If there ever were a paradise lost, certainly the land speculation real
estate bubble on Bali the last two decades has almost totally destroyed what islanders consider the sacred relationship with the land.
Not exact matches
Here's hoping that when the tech
bubble inevitably bursts, the site will make another one comparing real -
estate prices to the crummiest places
on the planet, like perhaps this decrepit oil rig in the middle of the sea.
Relatively easy liquidity has fuelled investment in China's notoriously frothy real
estate sector - property investment jumped 22.8 percent in January and February combined from 2012 - pushing up home prices and triggering hawkish talk
on property tightening from Beijing policymakers to contain the risk of an asset
bubble rapidly inflating.
While Schuler would argue that the damage of the inevitable
bubble bursting will be limited to companies that have received, or want to receive, funding and to the private investors and those funds invested in them, there is always the potential for a much wider impact
on employment and real
estate values.
Who knows if the tech / real
estate bubble will pop now or 3 years from now, but thoughts
on condos in a «premium» location like PH both for lifestyle, cap appreciation, and rental (I'd consider renting it out to start).
Reader Glenn Stehle highlighted a key factoid in a recent New York Times article
on China's real
estate bubble boom:
Weakening currencies in the post-Soviet states threaten to raise default rates
on foreign - currency mortgages as collapse of the Baltic real
estate bubble drags down Swedish banks, while the Hungarian property plunge threatens Austrian banks.
And although the median home price is definitely
on the high - end, many cities throughout Oregon are experiencing rising prices — a possible sign of the next real
estate bubble.
An alternative definition of a
Bubble Economy therefore focuses
on asset - price inflation — rising stock market, bond market and real
estate prices in the face of an economy - wide debt deflation.
Spain could therefore either use the imported German capital to (a) increase domestic investment (which it did in the form of a real
estate bubble)(b) binge
on consumption and sharply reduce its savings as a function of GDP (which it also did)(c) accept higher unemployment (which it is now forced to do) which forces GDP to fall faster than consumption falls or (d) try to emulate Germany by passing off a trade imbalance at the expense of the rest of the world (which Europe as a whole is trying to do and which will go nowhere in the long run because only one country is even remotely capable of accepting such massive inflows, and it is increasingly unwilling to import the unemployment caused by German and Asian policies).
For example, Spain's housing
bubble and Greece's debt crisis have resulted in major drops
on real
estate prices across the countries.
No one knows where future valuations are going, and we may be nearing another real
estate bubble in the Bay Area, but I think you'd be OK hanging
on to what you have until you find a property in Hawaii.
In the late 1980s,
on the heels of a three - decade long «Economic Miracle,» Japan experienced its infamous «
bubble economy» in which stock and real
estate prices soared to stratospheric heights driven by a speculative mania.
Lately, it looks like South Florida real
estate prices are
on their way back to pre-crisis level, but the question always remains as to whether that sudden surge of interest for the real
estate market will remain strong, or the
bubble will burst once more.
Jonathan Manthorpe believes there is a direct line linking the explosive real
estate bubbles in Toronto and Vancouver and how secure Chinese President Xi Jinping looks
on his throne.
Experts worry that China's property market may be heading into
bubble territory as the economy's dependency
on real
estate reaches a level close to the housing peaks in the U.S. and Japan.
The actions of the banks along with a nationwide real
estate bubble created a perfect storm scenario which lead to a financial collapse
on Wall Street and Main Street.
That competence isn't really lost, only your government has encouraged the creation of a vast financial services sector focused
on the creation of toxic debt instruments linked to the real
estate bubble that was itself a result of the credit expansion.
Richard: Great insight as always, and last time we talked about the commercial real
estate bubble and we thought today we'd do a special focus
on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset
bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.
Last time we talked about the commercial real
estate bubble and we thought today we'd do a special focus
on the millennial generation and how financial repression through repressed interest rates and quantitative easing has resulted in asset
bubbles that ultimately have affected the millennial generation in terms of their values, how they look at the economy and life and the way they're conducting themselves in the economy: what they're facing in terms of the housing market and the job situation.
I discovered you today
on Zero Hedge (Aussie real
estate bubble) and have now read several of your posts, most are «stone cold masterpieces» of analysis and insight.
Given the consistently good news we've seen from the housing market, it can be easy to forget just how much damage the bursting of the real
estate bubble has wrought
on the economy and the lives of average people across the country.
Even if China's debt and real
estate bubbles don't pop, resulting in a global recession, slowing economic growth from China could have a detrimental effect
on long - term energy prices and result in prolonged weakness in the entire energy sector, including oil services suppliers such as U.S. Silica.
