For all you prudent renters

[NotCranky]

The appreciation we saw was a fluke for all practical purposes. Those that made a ton of money from it and are now overbriming with self satisfaction should thank their lucky stars and not do so much self agrandizing and one upsmanship games. Sure, some people knew how to play the cycles but even they were rewarded beyond all rational expectations. Nobody knew houses were going to appreciate like they did. People who want to succeed with RE in the future, starting from sratch, are probably going to have to dig deep to find a way. If that isn’t you,why not just be grateful?

[Multiplepropertyowner]

Okay, the Charger game is over, so I can post again. Some really great post. I thought sdrealtor’s post earlier in the string was right on. He mentions the fact that he is bummed that he did not hit it as hard as he could have. I love the honesty.
Hell, I am bummed I sold a property in Eastside Costa Mesa Jan O4. We made $140k (90k profit) in 10 months. At the time I thought, we have got to get out. This is getting crazy. There is no way things can go higher. We are talking 700sq ft 2bd 1ba. Two sales after us in June 05 the property went for another 200k then I sold it for (with remodel).
A couple of other thoughts on what was replied.
1. What is the avg. age of people on this site. I was 28 in 97, so we were young, but able to buy. The one thing I remember is that back then the only options I remember for a mortgage was 20 or 15 fixed with money done. Even a modest place was a stretch. Thus, I was assuming that most of us on this site are my age.
2. To the post about being primed for another 9/11. Don’t you think that the Govt. allowed this to help pull us out of the recession that followed 9/11. Once it got started, who wants to stop the ride for prudence sake.
3.While my post look like I am bagging on renters, I am not. I actually work with low income people for a living, and in no way think owning a home brings merit to a person. As said I said earlier, I was just tired of the smugness from some who I feel are upset due to poor timing and hiding under the mask of prudent investors.
P.S. There was some really good post in this string. It seems as authentic as anything I have seen. Oh, and yes to being pissed about using tax payer $ to fix this thing. “It just ain’t right.”
Strength and Honor

[Multiplepropertyowner]

Okay, the Charger game is over, so I can post again. Some really great post. I thought sdrealtor’s post earlier in the string was right on. He mentions the fact that he is bummed that he did not hit it as hard as he could have. I love the honesty.
Hell, I am bummed I sold a property in Eastside Costa Mesa Jan O4. We made $140k (90k profit) in 10 months. At the time I thought, we have got to get out. This is getting crazy. There is no way things can go higher. We are talking 700sq ft 2bd 1ba. Two sales after us in June 05 the property went for another 200k then I sold it for (with remodel).
A couple of other thoughts on what was replied.
1. What is the avg. age of people on this site. I was 28 in 97, so we were young, but able to buy. The one thing I remember is that back then the only options I remember for a mortgage was 20 or 15 fixed with money done. Even a modest place was a stretch. Thus, I was assuming that most of us on this site are my age.
2. To the post about being primed for another 9/11. Don’t you think that the Govt. allowed this to help pull us out of the recession that followed 9/11. Once it got started, who wants to stop the ride for prudence sake.
3.While my post look like I am bagging on renters, I am not. I actually work with low income people for a living, and in no way think owning a home brings merit to a person. As said I said earlier, I was just tired of the smugness from some who I feel are upset due to poor timing and hiding under the mask of prudent investors.
P.S. There was some really good post in this string. It seems as authentic as anything I have seen. Oh, and yes to being pissed about using tax payer $ to fix this thing. “It just ain’t right.”
Strength and Honor

[Multiplepropertyowner]

