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ParticipantImagine if they would have opted to buy into and ride the tech stock craze instead…
Hmm, lets see, if they bought into the tech stock craze instead, if they bought QCOM with their $28k in 1999 @ a price around $3.75/share, that’s about 7466 shares. If they sold at the peak in 2000, it’ll yield a profit of $578k pretax. With a 15% long term tax, you’re looking at around $491k. Take that $491k and buy MTH in 2000 @ $2.75, sell it in 2005 for $92 will give you an after tax profit of (drum roll please)$14.1M. Man, lucky they’re not stupid enough to put it in the tech stock craze instead.ParticipantWith the kind of pricing I’ve seen with the REO on the MLS, I don’t think they’re that motivated to sell. Some of them have been on the market for a very long time too. So far, it seems like only the builders have taken the initiative to move inventory. We’ll see if the bank will be more willing to move inventory after the ARM readjustments in the next 18 months. At this point, REO is just as wishful in pricing as some sellers.
Oh, and since I’m looking to buy in MM, I’m glad MM made it to the top 500 foreclosure zip code. :-D.
ParticipantWith the kind of pricing I’ve seen with the REO on the MLS, I don’t think they’re that motivated to sell. Some of them have been on the market for a very long time too. So far, it seems like only the builders have taken the initiative to move inventory. We’ll see if the bank will be more willing to move inventory after the ARM readjustments in the next 18 months. At this point, REO is just as wishful in pricing as some sellers.
Oh, and since I’m looking to buy in MM, I’m glad MM made it to the top 500 foreclosure zip code. :-D.
ParticipantSeems like the raise people are getting are all over the map. Could it possibly be that some are overpaid, some are underpaid, so there’s a huge range? I mean if two people have the same experiences and perform similarly but one get paid $50k while the other get paid $65k, obviously, the one who got paid $50k will get a larger % raise. That’s just my take on it.
ParticipantSeems like the raise people are getting are all over the map. Could it possibly be that some are overpaid, some are underpaid, so there’s a huge range? I mean if two people have the same experiences and perform similarly but one get paid $50k while the other get paid $65k, obviously, the one who got paid $50k will get a larger % raise. That’s just my take on it.
ParticipantWin or lose, it seems like forced “investments” are the norm.
Totally agree. Most people go through life and “invest” when they have to. They tend to not put much thought in the cycle of economy. Hence, if you’re born in the right time frame, everything will look rosy while if you’re born a few years late, things are not so rosy unless you make a conscious decision to delay your life cycle to be in sync w/ the economic cycle.I.E. if you’re born in 1973, graduated w/ a BS in 1995, enjoy the upswing of .com, got married in 2000 and need a house, so you cash out in 2000, take your winning from .com and put it in a house, now you can retire. But if you’re born 7 years later, graduate in 2002 @ the peak of the .com crash, can’t find a job, much less buy a house. 3 years later after some hard saving, got married or just want to buy a house. Now you just lost all the money you saved over the 3 years for the down payment. Kinda suck huh? For us unlucky people who are born in a certain time frame, we would have to try that much harder to realize the economic cycle and delay your house buying process a few years.
ParticipantWin or lose, it seems like forced “investments” are the norm.
Totally agree. Most people go through life and “invest” when they have to. They tend to not put much thought in the cycle of economy. Hence, if you’re born in the right time frame, everything will look rosy while if you’re born a few years late, things are not so rosy unless you make a conscious decision to delay your life cycle to be in sync w/ the economic cycle.I.E. if you’re born in 1973, graduated w/ a BS in 1995, enjoy the upswing of .com, got married in 2000 and need a house, so you cash out in 2000, take your winning from .com and put it in a house, now you can retire. But if you’re born 7 years later, graduate in 2002 @ the peak of the .com crash, can’t find a job, much less buy a house. 3 years later after some hard saving, got married or just want to buy a house. Now you just lost all the money you saved over the 3 years for the down payment. Kinda suck huh? For us unlucky people who are born in a certain time frame, we would have to try that much harder to realize the economic cycle and delay your house buying process a few years.
Participantmost renters don’t calculate…
Exactly, most people don’t really calculate. Some got lucky, some don’t. Just like many people who got lucky and bought the .com stocks in the 90s and sold b4 the crash because they needed the money to do something else. There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.
Participantmost renters don’t calculate…
Exactly, most people don’t really calculate. Some got lucky, some don’t. Just like many people who got lucky and bought the .com stocks in the 90s and sold b4 the crash because they needed the money to do something else. There are many more people just like the owner of this house who bought 2 years after but their outcome is not looking so rosy.
June 19, 2007 at 10:48 AM in reply to: 4S Evergreen 3000+ sq/ft beginning at $800K = sold out. #60433Participantsdcellar, can you get in on this bet too? :-).
New homes are selling because it’s at a discount compare to resale. Builders get it and they’ll sell at what ever market price is at the time. That’s usually about 10-20% less than comparable resale.
June 19, 2007 at 10:48 AM in reply to: 4S Evergreen 3000+ sq/ft beginning at $800K = sold out. #60466Participantsdcellar, can you get in on this bet too? :-).
New homes are selling because it’s at a discount compare to resale. Builders get it and they’ll sell at what ever market price is at the time. That’s usually about 10-20% less than comparable resale.
ParticipantCompletely agree with beanmaestro. hindsight is always 20/20. You can also take that 80k and put it in numerous other mutual funds that over the last 5 years yield greater than 30% which you give you as much as $350k in profit from that $80k initial investment. Since we’re talking about hindsight investing, we can put that money you made up to middle of last year and invest it in Latin America and made over 300% in the last 12 months. How’s that for hindsight investing? :-D.
ParticipantCompletely agree with beanmaestro. hindsight is always 20/20. You can also take that 80k and put it in numerous other mutual funds that over the last 5 years yield greater than 30% which you give you as much as $350k in profit from that $80k initial investment. Since we’re talking about hindsight investing, we can put that money you made up to middle of last year and invest it in Latin America and made over 300% in the last 12 months. How’s that for hindsight investing? :-D.
ParticipantOn the rent & save end, if you put away 1500/month toward saving at a saving rate of 5.5% over the last 4 years, you’ll have $80,000.
The $783k sold price would be $736k after 6% commission. So it would yield $191k profit after 4 years. So he/she still made over 2X what he/she could have made by rent and save. Obviously, if you shift that buy date to 2 years later, we’ll see how the numbers play out in 2 years. I highly doubt it would yield the same result.
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