Renting is not better than buying

[Raybyrnes]

Bugs

Here is what is funny to me. Buyers represent such a small percentage of transactions relative to all of the homes in the total market.

Why doesn’t anyone ever talk about the many homeowner who already own their home who are not putting their home on the market and have nno intention of doing so. Regardless of when you bought you are equally losing money with respect to opportunity cost. No one ever says how stupid these people are for not selling.

[NotCranky]

It doesn’t seem like a family buying a 500k house on a 200k income is going to be stuck anywhere in San Diego for 20 years even with the 100k scenario kicking in for a few years. History does bare out any extreme problems there.

Poway seemed like a bargain to me compared to other bubble priced markets. It would be interesting to see a picture get painted of the situation there as Newrenter and the Realtors and a few others are doing on the CV thread.
My gut sense of things makes me like 350k a lot better than 500k for the houses I see at 500k there now. I would definitely take a wait and see attitude becasue of the economy too. This stuff isn’t transparent but we can be sure these are not prosperous times macro-economically speaking.

It is important to be certain about how one will feel about being upside down or seeing capital gone and better deals everywhere. Even when one can afford it, are they really really O.K. with it? I have known many people that are. Lots of us on this board are losing equity daily, hopefully on properties we can afford. I can afford it and I don’t like it at all. It is not my wife’s fault either! Many people take the long view in the stock market recession after recession, others need to day trade even in prosperity. To each his own.

I personally don’t see why we can’t accommodate people here that want to buy. Same rule goes if you don’t like the thread stay off of it. Our timing of the market is going to be to be subject to very broad opinions. Eventually all of us are going to want to be buyers again. Why prejudice against the ones who want to go first?

[NotCranky]

It doesn’t seem like a family buying a 500k house on a 200k income is going to be stuck anywhere in San Diego for 20 years even with the 100k scenario kicking in for a few years. History does bare out any extreme problems there.

Poway seemed like a bargain to me compared to other bubble priced markets. It would be interesting to see a picture get painted of the situation there as Newrenter and the Realtors and a few others are doing on the CV thread.
My gut sense of things makes me like 350k a lot better than 500k for the houses I see at 500k there now. I would definitely take a wait and see attitude becasue of the economy too. This stuff isn’t transparent but we can be sure these are not prosperous times macro-economically speaking.

It is important to be certain about how one will feel about being upside down or seeing capital gone and better deals everywhere. Even when one can afford it, are they really really O.K. with it? I have known many people that are. Lots of us on this board are losing equity daily, hopefully on properties we can afford. I can afford it and I don’t like it at all. It is not my wife’s fault either! Many people take the long view in the stock market recession after recession, others need to day trade even in prosperity. To each his own.

I personally don’t see why we can’t accommodate people here that want to buy. Same rule goes if you don’t like the thread stay off of it. Our timing of the market is going to be to be subject to very broad opinions. Eventually all of us are going to want to be buyers again. Why prejudice against the ones who want to go first?

[NotCranky]

It doesn’t seem like a family buying a 500k house on a 200k income is going to be stuck anywhere in San Diego for 20 years even with the 100k scenario kicking in for a few years. History does bare out any extreme problems there.

Poway seemed like a bargain to me compared to other bubble priced markets. It would be interesting to see a picture get painted of the situation there as Newrenter and the Realtors and a few others are doing on the CV thread.
My gut sense of things makes me like 350k a lot better than 500k for the houses I see at 500k there now. I would definitely take a wait and see attitude becasue of the economy too. This stuff isn’t transparent but we can be sure these are not prosperous times macro-economically speaking.

It is important to be certain about how one will feel about being upside down or seeing capital gone and better deals everywhere. Even when one can afford it, are they really really O.K. with it? I have known many people that are. Lots of us on this board are losing equity daily, hopefully on properties we can afford. I can afford it and I don’t like it at all. It is not my wife’s fault either! Many people take the long view in the stock market recession after recession, others need to day trade even in prosperity. To each his own.

