We are richer when house prices go down

[temeculaguy]

Oh yeah i forgot this one, 30% decline in eight months

http://www.redfin.com/stingray/do/printable-listing?listing-id=834917

Orignal price Sep 17, 2004 $503,500
Resale price Jun 15, 2006 $790,000
Repo to bank May 09, 2007 $670,306

Bank want’s their money back so they list at about what they were owed, it doesn’t sell and they lower until they find the market, guess what, they haven’t found it. At any price except the last one, if you were a buyer, you lost money and it is my belief that even the last price is incorrect, time will tell but I will bet that I will find reductions in March, not increases. In fact, in 8 months, it has gone down 227k, about a 30k monthly decline, which is more than 5% a month, what makes anyone believe that March/April it won’t go down to 420k, what is so confusing about this pattern that is repeated on every street, every day, what is it about this pattern that would make anyone think “O.K. that’s enough, it will all sell now.”

Jun 15, 2007 $667,500
Aug 21, 2007 $634,900
Sep 22, 2007 $595,000
Oct 23, 2007 $550,000
Nov 26, 2007 $523,900
Dec 31, 2007 $514,900
Feb 29, 2008 $450,000

[felix]

It seems there are questions about my purchase. I thought short of telling you the exact location and price, I gave you enough information. At any rate that is all I’m giving you about my purchase.

If you don’t believe me that’s okay. I guess I understand.

It does appear though that our analysis is different since I was a cash buyer and many here are doing analysis based on borrowing.

As I said, I looked upon this as a very good opportunity. I am certain others in my position will also and will also step in when they perceive the time is right.

Could it get better?

Certainly, but as someone not there everyday and with cash I need to put my cash to use, getting over 4.5% return with long term growth potential seems pretty good. Of course, you do have to have a renter for this to work.

There appears to be some here with much RE experience and finanacial expertise. I was just asking what other investments would those here look at instead.

I can tell you a little about myself.

I’m already in stocks. I’m a reasonably disciplined daily trader in the stock market and have been since 1983. I was a partner in two successful small trading firms. I also manage my own retirement portfolio.

I have cash in a number of different financial instruments from CDs and MMs, to Bonds and Treasuries.

[felix]

It seems there are questions about my purchase. I thought short of telling you the exact location and price, I gave you enough information. At any rate that is all I’m giving you about my purchase.

If you don’t believe me that’s okay. I guess I understand.

It does appear though that our analysis is different since I was a cash buyer and many here are doing analysis based on borrowing.

As I said, I looked upon this as a very good opportunity. I am certain others in my position will also and will also step in when they perceive the time is right.

Could it get better?

Certainly, but as someone not there everyday and with cash I need to put my cash to use, getting over 4.5% return with long term growth potential seems pretty good. Of course, you do have to have a renter for this to work.

There appears to be some here with much RE experience and finanacial expertise. I was just asking what other investments would those here look at instead.

I can tell you a little about myself.

I’m already in stocks. I’m a reasonably disciplined daily trader in the stock market and have been since 1983. I was a partner in two successful small trading firms. I also manage my own retirement portfolio.

I have cash in a number of different financial instruments from CDs and MMs, to Bonds and Treasuries.

[felix]

It seems there are questions about my purchase. I thought short of telling you the exact location and price, I gave you enough information. At any rate that is all I’m giving you about my purchase.

If you don’t believe me that’s okay. I guess I understand.

It does appear though that our analysis is different since I was a cash buyer and many here are doing analysis based on borrowing.

As I said, I looked upon this as a very good opportunity. I am certain others in my position will also and will also step in when they perceive the time is right.

Could it get better?

Certainly, but as someone not there everyday and with cash I need to put my cash to use, getting over 4.5% return with long term growth potential seems pretty good. Of course, you do have to have a renter for this to work.

There appears to be some here with much RE experience and finanacial expertise. I was just asking what other investments would those here look at instead.

I can tell you a little about myself.