Okay, the Charger game is over, so I can post again. Some really great post. I thought sdrealtor’s post earlier in the string was right on. He mentions the fact that he is bummed that he did not hit it as hard as he could have. I love the honesty.
Hell, I am bummed I sold a property in Eastside Costa Mesa Jan O4. We made $140k (90k profit) in 10 months. At the time I thought, we have got to get out. This is getting crazy. There is no way things can go higher. We are talking 700sq ft 2bd 1ba. Two sales after us in June 05 the property went for another 200k then I sold it for (with remodel).
A couple of other thoughts on what was replied.
1. What is the avg. age of people on this site. I was 28 in 97, so we were young, but able to buy. The one thing I remember is that back then the only options I remember for a mortgage was 20 or 15 fixed with money done. Even a modest place was a stretch. Thus, I was assuming that most of us on this site are my age.
2. To the post about being primed for another 9/11. Don’t you think that the Govt. allowed this to help pull us out of the recession that followed 9/11. Once it got started, who wants to stop the ride for prudence sake.
3.While my post look like I am bagging on renters, I am not. I actually work with low income people for a living, and in no way think owning a home brings merit to a person. As said I said earlier, I was just tired of the smugness from some who I feel are upset due to poor timing and hiding under the mask of prudent investors.
P.S. There was some really good post in this string. It seems as authentic as anything I have seen. Oh, and yes to being pissed about using tax payer $ to fix this thing. “It just ain’t right.”
Strength and Honor

[Multiplepropertyowner]

Okay, the Charger game is over, so I can post again. Some really great post. I thought sdrealtor’s post earlier in the string was right on. He mentions the fact that he is bummed that he did not hit it as hard as he could have. I love the honesty.
Hell, I am bummed I sold a property in Eastside Costa Mesa Jan O4. We made $140k (90k profit) in 10 months. At the time I thought, we have got to get out. This is getting crazy. There is no way things can go higher. We are talking 700sq ft 2bd 1ba. Two sales after us in June 05 the property went for another 200k then I sold it for (with remodel).
A couple of other thoughts on what was replied.
1. What is the avg. age of people on this site. I was 28 in 97, so we were young, but able to buy. The one thing I remember is that back then the only options I remember for a mortgage was 20 or 15 fixed with money done. Even a modest place was a stretch. Thus, I was assuming that most of us on this site are my age.
2. To the post about being primed for another 9/11. Don’t you think that the Govt. allowed this to help pull us out of the recession that followed 9/11. Once it got started, who wants to stop the ride for prudence sake.
3.While my post look like I am bagging on renters, I am not. I actually work with low income people for a living, and in no way think owning a home brings merit to a person. As said I said earlier, I was just tired of the smugness from some who I feel are upset due to poor timing and hiding under the mask of prudent investors.
P.S. There was some really good post in this string. It seems as authentic as anything I have seen. Oh, and yes to being pissed about using tax payer $ to fix this thing. “It just ain’t right.”
Strength and Honor

[Multiplepropertyowner]

Okay, the Charger game is over, so I can post again. Some really great post. I thought sdrealtor’s post earlier in the string was right on. He mentions the fact that he is bummed that he did not hit it as hard as he could have. I love the honesty.
Hell, I am bummed I sold a property in Eastside Costa Mesa Jan O4. We made $140k (90k profit) in 10 months. At the time I thought, we have got to get out. This is getting crazy. There is no way things can go higher. We are talking 700sq ft 2bd 1ba. Two sales after us in June 05 the property went for another 200k then I sold it for (with remodel).
A couple of other thoughts on what was replied.
1. What is the avg. age of people on this site. I was 28 in 97, so we were young, but able to buy. The one thing I remember is that back then the only options I remember for a mortgage was 20 or 15 fixed with money done. Even a modest place was a stretch. Thus, I was assuming that most of us on this site are my age.
2. To the post about being primed for another 9/11. Don’t you think that the Govt. allowed this to help pull us out of the recession that followed 9/11. Once it got started, who wants to stop the ride for prudence sake.
3.While my post look like I am bagging on renters, I am not. I actually work with low income people for a living, and in no way think owning a home brings merit to a person. As said I said earlier, I was just tired of the smugness from some who I feel are upset due to poor timing and hiding under the mask of prudent investors.
P.S. There was some really good post in this string. It seems as authentic as anything I have seen. Oh, and yes to being pissed about using tax payer $ to fix this thing. “It just ain’t right.”
Strength and Honor

[Navydoc]

I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.

Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.

Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).

So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.

[Navydoc]

I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.

Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.

Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).

So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.

[Navydoc]

I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.

Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.

Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).

So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.

[Navydoc]

I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.

Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.

Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).

So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.

[Navydoc]

I can be very specific about the way I feel about this situation. I was sent to Yokosuka Japan by the Navy in July 2003. It made no sense to buy in San Diego then, as I had no idea where I would be posted afterward.

