Tag Archives: opinion

Hype Dodger: Zillow rent report provokes mass media faux-analysis

New Rent Report Suggests Possible Bubble - CNBC.

That article up there? It's written with one purpose - to make you panic and buy stuff.  Courtesy of CNBC.com comes some hype about the rental market. Apparently a new report from Zillow shows rents rising in almost perfect proportion to home sale price falling nationwide. They specifically talk about the high year-over-year rent growth for Chicago, as shown in this month's Rent Bacon.

Investing in the rental market requires a level head that can stay above the hype. If you feel like you're running to catch up with the investment market, stop and take control of yourself.

Of course, the media will take any statistics on the housing market they can get and turn them into hype. If they don't provoke your emotions, you might use your logic to make a decision, and that never works out well for them nor for their advertisers. But they are trying to manipulate investors in the rental market by using the same tactics as those that worked to make home buyers and sellers all crazy and depressed.

They're doing it wrong. (more…)

Never is a promise: Avoiding concepts of eternity when buying real estate

Everything has a time limit.

Everything has a time limit.

Sales pitches for expensive items - either expensive in money or expensive in time needed - are designed to make you think about concepts of eternity. "A Diamond is Forever." "You'll never have to replace your windows again!" "Believe in this deity and you are guaranteed an eternal afterlife full of kittens and chocolate!" "Will you be comfortable passing this home on to your kids?"

When we make major choices, like our spouse, our home, our car, we tend to think that the object we are buying is the last one of its kind that we'll need. "I have problem," we think, as we enter the store, "and this item will solve that problem forever." However, in focusing on solving our big problems, the smaller ones of day to day life get swept under the rug, only becoming apparent after our major purchase is finished. This leads to the feeling of "buyer's remorse" that we all know so well.

It happens to us in the real estate market as well. (more…)