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Dirt's better than mutual funds...
Old 03-27-2005, 09:36 AM   #1
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Dirt's better than mutual funds...

http://story.news.yahoo.com/news?tmp...tockinproperty

Whats almost as scary as trading in 100% of your investments to speculate in real estate, is someone who's <7 years from the usual retirement age that only has 85K set aside...
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 10:12 AM   #2
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Re: Dirt's better than mutual funds...

Three things about dirt - and or Real Estate.

1. Spotted Owls
2. School related property taxes
3. Salt water intrusion into the aquifer

In a better mood I'll tell you about the patented Gold mine.

Heh, heh, heh, heh

De Gaul and the Norwegian widow wish him luck.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 10:59 AM   #3
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Re: Dirt's better than mutual funds...

I guess a little info for non-californias helps. The towns mentioned are nice farmy places in the middle of frickin nowhere. Not bad places to live but places that historically you could get a nice house for not much money and enjoy all the dust you could breath and all the corn you could eat.

They're pumped up right now because the metro areas are so godawful expensive...but I wouldnt consider them good long term buys.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 11:01 AM   #4
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Re: Dirt's better than mutual funds...

Ah yes, Real estate, everybody's jumping on the bandwagon after it's been run-up to nose-bleed territory. (Familiar ring with the stock mkt. in l999).

Only speaking of Calif., as not qualified to speak for other states.

l960 to 1970 (Relatively flat)
l970 to l979 (Would have made a bundle, if sold before Big Paul Volker, in 1979, increased interest rates to nose-bleed territory.
1980 to l987 (Relatively flat)
1987 to 1990 (Short burst of heavy appreciation)
1990 to 1998, (Relatively flat).
1998 to current (Unprecidented appreciation).

A little late to come to the party now, but the noise continues to rumble on.
Any bets on how this is going to play out?

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Re: Dirt's better than mutual funds...
Old 03-27-2005, 12:17 PM   #5
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Re: Dirt's better than mutual funds...

Quote:
Any bets on how this is going to play out?
Until a week after I close on a house.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 12:21 PM   #6
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Re: Dirt's better than mutual funds...

Sacramento area wasnt so steady. Up ~35% from 1985-1990. Down ~40% from 1990 to 1996. Up ~45% from 1996 to 2004.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 12:44 PM   #7
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Re: Dirt's better than mutual funds...

All I know is my house (San Diego) is up 100% in 4 years. Wish I bought two of them.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 12:54 PM   #8
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Re: Dirt's better than mutual funds...

Along the lines of Jarhead's post.

I know three retiree's(not ER's) got a big boost in retirement because they kept their California houses bought during the space program heyday in southern CA - aka the 60's.
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 03:03 PM   #9
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Re: Dirt's better than mutual funds...

Quote:
Sacramento area wasnt so steady. *Up ~35% from 1985-1990. *Down ~40% from 1990 to 1996. *Up ~45% from 1996 to 2004.
Hey TH: A silly thing to argue about, but what the hell, it's raining, and no golf today.

According to the percentages you quoted, a $100,000.00 home in 1985 in Sacramento would now be worth $117,000. Prices since 1985 have quadrupled in the Sacramento area. Don't know where you got your figures, buy they're not even close.

Nitpicking Jarhead
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Re: Dirt's better than mutual funds...
Old 03-27-2005, 04:23 PM   #10
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Re: Dirt's better than mutual funds...

Yeah, th, those numbers look funky to me also.

JG
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Re: Dirt's better than mutual funds...
Old 03-28-2005, 01:18 PM   #11
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Re: Dirt's better than mutual funds...

Ah crap...well, look at my tag line for an explanation...

I was talkin' about relative changes and doing a bad job. My house there was built for $254k...a couple of years later in 1989 it sold for around 380 and could have sold for ~420 in '90. By 96 I bought it for 312 and probable could have gotten it for a little less. Sold it in 2002 for 480. Probaby get 525 for it now.

I wanted to buy a second house in 96 for speculative purposes...sold originally in the late 80's for $680...I could have bought it for $350 in 96. 5000 sq ft 6 bed on an acre. Exquisite finish work on it. Dang.

A year later I made my mind up to buy six 3 bedrooms in Folsom for rentals. New 3 bed 2 baths were selling for ~140 a pop then. The first one I bought went south at the last minute in escrow and I got ticked and gave up on the idea. The couple of other posters who live in the folsom area just shuddered...those houses are all worth well north of 300k now.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Re: Dirt's better than mutual funds...
Old 03-28-2005, 02:23 PM   #12
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Re: Dirt's better than mutual funds...

Quote:
Ah crap...well, look at my tag line for an explanation...

I was talkin' about relative changes and doing a bad job. *My house there was built for $254k...a couple of years later in 1989 it sold for around 380 and could have sold for ~420 in '90. *By 96 I bought it for 312 and probable could have gotten it for a little less. *Sold it in 2002 for 480. Probaby get 525 for it now.

I wanted to buy a second house in 96 for speculative purposes...sold originally in the late 80's for $680...I could have bought it for $350 in 96. *5000 sq ft 6 bed on an acre. * Exquisite finish work on it. *Dang.

A year later I made my mind up to buy six 3 bedrooms in Folsom for rentals. *New 3 bed 2 baths were selling for ~140 a pop then. *The first one I bought went south at the last minute in escrow and I got ticked and gave up on the idea. *The couple of other posters who live in the folsom area just shuddered...those houses are all worth well north of 300k now.
TH: Above explanation, versus the first figures you put up on the "appreciation of property" in Sacramento, makes it clear to me that you have a great fall-back
potential. (State Senator, and then who knows
Take Care, Jarhead
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Re: Dirt's better than mutual funds...
Old 03-28-2005, 02:38 PM   #13
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Re: Dirt's better than mutual funds...

Yessss...Senator Blutarsky...



Gimme a minute and I'll put a pancake or two on his head...
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