What is home value tied to?

[LostCat]

There are so many experts on this site, I don’t know who to believe…

[blackbox]

How about this:

High prices…………Bad
Low Prices………….Good

If you can actually afford the mortgage long term…..buy
If you can only get into your new home with a suicide Option ARM …… Don’t buy

Oh, and under no circumstances do you buy right after the mother of all housing bubbles. Wait 2 to 5 years after prices peaked in 2005. From the peak prices, shave off an average of 30 to 40% for homes. Shave off 40 to 60% off condos.
Conversion condos… don’t touch with a ten foot pole for the next 10 years, and when you do, wear rubber gloves!

[blackbox]

oops

[lendingbubblecontinues]

Whatever we use this site for…is all of our business and none of yours.

If you disagree with most of what you read here, don’t worry about it…there are hundreds of millions of other “sheeple” out there, waiting for you to re-join the flock.

Thanks for stopping by, though 😉

LBC

[masayako]

There are some haters here lately. Must be some desperate homeowners who try to hold on to their big gains and forget to sell before the peak.

I’m a little mean today. Sorry all.

masayako

[Cow_tipping]

Yea I make up a lot of crap …
Those Idiots that spout these slick sayings … I’ll get caught without a comeback once in a while, and think and think about it and come up with a comeback … The next one that spouts that line is going to get it … Fake estate … I had to explain it to this guy infront of 10 others one time and it was priceless.
There was one other masterpiece I came up with 4 years ago …
This slaes dude was telling me I am making my landlord rich and making his house payment etc … and he wanted me to buy into his dumbass neighborhood with these gigantic power lines in the middle of it … I said … oh yes, its a great argument for buying A HOUSE … not neccesarily your house … and that I am definetly agreeing with. Now why should I buy your house.
Cool.
Cow_tipping.

[Cow_tipping]

How many real buyers are out there and when will we hit the saturation level of remaining buyers? Also if prices go back to 2002 values, exluding inflation, we’re talking about a 2bed-2bath condo in Mission Valley for about 150k?

In some areas … 2002 was already inflated.
The previous non bubble year in CA IMHO was like 97-98. 98 saw the IT bubble which was overlapped by the house bubble and in 2001 when the Tech bubble popped, it somehow inflated the house bubble even more … and 9/11 created extra air for the house bubble … heck it created a bubble in areas where there were none and no reason to bubble up … like florida …
Cool.
Cow_tipping.

[LookoutBelow]

Housing was and has NEVER been anything other than an investment of a neccesity. Its not a "home" hell, when my wife and i first got married we made a "home" out of a garage conversion for 6 months. Marketing geniuses have introduced that "Emotional B.S." into the feelings of satisfaction of "owning" (renting money from the bank) a "Home"….. Keep your eye on the ball here.

Anytime you replace logic with emotion in a financial decision, you have entered the "loss" zone.

Look at how MUCH money Hallmark Cards made by getting people to send cards for ANY occaision ? Ingenius ! There is an industry thats trying to do that same thing with housing……fall for it at your own peril

[calidesigner]

Renting for 20+ years….

Purely as an anecdote, I personally know a family in the Inland Empire/LA county area who have been renting for the past 20 years, in various suburbs of LA. I have known them for 20 years, one is a college professor, the other a teacher, and I suspect they could have afforded to buy something at any time during those twenty years (perhaps a townhouse/condo intially), but they apparently always found it more affordable to rent something slightly bigger than they could afford to buy. Whatever the reasons, in the past twenty years, I know for a fact they have lived in only three rented, detached single-family homes.

Now I’m not even pretending to promote renting vs. buying especially over a period of 20 years, in fact if I was in their position I suspect I would have bought a place 10 or 15 years ago, but I’m simply presenting one anecdotal case of a family who raised two successful college-educated kids, maintained a very comfortable lifestyle, always lived in a detached 4-bedroom home, and didn’t have to move all that much over twenty years, all the while renting all those years. Now, they’ve purchased two homes in Houston, both rented out I think, and one will be there retirement home in 5 or so years.

Simply, there are many paths to lifestyle fullfilment, yes some bring more profit than others, but home-ownership doesn’t necessarily always, everytime, equal bliss, you can find contentment without owning as well, it would seem.
(Having said that I personally would rather buy when it makes sense, if I can afford it, have down-payment, and rent-vs-buy is about equal).

What say you other Piggingtonians?

Calidesigner

[ibjames]

I too want to buy when the rent vs. buy makes sense. I might move from a house to a condo, but at least I can make some changes to it that suit me. I.E.- A nice screen door I can use during the summer months, motion sensing lights because it is very dark by my place. Better heater because the house is freaking cold during the winter. (probably would be better windows actually)

[(former)FormerSanDiegan]

$150k for a Mission Valley condo is about right. What’s so different today from 5 years ago? Not much. Houses cost a lot more but income have stagnated.

Perry. Even those stagnate incomes rose by nearly 20% between 2000-2005. So, the weather hasn;t changed much, but the value of a buck has.

[LostCat]

I was an owner and sold at the top of the market in 2005. Made a shit load and now am waiting to get back in. I’ll probably wait another year and then see how the market is doing. If what all you are saying is true, then next year, I’ll know to wait another year. I’ll just keep waiting and renting. What does it matter. At least I won’t have to pay for broken plumbing. Based on what everyone here is saying, i should be able to take my profit in 2 years and pay cash for the full price of a home. That would be sweet. Then I would own and only have to pay property tax.

So how long do I have to wait again? This sucks, it’s like watching grass grow.

[surveyor]

housing/real estate/history

Housing was and has NEVER been anything other than an investment of a neccesity.

While I do not advocate buying houses in this current San Diego market, I’m going to have to disagree with you there. I believe there are studies that show that homeowners and people who own real estate tend to be more successful and more affluent. There is a reason why there is a prestige attached to “owning” your own home, ever since the U.S. was created, and our laws and taxes reflect that value. For a long part of our history, only the rich owned homes and property.

Certainly I would applaud the movement away from a materialistic society, but the great success of the U.S. was innovating land ownership and its citizens use.

Most rich people have made their fortunes using their homes and real estate.

(…) For any flamers, please note the first part of my first sentence…

[ibjames]

Lost Cat,

Watching grass grow would be more entertaining, it changes much faster than the current market 🙁

[LostCat]

Surveyor,

A lot of truth to what you are saying. I know there is a lot of bias on this site because most the people here can’t afford a house and they think they should be able to. It’s that god given right of a spoiled american kid syndrom thing. Now that they can’t afford a home, they think there is something wrong with the world. I do agree though, that the market is over priced or was over priced. 2002 prices, highly dought it. Thinking that is just as extreme as selling a 2-bedroom condo in normal heights for $700k.

Time will tell.

[Author]

Posts