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Cow_tipping
ParticipantSubmitted by gold_dredger_phd on March 2, 2007 – 8:13pm
In charlotte in 2003 I paid 2x my income for a brand new 5 bed 2723 sqft house. Well … Its no bay area … and I make more than average income for Charlotte … so I might still have over paid.
Yea I have old cars that are paid off and even older bikes that I paid couple 100 to 1000 each and I fix and use car pool and get free parking etc … and I sell them every other year or so. Good side business.
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Cow_tipping.ParticipantIronic … everyone is harping about house suppliers and house builders stocks taking a bath.
IMHO … the worst hit of the lot is going to be … starbucks.
Why … its the 100% discretionary spending almost entirely fueled by vanity and the wealth effect. Oh yea those damn gay magnets that serve lousy burnt coffee have insane overhead and their coffee is … well lousy and $$$ and guess what … burning it, costs more than roasting it to the right amount … but then every one will see how shitty the coffee is actually instead of thinking its so bitter, it must be great coffee.
Its gonna get ugly …
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Cow_tipping.ParticipantKewp
The India of old and India of today are so different.
In the 90’s and I wanna say through most of the 90’s … you get out of college, you get a job with a company, and you can work there till you retire. You’ll not be fired or laid off or let go. You’d be promoted almost on a schedule and good performance will send you into more visble and higher profile projects and poor performance will leave you in the low profile work. That meant, you’d put in work, expect and get rewards for doing well, and pretty much sit there cos its now your life. Typically people change companies 1-2 times in a career and almost never change careers. That also meant, you’d almost never have to save for a rainy day. You can work on $100 a month, live on $50 a month and save the other 50. Your 100 will ratchet up with inflation, the expenses will sit at close to the 50% and heck drop with house purchase etc and make your life literally heaven. Today, people get fired for no reason, laid off and employees are much much more ready to run here and there every few years. Enter the american way of thinking. Do it as shittily as possible and get it out the door, collect the $$ for it and run. No offence to the american way … but we prefer to let china and India to it for us with this philosophy.
Anyway, if it was from that previous generation of programmers, it can be immaculate.
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Cow_tipping.Participantmeadandale on March 1, 2007 – 10:20pm. wrote
Yes True about India. True about tech in the US. The offshoring has somehow increased the burden on us to keep it going. Its not even substandard, its down right pathetic.
I know why … but its not really relevant to this discussion.Anyway, I however dont see it as an argument to keep San Diego real estate prices propped up, because by and large there has been no complaints about the quality of work in IT comming from for example … Kansas.
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Cow_tipping.ParticipantDesperateBuyer on February 26, 2007 – 7:08pm wrote …
The amount of people “waiting to buy” when the bubble crashes is something I’ve never seen before.
and later in the same post wrote …
Indeed, the only bubble is the group of “housing bubble” message boards, which I do predict will prove to have no intrinsic or lasting value. Instead they will only serve to scare some people away from buying a house and living the miserable life of a renter. A true shame in my opinion.
The people waiting to buy are on the bubble blogs only. Which leads me to the next point …
Yes House bubble blogs are the next bubble. The bubbles will die in the order of their creation. House bubble first and the bouse bubble blog bubble next.
So the demise of the house bubble will initiate the demise of the blog bubble which will lose its subscribership when the participants decide to buy. Logical …
Yea I knew you’d come around.
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Cow_tipping.ParticipantHouston is a bit on the hot side in summer and hurricanes do whack it occassionally. I like atlanta for somehting in that same size range, and if cmaller is better, NC and SC raleigh, Winstom salem, spartanburg, charlotte, columbia etc.
Get a bit closer to the ocean like wilmington or savannah GA and you can surf all you want.
No bugs in this whole area to speak of, its not in the locust belt. The 17 year swarm has charlotte on the edge on its projection but in 2004 it never even caused a whimper.
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Cow_tipping.ParticipantMore Real estate clerc smoke and mirrors …
However … its completely unneccesary. Rents are what figure in Cost of living, not purchase prices.
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Cow_tipping.ParticipantHousing has intrinsic value ???
It does, if you’re living in it or renting it out.
