We thought we’d make $100,000 without batting an eye

[Fearful]

Not sure who the bigger dumbasses are, the wife who vacantly expresses “attachment” to a $900K spare house, or the Money writers and editors.

They also do not need the life insurance.

[NotCranky]

I really don’t see what the big deal is. They made a mistake,so what. Maybe they will learn a lot too. Only the armchair quarterbacks on a housing bubble blog could get worked up over this one.
I wonder what the pyschology behind that is? Some kind of superiorty trip or just sadism.
Just making friends!

[NotCranky]

I really don’t see what the big deal is. They made a mistake,so what. Maybe they will learn a lot too. Only the armchair quarterbacks on a housing bubble blog could get worked up over this one.
I wonder what the pyschology behind that is? Some kind of superiorty trip or just sadism.
Just making friends!

[PerryChase]

sdrealtor, you have point there.

4plexowner, I agree with you that speculators is a better word to describe these people.

You have a point also, Rustico. But the real issue is the hubris on the part of “investors” — a hubris that permeated a big section of society. What happens to all the “investors” when the market crashes? These people serve as an illustration of what will happen to many more folks — folks who don’t have the net-worth to weather a protracted downturn.

On the issue of psychology, it’s obvious that this family hasn’t really learned their lesson. Somehow, they still believe you can make $100,000 without batting and eye — not with their loosing housing but with other properties. In my mind, the market will not improve until the common people stop thinking that real estate is the easy road to riches.

[PerryChase]

sdrealtor, you have point there.

4plexowner, I agree with you that speculators is a better word to describe these people.

You have a point also, Rustico. But the real issue is the hubris on the part of “investors” — a hubris that permeated a big section of society. What happens to all the “investors” when the market crashes? These people serve as an illustration of what will happen to many more folks — folks who don’t have the net-worth to weather a protracted downturn.

On the issue of psychology, it’s obvious that this family hasn’t really learned their lesson. Somehow, they still believe you can make $100,000 without batting and eye — not with their loosing housing but with other properties. In my mind, the market will not improve until the common people stop thinking that real estate is the easy road to riches.

[Fearful]

It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble, it endlessly grates on your nerves to see people smugly profiting. Thus when the assets start to deflate, it is payback time, and you start bashing the newly chastened. It is not healthy but it is human nature.

I stand by my statement: These guys are dumbasses who have no business owning a couple of million dollars worth of real estate. They should own one house, such as a nice condo in Florida, and have the remaining $million in CDs, farting out 5% interest.

[Fearful]

It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble, it endlessly grates on your nerves to see people smugly profiting. Thus when the assets start to deflate, it is payback time, and you start bashing the newly chastened. It is not healthy but it is human nature.

I stand by my statement: These guys are dumbasses who have no business owning a couple of million dollars worth of real estate. They should own one house, such as a nice condo in Florida, and have the remaining $million in CDs, farting out 5% interest.

[NotCranky]

Perry, They did put some money and sweat equity into the places. “Batting an eye” might have been a poor choice of words. They probably wanted to help the realtor daughter too.

In San Diego there were many old couples doing the same to good results. Perhaps a little better timing.
Other people did a lot less work and more cheating than these people in the article for sure, as you all know, to the point where they should go to jail.

I look forward to the day when some of you have good stories to post about how real estate is making you more succesful in your personal finances. I think the disappointment over the national binge will go away.

[NotCranky]

Perry, They did put some money and sweat equity into the places. “Batting an eye” might have been a poor choice of words. They probably wanted to help the realtor daughter too.

In San Diego there were many old couples doing the same to good results. Perhaps a little better timing.
Other people did a lot less work and more cheating than these people in the article for sure, as you all know, to the point where they should go to jail.

I look forward to the day when some of you have good stories to post about how real estate is making you more succesful in your personal finances. I think the disappointment over the national binge will go away.

[NotCranky]

Fearful”It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble,”

I made the best purchase deal of my life in San Diego in 2004.Many of my friends were still doing fine.It’s called experience. The excuse you use actually only works for the last two years. What about the rest of the time? It’s convenient to compare yourself to losers.I bet you are young. You are sitting in a really great position now. Your time will come.
Best wishes

[NotCranky]

Fearful”It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble,”

I made the best purchase deal of my life in San Diego in 2004.Many of my friends were still doing fine.It’s called experience. The excuse you use actually only works for the last two years. What about the rest of the time? It’s convenient to compare yourself to losers.I bet you are young. You are sitting in a really great position now. Your time will come.
Best wishes

[Coronita]

Though I'd agree that the media are usually are confused, you are incorrect. If you read the article there is a column on the right-hand side listing assets and liabilities. Net worth = Assets- liabilities. Assets were estimated at nearly 2.4 million Liability (primarily mortgage debt) was ~ 750K You could argue that their assets aren't worth as much as they estimate. But please get the facts straight before typing.

