We are richer when house prices go down

[Deal Hunter]

Hipmatt said,

"Not that its gonna happen, but I think that we need to end the home owner deductions. and /or give deductions to those who rent.(shelter is shelter) And stop taxes on money made in interest, investments, or dividends."

This is precisely what is outlined in Bush's Tax Reform Panel that was conducted in 2005. (http://www.taxreformpanel.gov/)

Part of the reform includes the elimination of the Mortgage Interest Deduction for homeowners as well as privitization of entitlements such as social security retirement.  Taxation of investment income would be effectively stopped.

This is actually pretty close to happening in 2008.  Bush's last budget had a short fall of about $90 billion.  The potential income from cutting the mortgage int deductions is $94 billion (according to the Tax Reform panel).  Is this a coincedence?  I think not!

So few are paying attention (and the panel and Bush's last budget come to the public's attention 3 whole years apart), but it really smells of a set up.  All of the budget shortfalls and the stimulus to the housing market somehow can be addressed by implementing the advisements of the Tax Reform Panel of 2005! 

 

 

[masayako]

I agree. In general, anyone buy after year 2000 in SD are most likely overpaying for their homes.

[masayako]

I agree. In general, anyone buy after year 2000 in SD are most likely overpaying for their homes.

[masayako]

I agree. In general, anyone buy after year 2000 in SD are most likely overpaying for their homes.

[masayako]

I agree. In general, anyone buy after year 2000 in SD are most likely overpaying for their homes.

[masayako]

I agree. In general, anyone buy after year 2000 in SD are most likely overpaying for their homes.

[temeculaguy]

I for one am getting richer with every tick down in the market and I can thank my lurker days on this site for aiding in my decision. My income, like many, is stable so with each 10k or 20k reduction in the price of homes, my future monthly disposable income goes up. 2 years ago I was walking around woth a chunk of change to put down on a house and I had owned homes for 20 years so I thought I was supposed to buy and was about to take on a 3k mortgage but lurking here prevented me. A year ago I could have gotten the same house for 2500 but my fellow piggs talked me out of it, four months ago they did it again at 2k, now I can get a nicer house for 1500, yet I sit. Most of the properties I was looking at over the summer have been reduced 25% in the last six months. When you look at all the constant expenses (utilities, food, clothing, savings, vehicle) and you cut your housing expenses in half, you are richer. A lot of flippers got rich 3 years ago, why can’t us reverse flippers get rich now? This renting thing ain’t half bad anyway. I have a nice place, I have money coming out of my a**, I pay cash for everything, I always buy my employees lunch and I always buy the drinks with friends, yet I’m the only renter and I still save more than ever before. Every day I go to redfin and see how much cheaper the new listings are or how much previous listings have been reduced. This is a blast. In the end, Tony Robbins is going to have to pay retail for my book, “getting rich through apathy” or “Zero habits for highly effective people.”

[temeculaguy]

I for one am getting richer with every tick down in the market and I can thank my lurker days on this site for aiding in my decision. My income, like many, is stable so with each 10k or 20k reduction in the price of homes, my future monthly disposable income goes up. 2 years ago I was walking around woth a chunk of change to put down on a house and I had owned homes for 20 years so I thought I was supposed to buy and was about to take on a 3k mortgage but lurking here prevented me. A year ago I could have gotten the same house for 2500 but my fellow piggs talked me out of it, four months ago they did it again at 2k, now I can get a nicer house for 1500, yet I sit. Most of the properties I was looking at over the summer have been reduced 25% in the last six months. When you look at all the constant expenses (utilities, food, clothing, savings, vehicle) and you cut your housing expenses in half, you are richer. A lot of flippers got rich 3 years ago, why can’t us reverse flippers get rich now? This renting thing ain’t half bad anyway. I have a nice place, I have money coming out of my a**, I pay cash for everything, I always buy my employees lunch and I always buy the drinks with friends, yet I’m the only renter and I still save more than ever before. Every day I go to redfin and see how much cheaper the new listings are or how much previous listings have been reduced. This is a blast. In the end, Tony Robbins is going to have to pay retail for my book, “getting rich through apathy” or “Zero habits for highly effective people.”