I’m already in stocks. I’m a reasonably disciplined daily trader in the stock market and have been since 1983. I was a partner in two successful small trading firms. I also manage my own retirement portfolio.

I have cash in a number of different financial instruments from CDs and MMs, to Bonds and Treasuries.

[felix]

It seems there are questions about my purchase. I thought short of telling you the exact location and price, I gave you enough information. At any rate that is all I’m giving you about my purchase.

If you don’t believe me that’s okay. I guess I understand.

It does appear though that our analysis is different since I was a cash buyer and many here are doing analysis based on borrowing.

As I said, I looked upon this as a very good opportunity. I am certain others in my position will also and will also step in when they perceive the time is right.

Could it get better?

Certainly, but as someone not there everyday and with cash I need to put my cash to use, getting over 4.5% return with long term growth potential seems pretty good. Of course, you do have to have a renter for this to work.

There appears to be some here with much RE experience and finanacial expertise. I was just asking what other investments would those here look at instead.

I can tell you a little about myself.

I’m already in stocks. I’m a reasonably disciplined daily trader in the stock market and have been since 1983. I was a partner in two successful small trading firms. I also manage my own retirement portfolio.

I have cash in a number of different financial instruments from CDs and MMs, to Bonds and Treasuries.

[felix]

It seems there are questions about my purchase. I thought short of telling you the exact location and price, I gave you enough information. At any rate that is all I’m giving you about my purchase.

If you don’t believe me that’s okay. I guess I understand.

It does appear though that our analysis is different since I was a cash buyer and many here are doing analysis based on borrowing.

As I said, I looked upon this as a very good opportunity. I am certain others in my position will also and will also step in when they perceive the time is right.

Could it get better?

Certainly, but as someone not there everyday and with cash I need to put my cash to use, getting over 4.5% return with long term growth potential seems pretty good. Of course, you do have to have a renter for this to work.

There appears to be some here with much RE experience and finanacial expertise. I was just asking what other investments would those here look at instead.

I can tell you a little about myself.

I’m already in stocks. I’m a reasonably disciplined daily trader in the stock market and have been since 1983. I was a partner in two successful small trading firms. I also manage my own retirement portfolio.

I have cash in a number of different financial instruments from CDs and MMs, to Bonds and Treasuries.

[Raybyrnes]

Felix

This might be more indicative of your situation

They’re not making it any more
Buying real estate is a sure thing. Not only does a real property purchase come with its own collateral, it will never lose its value.

“Real estate is a great game for pros and a not-so-great game for amateurs ” Uh, not exactly. While it’s true that real estate is generally a good investment, there’s no such animal as a sure thing. That’s where a lot of would-be investors got into trouble when the recent housing bubble burst.

“Residential real estate composite values are down about 8 percent and they’re not through yet,” says Ben Jacoby, Certified Financial Planner and senior adviser with Brinton Eaton Wealth Advisors.

Jacoby says there is a four-year cycle of excesses. “Every four years or so the people who loan money do something stupid,” he says.

In this case, investors made real estate loans to people who couldn’t afford them, including speculators. Investors purchased run-down property, renovating and reselling or flipping it, acquired property for rental units and made pre-construction purchases — all in hopes they’d have a big return for their investments.

Problem was, most of the property purchased was overpriced in the first place, and when values tumbled, speculators in general couldn’t get their money back, much less the mammoth profits they’d anticipated. But even though real property investments can’t really be taken to the bank, Jacoby says property has always been an investment target in good times or bad. Individuals like the idea of owning something they can actually put their hands on, but it’s a much bigger gamble, even when prices are rising, for the uninitiated.

“Real estate is a great game for pros and a not-so-great game for amateurs,” Jacoby says.

