August 15, 2009

Beyond the Bubble: How to Keep the Real Estate Market in Perspective — and Profit No Matter What Happens

It’s Saturday. That means it’s time for another Burbed book recommendation!

Beyond the Bubble: How to Keep the Real Estate Market in Perspective — and Profit No Matter What Happens

Review

Great review of BEYOND THE BUBBLE from Robert Bruss:

“This is a thinking-person’s book explaining local ‘real estate bubble’ and how individuals can profit from them…Whether you are just getting started in real estate or you are an old pro, Thomsett and Kahr have written this book for you. On my scale of one to 10, this well-researched, outstanding book rates a solid 10.”

Review

“On my scale of one to 10, this well-research, outstanding book rates a solid 10.”
-Robert Bruss, nationally syndicated real estate columnist

Although the Bay Area has never been in a significant bubble in the WSJ, this book is good reading for all so that can learn how to invest in real estate in the rest of the nation.

Let’s face it, the bottom has been reached – we’re now officially beyond the bubble. Please use exploit this opportunity to become wealthy. Sure you might not be able to afford spec properties in Palo Alto, or even East Palo Alto, but that doesn’t mean you can’t start in Phoenix or Miami!

Get on the escalator today!

And when you do become from keeping real estate in perspective, please help this site out, click this link to learn more!

Comments (44) -- Posted by: burbed @ 5:03 am

44 Responses to “Beyond the Bubble: How to Keep the Real Estate Market in Perspective — and Profit No Matter What Happens”

  1. Real Estater Says:

    The extent of the “bubble” is overblown. Look at these stats from a Mercury News article:

    For the second quarter, the 16.6 percent decline in home values masked the wide variations.

    Sunnyvale single-family homes lost 14.1 percent of their value over the past year; Campbell lost 13.4 percent while Mountain View was down 11.4 percent.
    But home values in Palo Alto were off only 3.6 percent for the year, and Los Altos Hills showed a slight gain.
    Los Altos, Cupertino and Saratoga saw an erosion in home values of about 10 percent, about half San Jose’s one-year price decline.

  2. Pralay Says:

    LOL! I thought RealExcreter would say “there is no bubble in RBA”. It’s pretty sad that he had to admit that there is a bubble, even in RBA.

  3. Pralay Says:

    The extent of the “bubble” is overblown. Look at these stats from a Mercury News article:
    —–

    BTW RealExcreter thanks for showing us the article with title “Silicon Valley home price declines may spread to higher-end areas“. You know, those actual numbers you quoted are not as important as the trend.. Here the article says about trend:

    Several trends are putting more pressure on home prices in the middle- and higher-priced areas, Humphries said: the rising number of foreclosures in loans that were made to people with good credit; the waves of layoffs in the valley as the recession grinds on; and the impact of “negative equity,” in which homeowners owe more on their home than it is worth, spreading to the higher end.

  4. Joe Says:

    This has been the largest real estate bubble in modern history (including the Bay Area), let’s get the facts straight.

  5. anon Says:

    real excreter and facts don’t mix, joe.

    Lol – Over”blown.”

    It’s been overlyblown by the government in order to prevent our entire economy from collapsing.

  6. anon Says:

    Morning reading material:

    http://online.wsj.com/article/SB10001424052970204409904574350432677038184.html

  7. Real Estater Says:

    If anyone is still doubting the “no longer desirable” Palo Alto market, go check out 819 Clara.

    First week Open House, and the realtor is telling all visitors that they already have 8 cash offers well over asking (all over $1M), and they are no longer accepting offers! Disclosure: the buyer will need to fix the foundation problem at some point.

  8. Real Estater Says:

    Car dealers are packed right now due to Cash for Clunkers. At many dealerships you have to wait in line to buy a car, and most popular brands don’t negotiate prices at all. With a little incentive, consumers are quite willing to open up the pocketbook.

  9. Lionel Says:

    Cash for Clunkers has nothing to do with the RBA. No one would ever own a clunker in the first place.

    BTW, RE, it’s a putrid idea. Pumps up GDP for an instant, but that’s about it. It appears to be the extent of our leadership’s understanding of our dire economic situation. Saddle people with more debt and everything will work out fine.

