[quote=DaCounselor]”I’m from the “being early is being wrong” school. Instead of calling a top in ’01, anyone who bought then is likely to still have a tremendous return on their investment.
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Only if they sold!
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Nope. Most people who are still holding an ’01 purchase are still way up. Like I said in my earlier post, they could probably discount their property today to sell it fast and still be way up. There is really no way around the fact that someone who called the top in ’01 and therefore decided not to buy then has missed out on making a large pile of money.
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What I think Kewp means is the equity they may have (assuming they didn’t tap it with a HELOC) is only gained when they sell. Equity is essentially useless unless you’re borrowing against it or selling the asset. (or for bragging rights)
You only missed out on making money in a speculative bubble, where you had to time the jump in and out properly. If you try to get out now you’d be lucky to get a 2001 price in some areas.
And even if you bought in 2001, didn’t refi and have equity you are going to lose it. There’s nothing to stop prices from falling below 2001 levels.