Historically, investing in real estate during bear markets can yield some real bargains for those who can afford it. Since lenders are understandably skittish when the economy is less stable, financing property becomes much more difficult. Would-be investors who hope to take advantage of falling home prices need to have enough cash to reassure the bank that its loan will be money well-spent.(Bankrate.com)

[Raybyrnes]

Felix

This might be more indicative of your situation

They’re not making it any more
Buying real estate is a sure thing. Not only does a real property purchase come with its own collateral, it will never lose its value.

“Real estate is a great game for pros and a not-so-great game for amateurs ” Uh, not exactly. While it’s true that real estate is generally a good investment, there’s no such animal as a sure thing. That’s where a lot of would-be investors got into trouble when the recent housing bubble burst.

“Residential real estate composite values are down about 8 percent and they’re not through yet,” says Ben Jacoby, Certified Financial Planner and senior adviser with Brinton Eaton Wealth Advisors.

Jacoby says there is a four-year cycle of excesses. “Every four years or so the people who loan money do something stupid,” he says.

In this case, investors made real estate loans to people who couldn’t afford them, including speculators. Investors purchased run-down property, renovating and reselling or flipping it, acquired property for rental units and made pre-construction purchases — all in hopes they’d have a big return for their investments.

Problem was, most of the property purchased was overpriced in the first place, and when values tumbled, speculators in general couldn’t get their money back, much less the mammoth profits they’d anticipated. But even though real property investments can’t really be taken to the bank, Jacoby says property has always been an investment target in good times or bad. Individuals like the idea of owning something they can actually put their hands on, but it’s a much bigger gamble, even when prices are rising, for the uninitiated.

“Real estate is a great game for pros and a not-so-great game for amateurs,” Jacoby says.

Historically, investing in real estate during bear markets can yield some real bargains for those who can afford it. Since lenders are understandably skittish when the economy is less stable, financing property becomes much more difficult. Would-be investors who hope to take advantage of falling home prices need to have enough cash to reassure the bank that its loan will be money well-spent.(Bankrate.com)

[Raybyrnes]

Felix

This might be more indicative of your situation

They’re not making it any more
Buying real estate is a sure thing. Not only does a real property purchase come with its own collateral, it will never lose its value.

“Real estate is a great game for pros and a not-so-great game for amateurs ” Uh, not exactly. While it’s true that real estate is generally a good investment, there’s no such animal as a sure thing. That’s where a lot of would-be investors got into trouble when the recent housing bubble burst.

“Residential real estate composite values are down about 8 percent and they’re not through yet,” says Ben Jacoby, Certified Financial Planner and senior adviser with Brinton Eaton Wealth Advisors.

Jacoby says there is a four-year cycle of excesses. “Every four years or so the people who loan money do something stupid,” he says.

In this case, investors made real estate loans to people who couldn’t afford them, including speculators. Investors purchased run-down property, renovating and reselling or flipping it, acquired property for rental units and made pre-construction purchases — all in hopes they’d have a big return for their investments.

Problem was, most of the property purchased was overpriced in the first place, and when values tumbled, speculators in general couldn’t get their money back, much less the mammoth profits they’d anticipated. But even though real property investments can’t really be taken to the bank, Jacoby says property has always been an investment target in good times or bad. Individuals like the idea of owning something they can actually put their hands on, but it’s a much bigger gamble, even when prices are rising, for the uninitiated.

“Real estate is a great game for pros and a not-so-great game for amateurs,” Jacoby says.

Historically, investing in real estate during bear markets can yield some real bargains for those who can afford it. Since lenders are understandably skittish when the economy is less stable, financing property becomes much more difficult. Would-be investors who hope to take advantage of falling home prices need to have enough cash to reassure the bank that its loan will be money well-spent.(Bankrate.com)

[Raybyrnes]

Felix

This might be more indicative of your situation

They’re not making it any more
Buying real estate is a sure thing. Not only does a real property purchase come with its own collateral, it will never lose its value.

“Real estate is a great game for pros and a not-so-great game for amateurs ” Uh, not exactly. While it’s true that real estate is generally a good investment, there’s no such animal as a sure thing. That’s where a lot of would-be investors got into trouble when the recent housing bubble burst.