    I had dinner with an college chum last night. His business (supplying used car parts on a national level) has already taken a huge hit from C4C. It also pulls forward demand on new cars in the future. No one who just traded in a car will be buying in the next four-five years.

  10. Real Estater Says:

    Lionel,

    It’s not about saving your used car parts salesman friend. It’s about saving the national economy. The reason the economy is no longer “dire” is because of the stimulus given to the system. When you’re down, the first priority is to get up, rather than seeing how far you can run.

  11. Pralay Says:

    It also pulls forward demand on new cars in the future. No one who just traded in a car will be buying in the next four-five years.
    ——

    Right, some of these buyers would have bought their new cars one of two years down the line anyway. This program just moved forward their purchases.

  12. Real Estater Says:

    Pralay says,

    >>Right, some of these buyers would have bought their new cars one of two years down the line anyway. This program just moved forward their purchases.

    And what’s wrong with that? We need the stimulus now, not two years from now. If you need to go to the bathroom, can you wait until tomorrow?

  13. Pralay Says:

    The reason the economy is no longer “dire” is because of the stimulus given to the system. When you’re down, the first priority is to get up, rather than seeing how far you can run.
    —-

    Don’t make such negative comment about our economy, RealExcreter. You sound such a pessimist! Must be due to Austin heat. Our economy was “all clear for take-off” one year back – after gar price settled down and Fannie Mae/Freddie Mac problem got solved. That means we are already flying 10000 feet high. “Getting up”, “running” – where are all these words coming from? We are FLYING!

  14. Pralay Says:

    And what’s wrong with that? We need the stimulus now, not two years from now. If you need to go to the bathroom, can you wait until tomorrow?
    —–

    When someone is under illusion that making people cars early and giving a few bucks extra to auto industry going bathroom early would “save the national economy”, something is really wrong in his brain.

  15. DreamT Says:

    “If you need to go to the bathroom, can you wait until tomorrow?”

    Only if you’re a crook.

  16. Lionel Says:

    RE, my friend is part of the economy. Selling car parts is just as important as selling cars. How could you not understand such a simple concept? C4C is smoke and mirrors. It does absolutely nothing to aid the economy. It merely directed demand at one specific industry.

  17. Real Estater Says:

    Lionel says,
    >>C4C is smoke and mirrors. It does absolutely nothing to aid the economy. It merely directed demand at one specific industry.

    And you don’t think new cars require any parts from parts suppliers?

  18. Pralay Says:

    And you don’t think new cars require any parts from parts suppliers?
    —–

    Probably after two years. But he needs the stimulus now, not two years from now. If you need to go to the bathroom, can you wait until tomorrow?

  19. Lionel Says:

    And you don’t think new cars require any parts from parts suppliers?

    Uh, no, they don’t. They’re new.

  20. Real Estater Says:

    Pralay, Lionel,

    Uh? What kind of car do you own? It must be made out of one concrete block. Most normal cars are made up of millions of component parts, supplied to the car manufacturer before the car is even made. Don’t believe me? Try it pulling on your door handle. It does come off if you pull hard enough.

  21. Pralay Says:

    Most normal cars are made up of millions of component parts, supplied to the car manufacturer before the car is even made.
    —-

    Irrelevant. The context of discussion is parts suppliers of used cars. Pre-assembled car parts is not relevant in this context. Most of the pre-assembled car parts comes directly from outside US (Mexico, Canada, Taiwan etc) to car manufacturers. So there is no “suppliers” as such in US who can get benefit from it. Only auto-manufacturers get benefited from C4C program.

  22. Real Estater Says:

    Pralay,

    So what you’re saying is that used cars use different parts than new cars? When the brake goes out on your car, you replace it with a part from Mexico?

  23. Real Estater Says:

    Lionel,

    Please introduce your used car parts salesman friend to Pralay. You may be able to get some business going for him.

  24. Lionel Says:

    He’s not a salesman. He’s an auditor. He’s doing just fine personally in this environment and will be for some time. His company, not so much.

  25. nomadic Says:

    #21 – not necessarily true. There are thousands of component part & sub-assembly suppliers all over the midwest.

