How and When Did You know?

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how and when:
In 8/05 I bought a house. After about 30K in improvements and six months later, I got a flier in the mailbox describing in common sense language by some economist, the upcoming housing collapse. I pretty much panicked because I didn’t want to be stuck there forever and listed my house. It took about 5 months to sell and even though it sold 17K more than what I paid I still lost a lot. But I don’t regret it and am impatiently renting. Thank God for these Piggs.

[Deal Hunter]

I saw the bubble in housing right after I bought my home in Redondo Beach, CA. We bought the house for $412K and just 1 year later it appraised for $597K. Of course, we cashed out and bought a couple of rentals in Las Vegas. This was 2001.

I began to fear the bubble would burst when Bush came out with his Advisory Panel on Tax Reform in 2005. http://www.taxreformpanel.gov/

In it they proposed permanent tax cuts, privitization of social security AND the elimination of the mortgage interest deduction for primary home owners. I thought if the mortgage interest deduction were to be eliminated, first there would be a deadline set (or grandfathering of loans prior to a set date – like with the change in bankruptcy law.

Then, there would be a surge of homebuying/refinancing as people try to get into the largest mortgage they could to secure their deduction before the deadline. There would be a boom and a catastrophic burst following as motivation for buying and incurring large mortgages would no longer be tax advantaged.

Well, the tax reform didn’t happen that way, but the credit crunch had the same effect. I did think something would happen just prior to the election. The writing was on the wall for a lot of things. The only head-scratcher for me is how much housing is blamed for the crunch when only 9% of all mortgage loans in 2006 were subprime and only 12% in 2007.

[Deal Hunter]

I saw the bubble in housing right after I bought my home in Redondo Beach, CA. We bought the house for $412K and just 1 year later it appraised for $597K. Of course, we cashed out and bought a couple of rentals in Las Vegas. This was 2001.

I began to fear the bubble would burst when Bush came out with his Advisory Panel on Tax Reform in 2005. http://www.taxreformpanel.gov/

In it they proposed permanent tax cuts, privitization of social security AND the elimination of the mortgage interest deduction for primary home owners. I thought if the mortgage interest deduction were to be eliminated, first there would be a deadline set (or grandfathering of loans prior to a set date – like with the change in bankruptcy law.

Then, there would be a surge of homebuying/refinancing as people try to get into the largest mortgage they could to secure their deduction before the deadline. There would be a boom and a catastrophic burst following as motivation for buying and incurring large mortgages would no longer be tax advantaged.

Well, the tax reform didn’t happen that way, but the credit crunch had the same effect. I did think something would happen just prior to the election. The writing was on the wall for a lot of things. The only head-scratcher for me is how much housing is blamed for the crunch when only 9% of all mortgage loans in 2006 were subprime and only 12% in 2007.

[Deal Hunter]

I saw the bubble in housing right after I bought my home in Redondo Beach, CA. We bought the house for $412K and just 1 year later it appraised for $597K. Of course, we cashed out and bought a couple of rentals in Las Vegas. This was 2001.

I began to fear the bubble would burst when Bush came out with his Advisory Panel on Tax Reform in 2005. http://www.taxreformpanel.gov/

In it they proposed permanent tax cuts, privitization of social security AND the elimination of the mortgage interest deduction for primary home owners. I thought if the mortgage interest deduction were to be eliminated, first there would be a deadline set (or grandfathering of loans prior to a set date – like with the change in bankruptcy law.

Then, there would be a surge of homebuying/refinancing as people try to get into the largest mortgage they could to secure their deduction before the deadline. There would be a boom and a catastrophic burst following as motivation for buying and incurring large mortgages would no longer be tax advantaged.

Well, the tax reform didn’t happen that way, but the credit crunch had the same effect. I did think something would happen just prior to the election. The writing was on the wall for a lot of things. The only head-scratcher for me is how much housing is blamed for the crunch when only 9% of all mortgage loans in 2006 were subprime and only 12% in 2007.

[Deal Hunter]

I saw the bubble in housing right after I bought my home in Redondo Beach, CA. We bought the house for $412K and just 1 year later it appraised for $597K. Of course, we cashed out and bought a couple of rentals in Las Vegas. This was 2001.

I began to fear the bubble would burst when Bush came out with his Advisory Panel on Tax Reform in 2005. http://www.taxreformpanel.gov/

In it they proposed permanent tax cuts, privitization of social security AND the elimination of the mortgage interest deduction for primary home owners. I thought if the mortgage interest deduction were to be eliminated, first there would be a deadline set (or grandfathering of loans prior to a set date – like with the change in bankruptcy law.

Then, there would be a surge of homebuying/refinancing as people try to get into the largest mortgage they could to secure their deduction before the deadline. There would be a boom and a catastrophic burst following as motivation for buying and incurring large mortgages would no longer be tax advantaged.

Well, the tax reform didn’t happen that way, but the credit crunch had the same effect. I did think something would happen just prior to the election. The writing was on the wall for a lot of things. The only head-scratcher for me is how much housing is blamed for the crunch when only 9% of all mortgage loans in 2006 were subprime and only 12% in 2007.

[Deal Hunter]

I saw the bubble in housing right after I bought my home in Redondo Beach, CA. We bought the house for $412K and just 1 year later it appraised for $597K. Of course, we cashed out and bought a couple of rentals in Las Vegas. This was 2001.