“Residential real estate composite values are down about 8 percent and they’re not through yet,” says Ben Jacoby, Certified Financial Planner and senior adviser with Brinton Eaton Wealth Advisors.

Jacoby says there is a four-year cycle of excesses. “Every four years or so the people who loan money do something stupid,” he says.

In this case, investors made real estate loans to people who couldn’t afford them, including speculators. Investors purchased run-down property, renovating and reselling or flipping it, acquired property for rental units and made pre-construction purchases — all in hopes they’d have a big return for their investments.

Problem was, most of the property purchased was overpriced in the first place, and when values tumbled, speculators in general couldn’t get their money back, much less the mammoth profits they’d anticipated. But even though real property investments can’t really be taken to the bank, Jacoby says property has always been an investment target in good times or bad. Individuals like the idea of owning something they can actually put their hands on, but it’s a much bigger gamble, even when prices are rising, for the uninitiated.

“Real estate is a great game for pros and a not-so-great game for amateurs,” Jacoby says.

Historically, investing in real estate during bear markets can yield some real bargains for those who can afford it. Since lenders are understandably skittish when the economy is less stable, financing property becomes much more difficult. Would-be investors who hope to take advantage of falling home prices need to have enough cash to reassure the bank that its loan will be money well-spent.(Bankrate.com)

[Raybyrnes]

Felix

This might be more indicative of your situation

They’re not making it any more
Buying real estate is a sure thing. Not only does a real property purchase come with its own collateral, it will never lose its value.

“Real estate is a great game for pros and a not-so-great game for amateurs ” Uh, not exactly. While it’s true that real estate is generally a good investment, there’s no such animal as a sure thing. That’s where a lot of would-be investors got into trouble when the recent housing bubble burst.

“Residential real estate composite values are down about 8 percent and they’re not through yet,” says Ben Jacoby, Certified Financial Planner and senior adviser with Brinton Eaton Wealth Advisors.

Jacoby says there is a four-year cycle of excesses. “Every four years or so the people who loan money do something stupid,” he says.

In this case, investors made real estate loans to people who couldn’t afford them, including speculators. Investors purchased run-down property, renovating and reselling or flipping it, acquired property for rental units and made pre-construction purchases — all in hopes they’d have a big return for their investments.

Problem was, most of the property purchased was overpriced in the first place, and when values tumbled, speculators in general couldn’t get their money back, much less the mammoth profits they’d anticipated. But even though real property investments can’t really be taken to the bank, Jacoby says property has always been an investment target in good times or bad. Individuals like the idea of owning something they can actually put their hands on, but it’s a much bigger gamble, even when prices are rising, for the uninitiated.

“Real estate is a great game for pros and a not-so-great game for amateurs,” Jacoby says.

Historically, investing in real estate during bear markets can yield some real bargains for those who can afford it. Since lenders are understandably skittish when the economy is less stable, financing property becomes much more difficult. Would-be investors who hope to take advantage of falling home prices need to have enough cash to reassure the bank that its loan will be money well-spent.(Bankrate.com)

[felix]

I see where you’re coming from here TG.

I purchased what would be considered a coastal property with ocean views. I certainly agree with your assessment that tract homes in newer subdivisions are different animals, at least, for the time being.

[felix]

I see where you’re coming from here TG.

I purchased what would be considered a coastal property with ocean views. I certainly agree with your assessment that tract homes in newer subdivisions are different animals, at least, for the time being.

[felix]

I see where you’re coming from here TG.

I purchased what would be considered a coastal property with ocean views. I certainly agree with your assessment that tract homes in newer subdivisions are different animals, at least, for the time being.

[felix]

I see where you’re coming from here TG.

I purchased what would be considered a coastal property with ocean views. I certainly agree with your assessment that tract homes in newer subdivisions are different animals, at least, for the time being.

[Author]

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