First crack in the high end?

[jpinpb]

Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.

I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.

My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.

[NotCranky]

JP find a rent vs own caluclator on the web and play with numbers. Or just find a payment calculator and look at payment and add other costs vs. rent with different interest rates. I just suggest doing this because even if rents stay flat there is downward pressure on houses If rates go up FROM HISTORICAl LOWS. I think this would say don’t take “same as rent” idea too lightly.

[NotCranky]

JP find a rent vs own caluclator on the web and play with numbers. Or just find a payment calculator and look at payment and add other costs vs. rent with different interest rates. I just suggest doing this because even if rents stay flat there is downward pressure on houses If rates go up FROM HISTORICAl LOWS. I think this would say don’t take “same as rent” idea too lightly.

[NotCranky]

JP find a rent vs own caluclator on the web and play with numbers. Or just find a payment calculator and look at payment and add other costs vs. rent with different interest rates. I just suggest doing this because even if rents stay flat there is downward pressure on houses If rates go up FROM HISTORICAl LOWS. I think this would say don’t take “same as rent” idea too lightly.

[NotCranky]

JP find a rent vs own caluclator on the web and play with numbers. Or just find a payment calculator and look at payment and add other costs vs. rent with different interest rates. I just suggest doing this because even if rents stay flat there is downward pressure on houses If rates go up FROM HISTORICAl LOWS. I think this would say don’t take “same as rent” idea too lightly.

[NotCranky]

JP find a rent vs own caluclator on the web and play with numbers. Or just find a payment calculator and look at payment and add other costs vs. rent with different interest rates. I just suggest doing this because even if rents stay flat there is downward pressure on houses If rates go up FROM HISTORICAl LOWS. I think this would say don’t take “same as rent” idea too lightly.

[patientlywaiting]

jp wrote:

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
—-
Courtesy of OCrenter:
http://bubbletracking.blogspot.com/2008/04/price-break-at-4closure-ranch.html

Don’t tell me that someone who rented since 2003 and bought that house today would not have a higher net-worth, all else being equal.

1) Landscaping and improvements would be done.
2) property tax basis would be lower, now and forever.
3) Ownership premium since 2003 would now be a nice hoard of cash.
4) House would be paid off much sooner and family better-off.

I say that house prices will go back to Y2K.

[patientlywaiting]

jp wrote:

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
—-
Courtesy of OCrenter:
http://bubbletracking.blogspot.com/2008/04/price-break-at-4closure-ranch.html

Don’t tell me that someone who rented since 2003 and bought that house today would not have a higher net-worth, all else being equal.

1) Landscaping and improvements would be done.
2) property tax basis would be lower, now and forever.
3) Ownership premium since 2003 would now be a nice hoard of cash.
4) House would be paid off much sooner and family better-off.

I say that house prices will go back to Y2K.

[patientlywaiting]

jp wrote:

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
—-
Courtesy of OCrenter:
http://bubbletracking.blogspot.com/2008/04/price-break-at-4closure-ranch.html

Don’t tell me that someone who rented since 2003 and bought that house today would not have a higher net-worth, all else being equal.

1) Landscaping and improvements would be done.
2) property tax basis would be lower, now and forever.
3) Ownership premium since 2003 would now be a nice hoard of cash.
4) House would be paid off much sooner and family better-off.

I say that house prices will go back to Y2K.

[patientlywaiting]

jp wrote:

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
—-
Courtesy of OCrenter:
http://bubbletracking.blogspot.com/2008/04/price-break-at-4closure-ranch.html

Don’t tell me that someone who rented since 2003 and bought that house today would not have a higher net-worth, all else being equal.

1) Landscaping and improvements would be done.
2) property tax basis would be lower, now and forever.
3) Ownership premium since 2003 would now be a nice hoard of cash.
4) House would be paid off much sooner and family better-off.

I say that house prices will go back to Y2K.

[patientlywaiting]

jp wrote:

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.
—-
Courtesy of OCrenter:
http://bubbletracking.blogspot.com/2008/04/price-break-at-4closure-ranch.html

Don’t tell me that someone who rented since 2003 and bought that house today would not have a higher net-worth, all else being equal.