The banks were the beneficiaries of the massive influx of international capital and lent money indiscriminately, creating a speculative
bubble, particularly in the real -
estate sector and
on the stock markets.
This special weekend will include a dinner in The Meritage Resort's
Estate Cave
on Friday evening, a special poolside Happy Hour with
bubbles and oysters, and our very special Veuve Clicquot Mother's Day Brunch.
But I don't see how knowing what brought
on the real
estate bubble / burst will help us avoid it happening again.
'71 Barracudas and»68 Chargers have been high
on the dream list since back then, but I'm much more worldly these days, thanks in large part to having sampled much of New York bureau chief Jamie Kitman's vintage British fleet, so my dream garage's old Mopars are now joined by names like Triumph Dolomite Sprint, Ford Lotus Cortina, MGA, Sunbeam Lotus, and Jaguar XK120, which fight vehicles like AMC SC / Ramblers, bay - window Volkswagen Microbus campers, and Buick Skylark Sport Wagons for real
estate in my daydream thought
bubbles.
After the real
estate bubble popped and the economy fell into recession, many homeowners decided against leaving their homes and «trading up» or investing in new property, and instead focused
on improving what they already had.
Given falling property values in much of the nation, this year's loan limits are likely to be lower in many areas as last year's formula for calculating maximum FHA loan amounts was based
on «real
estate bubble» prices that are expected to be significantly lower this year.
He was a guest back
on podcast # 89, and I started by asking him why he thinks Canadian real
estate is in a
bubble?
Although the real
estate industry insists we're not in a
bubble, house prices continue to climb into nosebleed territory: the price tag
on Vancouver's average dwelling has risen to a staggering $ 762,100.
IndyMac's aggressive growth strategy, use of Alt - A and other nontraditional loan products, insufficient underwriting, credit concentrations in residential real
estate in the California and Florida markets — states, alongside Nevada and Arizona, where the housing
bubble was most pronounced — and heavy reliance
on costly funds borrowed from a Federal Home Loan Bank (FHLB) and from brokered deposits, led to its demise when the mortgage market declined in 2007.
This has created
bubbles in the bond market, real
estate and all sectors of the economy that depend
on leverage and feed
on low interest rates.
Like Dave, we were swinging high
on the real
estate bubble with leveraging everything after we made a few million.
On the adjacent wall, the bookshelves resemble a library of financial doom, lined with titles such as
Bubbles: And How to Survive Them, How to Profit From the Coming Real
Estate Bust, and Conquer the Crash.
(In my piece
on real
estate market tops, I suggested that after the
bubble popped ``
(In my piece
on real
estate market tops, I suggested that after the
bubble popped «Short rates would have to rally significantly to bail these borrowers out.
Then the real
estate bubble burst and the vaporization of the value of the investment vehicles Wall Street's geniuses invented to rake in billions
on hyper - elevated housing prices crushed stock values, again by about half, and induced the Great Recession.
If you thought Canada has a housing
bubble, this 60 Minutes story
on China's real
estate bubble, where entire city blocks, malls and even cities are virtually empty, will make us look like small potatoes.
Many of the «assets»
on public companies» books at that time were real
estate bubble - related.
Given the predictions back then — of an imminent
bubble burst and a housing market crash — hedging
on real
estate losses would've been a smart, speculative position.
When people elsewhere in the economy can collect their bonuses and move
on before the truth is revealed, we get such things as the real
estate bubble.
A few years ago when the real
estate bubble burst and there was less real
estate work, many attorneys in that practice area retooled themselves into corporate or zoning lawyers, or something transactional that still touched
on real
estate, she said.
«If you have a real
estate bubble that's founded
on deep corruption and improperly executed systems, that's a bad thing,» he said.
Then the
bubble burst, and we realized we needed to focus
on being a traditional real
estate company.
Both of those economic
bubbles were worse than what we are seeing now and the impact
on real
estate was somewhat muted.
While some are worried the removal of these regulations introduces risk — a possible housing
bubble and another financial crisis — the real
estate industry is focusing
on the rewards related to increased freedom from the lessening of current lending regulations.
The other question
on the minds of the investors in this market is whether or not we will also be facing a looming real
estate bubble.
Also, we lost over 250k in cash during the perfect storm of the depression (I don't care what economists say, we are in depression that is currently experiencing an artificial
bubble), my illness and hospitalizations and expensive treatments, combined with devaluation of real
estate we had 50 % equity in, and a partner would had no interest in the financial operations of the business had us right
on the edge of bankruptcy.
The question of whether we are in a multifamily
bubble is one that has recently been
on the minds of many real
estate investors.