115k loss in Scripps Ranch

[beanmaestro]

Perfect hindsight, of course, is very convenient. For instance, if they put their $80k downpayment + $1500 a month into the Chinese stock market instead, and made 30% a year for four years, they’d end up with about $340k. Also, they wouldn’t have to move to liquidate their investment.

Now the question is, in early 2003, which horse would you bet on?

[what_a_disasta]

They would have paid over 120k in interest and they mayhave got back 30% of that – 36k. At least 1500 a month in tax, mello roos, hoa , maintenance & insurace – 72k. So the profit would be around 90k. The renter spent 120k on rent and saved about 80k (a net 40k loss). So its about a 130k spread.

Looks like people who bought in 03 are sitty pretty by all accounts. However, the almost identical house down the street sold for about 80k less than this one. So maybe there was a cash back on this deal.

[what_a_disasta]

They would have paid over 120k in interest and they mayhave got back 30% of that – 36k. At least 1500 a month in tax, mello roos, hoa , maintenance & insurace – 72k. So the profit would be around 90k. The renter spent 120k on rent and saved about 80k (a net 40k loss). So its about a 130k spread.

Looks like people who bought in 03 are sitty pretty by all accounts. However, the almost identical house down the street sold for about 80k less than this one. So maybe there was a cash back on this deal.

[an]

Completely agree with beanmaestro. hindsight is always 20/20. You can also take that 80k and put it in numerous other mutual funds that over the last 5 years yield greater than 30% which you give you as much as $350k in profit from that $80k initial investment. Since we’re talking about hindsight investing, we can put that money you made up to middle of last year and invest it in Latin America and made over 300% in the last 12 months. How’s that for hindsight investing? :-D.

[an]

Completely agree with beanmaestro. hindsight is always 20/20. You can also take that 80k and put it in numerous other mutual funds that over the last 5 years yield greater than 30% which you give you as much as $350k in profit from that $80k initial investment. Since we’re talking about hindsight investing, we can put that money you made up to middle of last year and invest it in Latin America and made over 300% in the last 12 months. How’s that for hindsight investing? :-D.

[DaCounselor]

The coulda woulda shoulda what woulda happened iffa hindsight scenarios are truly endless. If I had to guess, I would say most renters don’t calculate how much their expenses would be if they bought a particular home and then invest the entire portion that is above and beyond their rental expense. Much ado is made about Americans and the abyssimal if not negative savings rate here. If that is true, the thought that vast numbers of renters are saving the aforementioned sums doesn’t seem to hold much water. I think that, in reality, the folks that sold this house walked with a large chunk of dough that they would not have otherwise seen.

[DaCounselor]

The coulda woulda shoulda what woulda happened iffa hindsight scenarios are truly endless. If I had to guess, I would say most renters don’t calculate how much their expenses would be if they bought a particular home and then invest the entire portion that is above and beyond their rental expense. Much ado is made about Americans and the abyssimal if not negative savings rate here. If that is true, the thought that vast numbers of renters are saving the aforementioned sums doesn’t seem to hold much water. I think that, in reality, the folks that sold this house walked with a large chunk of dough that they would not have otherwise seen.

[an]

most renters don’t calculate…

Exactly, most people don’t really calculate. Some got lucky, some don’t. Just like many people who got lucky and bought the .com stocks in the 90s and sold b4 the crash because they needed the money to do something else. There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.

[an]

most renters don’t calculate…

Exactly, most people don’t really calculate. Some got lucky, some don’t. Just like many people who got lucky and bought the .com stocks in the 90s and sold b4 the crash because they needed the money to do something else. There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.

[DaCounselor]

“There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.”
_________________________

No doubt. And, of course, there are many more people just like the owner of this house who bought 2 years prior and probably have an even better equity position. Win or lose, it seems like forced “investments” are the norm.

[DaCounselor]

“There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.”
_________________________

No doubt. And, of course, there are many more people just like the owner of this house who bought 2 years prior and probably have an even better equity position. Win or lose, it seems like forced “investments” are the norm.

[an]

Win or lose, it seems like forced “investments” are the norm.
Totally agree. Most people go through life and “invest” when they have to. They tend to not put much thought in the cycle of economy. Hence, if you’re born in the right time frame, everything will look rosy while if you’re born a few years late, things are not so rosy unless you make a conscious decision to delay your life cycle to be in sync w/ the economic cycle.

I.E. if you’re born in 1973, graduated w/ a BS in 1995, enjoy the upswing of .com, got married in 2000 and need a house, so you cash out in 2000, take your winning from .com and put it in a house, now you can retire. But if you’re born 7 years later, graduate in 2002 @ the peak of the .com crash, can’t find a job, much less buy a house. 3 years later after some hard saving, got married or just want to buy a house. Now you just lost all the money you saved over the 3 years for the down payment. Kinda suck huh? For us unlucky people who are born in a certain time frame, we would have to try that much harder to realize the economic cycle and delay your house buying process a few years.

[an]

Win or lose, it seems like forced “investments” are the norm.
Totally agree. Most people go through life and “invest” when they have to. They tend to not put much thought in the cycle of economy. Hence, if you’re born in the right time frame, everything will look rosy while if you’re born a few years late, things are not so rosy unless you make a conscious decision to delay your life cycle to be in sync w/ the economic cycle.

I.E. if you’re born in 1973, graduated w/ a BS in 1995, enjoy the upswing of .com, got married in 2000 and need a house, so you cash out in 2000, take your winning from .com and put it in a house, now you can retire. But if you’re born 7 years later, graduate in 2002 @ the peak of the .com crash, can’t find a job, much less buy a house. 3 years later after some hard saving, got married or just want to buy a house. Now you just lost all the money you saved over the 3 years for the down payment. Kinda suck huh? For us unlucky people who are born in a certain time frame, we would have to try that much harder to realize the economic cycle and delay your house buying process a few years.

[sdrealtor]

sage advice

PS Kinda scary but I remember 1973

[sdrealtor]

sage advice

PS Kinda scary but I remember 1973

[Author]

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