 

Exactly what I was saying. The couple can liquidate the vacation home. Wife is choosing not too, but instead cutting expenses elsewhere (medication). Also hubby going back to work…From a financial perspective they can exit just fine, but are choosing not too. That part is dumb, but this couple isn't exactly taking it up in the shorts.

Actually, my real question is why did this couple want to be in an article in Money? To demonstrate what not to do? Why do people like to opening disclose their net worth. It's one thing to post in blogs without really identifying who you are…But an article…

 

I generally find the Money articles pretty dumb. My favorite dumb articles are all the "Millionaire in the Making" ones. Every single article, the primary home's equity was part of computation. Yeah whatever. And who isn't a millionaire these days using that metric.

[Coronita]

Though I'd agree that the media are usually are confused, you are incorrect. If you read the article there is a column on the right-hand side listing assets and liabilities. Net worth = Assets- liabilities. Assets were estimated at nearly 2.4 million Liability (primarily mortgage debt) was ~ 750K You could argue that their assets aren't worth as much as they estimate. But please get the facts straight before typing.

 

Exactly what I was saying. The couple can liquidate the vacation home. Wife is choosing not too, but instead cutting expenses elsewhere (medication). Also hubby going back to work…From a financial perspective they can exit just fine, but are choosing not too. That part is dumb, but this couple isn't exactly taking it up in the shorts.

Actually, my real question is why did this couple want to be in an article in Money? To demonstrate what not to do? Why do people like to opening disclose their net worth. It's one thing to post in blogs without really identifying who you are…But an article…

 

I generally find the Money articles pretty dumb. My favorite dumb articles are all the "Millionaire in the Making" ones. Every single article, the primary home's equity was part of computation. Yeah whatever. And who isn't a millionaire these days using that metric.

[Coronita]

Fearful"It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble,"

I made the best purchase deal of my life in San Diego in 2004.Many of my friends were still doing fine.It's called experience. The excuse you use actually only works for the last two years. What about the rest of the time? It's convenient to compare yourself to losers.I bet you are young. You are sitting in a really great position now. Your time will come.
Best wishes

 

I have to side with Rustico on this one. Everyone always has 20 20 vision in hindsight. I'm not sure what's worse, folks who blindly rush in, or folks who never take advantage of a situation   The former imho is too reckless, the latter are the forever skeptics at everything.

As far as sitting on the sidelines. The way I look at it…There are different reasons why a lot of folks are sitting on the sidelines. Some are sitting there because they made an active decision (sold home,  renting because they believed homes are coming down).Some just don't care if they rent. Others are sitting on the sideline because they were priced out.  I'm not going to judge the buy/rent decision or whose in what category. It just seems like there's a lot of confusion these days about folks that were proactively smart sideliners versus the coincidental sideliners. Just like there are those who sold homes and made money out of smart decision making process, and those who happen to have just done that out of coincidence (I'll admit, I'm more the latter).

What I don't understand is that for most folks that hope for a utter demise, I don't think they're really going to be in that much better shape then everyone else if the financial market completely collapses. Because if we really do have a financial crisis, unless you are sitting on millions in gold,

tough credit tightening + high mortgage rates + inflation/dollar devaluation  ==> home still not affordable.

And if you are sitting on gold millions, you're probably not one of the folks wishing for people's demise because there's really no point. 

 

 

[Coronita]

Fearful"It is a sense of superiority. When you know better, and sit on the sidelines during an asset bubble,"

I made the best purchase deal of my life in San Diego in 2004.Many of my friends were still doing fine.It's called experience. The excuse you use actually only works for the last two years. What about the rest of the time? It's convenient to compare yourself to losers.I bet you are young. You are sitting in a really great position now. Your time will come.
Best wishes

 

I have to side with Rustico on this one. Everyone always has 20 20 vision in hindsight. I'm not sure what's worse, folks who blindly rush in, or folks who never take advantage of a situation   The former imho is too reckless, the latter are the forever skeptics at everything.

As far as sitting on the sidelines. The way I look at it…There are different reasons why a lot of folks are sitting on the sidelines. Some are sitting there because they made an active decision (sold home,  renting because they believed homes are coming down).Some just don't care if they rent. Others are sitting on the sideline because they were priced out.  I'm not going to judge the buy/rent decision or whose in what category. It just seems like there's a lot of confusion these days about folks that were proactively smart sideliners versus the coincidental sideliners. Just like there are those who sold homes and made money out of smart decision making process, and those who happen to have just done that out of coincidence (I'll admit, I'm more the latter).

What I don't understand is that for most folks that hope for a utter demise, I don't think they're really going to be in that much better shape then everyone else if the financial market completely collapses. Because if we really do have a financial crisis, unless you are sitting on millions in gold,

tough credit tightening + high mortgage rates + inflation/dollar devaluation  ==> home still not affordable.

And if you are sitting on gold millions, you're probably not one of the folks wishing for people's demise because there's really no point. 

 

 

[Author]

Posts