[temeculaguy]

I for one am getting richer with every tick down in the market and I can thank my lurker days on this site for aiding in my decision. My income, like many, is stable so with each 10k or 20k reduction in the price of homes, my future monthly disposable income goes up. 2 years ago I was walking around woth a chunk of change to put down on a house and I had owned homes for 20 years so I thought I was supposed to buy and was about to take on a 3k mortgage but lurking here prevented me. A year ago I could have gotten the same house for 2500 but my fellow piggs talked me out of it, four months ago they did it again at 2k, now I can get a nicer house for 1500, yet I sit. Most of the properties I was looking at over the summer have been reduced 25% in the last six months. When you look at all the constant expenses (utilities, food, clothing, savings, vehicle) and you cut your housing expenses in half, you are richer. A lot of flippers got rich 3 years ago, why can’t us reverse flippers get rich now? This renting thing ain’t half bad anyway. I have a nice place, I have money coming out of my a**, I pay cash for everything, I always buy my employees lunch and I always buy the drinks with friends, yet I’m the only renter and I still save more than ever before. Every day I go to redfin and see how much cheaper the new listings are or how much previous listings have been reduced. This is a blast. In the end, Tony Robbins is going to have to pay retail for my book, “getting rich through apathy” or “Zero habits for highly effective people.”

[temeculaguy]

I for one am getting richer with every tick down in the market and I can thank my lurker days on this site for aiding in my decision. My income, like many, is stable so with each 10k or 20k reduction in the price of homes, my future monthly disposable income goes up. 2 years ago I was walking around woth a chunk of change to put down on a house and I had owned homes for 20 years so I thought I was supposed to buy and was about to take on a 3k mortgage but lurking here prevented me. A year ago I could have gotten the same house for 2500 but my fellow piggs talked me out of it, four months ago they did it again at 2k, now I can get a nicer house for 1500, yet I sit. Most of the properties I was looking at over the summer have been reduced 25% in the last six months. When you look at all the constant expenses (utilities, food, clothing, savings, vehicle) and you cut your housing expenses in half, you are richer. A lot of flippers got rich 3 years ago, why can’t us reverse flippers get rich now? This renting thing ain’t half bad anyway. I have a nice place, I have money coming out of my a**, I pay cash for everything, I always buy my employees lunch and I always buy the drinks with friends, yet I’m the only renter and I still save more than ever before. Every day I go to redfin and see how much cheaper the new listings are or how much previous listings have been reduced. This is a blast. In the end, Tony Robbins is going to have to pay retail for my book, “getting rich through apathy” or “Zero habits for highly effective people.”

[temeculaguy]

I for one am getting richer with every tick down in the market and I can thank my lurker days on this site for aiding in my decision. My income, like many, is stable so with each 10k or 20k reduction in the price of homes, my future monthly disposable income goes up. 2 years ago I was walking around woth a chunk of change to put down on a house and I had owned homes for 20 years so I thought I was supposed to buy and was about to take on a 3k mortgage but lurking here prevented me. A year ago I could have gotten the same house for 2500 but my fellow piggs talked me out of it, four months ago they did it again at 2k, now I can get a nicer house for 1500, yet I sit. Most of the properties I was looking at over the summer have been reduced 25% in the last six months. When you look at all the constant expenses (utilities, food, clothing, savings, vehicle) and you cut your housing expenses in half, you are richer. A lot of flippers got rich 3 years ago, why can’t us reverse flippers get rich now? This renting thing ain’t half bad anyway. I have a nice place, I have money coming out of my a**, I pay cash for everything, I always buy my employees lunch and I always buy the drinks with friends, yet I’m the only renter and I still save more than ever before. Every day I go to redfin and see how much cheaper the new listings are or how much previous listings have been reduced. This is a blast. In the end, Tony Robbins is going to have to pay retail for my book, “getting rich through apathy” or “Zero habits for highly effective people.”

[felix]

How do you benefit or become richer from renting instead of owning unless rents are also coming down or unless you get the home you want at a price you can afford? Unfortunately if you wait too long to buy you not only won’t get the home you want but may get none at all.

The only ones directly losing money when home prices go down are those who are over extended and either have to sell or can no longer live off the equity in their depreciating home. The drop in the price of a neighbors foreclosed home doesn’t directly affect me unless I have to sell or I need the cash I can take from my equity.

As a long time stock trader I am used to watching markets. I know as markets near bottoms less and less trade occurs at the lowest prices. As the benefits(raising cash)of selling diminish only those who have to sell will sell. So as we near a housing bottom fewer and fewer homes will be available for the biggest reductions. That’s great if it’s the one you want and you get it.