I personally don’t see why we can’t accommodate people here that want to buy. Same rule goes if you don’t like the thread stay off of it. Our timing of the market is going to be to be subject to very broad opinions. Eventually all of us are going to want to be buyers again. Why prejudice against the ones who want to go first?

[NotCranky]

It doesn’t seem like a family buying a 500k house on a 200k income is going to be stuck anywhere in San Diego for 20 years even with the 100k scenario kicking in for a few years. History does bare out any extreme problems there.

Poway seemed like a bargain to me compared to other bubble priced markets. It would be interesting to see a picture get painted of the situation there as Newrenter and the Realtors and a few others are doing on the CV thread.
My gut sense of things makes me like 350k a lot better than 500k for the houses I see at 500k there now. I would definitely take a wait and see attitude becasue of the economy too. This stuff isn’t transparent but we can be sure these are not prosperous times macro-economically speaking.

It is important to be certain about how one will feel about being upside down or seeing capital gone and better deals everywhere. Even when one can afford it, are they really really O.K. with it? I have known many people that are. Lots of us on this board are losing equity daily, hopefully on properties we can afford. I can afford it and I don’t like it at all. It is not my wife’s fault either! Many people take the long view in the stock market recession after recession, others need to day trade even in prosperity. To each his own.

I personally don’t see why we can’t accommodate people here that want to buy. Same rule goes if you don’t like the thread stay off of it. Our timing of the market is going to be to be subject to very broad opinions. Eventually all of us are going to want to be buyers again. Why prejudice against the ones who want to go first?

[NotCranky]

It doesn’t seem like a family buying a 500k house on a 200k income is going to be stuck anywhere in San Diego for 20 years even with the 100k scenario kicking in for a few years. History does bare out any extreme problems there.

Poway seemed like a bargain to me compared to other bubble priced markets. It would be interesting to see a picture get painted of the situation there as Newrenter and the Realtors and a few others are doing on the CV thread.
My gut sense of things makes me like 350k a lot better than 500k for the houses I see at 500k there now. I would definitely take a wait and see attitude becasue of the economy too. This stuff isn’t transparent but we can be sure these are not prosperous times macro-economically speaking.

It is important to be certain about how one will feel about being upside down or seeing capital gone and better deals everywhere. Even when one can afford it, are they really really O.K. with it? I have known many people that are. Lots of us on this board are losing equity daily, hopefully on properties we can afford. I can afford it and I don’t like it at all. It is not my wife’s fault either! Many people take the long view in the stock market recession after recession, others need to day trade even in prosperity. To each his own.

I personally don’t see why we can’t accommodate people here that want to buy. Same rule goes if you don’t like the thread stay off of it. Our timing of the market is going to be to be subject to very broad opinions. Eventually all of us are going to want to be buyers again. Why prejudice against the ones who want to go first?

[Bugs]

Raybyrnes,

I’m one of those people, and I freely admit to being “stupid” from a purely financial perspective. My point of purchase was far enough back that my mortgage is a lot less than my rent would be, but the fact remains that I have foregone banking a lot of equity. Not too smart, eh?

However, if you’ll read my prior post I did qualify my remarks by including the “if you can afford it”, and “if the emoptional payoff is worth it to you” clauses. For me, both apply. I’m self-employed in a cyclical business and not having a large housing expense provides me with enough emotional payoff to make it worth my while to not play on the property ladder. Different strokes.

The difference between me and a lot of our trolls is that I don’t spend any amount of time gloating about how smart I am, how much money I’ve “made”, or telling people they’re idiots for not following my example. From a purely financial standpoint I’ve made a bad decision, but I fully understood all the ups and downs of that decision before I made it. I fully own my decision and I’m happy with it. I don’t look for outside validation and I don’t constantly whine about how decisions made by other people are hurting me.

