Originally Posted by Laurence
I have a friend who is convinced the bubble is bursting here in SD, he has sold his McMansion for an obscene profit and is renting a similar home for less than his mortgage was.* So far he's coming out ahead every month.* Even if the market only stays flat and then starts rising again, he could still win if he made enough of a profit investing the windfall (but taxes, always the taxes to figure).* Still, he's got a daughter almost the same age as mine, that's some mental fortitude.
Risky business trying to time the housing market.* I hope his landlord doesn't come to his senses and sell the property out from under him.
A colleague of mine is also convinced that the real estate market in NYC is peaking and sold his condo . . . in 1999!* Prices have doubled again (at least) and the hefty gain he realized isn't buying much real estate these days.*
Sometimes, in situations like this, people can be too clever for their own good.* I worried a lot about housing prices when I bought my place but now could care less.* I have to live somewhere.* If housing prices go up, my property should generally track the market and keep my real estate purchasing power more or less constant.* If prices go down, its the same thing only my non-real estate net worth buys more property - which suits me just fine.