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Diego Mamani
ParticipantManu,
To answer your question we need to know where you expect to be 5 and 10 years from now, proessionally, personally, and geographically. Also, why did you decide to buy such a huge house in the first place? (The answer to that question culd be illuminating). And wuld you pay near $1MM for a house that wasn’t in move-in condition?
That said, if you think that you’ll stay in the same area for the next 10 years, it may be best to stay put and work dilligently towards paying down your $600K mortgage. I know you said that all your money goes into the house. Is that really tru? For instance, how much are your car payments? If you bought a used Corolla and shared it among the two of you, and kept it for another 10 years, you could have some substantial savings. The same is true of eating out, giving to charity, travel, etc. You can find money to pay your debt.
If you work hard towards paying off your mortgage, and then you sell the house when the next boom peaks (not earlier than in the later part of the next decade IMO), you’ll have a huge nest egg to retire on.
Forget Zillow. My old house, which I sold at the top of the market in 2005, now it’s valued by Zillow at about 23% over what it could realistically sell for today.
D.M.
ParticipantThe fire affects people differently. And even among those whose perceptions are affected, some have short memories and will some day buy properties in fire-prone areas (which most of San Diego county is not).
Fire or not, every week we get at least one knife catcher in this forum telling us that they are ready to buy because they found “a bargain” selling at “below market value,” and that they don’t care about potential depreciation b/c they expect to live in the house for the next 20 years, etc., etc.
Actually, I’m grateful for the knife catchers. Thanks to them, we’ll have declining comps all the way to the bottom. If all buyers were like us Piggintionians, no one would be buying and we would be stuck with the 2005 comps.
Knife catchers: Keep on buying!
ParticipantThe fire affects people differently. And even among those whose perceptions are affected, some have short memories and will some day buy properties in fire-prone areas (which most of San Diego county is not).
Fire or not, every week we get at least one knife catcher in this forum telling us that they are ready to buy because they found “a bargain” selling at “below market value,” and that they don’t care about potential depreciation b/c they expect to live in the house for the next 20 years, etc., etc.
Actually, I’m grateful for the knife catchers. Thanks to them, we’ll have declining comps all the way to the bottom. If all buyers were like us Piggintionians, no one would be buying and we would be stuck with the 2005 comps.
Knife catchers: Keep on buying!
ParticipantThe fire affects people differently. And even among those whose perceptions are affected, some have short memories and will some day buy properties in fire-prone areas (which most of San Diego county is not).
Fire or not, every week we get at least one knife catcher in this forum telling us that they are ready to buy because they found “a bargain” selling at “below market value,” and that they don’t care about potential depreciation b/c they expect to live in the house for the next 20 years, etc., etc.
Actually, I’m grateful for the knife catchers. Thanks to them, we’ll have declining comps all the way to the bottom. If all buyers were like us Piggintionians, no one would be buying and we would be stuck with the 2005 comps.
Knife catchers: Keep on buying!
ParticipantThe answer to your question about how the bank makes its money is through fees charged to customers like me. I pay a small fee for the investments I make just like a broker charges and for holding my deposits in their bank. I have no problem paying these fees in order to know that my money is sitting in their bank and not in a high rise condo project in Miami.
RunningBear: So you have “investments” with zero risk? This sounds like a late night TV get-rich-quick scheme. There’s no way that your Swiss bank keeps your money locked in a vault, that would be a fairy tale.
On the other hand, if your money is truly invested as you say, then it’s not “sitting in their bank” (your words), and there is risk involved.
What are the investments in?
ParticipantThe answer to your question about how the bank makes its money is through fees charged to customers like me. I pay a small fee for the investments I make just like a broker charges and for holding my deposits in their bank. I have no problem paying these fees in order to know that my money is sitting in their bank and not in a high rise condo project in Miami.
RunningBear: So you have “investments” with zero risk? This sounds like a late night TV get-rich-quick scheme. There’s no way that your Swiss bank keeps your money locked in a vault, that would be a fairy tale.
On the other hand, if your money is truly invested as you say, then it’s not “sitting in their bank” (your words), and there is risk involved.
What are the investments in?
October 22, 2007 at 10:24 AM in reply to: Northern CA failure, forclosure help, tax questions >> #90527ParticipantThat banks would lend in excess of $800K to someone who can’t spell ‘foreclosure’ or ‘disastrous’ is another clear sign of the crazy times we lived in 2003-2005.
I think what is disastrous is how much house prices were inflated by specuvestors playing with funny money. I’m glad that this house of cards if now crumbling, albeit in slow motion.
As they say in another forum, Got popcorn?
October 22, 2007 at 10:24 AM in reply to: Northern CA failure, forclosure help, tax questions >> #90538ParticipantThat banks would lend in excess of $800K to someone who can’t spell ‘foreclosure’ or ‘disastrous’ is another clear sign of the crazy times we lived in 2003-2005.
I think what is disastrous is how much house prices were inflated by specuvestors playing with funny money. I’m glad that this house of cards if now crumbling, albeit in slow motion.
As they say in another forum, Got popcorn?
ParticipantI think a knife catcher may buy this at a “bargain” price of around 1.5M before it ends up at or below a million. It will be fun to watch a lot of Trump wannabes get their fingers burnt in this cascade.
Well, every week we get at least one knife catcher in this forum telling us that they are ready to buy because they found “a bargain” selling at “below market value,” and that they don’t care about potential depreciation b/c they expect to live in the house for the next 20 years, etc., etc.
Actually, I’m grateful for the knife catchers. Thanks to them, we’ll have declining comps all the way to the bottom. If all buyers were like us Piggintionians, no one would be buying and we would be stuck with the 2005 comps.
Knife catchers: Keep on buying!
ParticipantI think a knife catcher may buy this at a “bargain” price of around 1.5M before it ends up at or below a million. It will be fun to watch a lot of Trump wannabes get their fingers burnt in this cascade.
Well, every week we get at least one knife catcher in this forum telling us that they are ready to buy because they found “a bargain” selling at “below market value,” and that they don’t care about potential depreciation b/c they expect to live in the house for the next 20 years, etc., etc.
Actually, I’m grateful for the knife catchers. Thanks to them, we’ll have declining comps all the way to the bottom. If all buyers were like us Piggintionians, no one would be buying and we would be stuck with the 2005 comps.
Knife catchers: Keep on buying!
ParticipantLet’s make a note of the reporter name and in our calendars, so that we can check on this “genius” every six months or so. The reporter probably doesn’t know it, but this story has lots of potential!
I feel sorry for Mike’s family, but I hope the experience will help his son grow to become a frugal person.
ParticipantLet’s make a note of the reporter name and in our calendars, so that we can check on this “genius” every six months or so. The reporter probably doesn’t know it, but this story has lots of potential!
I feel sorry for Mike’s family, but I hope the experience will help his son grow to become a frugal person.
ParticipantI just got back from Zurich and opened a Swiss bank account in a small private bank. They don’t do loans of any kind…
This reminds me of the Saturday Night Live pseudo commercial for the “First National Bank of Change.” We don’t accept deposits, we don’t do loans. We only change your large bills. How do we make money? Our secret is: VOLUME.
Running Bear: Assuming your Swiss bank isn’t a charity, how do they make money?
ParticipantI just got back from Zurich and opened a Swiss bank account in a small private bank. They don’t do loans of any kind…
This reminds me of the Saturday Night Live pseudo commercial for the “First National Bank of Change.” We don’t accept deposits, we don’t do loans. We only change your large bills. How do we make money? Our secret is: VOLUME.
Running Bear: Assuming your Swiss bank isn’t a charity, how do they make money?
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