Fast Forward to April 2006, I’m accepted to a fellowship in Torrance, have a wonderful nest egg saved up with which I intended to purchase a home in the LA South Bay area. As I perused to MLS listings I was shocked that in the price range I was interested I was looking at 3/2 tract homes in crap neighborhoods, 1300 sq ft. This is what happened to prices while I was away. I had no interest in a funny money mortgage, I assessed the market at the time, knowing I would only be in it 3 years, then off to somewhere else. I made the very wise and prudent decision to rent.

Did I make a good decision? I’m living in a 2400 sq ft 4/3 tract home in a gated community. Home closed escrow the week before we moved in $707,000, I pay $2800/mo. I figure after taxes and HOA fees I pay just about 1/2 what I would pay if I bought this place, and the house down the street just went up for sale at $645,000. That’s $62,000 in just 6 months (assuming it sells of course).

So no, I’m not bitter I missed the boat. I am currently priced out, and the reason I’m so bearish is I look forward to when I’m not priced out. I assure you it will happen. When it does I admit to feeling absolutely no sympathy for those who gambled on the market and lost. I feel this “bailout” plan may delay my purchase even more, by artificially maintaining bubble prices. If you interpret my indignation as bitterness, I assure you that you are sadly mistaken.

[cooperthedog]

From an investment perspective, speculative bubbles (and the resulting declines) are excellent trading opportunities.

Since real-estate is relatively illiquid and has high carrying costs, timing that market can be hazardous. Of course, with the advantage of hindsight the entry & exit points seem “obvious” now, but to enter the housing market at that time (2002-03) without such knowledge carried a substantial amount of risk.

If you already owned a house at that time, then selling when prices were “overvalued” on a fundamental level reduces your potential profits. No one knows when the bubble will pop, or how high it will go, but history shows that the mania around the peak is extreme. Generally, its best to ride the price wave to the top, and then sell when it starts to break down. This way you don’t miss out on all those irrational profits, even though you don’t catch the exact top. Of course with RE the exit isn’t a mouse click away, but it also doesn’t crash overnight, so during the bubble one would develop a plan to sell when things start to breakdown (e.g. house is prepped for market, relation with realtor already established, willing to accept pricing sligtly under market to move quickly, etc.). Thus, I think someone who sold too early might have a little regret (though they still made out very well), I don’t think it is reasonable for a renter at the time to feel bitter about “missing out” since the risk/reward ratio was also high at the time, with the threat of prices breaking down at anytime. Also, contrast the potential lost opportunity of prudent renters (with zero cost), with the very real loss of those that bought at the peak.

On the flip side, those who knew about the bubble and waited patiently whilst developing trading strategies for the inevitable crash, thus getting in at the optimal time for shorting the new losers of the mania (mortgage lenders, builders, etc.), made out like bandits with little risk.

The good news is that many readers who didn’t participate either way are much more aware of these opportunities in the future, and can plan accordingly and profit greatly. Such a lesson itself might be more rewarding to the prudent renter then picking up a deal on a house when the market bottoms.

[cooperthedog]

From an investment perspective, speculative bubbles (and the resulting declines) are excellent trading opportunities.

Since real-estate is relatively illiquid and has high carrying costs, timing that market can be hazardous. Of course, with the advantage of hindsight the entry & exit points seem “obvious” now, but to enter the housing market at that time (2002-03) without such knowledge carried a substantial amount of risk.

If you already owned a house at that time, then selling when prices were “overvalued” on a fundamental level reduces your potential profits. No one knows when the bubble will pop, or how high it will go, but history shows that the mania around the peak is extreme. Generally, its best to ride the price wave to the top, and then sell when it starts to break down. This way you don’t miss out on all those irrational profits, even though you don’t catch the exact top. Of course with RE the exit isn’t a mouse click away, but it also doesn’t crash overnight, so during the bubble one would develop a plan to sell when things start to breakdown (e.g. house is prepped for market, relation with realtor already established, willing to accept pricing sligtly under market to move quickly, etc.). Thus, I think someone who sold too early might have a little regret (though they still made out very well), I don’t think it is reasonable for a renter at the time to feel bitter about “missing out” since the risk/reward ratio was also high at the time, with the threat of prices breaking down at anytime. Also, contrast the potential lost opportunity of prudent renters (with zero cost), with the very real loss of those that bought at the peak.

