Bubble Sellers

[LookoutBelow]

Rent
Owned 3 homes, last one for 14 years paid it off early, sold it for 1.1 million than I paid for it.

Sold in 2003, before market top, as Joe Kennedy used to say..”Only a fool holds out for top dollar” !

I Rent another home in my same area for a bit more than my old mortgage was. Retired from the big pay profession early, living comfortable. I Dont remember what stress feels like. I Like that.

Would not buy in my old neighborhood, might move ….Rancho Santa Fe ? Maybe…Maybe not. Hawaii looks good too.

Will probably be dead before real estate becomes a viable investment again, Iam expecting 25 plus years for the washout to be complete.

Iam out of the game and staying out, unlike most of the winners in “Vegas” MY money is leaving with me. Historically, these things only come around maybe once in a whole lifetime. I scored, I certainly didnt expect it 30 years ago, but I was hoping for it….A strange life indeed.

I just kept my eyes open and had the balls to be a contrarian not a “sheeple”

I want to run out of Viagra, money, surfwax and heartbeats at the same time. My timing has been pretty good so far.

I Attribute my successes to Planning, keeping my eye on the ball and filtering out the noise and some much needed luck.

One must be aware of opportunity when it presents itself, and be well versed enough to know what an opportunity really is.

[PerryChase]

” I want to run out of Viagra, money, surfwax and heartbeats at the same time. My timing has been pretty good so far.”

LookoutBelow, you sound like a wise man. I’m 38 and I’m hoping to do the same thing you are. 🙂

[Anonymous]

1) Renting
2) Sold Sep. ’03, when my company closed down
3) Way before (though new owner has had home on market for 50% bump for all of ’06, now)
4) Heard about Prof. Piggington from realtor friend in Fall ’04
5) Lived in Sante Fe Valley (west of 4S), will buy in La Jolla, where kids go to school
6) N/A
7) Have owned and sold three CA homes over last 10 years (Silicon Valley, Sacramento, San Diego)

[Roman]

Well, I’ve been visiting/reading this site for over 3 months now, and this is the post that drove me to become an active member. Here are the answers below:

1. I’ve always rented (never owned…I’m 31)
2. No
3. N/A
4. This is a complex question, but here are some factors:
– I moved to SD in 1995 when everyone was selling, and I figured it’s not a good time to buy. After the following 10 year boom, I’d imagine things would come down to normalcy.
– I was too young to invest in something that wasn’t a priority because my school/education was my emphasis. I did figure that a good job/education/experience would buy a house anywhere, but a house would limit me where I am (I have no school loans/debt at all).
– I’m about 3 classes away from completing my MBA, and I’ve been talking to fiance professors & various investors that are somehow educated in the field (investors themselves), and I’ve found out about the “GRM” – gross rent multiplier – and how investors look at the market.
– I’ve researched long enough to understand that ARMs, interest only, and adjustable loans would NEVER motivate me to buy a place (renting is way too much cheaper….w/out the emotional factor)
Note: I do remember that in 1995-1996 my landlord then (Sorrento Valley) was begging me to buy his 1 bedroom condo for $65k (can you imagine)….I’d figured those days would come back when I do have and education & better opportunities. I guess waiting a little will pay off.

5. I don’t know if I would come back (I’m an out of the country transplant in San Diego)…..home is way far from me :-). However, SD is now my home……I’d love La Jolla or Del Mar …..while I’m dreaming, I wound’t mind Rancho Santa Fe 🙂

6. N/A since I don’t own (but it’s a little too late to be selling now..). 2005 seems to be the best SALE window.

7. I guess some questions from answer # 4 are relevant here.
– I was a student (my priority was bachelor & MBA)
– I was priced out of the market (specially in the last 5-6 years out of the 10 years in question)
– I figured that a good education gives you better living conditions, so there was no reason to rush (it seems that logic pays off…hopefully soon)

[anxvariety]

1. Rent
2. Sold property
3. Probably peak plus a little bidding war premium
4. Took my real estate classes in 2001 and the instructor sounded like Carlton Sheets.. thought it might be overpriced in certain areas even then considering all the flipping and profiting going on in resale.
5. N/A
6. N/A
7. I tried to buy in Elsinore in 2001 but I couldn’t get a loan. I was 22 and self employed had just quit my job – was totally unable to get loan even with good income.

[rocketman]

1. Rent- Pleasanton, CA (have kids – great schools).
2. Moved out of Naples, Fl due to lack of work – sold a bitchen house, doubled $$ in 3 years thanks to the bubble.
3. Sold in 2004 when things really started taking off in Florida.
4. I knew something was going on in 2004 when prices started to soar. Then I realized we were being priced out of the market even after our healthy profit.
5. We are waiting for our daughter to finish high school here in the next 2 years – then we’ll see what to do. Stay in the Bay area and live on a sail boat or move someplace close to the coast and get a great deal on a condo with a dock.
6. N/A
7. I think we are going through some major uncharted waters (US / Global economy)in the next few years. So I’m into investing on the lee side and see what happens. We’re definitely stuck here for 2 more years.

[VCJIM]

1) Rent
2) Yes, I owned for 10 years
3) Difficult to say, I believe I sold just before the peak.
4) I had a gut feeling that prices were out of accord with fundamentals.
5) I would not buy again in my previous area.
6) N/A
7) N/A

[ybc]

PD — great post!

I guess that with so much money made in real estate by a lot of people in this group, in 2 to 3 years we may have a real estate investment club going! That’ll be a constructive way of using the collective knowledge and experience here.

As lookoutBelow said “One must be aware of opportunity when it presents itself, and be well versed enough to know what an opportunity really is.” Wise man! PerryChase already commented on the rest of his wise remarks.:-)

[Author]

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