But you’re right – it isn’t people like me who set the trends. All the action occurs on the margins, meaning those who have to sell and those who have to buy. Everyone else is just along for the ride.

[Bugs]

Raybyrnes,

I’m one of those people, and I freely admit to being “stupid” from a purely financial perspective. My point of purchase was far enough back that my mortgage is a lot less than my rent would be, but the fact remains that I have foregone banking a lot of equity. Not too smart, eh?

However, if you’ll read my prior post I did qualify my remarks by including the “if you can afford it”, and “if the emoptional payoff is worth it to you” clauses. For me, both apply. I’m self-employed in a cyclical business and not having a large housing expense provides me with enough emotional payoff to make it worth my while to not play on the property ladder. Different strokes.

The difference between me and a lot of our trolls is that I don’t spend any amount of time gloating about how smart I am, how much money I’ve “made”, or telling people they’re idiots for not following my example. From a purely financial standpoint I’ve made a bad decision, but I fully understood all the ups and downs of that decision before I made it. I fully own my decision and I’m happy with it. I don’t look for outside validation and I don’t constantly whine about how decisions made by other people are hurting me.

But you’re right – it isn’t people like me who set the trends. All the action occurs on the margins, meaning those who have to sell and those who have to buy. Everyone else is just along for the ride.

[Bugs]

Raybyrnes,

I’m one of those people, and I freely admit to being “stupid” from a purely financial perspective. My point of purchase was far enough back that my mortgage is a lot less than my rent would be, but the fact remains that I have foregone banking a lot of equity. Not too smart, eh?

However, if you’ll read my prior post I did qualify my remarks by including the “if you can afford it”, and “if the emoptional payoff is worth it to you” clauses. For me, both apply. I’m self-employed in a cyclical business and not having a large housing expense provides me with enough emotional payoff to make it worth my while to not play on the property ladder. Different strokes.

The difference between me and a lot of our trolls is that I don’t spend any amount of time gloating about how smart I am, how much money I’ve “made”, or telling people they’re idiots for not following my example. From a purely financial standpoint I’ve made a bad decision, but I fully understood all the ups and downs of that decision before I made it. I fully own my decision and I’m happy with it. I don’t look for outside validation and I don’t constantly whine about how decisions made by other people are hurting me.

But you’re right – it isn’t people like me who set the trends. All the action occurs on the margins, meaning those who have to sell and those who have to buy. Everyone else is just along for the ride.

[Bugs]

Raybyrnes,

I’m one of those people, and I freely admit to being “stupid” from a purely financial perspective. My point of purchase was far enough back that my mortgage is a lot less than my rent would be, but the fact remains that I have foregone banking a lot of equity. Not too smart, eh?

However, if you’ll read my prior post I did qualify my remarks by including the “if you can afford it”, and “if the emoptional payoff is worth it to you” clauses. For me, both apply. I’m self-employed in a cyclical business and not having a large housing expense provides me with enough emotional payoff to make it worth my while to not play on the property ladder. Different strokes.

The difference between me and a lot of our trolls is that I don’t spend any amount of time gloating about how smart I am, how much money I’ve “made”, or telling people they’re idiots for not following my example. From a purely financial standpoint I’ve made a bad decision, but I fully understood all the ups and downs of that decision before I made it. I fully own my decision and I’m happy with it. I don’t look for outside validation and I don’t constantly whine about how decisions made by other people are hurting me.

But you’re right – it isn’t people like me who set the trends. All the action occurs on the margins, meaning those who have to sell and those who have to buy. Everyone else is just along for the ride.

[Bugs]

Raybyrnes,

I’m one of those people, and I freely admit to being “stupid” from a purely financial perspective. My point of purchase was far enough back that my mortgage is a lot less than my rent would be, but the fact remains that I have foregone banking a lot of equity. Not too smart, eh?

