Smart people do stupid things

[PKMAN]

[quote=werewolf34]What kind of house do you get in SD during the bubble for 550k?[/quote]

He should’ve kept his modest home, around 2,200sqft and big enough for family of 5 for many years…bought just before the housing bubble, instead of trying to live beyond his means. If he did and tried to pay down principle as much as he could, he should own that house outright in another 3 years.

I guess he was smart to not put any of his own money down when buying that $700K home but the way I see it, it was very stupid of him to sell a perfectly livable home and buy that $700K home he couldn’t afford with his salary.

[briansd1]

I’ve read that most “normal” people look at life this way:

They look at the present; they live day-to-day and they are influenced by their peers and the immediate environment. (Everyone is buying a house so I can too).

They think about the long term which is too far to predict. It’s too abstract so it’s an emotional thing that can’t be acted upon. (When I’m old the house will be paid for so therefore I’m making the right decision to buy).

But they cannot look at the medium term. The medium term is important because our life span is limited.

[briansd1]

I’ve read that most “normal” people look at life this way:

They look at the present; they live day-to-day and they are influenced by their peers and the immediate environment. (Everyone is buying a house so I can too).

They think about the long term which is too far to predict. It’s too abstract so it’s an emotional thing that can’t be acted upon. (When I’m old the house will be paid for so therefore I’m making the right decision to buy).

But they cannot look at the medium term. The medium term is important because our life span is limited.

[briansd1]

I’ve read that most “normal” people look at life this way:

They look at the present; they live day-to-day and they are influenced by their peers and the immediate environment. (Everyone is buying a house so I can too).

They think about the long term which is too far to predict. It’s too abstract so it’s an emotional thing that can’t be acted upon. (When I’m old the house will be paid for so therefore I’m making the right decision to buy).

But they cannot look at the medium term. The medium term is important because our life span is limited.

[briansd1]

I’ve read that most “normal” people look at life this way:

They look at the present; they live day-to-day and they are influenced by their peers and the immediate environment. (Everyone is buying a house so I can too).

They think about the long term which is too far to predict. It’s too abstract so it’s an emotional thing that can’t be acted upon. (When I’m old the house will be paid for so therefore I’m making the right decision to buy).

But they cannot look at the medium term. The medium term is important because our life span is limited.

[briansd1]

I’ve read that most “normal” people look at life this way:

They look at the present; they live day-to-day and they are influenced by their peers and the immediate environment. (Everyone is buying a house so I can too).

They think about the long term which is too far to predict. It’s too abstract so it’s an emotional thing that can’t be acted upon. (When I’m old the house will be paid for so therefore I’m making the right decision to buy).

But they cannot look at the medium term. The medium term is important because our life span is limited.

[Anonymous]

How long was he able to live in the $700K house without making payments? As others have pointed out, he actually did a very smart thing by mortgaging the entire $700K amount. No need to gamble your own money when you can gamble taxpayer money.

Doe he still have the $100K he pocketed from the sale of his original house, or did he blow that on something?

[Anonymous]

How long was he able to live in the $700K house without making payments? As others have pointed out, he actually did a very smart thing by mortgaging the entire $700K amount. No need to gamble your own money when you can gamble taxpayer money.

Doe he still have the $100K he pocketed from the sale of his original house, or did he blow that on something?

[Anonymous]

How long was he able to live in the $700K house without making payments? As others have pointed out, he actually did a very smart thing by mortgaging the entire $700K amount. No need to gamble your own money when you can gamble taxpayer money.

Doe he still have the $100K he pocketed from the sale of his original house, or did he blow that on something?

[Anonymous]

How long was he able to live in the $700K house without making payments? As others have pointed out, he actually did a very smart thing by mortgaging the entire $700K amount. No need to gamble your own money when you can gamble taxpayer money.

Doe he still have the $100K he pocketed from the sale of his original house, or did he blow that on something?

[Anonymous]

How long was he able to live in the $700K house without making payments? As others have pointed out, he actually did a very smart thing by mortgaging the entire $700K amount. No need to gamble your own money when you can gamble taxpayer money.

Doe he still have the $100K he pocketed from the sale of his original house, or did he blow that on something?

[briansd1]

I agree with iForget.

The $100k investment is separate from the purchase of the new house.

I would look at:

1/ how long he lived in the $700k house.

2/ how much in total he paid out of pocket to live in that $700k house.

3/ how much that same house would have rented for the same period of time.

4/ Assign a value to the ruined credit rating.

5/ Assign a value to the emotional distress.

6/ Assign a value to the pride and happiness of living in that new house.

7/ Add up everything and see if he’s still positive.

[briansd1]

I agree with iForget.

The $100k investment is separate from the purchase of the new house.

I would look at:

1/ how long he lived in the $700k house.

2/ how much in total he paid out of pocket to live in that $700k house.

3/ how much that same house would have rented for the same period of time.

4/ Assign a value to the ruined credit rating.

5/ Assign a value to the emotional distress.

6/ Assign a value to the pride and happiness of living in that new house.

7/ Add up everything and see if he’s still positive.

[briansd1]

I agree with iForget.

The $100k investment is separate from the purchase of the new house.

I would look at:

1/ how long he lived in the $700k house.

2/ how much in total he paid out of pocket to live in that $700k house.

3/ how much that same house would have rented for the same period of time.

4/ Assign a value to the ruined credit rating.

5/ Assign a value to the emotional distress.

6/ Assign a value to the pride and happiness of living in that new house.

7/ Add up everything and see if he’s still positive.

[briansd1]

I agree with iForget.

The $100k investment is separate from the purchase of the new house.

I would look at:

1/ how long he lived in the $700k house.

2/ how much in total he paid out of pocket to live in that $700k house.

3/ how much that same house would have rented for the same period of time.

4/ Assign a value to the ruined credit rating.

5/ Assign a value to the emotional distress.

6/ Assign a value to the pride and happiness of living in that new house.

7/ Add up everything and see if he’s still positive.

[Author]

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