Housing market situation

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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 11:48 am

yea, every socialist mayor around the lake is either already been convicted, been charged, or is under investigation.

At least they managed to vote them all out of office. Now, undoing the damage is going to take years.

whatever "socialism" might mean somewhere else, in latin america it ALWAYS means corruption.
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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 3:06 pm

here is an interesting study on the risk and returns of real estate against other forms of investing. seems real estate, taken on a global scale, does return more for less risk.

https://www.nber.org/papers/w25653

of course, you have parse that to your investment neighborhood.

however, a similar study of one of the oldest and richest german families looked at how they survived several world wars, many recessions and depressions, also concluded they maneged to stay rich not because of gold, stocks, bonds, paintings, but through owning real estate.
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tiagoabner
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Re: Housing market situation

Post by tiagoabner » Mon Apr 08, 2019 3:45 pm

While it may have higher expected returns, there's the important fact that it's not a liquid asset. This is something that should always be accounted for.

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Re: Housing market situation

Post by at46 » Mon Apr 08, 2019 4:39 pm

tiagoabner wrote:
Mon Apr 08, 2019 3:45 pm
While it may have higher expected returns, there's the important fact that it's not a liquid asset. This is something that should always be accounted for.
That's the point - it's harder to make it flow into someone else's pocket 😂

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Re: Housing market situation

Post by eeuunikkeiexpat » Mon Apr 08, 2019 5:26 pm

And there are always black swans that could cause massive death like the Black Death/Dark Age times where the survivors made themselves at home in many a dead nobleman's estate :alien: Land and wealth redistribution via mother (or supra) nature vs. human commies and socialists.
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 6:39 pm

eeuunikkeiexpat wrote:
Mon Apr 08, 2019 5:26 pm
And there are always black swans that could cause massive death like the Black Death/Dark Age times where the survivors made themselves at home in many a dead nobleman's estate :alien: Land and wealth redistribution via mother (or supra) nature vs. human commies and socialists.
In that case, you have way bigger problems than what is in your stupid little investment portfolio. :lol:
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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 8:10 pm

at46 wrote:
Mon Apr 08, 2019 4:39 pm
tiagoabner wrote:
Mon Apr 08, 2019 3:45 pm
While it may have higher expected returns, there's the important fact that it's not a liquid asset. This is something that should always be accounted for.
That's the point - it's harder to make it flow into someone else's pocket 😂
We handle a lot of inheritance. Of all the assets that I have seen survive the messy back and forth of probate, real estate is the one that tends to make it to the next generation, mostly intact. Stock portfolios, life insurance policies, etc, etc, all can simply evaporate in the middle of legal fees, family fighting, simply no one knowing they exist, etc. Real estate seems to be pretty sticky, and hard to loose.
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Re: Housing market situation

Post by admin » Mon Apr 08, 2019 8:11 pm

As for black swans taking a dump on you; well, that is why they are black swans. Highly improbable events; but, you might still loose money to one. Buy a goose gun, and diversify. You can't see all the black swans coming, but if you spread your investments around it gets much harder for any particular swan to take a dump on all of them at once. Think it was warren buffet said, "diversification is the only free lunch".

However, I can guarantee you, with about a 100% certainty, if you don't make an investment and just stuff your mattress full of cash, you will loose money.

So, buy more than one property, in multiple locations if it makes you feel better.
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Re: Housing market situation

Post by paladin » Mon Apr 08, 2019 10:14 pm

admin wrote:
Mon Apr 08, 2019 8:11 pm
As for black swans taking a dump on you; well, that is why they are black swans. Highly improbable events; but, you might still loose money to one. Buy a goose gun, and diversify. You can't see all the black swans coming, but if you spread your investments around it gets much harder for any particular swan to take a dump on all of them at once. Think it was warren buffet said, "diversification is the only free lunch".

However, I can guarantee you, with about a 100% certainty, if you don't make an investment and just stuff your mattress full of cash, you will loose money.

So, buy more than one property, in multiple locations if it makes you feel better.
I second that ! If I’m to be honest, I reckon that over my adult life, if I add up tne profits and the losses I’ve made on stocks, I probably have broken even. On the other hand, if I do the same calculations on my investments in properties, I’ve never ever lost, and have made substantial gains.

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Re: Housing market situation

Post by admin » Tue Apr 09, 2019 2:28 pm

yea i would say biggest returns vs. risks in my life:

1. working for myself

2. real estate investments

3. stock market investments

and way, way down the list so far that it has been put on another list altogether (the 'never do that again' list) the lowest return, highest risk activity: working for someone else.

i was lucky. i realized working for someone else sucked by 16 years-old, and completely quit trying by the time I was 18.

as an old partner use to say, "the point of working for someone else is to get them ahead, not you".

I think it was Richard Branson in an interview, when asked what he would do if he had to start over, pointed out that working for someone else waa the highest risk activity you could engage in. The boss is the last guy fired or layed off, just before the owner. everyone else is expendiable.

so in the grand scheme of things, real estate is about as good as it gets for secure investments, and really is just another form of selfemploment.
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Re: Housing market situation

Post by 41southchile » Tue Apr 09, 2019 4:23 pm

Yeah agree with all above, one thing that I did want to mention or ask in this thread , is does anyone think 35 to 40 UF per square metre is expensive to build ? Because to me it seems outrageous for Chile? Those are nearly similar prices to what we pay in NZ for building, and the carpenters and tradies such as electricians , painters and plasterers, plumbers are probably on three times as much as here.

I wonder how much someone with a fancy diploma is screwing over the new rich who sèem to associate price with quality ? when often there appears to be very little relation from what I have seen . A house for 18 UF per sqm has just as many issues as one with 35 most of the time .
At 35 UFThats 927000clp per metre or $1395 usd or $129USD per square foot.
Comuna Loncotoro Lakes Region Chile

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Re: Housing market situation

Post by admin » Tue Apr 09, 2019 5:27 pm

ow hell, that is super cheap, if you don't know which end of a hammer is for driving nails vs. hitting your thumb. :lol: :lol:

when i first arrived in chile, i went to a dinner party in temuco with some people that my wife went to school with but had just moved to southern chile. when i told them i wanted to plant a garden, they thought that was a wonderful idea. when told them i like working in a gsrden, and was not planning to hire someone to manage it they were horrified. these were professionals, but by no means "rich". probably best classified as "new rich" or "new middle class" chilenos.


FYI, I never got around to planting that garden. perhaps they were right. i should have just hired someone.
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