    A friend of mine turned in his old gas-guzzling jumbo-size SUV via the C4C program. His purchase? A car designed & built 100% in Japan (and maybe surrounding countries for parts). Yep, there’s stimulus money! For Japan.

  26. anon Says:

    Whoowee!!

    look at all the craps real excreter couldn’t wait till tomorrow to unload!

  27. Pralay Says:

    #21 – not necessarily true. There are thousands of component part & sub-assembly suppliers all over the midwest.
    —-

    Of course there are. I never said all of parts come from outside. But when RealExcreter talks about “millions of component parts”, how many do you think from midwest?

  28. Pralay Says:

    So what you’re saying is that used cars use different parts than new cars? When the brake goes out on your car, you replace it with a part from Mexico?
    —-

    Do you understand the word “supplier”? When I go to repair shop to change my brake, most likely the shop-owner gets the replacement parts from chain of suppliers. When Toyota assembles a car, most likely they get brakes from Taiwan. A big difference.

  29. Real Estater Says:

    Pralay,

    Unless you don’t care about your safety, you should by factory authorized parts. Such parts are typically from within their supply chain. This may be news to you, but most car manufacturers don’t build majority of the parts that go into their vehicles. The parts come from various suppliers all over the world.

  30. Real Estater Says:

    Typo: by should be buy.

  31. Pralay Says:

    Ladies and gentlemen, the advice is coming the guy……………………………………………………………..RealPartsExcreter, who does not understand the difference between how parts are supplied for used cars in repair shops and how car manufacturers get their parts in assembly-line. :)

  32. Pralay Says:

    Typo: by should be buy.
    —–

    Oh, that’s a minor thing. Don’t worry about it. We understood it without correction. You need to fix your clueless mind. That would be more important thing to correct.

  33. Real Estater Says:

    Pralay,

    No need to comment on a correction to a typo. You need to focus on more important questions, such as, “what’s your excuse for not buying when prices were low?”

  34. Real Estater Says:

    Pralay says,
    >>PartsExcreter, who does not understand the difference between how parts are supplied for used cars in repair shops and how car manufacturers get their parts in assembly-line.

    Again, this comes from a guy who replaces his made-in-Japan part with made-in-Mexico part at the local gas station.

  35. Pralay Says:

    You need to focus on more important questions, such as, “what’s your excuse for not buying when prices were low?”

    You mean that used car salesman style question? Oh, I forgot, you are not an used car salesman. You are a car parts salesman.

  36. Pralay Says:

    Again, this comes from a guy who replaces his made-in-Japan part with made-in-Mexico part at the local gas station.
    —–

    Made-in-Japan? LOL! Even Toyota/Honda would not claim that all their parts come from Japan.

    And changing parts in local gas station – I guess only user car-parts salesman advises others to do so.

  37. nomadic Says:

    Saying a car has “millions of parts” is rather silly (the number is on the order of 15,000), but to address the point whether “most” parts come from foreign countries, well, that depends on whether a car is labeled as being “made in the USA.” To fit that description, final assembly must occur here and it must contain at least 75% of component parts made of US or Canadian origin.

    For info on particular vehicles, here’s an article that’s a couple of years old:
    http://www.automotiveaddicts.com/inthenews/07-10-06.html

  38. Herve Estater Says:

    > Saying a car has “millions of parts” is rather silly

    I think Chuckie was including the number of transistors.

  39. Pralay Says:

    I think Chuckie was including the number of transistors.
    ——

    I thought he was talking about his Porsche made of these type parts.

  40. DreamT Says:

    did you know that Chuckie’s skeleton consists of millions of bones?

  41. nomadic Says:

    …and that’s just in his head!

    :-P

  42. anon estater Says:

    Millions of parts.

    Excreter, has bob been helping you with your math?

  43. DreamT Says:

    anon – millions of times!

  44. Pralay Says:

    Forget bone of contention for million bones. I thought Chuckie is boneless creature. Sort like amoeba that can any take shape it wishes – average tech guy, management class, non-management class, poor victim, mega-project manager, volunteer for charity……..and SV Shopper.


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