1) Landscaping and improvements would be done.
2) property tax basis would be lower, now and forever.
3) Ownership premium since 2003 would now be a nice hoard of cash.
4) House would be paid off much sooner and family better-off.

I say that house prices will go back to Y2K.

[Coronita]

Submitted by Sandi Egan on April 9, 2008 – 11:58am.

So what do you personally think is a fair price for that home?

 

Frankly, just looking at a home like this and where it's located, I have a conceived notion that this a nice home for your slightly above average worker-bee professional, that's looking for a step up. I wouldn't consider this a starter home, due to it's size and amenities.. But something that one would move into as a step up.

Something someone would move into after they already owned for awhile elsewhere and were trading into something larger. Something that even if they trade up, a folks would  have to stretch initially using a traditional 30year loan. I wouldn't consider someone who is a FB able to purchase this home. Normally, $700k would be a price that I would think would be attainable by some professional with a single income or double income with some professionals that get paid less. And no, I don't consider this high end, because it *should* be attainable most professionals who've been working for a few years or for folks that can trade up. It's no LJ, RSF, or DelMar.

….But whatever I think is a "fair" price for this (or anyone else's perception of what a fair price is)is irrelevant…The fair price is what the market currently commands.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Submitted by Sandi Egan on April 9, 2008 – 11:58am.

So what do you personally think is a fair price for that home?

 

Frankly, just looking at a home like this and where it's located, I have a conceived notion that this a nice home for your slightly above average worker-bee professional, that's looking for a step up. I wouldn't consider this a starter home, due to it's size and amenities.. But something that one would move into as a step up.

Something someone would move into after they already owned for awhile elsewhere and were trading into something larger. Something that even if they trade up, a folks would  have to stretch initially using a traditional 30year loan. I wouldn't consider someone who is a FB able to purchase this home. Normally, $700k would be a price that I would think would be attainable by some professional with a single income or double income with some professionals that get paid less. And no, I don't consider this high end, because it *should* be attainable most professionals who've been working for a few years or for folks that can trade up. It's no LJ, RSF, or DelMar.

….But whatever I think is a "fair" price for this (or anyone else's perception of what a fair price is)is irrelevant…The fair price is what the market currently commands.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Submitted by Sandi Egan on April 9, 2008 – 11:58am.

So what do you personally think is a fair price for that home?

 

Frankly, just looking at a home like this and where it's located, I have a conceived notion that this a nice home for your slightly above average worker-bee professional, that's looking for a step up. I wouldn't consider this a starter home, due to it's size and amenities.. But something that one would move into as a step up.

Something someone would move into after they already owned for awhile elsewhere and were trading into something larger. Something that even if they trade up, a folks would  have to stretch initially using a traditional 30year loan. I wouldn't consider someone who is a FB able to purchase this home. Normally, $700k would be a price that I would think would be attainable by some professional with a single income or double income with some professionals that get paid less. And no, I don't consider this high end, because it *should* be attainable most professionals who've been working for a few years or for folks that can trade up. It's no LJ, RSF, or DelMar.

….But whatever I think is a "fair" price for this (or anyone else's perception of what a fair price is)is irrelevant…The fair price is what the market currently commands.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Submitted by Sandi Egan on April 9, 2008 – 11:58am.

So what do you personally think is a fair price for that home?

 

Frankly, just looking at a home like this and where it's located, I have a conceived notion that this a nice home for your slightly above average worker-bee professional, that's looking for a step up. I wouldn't consider this a starter home, due to it's size and amenities.. But something that one would move into as a step up.

Something someone would move into after they already owned for awhile elsewhere and were trading into something larger. Something that even if they trade up, a folks would  have to stretch initially using a traditional 30year loan. I wouldn't consider someone who is a FB able to purchase this home. Normally, $700k would be a price that I would think would be attainable by some professional with a single income or double income with some professionals that get paid less. And no, I don't consider this high end, because it *should* be attainable most professionals who've been working for a few years or for folks that can trade up. It's no LJ, RSF, or DelMar.

….But whatever I think is a "fair" price for this (or anyone else's perception of what a fair price is)is irrelevant…The fair price is what the market currently commands.

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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