I began to fear the bubble would burst when Bush came out with his Advisory Panel on Tax Reform in 2005. http://www.taxreformpanel.gov/

In it they proposed permanent tax cuts, privitization of social security AND the elimination of the mortgage interest deduction for primary home owners. I thought if the mortgage interest deduction were to be eliminated, first there would be a deadline set (or grandfathering of loans prior to a set date – like with the change in bankruptcy law.

Then, there would be a surge of homebuying/refinancing as people try to get into the largest mortgage they could to secure their deduction before the deadline. There would be a boom and a catastrophic burst following as motivation for buying and incurring large mortgages would no longer be tax advantaged.

Well, the tax reform didn’t happen that way, but the credit crunch had the same effect. I did think something would happen just prior to the election. The writing was on the wall for a lot of things. The only head-scratcher for me is how much housing is blamed for the crunch when only 9% of all mortgage loans in 2006 were subprime and only 12% in 2007.

[bsrsharma]

Dec 2004. When a colleague described to me how newly arrived foreign students at ASU are being used to help flip houses under construction in Phoenix. Not having any assets, it was completely risk free for them to sign a purchase contract for a $2000 or so deposit and sell it 3 months later and collect $5000 “profit”. Many students signed so many flipper contracts and turned them over so fast, they made 6-figure “incomes” without ever understanding what they were doing!

[bsrsharma]

Dec 2004. When a colleague described to me how newly arrived foreign students at ASU are being used to help flip houses under construction in Phoenix. Not having any assets, it was completely risk free for them to sign a purchase contract for a $2000 or so deposit and sell it 3 months later and collect $5000 “profit”. Many students signed so many flipper contracts and turned them over so fast, they made 6-figure “incomes” without ever understanding what they were doing!

[bsrsharma]

Dec 2004. When a colleague described to me how newly arrived foreign students at ASU are being used to help flip houses under construction in Phoenix. Not having any assets, it was completely risk free for them to sign a purchase contract for a $2000 or so deposit and sell it 3 months later and collect $5000 “profit”. Many students signed so many flipper contracts and turned them over so fast, they made 6-figure “incomes” without ever understanding what they were doing!

[bsrsharma]

Dec 2004. When a colleague described to me how newly arrived foreign students at ASU are being used to help flip houses under construction in Phoenix. Not having any assets, it was completely risk free for them to sign a purchase contract for a $2000 or so deposit and sell it 3 months later and collect $5000 “profit”. Many students signed so many flipper contracts and turned them over so fast, they made 6-figure “incomes” without ever understanding what they were doing!

[bsrsharma]

Dec 2004. When a colleague described to me how newly arrived foreign students at ASU are being used to help flip houses under construction in Phoenix. Not having any assets, it was completely risk free for them to sign a purchase contract for a $2000 or so deposit and sell it 3 months later and collect $5000 “profit”. Many students signed so many flipper contracts and turned them over so fast, they made 6-figure “incomes” without ever understanding what they were doing!

[NotCranky]

I knew things were strange in the market(and elsewhere) when the owner of “Pimp Daddy” limousines moved in next door to me and his good buddy was a Realtor who had a life size mural of himself painted on both sides of his SUV and probably the hood too. The second clue was that despite these pink and purple Limos parked in front of my house I was able to sell it for more than six times what I bought it for less than than 10 years prior.”Pimp Daddy” was a pretty nice guy by the way. I’ve got nothing against flourescent pink cars either. I hate to see cars with murals of Realtors on them though. Maybe the Realtor had pimp daddy drive his clients to view houses. I should have thought of that.

[NotCranky]

I knew things were strange in the market(and elsewhere) when the owner of “Pimp Daddy” limousines moved in next door to me and his good buddy was a Realtor who had a life size mural of himself painted on both sides of his SUV and probably the hood too. The second clue was that despite these pink and purple Limos parked in front of my house I was able to sell it for more than six times what I bought it for less than than 10 years prior.”Pimp Daddy” was a pretty nice guy by the way. I’ve got nothing against flourescent pink cars either. I hate to see cars with murals of Realtors on them though. Maybe the Realtor had pimp daddy drive his clients to view houses. I should have thought of that.

[NotCranky]

I knew things were strange in the market(and elsewhere) when the owner of “Pimp Daddy” limousines moved in next door to me and his good buddy was a Realtor who had a life size mural of himself painted on both sides of his SUV and probably the hood too. The second clue was that despite these pink and purple Limos parked in front of my house I was able to sell it for more than six times what I bought it for less than than 10 years prior.”Pimp Daddy” was a pretty nice guy by the way. I’ve got nothing against flourescent pink cars either. I hate to see cars with murals of Realtors on them though. Maybe the Realtor had pimp daddy drive his clients to view houses. I should have thought of that.

[NotCranky]

I knew things were strange in the market(and elsewhere) when the owner of “Pimp Daddy” limousines moved in next door to me and his good buddy was a Realtor who had a life size mural of himself painted on both sides of his SUV and probably the hood too. The second clue was that despite these pink and purple Limos parked in front of my house I was able to sell it for more than six times what I bought it for less than than 10 years prior.”Pimp Daddy” was a pretty nice guy by the way. I’ve got nothing against flourescent pink cars either. I hate to see cars with murals of Realtors on them though. Maybe the Realtor had pimp daddy drive his clients to view houses. I should have thought of that.

[Author]

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