BA Real Estate market to take a dive before the end of the year.

[Rich One]

Some savvy investors speculate in Wall Street Stock Exchange- Argentinean ADR have gone up and down sometimes 16% or more over the last few months , can make money on both swings. How long does it take to earn 16 % in Real Estate..?

 

[middlepath]

Lots of people predicting financial nuclear fallout. The truth is that it's probably going to be somewhere in the middle, just like since the beginning of economic history.

I can think of many investments better than something as illiquid and immobile as real estate. What makes it worse is that it's a liability nightmare. Add to that CapEx and tenant problems. Or I could buy SPX and sell covered calls for 15% a year.

A lot of people from my generation don't even view home ownership as something desirable. If I were forced to place a bet, I'd bet prices will move down. But, I wouldn't make that bet with my own money by shorting the housing market here, if it were possible.

 

[garryl]

Lots of people predicting financial nuclear fallout. The truth is that it's probably going to be somewhere in the middle, just like since the beginning of economic history.

I can think of many investments better than something as illiquid and immobile as real estate. What makes it worse is that it's a liability nightmare. Add to that CapEx and tenant problems. Or I could buy SPX and sell covered calls for 15% a year.

A lot of people from my generation don't even view home ownership as something desirable. If I were forced to place a bet, I'd bet prices will move down. But, I wouldn't make that bet with my own money by shorting the housing market here, if it were possible.

If you get it 15% return, I would say it's better than real estate. Do you always get 15% ? Real estate can be a pain, but it has 2 good things, leverage and depreciate (only in US). If you bought in 2008/2009 in California, your rental return is about 10% and appreciation is 10% till now. A good 10 year run. Many people(average people) just buy stocks, after that they have no control, watching the stock go up or down .

 

[middlepath]

If you get it 15% return, I would say it's better than real estate. Do you always get 15% ? Real estate can be a pain, but it has 2 good things, leverage and depreciate (only in US). If you bought in 2008/2009 in California, your rental return is about 10% and appreciation is 10% till now. A good 10 year run. Many people(average people) just buy stocks, after that they have no control, watching the stock go up or down .

Covered calls reduce volatility (up and down) and improve rate of return. If you're on margin (even if you have $2k, you can be on margin), you're also 2:1. You're probably paying 9% on margin a year, so the second half of your money makes a good deal less. But yeah, with a decent management strategy, 15% a year is achievable with a few hours of management a month. YouTube has some good videos on it. A lot of it is just trying to sell you stuff, but I like TastyTrade and SMB Capital.

 

[on the brink]

According to a piece in yesterday's La Nacion, some owners are taking up to 30% off their properties' listing price. They are small business owners who must meet payroll, or pay for merchandise received.

 

[camel]

The truth is that it's probably going to be somewhere in the middle, just like since the beginning of economic history.

Username checks out.

 

[elgordito]

Covered calls reduce volatility (up and down) and improve rate of return. If you're on margin (even if you have $2k, you can be on margin), you're also 2:1. You're probably paying 9% on margin a year, so the second half of your money makes a good deal less. But yeah, with a decent management strategy, 15% a year is achievable with a few hours of management a month. YouTube has some good videos on it. A lot of it is just trying to sell you stuff, but I like TastyTrade and SMB Capital.

Do you happen to visit wallstreetbets haha

 

[Ries]

Since I already own all the Argentine Real Estate I will ever need, I am not worried. I will hold my properties in BA until I am gone, and then, in revenge for those 4000 diapers I had to change, my kids will have to deal with them. Since they didnt pay for them, whatever they receive from the ultimate sale will make them happy.
Everybody wins, in my family.

I cannot imagine speculating on Argentine Real Estate, though- that does seem crazy.
If you are going to use it, it can make sense, depending on your individual situation.

 

[garryl]

Since I already own all the Argentine Real Estate I will ever need, I am not worried. I will hold my properties in BA until I am gone, and then, in revenge for those 4000 diapers I had to change, my kids will have to deal with them. Since they didnt pay for them, whatever they receive from the ultimate sale will make them happy.
Everybody wins, in my family.

I cannot imagine speculating on Argentine Real Estate, though- that does seem crazy.
If you are going to use it, it can make sense, depending on your individual situation.

I will speculate on real estate when time is right. But I would be very careful with Argentina real estate, it's an impossible place in many ways.

 

[samsam]

it's an impossible place in many ways.

care to give a couple?