Buying property in Germany

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Just now, BradinBayern said:

Actually MOST stocks have gone up.  You would have had to be pretty unlucky or pretty stupid had you followed my advice and lost money. 

 

Why have stock gone up? What is the reason stocks have gone up?

 

Is it because the companies are suddenly making money?

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18 minutes ago, BradinBayern said:

Actually MOST stocks have gone up.  You would have had to be pretty unlucky or pretty stupid had you followed my advice and lost money. 

Which stocks are going to boom now, Brad? You know, the next 7 or 8 days.

In the real world, nobody knows even the next five minutes ( except the belligerent lady based in ( I think Taiwan ) who badgered me with a cold call last year and urged me to invest 100,000 dollars in a particular company— within the next two hours before it would be taken other by another company!)😂

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41 minutes ago, BradinBayern said:
bullish
/ˈbʊlɪʃ/
 
adjective
adjective: bullish
Stock Market
characterized by rising share prices.
"the market was bullish"
 

You see, so when the prices are going down, it cannot be "bullish"  Kinda the definition of the word.

Actually I posted in some detail my reasoning.  You can check the archives  I posted both before cashed out my mutual funds and more recently when I bought back in.  So, if you consider things working out the way I predicted as "lucky" then I guess I was lucky.  Of course luck always plays a role.  New free tip:  Chinese tech firms.  Cell phones and such.  They are back up and operating where the rest of the world has been shut down and are buying shit loads of industrial machinery.  You can thank me later.


Yawn. Unless your real name is Warren Buffet color me unimpressed.  A while ago you saw a recession coming and then Corona hit, thus proving that even a broken clock is right two times a day.  Congratulations.
 

In the mean time I keep buying at least every two weeks and don’t have to give a damn. Boring, I know, but I’m not Warren Buffet.

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I am guessing here but I “ guess “ fraud is on the rise - tricking people into buying dodgy masks, tricking older people into “ doing their shopping “ for them and doing a runner with the money and all the rest of it.

Some despicable people around.

Not sure if there are mutual funds for that... or stocks..

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No, the market was already heading down for a number of reasons, mostly to do with insecurity in the world (Trump, Brexit, trade wars) but also due to things like car companies unsure of whether they wanted to make the leap to electric or not.  It was mostly the situation in the US that made me want to get out last summer.  Then corona came along and the market tanked.  Since you mentioned Warren Buffet, his best piece of advice is to run into whatever people are running away from and run away from whatever people are running into.  If everybody and their brother are buying tech stocks, or Bit Coin, or whatever, then it is a pretty sure bet that it is not a good investment any more.  Simple "buy low sell high" kind of stuff.  When the market drops to historic lows then there are opportunities there.   I did not have the intention of getting into the stock market again so soon (ironically, I was looking at real estate, but decided against it) but I moved when I saw the opportunity. Time to run in.  When real estate prices have been on a tear and then the flatten a bit (and everybody and their brother goes into real estate) and then there is a global crisis, then it is time to be cautious.  Time to run away.

 

Why has the market recovered?  Yes, companies are still making money, but the real reason is physchological.  Fear.  The market tanked due to fear and people panicked.  The stock market went way lower than it should have.  It is not that people who stayed in the market made a ton of money, it was people who had cash who bought in at the right time who did.  If you had bought in last year and stayed in then your portfolio is looking pretty bad right now. 

44 minutes ago, john g. said:

Which stocks are going to boom now, Brad? You know, the next 7 or 8 days.

I am doing well with medical and pharmaceuticals (for obvious reasons).  I already mentioned Chinese Tech.  For more tips, you have to pay me.  ;)

 

41 minutes ago, mtbiking said:

Yawn. Unless your real name is Warren Buffet color me unimpressed

Color me not giving a shit if you are impressed or not.  Are you my Dad?  You think I am trying to impress you?

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Just wondering.. IF and a big IF.. if it turns out the Chinese Government has been bullshitting and they deliberately kept out the truth and a whistleblower or two is being kept in detention/ being tortured etc, wat nu? And then the world says “ fuck you “, what then for your Chinese Tech stocks?

Jeez, these are harsh times for most people- let alone for speculators.

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25 minutes ago, BradinBayern said:

but the real reason is physchological.  Fear.  The market tanked due to fear and people panicked.

 

Actually, that's not true.  Generally, the stock market reflects expected earnings.  When stay-at-home orders were put in place, it didn't take much to see retail sales plunging along with distribution and then manufacturing and all supply lines and travel.  That dominoed into oil which is where we are now.  It's really not emotional as you make it sound.  The value of companies today are substantially less than they were in January.  Not because of fear or panic, but because people are not spending or can't.  Likewise, once we get past this virus phase and people return to work and start spending, earnings will rise and stock prices with them.  Not because of "joy" or "happiness".

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42 minutes ago, BradinBayern said:

Why has the market recovered?  Yes, companies are still making money, but the real reason is physchological.  Fear.  The market tanked due to fear and people panicked.  The stock market went way lower than it should have.  It is not that people who stayed in the market made a ton of money, it was people who had cash who bought in at the right time who did.  If you had bought in last year and stayed in then your portfolio is looking pretty bad right now

 

😂 sorry, I even think you may be right (I invested extra in the last weeks after all) but with so many financial experts predicting a much bigger crash in the next months than what we’ve had so far your prediction is just contributing to the noise. Hope you’re right though, because this is overall a very shitty situation. 

 

Quote

Color me not giving a shit if you are impressed or not.  Are you my Dad?  You think I am trying to impress you?


It certainly looked like it. But don’t worry, you aren’t. I can’t answer your first question without more info, though.