If you are a renter waiting to buy and you miss out on the one you wanted or get no home at all what benefit did you get from the “sell off”?

I feel I have been able to get a great price on a 2nd home recently. It was the one I wanted in the neighborhood I wanted.

I was surprised to able to rent it for more than I could get by putting my money in other fixed income instruments. I was expecting only $3400/mo but got $3800/mo.. I’m sure others will be able to do the same as more and more people are being forced into the rental market.

Remember down turns don’t last forever and that you don’t need to get the bottom tick to get a great deal.

An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.

[felix]

How do you benefit or become richer from renting instead of owning unless rents are also coming down or unless you get the home you want at a price you can afford? Unfortunately if you wait too long to buy you not only won’t get the home you want but may get none at all.

The only ones directly losing money when home prices go down are those who are over extended and either have to sell or can no longer live off the equity in their depreciating home. The drop in the price of a neighbors foreclosed home doesn’t directly affect me unless I have to sell or I need the cash I can take from my equity.

As a long time stock trader I am used to watching markets. I know as markets near bottoms less and less trade occurs at the lowest prices. As the benefits(raising cash)of selling diminish only those who have to sell will sell. So as we near a housing bottom fewer and fewer homes will be available for the biggest reductions. That’s great if it’s the one you want and you get it.

If you are a renter waiting to buy and you miss out on the one you wanted or get no home at all what benefit did you get from the “sell off”?

I feel I have been able to get a great price on a 2nd home recently. It was the one I wanted in the neighborhood I wanted.

I was surprised to able to rent it for more than I could get by putting my money in other fixed income instruments. I was expecting only $3400/mo but got $3800/mo.. I’m sure others will be able to do the same as more and more people are being forced into the rental market.

Remember down turns don’t last forever and that you don’t need to get the bottom tick to get a great deal.

An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.

[felix]

How do you benefit or become richer from renting instead of owning unless rents are also coming down or unless you get the home you want at a price you can afford? Unfortunately if you wait too long to buy you not only won’t get the home you want but may get none at all.

The only ones directly losing money when home prices go down are those who are over extended and either have to sell or can no longer live off the equity in their depreciating home. The drop in the price of a neighbors foreclosed home doesn’t directly affect me unless I have to sell or I need the cash I can take from my equity.

As a long time stock trader I am used to watching markets. I know as markets near bottoms less and less trade occurs at the lowest prices. As the benefits(raising cash)of selling diminish only those who have to sell will sell. So as we near a housing bottom fewer and fewer homes will be available for the biggest reductions. That’s great if it’s the one you want and you get it.

If you are a renter waiting to buy and you miss out on the one you wanted or get no home at all what benefit did you get from the “sell off”?

I feel I have been able to get a great price on a 2nd home recently. It was the one I wanted in the neighborhood I wanted.

I was surprised to able to rent it for more than I could get by putting my money in other fixed income instruments. I was expecting only $3400/mo but got $3800/mo.. I’m sure others will be able to do the same as more and more people are being forced into the rental market.

Remember down turns don’t last forever and that you don’t need to get the bottom tick to get a great deal.

An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.

[felix]

How do you benefit or become richer from renting instead of owning unless rents are also coming down or unless you get the home you want at a price you can afford? Unfortunately if you wait too long to buy you not only won’t get the home you want but may get none at all.

The only ones directly losing money when home prices go down are those who are over extended and either have to sell or can no longer live off the equity in their depreciating home. The drop in the price of a neighbors foreclosed home doesn’t directly affect me unless I have to sell or I need the cash I can take from my equity.

As a long time stock trader I am used to watching markets. I know as markets near bottoms less and less trade occurs at the lowest prices. As the benefits(raising cash)of selling diminish only those who have to sell will sell. So as we near a housing bottom fewer and fewer homes will be available for the biggest reductions. That’s great if it’s the one you want and you get it.

If you are a renter waiting to buy and you miss out on the one you wanted or get no home at all what benefit did you get from the “sell off”?

I feel I have been able to get a great price on a 2nd home recently. It was the one I wanted in the neighborhood I wanted.

I was surprised to able to rent it for more than I could get by putting my money in other fixed income instruments. I was expecting only $3400/mo but got $3800/mo.. I’m sure others will be able to do the same as more and more people are being forced into the rental market.

Remember down turns don’t last forever and that you don’t need to get the bottom tick to get a great deal.

An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.

[Author]

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