004  5:27 AM
Author:  activeREinvestor Number:  11424 of 36786


Out of interest, how "safe" would those be if we had a serious downturn in the RE prices?

Define serious?

If I gave you a property worth today $100,000 and prices dropped by 10% you are still in the money. If they dropped by 90% you are still in the money. There might be blood in the streets and people jumping out of windows but if you get the deal low enough you are still right side up.

So, define "serious downturn" so that we have a common definition for this discussion.

Side note: There has not been a down tern (year on year negative returns) in the US housing market for approximately 50 years. There certainly have been regions, states, cities or markets that have seen negative years. On the national level this is not the case. So, downturn could mean something that is more specific to a subsection of the market or specific to a single transaction.

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