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1 hour ago, john g. said:

Just wondering.. IF and a big IF.. if it turns out the Chinese Government has been bullshitting and they deliberately kept out the truth and a whistleblower or two is being kept in detention/ being tortured etc, wat nu? And then the world says “ fuck you “, what then for your Chinese Tech stocks?

Jeez, these are harsh times for most people- let alone for speculators.

LOL.  Cute, You think that people won't buy stuff based on conspiracy theories?  Even if it somehow turned out to be true and provable, people will still want to buy cheap junk from China.  Even Walmarts in the deepest reddest States in America have no trouble sending their money to the Chinese Central Committee if it means they can save a few bucks.

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6 hours ago, BradinBayern said:

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Warren Buffett

 

Berkshire Hathaway has been selling although it already has a formidable cash position. Warren and associates seem to think that people still aren’t fearful enough. 

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12 hours ago, RenegadeFurther said:

If you chose to live there and not rent, what will you lose?

What if you are forced to sell? People like to ignore that risk. You could lose your income, or even your ability to work. You might want to move for whatever reason. When a couple buys jointly there is a real risk that one of the two could die. There is also the possibility of higher property taxes - I don't think that is likely in Germany but that does not make it impossible. You are absolutely right, as long as money is available at 1% most people can afford to buy a €1.000.000 house - as long as nothing goes wrong or even changes.

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2 minutes ago, LeChamois said:

What if you are forced to sell? People like to ignore that risk. You could lose your income, or even your ability to work. You might want to move for whatever reason. When a couple buys jointly there is a real risk that one of the two could die. There is also the possibility of higher property taxes - I don't think that is likely in Germany but that does not make it impossible. You are absolutely right, as long as money is available at 1% most people can afford to buy a €1.000.000 house - as long as nothing goes wrong or even changes.

 

There is 3 month protection at the moment.

 

The housing market is no longer part of the free market, there is to much interference from Central Banks and Governments.

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4 hours ago, mtbiking said:

 

Berkshire Hathaway has been selling although it already has a formidable cash position. Warren and associates seem to think that people still aren’t fearful enough. 

Selling airline stocks only.  Probably because they realize that people are pissed that the last bailout of airlines was just used to buy back stocks and not for the airlines operations or infrastructure.  There are very few people who are excited about bailing them out again. This says something about the airline industry, not the economy in general.

 

Otherwise they are sitting on their hands because the stocks rebounded too quickly, not because they are expecting a further downturn.  Could happen and Berkshire Hathaway is conservative so I am not surprised. No one is calling them because everyone is still in shock so they cannot dictate terms like they did last time.  Unfortunately the small iinvestor like me cannot wait for companies to call them and ask them for their terms.

 

I also do not expect stocks to jump back up to what they were, but if they get back up there in 10 years I will have done well because I bought so cheap.

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We're in agreement there. In 10 or 20 years the stock price of 2020 will look very cheap, just like the stock of 2000 or 2010 looks now.

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2 hours ago, LeChamois said:

What if you are forced to sell? People like to ignore that risk. You could lose your income, or even your ability to work. You might want to move for whatever reason. When a couple buys jointly there is a real risk that one of the two could die. There is also the possibility of higher property taxes - I don't think that is likely in Germany but that does not make it impossible. You are absolutely right, as long as money is available at 1% most people can afford to buy a €1.000.000 house - as long as nothing goes wrong or even changes.

Exactly, and when the choice is between buying a 1,000,000 house or 750€ rent, then it simply doesn't make sense.  Renters are much more flexible, especially during a crisis. 

 

There is NOT three months free rent.  It is a three month delay.  At the end of three months, you still owe three months back rent AND the current month's rent.  How many bankruptcies will we see in three months time?

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8 minutes ago, BradinBayern said:

Exactly, and when the choice is between buying a 1,000,000 house or 750€ rent, then it simply doesn't make sense.  Renters are much more flexible, especially during a crisis. 

 

There is NOT three months free rent.  It is a three month delay.  At the end of three months, you still owe three months back rent AND the current month's rent.  How many bankruptcies will we see in three months time?

 

Please, please give examples of €1,000,000 with a €750 rent. I'm genuinely interested as all €1,000,000 houses I've ever encountered have rents of at least €2000/month. 

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15 hours ago, RenegadeFurther said:

 

Why have stock gone up? What is the reason stocks have gone up?

 

Is it because the companies are suddenly making money?

 

Stocks are not only valued on income or PE ratio.

 

There is a large amount of 'views' on the future of a company, as an example, TESLA went up to 900 $ a share, dropped down to 350 ish and people are buying back in, currently at 650 or so. Even though they cannot produce many car at the moment. But investors think they will go up further, thus causing them to buy and hence the share price goes up. What actually happens remains to be seen.

 

 

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53 minutes ago, yesterday said:

 

Stocks are not only valued on income or PE ratio.

 

There is a large amount of 'views' on the future of a company, as an example, TESLA went up to 900 $ a share, dropped down to 350 ish and people are buying back in, currently at 650 or so. Even though they cannot produce many car at the moment. But investors think they will go up further, thus causing them to buy and hence the share price goes up. What actually happens remains to be seen.

 

 

 

Stocks are going up because the Fed is buying absolutely everything.

 

It is only a matter of time before the Fed starts buying Oil.

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3 hours ago, RenegadeFurther said:

 

Stocks are going up because the Fed is buying absolutely everything.

 

It is only a matter of time before the Fed starts buying Oil.

 

So you think the FED is buying Tesla stocks and that's why they are going up - what is your source ?

PS I know TESLA is making ventilators right now, but I would still like to see where/ How the FED is buying stocks in Tesla

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