Monday, May 19, 2008

The $10,000 Dollar House


If you want an in-depth look into the troubles in real estate, please take some time out today and read Gary North's latest. Gary is a strong proponent of owning rental properties and real estate - when done right - and knows his stuff. Please pay special attention to the structural problems caused by the securitization of house loans:


The $10,000 Atlanta Houses
by Gary North
You read that right. You can buy a house in Atlanta for $10,000.

That's if you're a high roller. How about one for $5,900?

Whenever you see something like this, you should think to yourself: "This sounds crazy; so, the government has to be involved." This may be incorrect, but you will save a lot of time barking up wrong trees by starting with this assumption.

In this case, it's a conclusion, not just an assumption. I will get to this later on. But first...

A PARALYZED SYSTEM

There are a dozen houses listed by local real estate agents that you can buy for $10,000 per home. You can buy ten times as many if you are willing to pay $20,000.

How can this be? It is true that we are somewhere in the unwinding of a housing market that has suffered from mania. But this is more than unwinding...

Read it - it will probably be the best ten minutes you spend today.

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