However, if you’ll read my prior post I did qualify my remarks by including the “if you can afford it”, and “if the emoptional payoff is worth it to you” clauses. For me, both apply. I’m self-employed in a cyclical business and not having a large housing expense provides me with enough emotional payoff to make it worth my while to not play on the property ladder. Different strokes.

The difference between me and a lot of our trolls is that I don’t spend any amount of time gloating about how smart I am, how much money I’ve “made”, or telling people they’re idiots for not following my example. From a purely financial standpoint I’ve made a bad decision, but I fully understood all the ups and downs of that decision before I made it. I fully own my decision and I’m happy with it. I don’t look for outside validation and I don’t constantly whine about how decisions made by other people are hurting me.

But you’re right – it isn’t people like me who set the trends. All the action occurs on the margins, meaning those who have to sell and those who have to buy. Everyone else is just along for the ride.

[Raybyrnes]

Bugs,

I have read enough of your threads to get a good idea of your perspective and I appreciate where you are coming from.

Here is my perspective. My mother complains about how much her retirement portfolio has dropped over the last year. I hear this not only form her but from other who are in their situation. But when you ask how they feel about losing more money on their homes than on their equity postions the reply is that they own their homes and have made money relative to their purchase price.

It is funny how people classify their gain and losses. I try to point out that relative to last year their home has lost close to 100K and they just don’t get it. No one sends a statement each month to say this is what your home value is worth.

There is something that the tech guru’s on the board should create. A detailed home estimator. They could market and sell it to the banks as an add on feature similiar to a free credit score and then let the banks pass it along to their clients so that they get a better picture of their Net Worth in a real time basis.

[Raybyrnes]

Bugs,

I have read enough of your threads to get a good idea of your perspective and I appreciate where you are coming from.

Here is my perspective. My mother complains about how much her retirement portfolio has dropped over the last year. I hear this not only form her but from other who are in their situation. But when you ask how they feel about losing more money on their homes than on their equity postions the reply is that they own their homes and have made money relative to their purchase price.

It is funny how people classify their gain and losses. I try to point out that relative to last year their home has lost close to 100K and they just don’t get it. No one sends a statement each month to say this is what your home value is worth.

There is something that the tech guru’s on the board should create. A detailed home estimator. They could market and sell it to the banks as an add on feature similiar to a free credit score and then let the banks pass it along to their clients so that they get a better picture of their Net Worth in a real time basis.

[Raybyrnes]

Bugs,

I have read enough of your threads to get a good idea of your perspective and I appreciate where you are coming from.

Here is my perspective. My mother complains about how much her retirement portfolio has dropped over the last year. I hear this not only form her but from other who are in their situation. But when you ask how they feel about losing more money on their homes than on their equity postions the reply is that they own their homes and have made money relative to their purchase price.

It is funny how people classify their gain and losses. I try to point out that relative to last year their home has lost close to 100K and they just don’t get it. No one sends a statement each month to say this is what your home value is worth.

There is something that the tech guru’s on the board should create. A detailed home estimator. They could market and sell it to the banks as an add on feature similiar to a free credit score and then let the banks pass it along to their clients so that they get a better picture of their Net Worth in a real time basis.

[Raybyrnes]

Bugs,

I have read enough of your threads to get a good idea of your perspective and I appreciate where you are coming from.

Here is my perspective. My mother complains about how much her retirement portfolio has dropped over the last year. I hear this not only form her but from other who are in their situation. But when you ask how they feel about losing more money on their homes than on their equity postions the reply is that they own their homes and have made money relative to their purchase price.

It is funny how people classify their gain and losses. I try to point out that relative to last year their home has lost close to 100K and they just don’t get it. No one sends a statement each month to say this is what your home value is worth.

There is something that the tech guru’s on the board should create. A detailed home estimator. They could market and sell it to the banks as an add on feature similiar to a free credit score and then let the banks pass it along to their clients so that they get a better picture of their Net Worth in a real time basis.

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