On the flip side, those who knew about the bubble and waited patiently whilst developing trading strategies for the inevitable crash, thus getting in at the optimal time for shorting the new losers of the mania (mortgage lenders, builders, etc.), made out like bandits with little risk.

The good news is that many readers who didn’t participate either way are much more aware of these opportunities in the future, and can plan accordingly and profit greatly. Such a lesson itself might be more rewarding to the prudent renter then picking up a deal on a house when the market bottoms.

[cooperthedog]

From an investment perspective, speculative bubbles (and the resulting declines) are excellent trading opportunities.

Since real-estate is relatively illiquid and has high carrying costs, timing that market can be hazardous. Of course, with the advantage of hindsight the entry & exit points seem “obvious” now, but to enter the housing market at that time (2002-03) without such knowledge carried a substantial amount of risk.

If you already owned a house at that time, then selling when prices were “overvalued” on a fundamental level reduces your potential profits. No one knows when the bubble will pop, or how high it will go, but history shows that the mania around the peak is extreme. Generally, its best to ride the price wave to the top, and then sell when it starts to break down. This way you don’t miss out on all those irrational profits, even though you don’t catch the exact top. Of course with RE the exit isn’t a mouse click away, but it also doesn’t crash overnight, so during the bubble one would develop a plan to sell when things start to breakdown (e.g. house is prepped for market, relation with realtor already established, willing to accept pricing sligtly under market to move quickly, etc.). Thus, I think someone who sold too early might have a little regret (though they still made out very well), I don’t think it is reasonable for a renter at the time to feel bitter about “missing out” since the risk/reward ratio was also high at the time, with the threat of prices breaking down at anytime. Also, contrast the potential lost opportunity of prudent renters (with zero cost), with the very real loss of those that bought at the peak.

On the flip side, those who knew about the bubble and waited patiently whilst developing trading strategies for the inevitable crash, thus getting in at the optimal time for shorting the new losers of the mania (mortgage lenders, builders, etc.), made out like bandits with little risk.

The good news is that many readers who didn’t participate either way are much more aware of these opportunities in the future, and can plan accordingly and profit greatly. Such a lesson itself might be more rewarding to the prudent renter then picking up a deal on a house when the market bottoms.

[cooperthedog]

From an investment perspective, speculative bubbles (and the resulting declines) are excellent trading opportunities.

Since real-estate is relatively illiquid and has high carrying costs, timing that market can be hazardous. Of course, with the advantage of hindsight the entry & exit points seem “obvious” now, but to enter the housing market at that time (2002-03) without such knowledge carried a substantial amount of risk.

If you already owned a house at that time, then selling when prices were “overvalued” on a fundamental level reduces your potential profits. No one knows when the bubble will pop, or how high it will go, but history shows that the mania around the peak is extreme. Generally, its best to ride the price wave to the top, and then sell when it starts to break down. This way you don’t miss out on all those irrational profits, even though you don’t catch the exact top. Of course with RE the exit isn’t a mouse click away, but it also doesn’t crash overnight, so during the bubble one would develop a plan to sell when things start to breakdown (e.g. house is prepped for market, relation with realtor already established, willing to accept pricing sligtly under market to move quickly, etc.). Thus, I think someone who sold too early might have a little regret (though they still made out very well), I don’t think it is reasonable for a renter at the time to feel bitter about “missing out” since the risk/reward ratio was also high at the time, with the threat of prices breaking down at anytime. Also, contrast the potential lost opportunity of prudent renters (with zero cost), with the very real loss of those that bought at the peak.

On the flip side, those who knew about the bubble and waited patiently whilst developing trading strategies for the inevitable crash, thus getting in at the optimal time for shorting the new losers of the mania (mortgage lenders, builders, etc.), made out like bandits with little risk.

The good news is that many readers who didn’t participate either way are much more aware of these opportunities in the future, and can plan accordingly and profit greatly. Such a lesson itself might be more rewarding to the prudent renter then picking up a deal on a house when the market bottoms.

[Author]

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