Jul 15, 1996 $130,000
Oct 18, 1996 $152,000
Aug 26, 2004 $415,000
Listed today for 259k, lets say you go 15% lowball and get it for 220k, that’s only 68k more than the overcorrection of 1996 and 5k per year appreciation per year from 1996 to 2008, in the 3-4% range, similar to inflation.
With 20% down (44k) the loan is 176k, using 6% fixed it is $1055/mo. Another 400 for ins and tax and you are below $1500. I rented within a mile of that place less than 2 months ago and $1500 for a house of that size and garage count was not possible then or today. 1800 would be about right, I picked a smaller place with a 2 car for 1500. If you use the basic rule that tax and insurance are roughly wiped out by the income tax credit, the scenario is 1500 to rent or 1055 to buy a bigger place with a bigger garage within jogging range then it’s hard for me to think that there is another 100k of downside risk. You wanted to see one pencil out, here it is, buying is cheaper than rent and the 44k downpayment saved you 450 a month and unless you can get 10% interest on it, it is a better use of it. Once again, it’s a good thing I am not a big fan of vail ranch and I like an HOA which it doesn’t have, otherwise I might be on my way over with a check. The hoods i like are still hanging on the other side of the 300k fence, but it’s examples like these which are within walking distance of where i am shopping that will pull them over that fence fairly soon. Don’t be a permabear or a permabull matt, just be a permaanalyst.
Drink in moderation, heavy drinking often results in bringing home ugly women.
What the hell, you only live once, go with PD’s advice and Drink Heavily, a little ugly never killed anyone.
