You can always print money. The fed has said it numerous times. True nobody ever wins, but you can do it and in desperate times they will print like crazy.
Stop gloating over declining home prices - it hurts
- Thread starter wilburbear
- Start date
Exactly, the worst thing about hearing these clowns talk about how smart they were for living well beyond their means was that if it went up they'd tell you how smart they were, and if it went down they'd complain about how they were tricked. No accountability at all.
Now it's bad taste to point out how stupid they were, but back then wasn't it bad taste for them to brag about how smart they were? ( our weren't ?)
I agree wholeheartedly. For the Chicago guys here's some math. My condo on the far-North side is probably worth 250k. Let's break it down.
250k at 6% = 15k a year. Using the mortgage deduction we can knock that down to about 10k or for the sake of argument let's say $1000 a month. My assessment is $486 monthly and my taxes are about $150 a month. That's an outlay of around $1600 a month out of pocket. It would rent for the same amount! Thus using "p/e's" as a yardstick it's at fair value.
Conversely my home in Florida (inherited) is worth around 1.4mil. I doubt I could get more than 5k a month in rent. Does that mean Florida is "mispriced"? Not necessarily. While in Chicago ONLY a wage earner would rent my condo, in Florida the typical buyer is a retiree who's selling a home or condo in the NorthEast (or Toronto) and thus has deep pockets. They're not buying into a job market they're buying into a lifestyle. They've got an equity portfolio worth a fortune, pension or SS, and proceeds from a lifetime of home ownership. Can they overpay? Of course they can. If they bought in 05 they did overpay. But are they going to puke lower. Doubtful. They want warm weather and no taxes. Not many places fill the bill.
The same with San Diego. Yea, SD is a tough place to make a living commiserate to RE prices. However those who've already scored want to live in SD or the OC at any cost. They want paradise and can afford it. I doubt the average La Jolla buyer is concerned about the SD job market. His wealth is tied to the share price of SBUX, MCD or WMT not to the employment opps at SBUX, MCD or WMT. So different criteria drive different markets.
"If you're bullish gold then I'd re-think selling your home"
i loaded gold in 1998
before i even knew what trading was.
i knew everybody hated it, and it was hella cheap (on a valuation basis), etc.
I am also swingtrading gold, but the time to get in was when gold was in the high 200's to mid 300's
i still think it will go up significantly, but i don't want to overweight.
i loaded gold in 1998
before i even knew what trading was.
i knew everybody hated it, and it was hella cheap (on a valuation basis), etc.
I am also swingtrading gold, but the time to get in was when gold was in the high 200's to mid 300's
i still think it will go up significantly, but i don't want to overweight.
Declining home prices is fine!!!
I bought a small house (1100 sq ft on a 8,000 sq ft lot) in Las Vegas a little over 2 year ago for $165,000.00. I paid Less than $40,000 out of pocket at closing. I refinance after one year and take out $15,000.00. My out of pocket is down to about $25,000.00.
I rented the house out for $820.00/month with zero cash flow. The first tenant moved out after 2 years. I just rent it out to a new tenant for $1050.00/month. I now have about positive cash flow.
The house just like mine next door was sold 2 month ago for $285,000.00. It was sold in less than 1 week. I would expect my house to be worth about the same price.
I made an offer of $160,000.00 on a condor (1100 sq ft) in Las Vegas last week. The deal is now in escrow. I expect to close the with about $45,000.00 out of pocket. I expect to collect about $970.00/month in rent with zero cash flow.
Bonus: all my expense to Las Vegas from Los Angeles are now business travel and tax deductible.
The house price is fine. Buy and hold for at least 5 years!!! It is time to buy... before it go back up!!!!
I bought a small house (1100 sq ft on a 8,000 sq ft lot) in Las Vegas a little over 2 year ago for $165,000.00. I paid Less than $40,000 out of pocket at closing. I refinance after one year and take out $15,000.00. My out of pocket is down to about $25,000.00.
I rented the house out for $820.00/month with zero cash flow. The first tenant moved out after 2 years. I just rent it out to a new tenant for $1050.00/month. I now have about positive cash flow.
The house just like mine next door was sold 2 month ago for $285,000.00. It was sold in less than 1 week. I would expect my house to be worth about the same price.
I made an offer of $160,000.00 on a condor (1100 sq ft) in Las Vegas last week. The deal is now in escrow. I expect to close the with about $45,000.00 out of pocket. I expect to collect about $970.00/month in rent with zero cash flow.
Bonus: all my expense to Las Vegas from Los Angeles are now business travel and tax deductible.
The house price is fine. Buy and hold for at least 5 years!!! It is time to buy... before it go back up!!!!
