But, what if house prices keep dropping?

Why is it that most people buy when prices are high and run away when prices are low?

Here’s one of the houses I bought in late 2010. Paid less than replacement cost; happily rented at $900 a month representing a 12% plus gross return. Yet, I was virtually alone searching for these bargains; no competition. Nobody buying; everyone seemed to be afraid. Now the market is climbing and people are buying again. Why is it that most people buy when prices are high and run away when prices are low?

BUT, WHAT IF HOUSE PRICES KEEP DROPPING?

Here’s a BUT question I encountered a lot while searching for property in Florida in late 2010. Seemed like the conventional thinking was property prices were going to drop to zero. I…