Homes Real Estate for Sale

Dec312018

Investment Fund Information

After the success of the Las Vegas fund investments, many people have asked me if I see any new opportunities. For the first time in eight years, I do. The fires that destroyed Paradise, California, create an opportunity to rebuild their community and make a healthy profit. Over the next year or two, the value of buildable lots will fall considerably. Many people will take their insurance checks and decide not to rebuild, putting these lots on the market at reduced prices. Also, the short-term increase in direct construction costs will put further pressures on lot prices. We are raising money to buy as many of these lots as we can, hold them for eight to ten years, then resell…[READ MORE]

Nov122018

Can unrealistic beliefs about appreciation cause a housing bubble?

It takes more than a manic desire to inflate a bubble. The ability to deliver capital to the market is also an essential element. Repost from OC Housing News 2011-2016 Many people who believe in the wisdom of the markets subscribe to the efficient markets theory. It postulates that market participants have equal access to good information and they make rational judgments based on the available data. The theory appeals to vanity as everyone likes to believe they demonstrate above-average financial acumen and make rational decisions. Unfortunately, that isn’t the world we live in. People often fall victim to groupthink, pick and chose what data to believe and what to ignore, and seek the perceived safety of the herd when making…[READ MORE]

Nov052018

Top ten ways to protect taxpayers against future mortgage bailouts

More than eight years after the government took over mortgage finance, the US taxpayer still insures the bulk of the loans in the housing market. Repost from OC Housing News 2011-2016 Prior to the collapse of the housing bubble, when lenders foolishly loaned money to people operating personal Ponzi schemes, it was theirs to give — and to lose. But when the losses overwhelmed our banking system, the government took conservatorship of the GSEs, and they backstopped the largest banks with our too-big-to-fail guarantees. With those two steps, the government now assumes nearly all risk of loss in the US mortgage market. With taxpayers absorbing future losses through explicit and implicit guarantees, lenders have no reason to fear inflating another…[READ MORE]

Oct222018

Government policy should better accommodate renting as a lifestyle choice

We need policies that help stabilize tenancy and facilitate renters saving for retirement. Repost from OC Housing News 2011-2016 The US government treats renters like second-class citizens. Our current policies make it very difficult for renters to stabilize their housing costs or save for a comfortable retirement. Perhaps in an era where homeownership was attainable for everyone, such policies were tenable, but now with coastal states restricting new construction, significant portions of the population simply can't afford a home. Current government policies irreparably harm these renters. Politicians believe that high rates of homeownership foster social stability because people won't loot and riot if they feel invested in the community. Social engineering aside, there is one particularly strong financial reason politicians favor…[READ MORE]

Oct152018

Nine percent of US homeowners lost their homes over the last decade

The homeownership rate is plunging because the housing bust tarnished the American Dream dream, and a new generation chooses to rent instead. Repost from OC Housing News 2011-2016 For nearly 100 years, US government housing policy maximized the homeownership rate and the rate of growth in house prices. Politicians characterized homeownership as the best investment a middle-class family could make, and home ownership equated with the American Dream. During the early 00s, on the surface conditions looked great. House prices appreciated rapidly, mortgage equity withdrawal fueled an economic boom, subprime lending provided home ownership opportunities to everyone, and a record number of Americans realized the American Dream. Government officials touted the success of their policies, and critics of these policies…[READ MORE]

Oct082018

Will rising mortgage rates lead to housing stagflation?

Lower house prices due to higher mortgage rates still result in a higher cost of home ownership. Repost from OC Housing News 2011-2016 Everyone shopping for a home wants to see lower prices. For most products, paying less for it means the buyer keeps more money to purchase other goods and services, but with houses, this isn’t necessarily the case. Most people borrow a great deal of money to buy a house, often 80% to 96.5% of the purchase price. In fact, the cost of borrowing money is largely what determines how much someone can borrow and bid to buy a house. (See: Your neighbor’s debt creates your home equity) When mortgage rates go up, the cost of borrowing increases,…[READ MORE]

Mar252015

China’s real estate plunge accelerates


The Chinese government and central bankers ran a Ponzi scheme to accelerate real estate development to help China catch up to the rest of the world. Unfortunately, since it was a Ponzi scheme, they couldn’t figure out a way to unwind it without devastating their economy, so they kept putting more and more money into it, hoping desperately that it would work itself out.

At some point long ago, China developed enough housing stock and commercial properties to meet the needs of its citizens, but since they depended so heavily on continued development to sustain their economy, they kept building, and building, and building, and building. The overbuilding is so extreme that 20% or more of their housing stock sits empty, and entire cities are devoid of people. [READ MORE]

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