If its sitting vacant, and has been bought with overleveraged money … it doing nothing but costing you interest, maintenance, Mello roos, property tax, utilities and HOA dues.
Now in the past 99.9% of houses were bought to live in, and when they moved due to other circumstances, they became rentals. if that is the case, and they are succesfully rented they ahve intrinsic value. Vacant houses are much much much worse than stocks. Stocks are bought with money you have sitting around … stock tanks, and you lost all of it. Ironically, that limits your losses.
You buy a house with 100K of your money and 900K of the banks. The house drops to 900K, you are making payments on the 1 mil, then property tax, insurance, utility bills, HOA dues and mello roos bills come in … guess what, you are now several thousand under. Then lets say, it drops further another 50K … you are now 150K under …
Yea … not only did you lose your shirt, you lost your future shirts and undies too … OK you walk away … bank takes the 850K house and spends 50K on selling it at an auction for 850K … that is so lucky for you … but you’d now have a 1099C for 100K. You’ll pay taxes on that.
Intrinsic value … yes … but not in all cases.
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Cow_tipping.February 27, 2007 at 2:22 PM in reply to: Is it just me or has the troll quotient ratcheted up recently? #46400ParticipantBeware the wrath of the hungry, unemployed, unlaid, broke troll. Cows everywhere are shaking in their hooves … cos they are entertainment and food …
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Cow_tipping.ParticipantDuck wrote
People who have unfortnate events happen in their lives don’t “deserve” to get burned.
The fact though, unfortunate events do happen, but the ones who are smart and good at managing money will have that happen very very rarely. The stupid and greedy will fall prey to it every cycle. It evens out.
I had bad things happen to me. Accidents, job losses etc, but that did not break me or break my marriage or anything. Its like this … you wife will put up with you sitting home a few months if when you were employed, you didn’t throw your money around, went around and cheated on her and was an ass. So unfortunate events happning one time in a few years you’ll get through it. if it happens to you every other day and you dont build yourself enough between 2 of those, your averages are working against you a lot cos you’re exposing yourself to a lot of risk. That is foolish.
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Cow_tipping.ParticipantAlso remember in a normal finacial market, a 40 year loan will ave more interest rate than a 30, which will have significantly more interest rate than a 15 (which I entirely exploited … man it was like winning the lotto … 3/4 percent rate difference the day I closed for the life of the loan … booya) … so by the time you get to the higher loan amounts you’d be paying more interest each month …
I mean, how stupid are people, is all they can see that monthly payments number … WTF … what if they buy and later get laid off … or decide to take a few months off, or hurt their ass … where is the numbers now … price and interest rate and years are numbers too … they should be looking at that as well … No wonder people are flunking math, and then running out to buy over priced sheite with in comprenensible mortgages. They forget that they flunked high school math. I guess the realtor said it was a great deal … For them is what they said under their breath …
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Cow_tipping.ParticipantNo … “this time its different is wrong”
The Correct answer is, “Its different here”. Much like OC, and SF bay and LA and Las Vegas and Phoenix and Scottsdale and … yea, all areas are different. Yea they are damn right different. It will be much much worse where its different.
Then of course gays will prop up the market cos they dont have children. And they plan to prop up the market for generations to come much like they have done since the 90’s. If only the entire population was Gay, there will be so much real estate appreciation. As we all know their sense of style is immaculate. So they will appreciate the area forever.
Jobs are leaving CA in both westward and eastward directions. ChIndia and Kansas.
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Cow_tipping.ParticipantPemeliza – Your story almost mirrors mine.
Except I didn’t own in CA and moved to charlotte in 02 rented a few months and bought in 03. Dream house – OK that’s a wee bit strong but I do love my house and love what I paid for it. I prolly will have to move back for my son (autism services are better in CA I have been told) but Sacramento is my first choice. Crash = buy, else rent.
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Cow_tipping.ParticipantFirst purchase, primary residence or non recourse loans are usually ones where they can take the house but cant come after you unless they suspect fraud. The are also called soft money loans. The refi’s heloc’s and second property loans (investment property) is recourse. They can come after you.
BTW even a non recourse loan, you get a 1099C for the forgiven part of the loan and it counts as Income. You pay taxes on it. But hey its not as bad as being sued for a POS you cant sell …
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