califdreamer
Recycles dryer sheets
REWahoo! said:Yes, via repetitive repetition.
What was that again?
REWahoo! said:Yes, via repetitive repetition.
honobob said:Unfortunately, leverage is really bad when the asset price goes down.
You must have gotten this from a seminar. I doubt you could explain what you mean.
Texas Proud said:For all the people who say housing prices can not go down a lot have not heard about Houston in the '80s.. lot of overbuilding, lots of people buying houses with little down etc. etc... then it went POP..
I bought my house in 1986 at half the price the last owner paid two years earlier... and it has only caught up to that previous value THIS YEAR..
And if you owned a townhouse in certain parts of town you could not even sell them for $5,000... and they sold for $45,000 a couple of years earlier... and since that area of town has gone downhill, they still are not worth what they sold for when new..
I do not believe that this will happen in any place as it was the worst housing decline in history... but, I do think that people who only see prices going up are looking through rose colored glasses..
honobob said:You seem to think that appreciation was recently invented. Prop 13 in 1978 was the result of the skyrocketing appreciation in the early 1970s
honobob said:WAB
Have you ever purchased real property or invested in the stock market? Are you under 30? Your knowledge and experience seems to consists of what your (parents?) neighbors went through or some graph/ report from ...bubble.com. In my tract home subdivision the 1991 high sale was less than 9% above the bubble bust sale and recovered in less than 6 years.
Sorry, but this is how real property works.
The tenants have been paying my Taxes/Maintenance/principal/interest/insurance/maintenance for the last 24 years. Had positive cash flow from day one of rental. And since the mortgage was paid off in 1993 I've had all that exta money for other investments. I was paying more than renting when I purchased in CA but was able to refi shortly after at no costs at 9 then 7.5 then 5.25 and prop 13 keeps my taxes low so in just a few years PITI was even with renting and for at least 10 years I'm at least $700 a month UNDER the cost of renting not even considering the income tax benefit. My equity today from both is over $900K if I sell today or $810K if I sell ...(insert your bubble date here)......... or $1.8m sometime within the next 10 years.
You seem to think that appreciation was recently invented. Prop 13 in 1978 was the result of the skyrocketing appreciation in the early 1970s In Hawaii my property increased 300% from 1978-81. Ca. doubled from 86 to 88. Over 30 years of history are stacked against your guesses which are affecting your decisions HOW? Wait to buy? Higher interest rates could wipe out any savings if lower prices happen.
WAB You are wrong. The problem is not buying at the top of the "bubble", it's selling at the bottom. Just say No!
honobob said:I still don't know if he has ever purchased real property or invested in the stock market.
honobob said:In the late 70s my parents apartment in Chicago went condo. It was a beautiful two bedroom facing the lake on Lincoln Park West. They wanted $150K. My brothers and I (who couldn't afford the joint anyway) all said "that price is insane, who would pay that much for a lousy apartment." I have no idea what it is worth now, but it has to be truly insane.My point is that when I purchased in the 70's 80's 90's or 2000's It was always "how can people afford to buy at these prices?!!" and I never heard "I should buy two cause they're half of what they sold last year"
It looks like we are ready for a long flat period with some local downturns like we have had before. But I will be very surprised if the place I am in isn't worth a fair amount more in twenty years.
donheff said:It looks like we are ready for a long flat period with some local downturns like we have had before. But I will be very surprised if the place I am in isn't worth a fair amount more in twenty years.
NYC Guy said:Average Manhattan 2 bed price is about 1.2 mill.
Prices are not going down at present.
Rather than focusing on Wab's experience level, Bob, perhaps you could focus on your own while acknowledging that it's possible for your experiences to be different than his. When you have your numbers, great. When you dispute his national averages with your own and then use words like the above, not so great.honobob said:WAB
Have you ever purchased real property or invested in the stock market? Are you under 30? Your knowledge and experience seems to consists of what your (parents?) neighbors went through or some graph/ report from ...bubble.com.
wab said:I didn't answer since I didn't see the relevance. If you're a real estate investor, then you understand that prices are generally rooted in fundamentals. Prices have separated from the fundamentals. Pick a metric, any metric. Cap rates for SFR's? Income ratios? Affordability indices? Variance from historical mean? Percentage of GDP? I don't care which metric you choose -- they all say the same thing: SELL!
As for me, I sold my real estate holdings in 2002, 2004, and 2006. Realized gains were, umm, LARGE. My only remaining property is my personal residence. It's a little beach house that has roughly doubled in value since I bought it in 2004. Not sure what you can get from that, but there you go.
As for stock, I started investing around 1984. Initially bet a lot of my savings on Japan, so I became very interested in bubbles around 1990. I guess I learned from Japan because I sold about 90% of my stock in 1999, and that allowed me to retire at the age of 40.
So, this will be my third GIANT bubble in just 15 years. Cool, huh?
honobob said:You say your beach house doubled in value from 2004 to 2006. Isn't that great!
But doesn't that also mean that you lost the 100% appreciation on the property you sold in 2004? Say $400K minimum in 2004 so $400K loss.
You got a higher % increase than I did? Too bad, so sad. Seriously, waterfront property will sustain it's value better than others in a down turn.wab said:1) Since it's waterfront and appreciated faster than non-waterfront, my property taxes are increasing faster than the rest of the area.
'Don't mind the doctors, oral surgeons and developers but the laywers can be a pain.wab said:2) ... This area used to be dominated by artists, farmers, and pretty Swedish maidens. Now I'm surrounded by lawyers, doctors, oral surgeons, and developers. I prefer the maidens.
Take the kid to the library and loose the hammer.wab said:3) I'm lulled into a false sense of asset value, so I'm spending more on remodeling projects than I would if the area were more reasonably priced.
If the market remains stable we will all be OK. If you sell then buy in the same relative market condition you will be OK.wab said:4) I know that the rate of appreciation is unsustainable (virtually all of it is due to in-migration from places like California and Boston, and eventually we'll run out of the smart equity-rich people who recently cashed out). I'm not a big fan of roller coasters.
Sigh!!wab said:(BTW, I purchased our current waterfront place during the dead of winter from an out-of-town owner who used an out-of-town agent. Instant equity!)
Ethnically and linguistically: Most Hungarians descended from Finns who couldn't sail...unclemick2 said:Tanya the dark haired one - long Hungarian last name,
Yup, in the early days they each had their own Halls.unclemick2 said:my old buddy Jimbo - he had an 'outstanding' Italian wedding in the Finn Hall. Sons of Norway, Swedish Hall and Vasa Hall were all within three blocks of each other in those days - as well as my favorite Happy Day's style drive - Captain Yobi's.