Remember the recent bubble and crash -- it could happen again

[Anonymous]

All of those apartments WERE originally designed to be condos. Cue market crash and many were turned to apartments. Old apartment buildings had to upgrade/renovate to keep up. New developers kept building them because rents kept going up- and they were leasing- so they cleared their proforma. But now what will happen?

[Anonymous]

Anonymous wrote:All of those apartments WERE originally designed to be condos. Cue market crash and many were turned to apartments. Old apartment buildings had to upgrade/renovate to keep up. New developers kept building them because rents kept going up- and they were leasing- so they cleared their proforma. But now what will happen?

Exactly. It's crazy how quickly the pendulum is swinging between condos vs apartments. There is a building in Alexandria that came online as condos in 2006. Shortly after the housing crash, they turned apartments. Then two years ago, with several new apartment projects coming online that were going to have more features and amenities, they swung back to condos and are very close to being sold out.

I have no doubt that many of these high-end apartment buildings will be going condo in the next couple of years. The rental market is going to start getting saturated for these top dollar units and with a shortage of condo units, makes perfect sense to switch over. Just be prepared to pay crazy bucks for these as condos.

[Anonymous]

That is really scary. But maybe if they turn to expensive condos it will make our house prices go up further?

[Anonymous]

Anonymous wrote:That is really scary. But maybe if they turn to expensive condos it will make our house prices go up further?

Totally. Nothing will make house prices go down, no matter how much they build. In fact, I think when the build more homes/condos, it makes the neighborhood more attractive pushes up rents and prices since now more people can live there and drive businesses and services (and work for the local businesses rather than commuting).

[Anonymous]

The human mind is such that it also fights the last crisis.

The next bubble won't be in real estate.

[Anonymous]

Anonymous wrote:The human mind is such that it also fights the last crisis.

The next bubble won't be in real estate.

And history doesn't repeat itself. Your right though, last bubble was credit bubble, this bubble is asset bubble. Real estate is just the most tangible vestige of bubble to the population.

Most of us don't have first hand experience with auction rate securities, MBS, or CDOs (last bubbles fallout) or private equity rental funds [Blackstone] or emerging market currencies; most of us just see the effects on these broader markets on our local economies (ie, real estate asset inflation; inflation in commodoties and food; wage deflation).

You are right, this time is different. Before it was the investment banks who pumped the bubble; now it is the Fed [and the Fed may be aware of it, but figures it is worth the fallout to avoid Depression 2.0]

[Anonymous]

Anonymous wrote:

Anonymous wrote:The human mind is such that it also fights the last crisis.

The next bubble won't be in real estate.

And history doesn't repeat itself. Your right though, last bubble was credit bubble, this bubble is asset bubble. Real estate is just the most tangible vestige of bubble to the population.

Most of us don't have first hand experience with auction rate securities, MBS, or CDOs (last bubbles fallout) or private equity rental funds [Blackstone] or emerging market currencies; most of us just see the effects on these broader markets on our local economies (ie, real estate asset inflation; inflation in commodoties and food; wage deflation).

You are right, this time is different. Before it was the investment banks who pumped the bubble; now it is the Fed [and the Fed may be aware of it, but figures it is worth the fallout to avoid Depression 2.0]

I read this last night. Seems to have some truth re: Fed's position What are your thoughts?

Have We Reached Peak Wall Street? An argument its dominance is in decline by Charles Hugh Smith

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[Anonymous]

^^ Sorry. Maybe this will do? http://ittybittyurl.com/Xa3