"Real Estate Market 2008 vs 2022: A Conversation with Shlomo Friedman from Imperial Real Estate"

2007 pre 2008 crash people asked me all the time this is our bubbles advice and with the customers experience of segrent spree 2008 crash if it's similar or not let me hand down a two cent slimer so uh 2006 in the market it was very different 2004 2005 was very different than yesterday in 2004 2005 the loans and again almost fall it was uh they gave you 100 financing no documentation anybody had access to money and when people have easy money they deal with it irresponsibly today the loans are so i just mentioned mentioning properties people bought properties and they wanted to flip it and we got done by the end i'll get to that but the first thing is the difference between then and today is the money was almost free money it wasn't their money and they didn't have to think twice and they took risks that people are not taking today because it's real money it's real financing the bank wants to see today's legitimate way how it's being where it's going what the valuation is what the income is so that's very different there's a normal that was an initial mile got it okay that's the first difference and the second difference is is that people bought not because they needed the property and not because it made sense with the income and natural growth they bought it and they better the market that as it went up till now it's going to go up with the same percentage and even more and they just even if they weren't able to close on the property they would buy it just that they're going to flip it and when that happens that's very dangerous because that creates the financing is after financing and mostly homeowners are end users and even if they're investors they're investing like normal investors invest in a market that either is going to go against inflation because it's property or because the supply demand ratio is going to become tighter as the place becomes more popular and comes more in demand that's normal real estate investment and that's fine now that being said anytime properties go up in price or anything you always always develop you're always at a higher risk that things are going to change and that could happen but anybody that's going to tell you today what's going to happen tomorrow is a liar they don't know long term for sure not the market predictors don't predict it going down in the next six to 12 months they're actually predicting a 15 20 increase of course it's different in every market in every different place we're talking about in general i will tell you this no one should ever make any move out of fear don't ever buy a property because you're afraid it's going to go up in price tomorrow buy a property if you need it if you need to live if the numbers make sense if you can't afford it don't buy it out of fear that you won't be able to afford it even worse tomorrow that's not a smart move to do even for even for end users absolutely of course a person should stretch themselves out of their comfort zone but that even that has to be done responsibly they can that don't make sense just because it is not a reason to buy and especially when it comes to investors you can't buy something that you're losing money every month and you can't keep it because it's going to be worth more you have to take into consideration that even in the worst case scenario that prices will go down you'll be able to afford keeping this property and if you can if the rent is high enough and the cover is correct and if you can and it makes sense then definitely go ahead and buy it yes they predict that it's still going to go up and you know what i'll tell you what i once heard from sidney krupnick i met him in the township in 2008 2009 sydney what's going to be with the market so let me ask you something uh the the hospital in lakewood they're still they're still full babies okay and even if we go down that's going to go up it goes back up with all the you mentioned something about the easy access money i think this today's date is a lot of easy access easy access to money people refinancing the the this trillions dollars that just went into the to the economy so it's not like it's pre-2019 i mean after cover there's a lot of a lot of money in the economy so do you think that that's gonna be an effect on the economy once this money absolutely yes absolutely yes yes there is a lot of money that wasn't in the market before and it will come back to haunt us one day no doubt but it's still not a comparison with 2004 2005. the banks are looking at income they want to have verification they're looking at property appraisers and evaluation they they have some things in place to make sure that this is legit and it's responsible there's extra stimulus money people got ppp loans there's sba loans that are special for covert for businesses that people took out monies and they have extra money and they're putting it into the market and there's a certain percentage that has increased because of that but most of that hasn't and there is a fear that this will come back to haunt us and i believe that it will that being said nobody has to get scared that market is going to crash tomorrow and nobody should do things that are irresponsible even if it won't fine school everything should work out the best keep on going