Comments on: Sell the Extra Condo.. Focus on Business http://domainnamesales.com/sevenmile/2007-06/sell-the-extra-condo-focus-on-business/ Frank Schilling's Official Blog Sat, 17 Nov 2012 00:25:08 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Javier Marti http://domainnamesales.com/sevenmile/2007-06/sell-the-extra-condo-focus-on-business/comment-page-1/#comment-2416 Javier Marti Tue, 09 Oct 2007 23:09:54 +0000 http://209.40.202.107/2007/06/01/sell-the-extra-condo-focus-on-business.html#comment-2416 My apartment in Tenerife has been sold, thanks right before the wave goes down big time :) Franks' was good advice, and still is >Good advice on selling, but the rent point is >mistaken. As houses sell, rents increase. >Less owners, more renters. 1)This seems a bit of a dangerous oversimplification. Usually real estate crisis are accompanied by other factors affecting the economy of individuals. Many of those individuals are renters. If they start losing their jobs, or their businesses going south, and inflation continues to go up, the end result is that they can pay less rent than before, simply because they have less money available, or no jobs. 2)usually a real estate crisis means a lot of foreclosures. The banks don't want to take the house if possible, so they let the owner keep it even renegotiating lower payments, but he has to make damn sure he pays religiously the loan, because he is being watched and he knows it. In this case, the owner usually is desperate to rent the property, and the first thing he does is lower the rent price. When many are in the same situation, and they all do the same thing, overall rent prices go rapidly down. >because of the high sale prices, owners can't >afford their homes, and even if they hold on >to them rents have to be higher than what >they were in the past to help cover more of >their higher mortgages. I think this point doesn't make sense or I don't understand it very well. It sounds like inverted logic. Are you saying that because the owner has to pay more (?) in monthly mortgage installments he will pass this increase on to the tenant, thus the tenant will have to pay more rent p/month? If so, it does not make sense. As per 1 and 2 above, in crisis times it is a tenant's market. Rents go down, not up. It is impossible to increase the rent when people have many more options open to them, and better properties than yours to choose from, for the same price or less. Regards Javier Marti Trendirama.com My apartment in Tenerife has been sold, thanks right before the wave goes down big time :)
Franks’ was good advice, and still is

>Good advice on selling, but the rent point is
>mistaken. As houses sell, rents increase.
>Less owners, more renters.

1)This seems a bit of a dangerous oversimplification. Usually real estate crisis are accompanied by other factors affecting the economy of individuals. Many of those individuals are renters. If they start losing their jobs, or their businesses going south, and inflation continues to go up, the end result is that they can pay less rent than before, simply because they have less money available, or no jobs.

2)usually a real estate crisis means a lot of foreclosures. The banks don’t want to take the house if possible, so they let the owner keep it even renegotiating lower payments, but he has to make damn sure he pays religiously the loan, because he is being watched and he knows it. In this case, the owner usually is desperate to rent the property, and the first thing he does is lower the rent price.
When many are in the same situation, and they all do the same thing, overall rent prices go rapidly down.

>because of the high sale prices, owners can’t
>afford their homes, and even if they hold on
>to them rents have to be higher than what >they were in the past to help cover more of >their higher mortgages.

I think this point doesn’t make sense or I don’t understand it very well. It sounds like inverted logic. Are you saying that because the owner has to pay more (?) in monthly mortgage installments he will pass this increase on to the tenant, thus the tenant will have to pay more rent p/month?
If so, it does not make sense. As per 1 and 2 above, in crisis times it is a tenant’s market. Rents go down, not up. It is impossible to increase the rent when people have many more options open to them, and better properties than yours to choose from, for the same price or less.

Regards

Javier Marti
Trendirama.com

]]> By: touchring http://domainnamesales.com/sevenmile/2007-06/sell-the-extra-condo-focus-on-business/comment-page-1/#comment-2415 touchring Sun, 03 Jun 2007 21:16:36 +0000 http://209.40.202.107/2007/06/01/sell-the-extra-condo-focus-on-business.html#comment-2415 How is the business sentiment in the US? If the economy is moving, interest rates might rise again, this will jeopardize the real estate market even further. How is the business sentiment in the US? If the economy is moving, interest rates might rise again, this will jeopardize the real estate market even further.

]]> By: Andrew Johnson http://domainnamesales.com/sevenmile/2007-06/sell-the-extra-condo-focus-on-business/comment-page-1/#comment-2414 Andrew Johnson Sat, 02 Jun 2007 04:01:55 +0000 http://209.40.202.107/2007/06/01/sell-the-extra-condo-focus-on-business.html#comment-2414 The way I look at things.. just ignore that it could get "ugly." Forget all the fundamentals in terms of buyers, sellers, ARMs, interest rates, and so on. Which investments are undervalued right now and will deliver killer ROIs for the next few years? Doom, gloom, or blue skies, real estate just is not in the picture. Best case scenario, no money lost, single digit appreciation. Forget it! I don't think this is just an issue of real estate vs. domain names. As your blog title states, its about business. Focus on your own business (domain names, or not.) I am guessing that you can get far more leverage with much more potential upside than real estate provides today. ***FS*** I agree. The way I look at things.. just ignore that it could get “ugly.” Forget all the fundamentals in terms of buyers, sellers, ARMs, interest rates, and so on. Which investments are undervalued right now and will deliver killer ROIs for the next few years? Doom, gloom, or blue skies, real estate just is not in the picture. Best case scenario, no money lost, single digit appreciation. Forget it!

I don’t think this is just an issue of real estate vs. domain names. As your blog title states, its about business. Focus on your own business (domain names, or not.) I am guessing that you can get far more leverage with much more potential upside than real estate provides today.

***FS*** I agree.

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