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EconProf
ParticipantWhatever Mike92104 does with this, there is a lesson here for all of us.
Non-permitted work, esp. if there is an abatement order outstanding, can seriously erode the value of a property. Beware of handyman projects, especially additions, that the owner/seller thinks have added to the value of the house. More likely it has subtracted value. Mike is talking here about an engineer, draftsman, contractors, etc., all costing money and time to fix the problem. The seller would have gained so much more by getting the work permitted in the first place. Then, when selling, he can say “all work permitted”, show the paperwork, and make it a selling point. The work would probably be better too.
One last point: when negotiating to buy such a property, add a clause stating seller must bring up to code. Let him or her research it to discover the high cost of compliance. They may not fix it all, but will have to accept a much lower price to sell it as is.ParticipantWhatever Mike92104 does with this, there is a lesson here for all of us.
Non-permitted work, esp. if there is an abatement order outstanding, can seriously erode the value of a property. Beware of handyman projects, especially additions, that the owner/seller thinks have added to the value of the house. More likely it has subtracted value. Mike is talking here about an engineer, draftsman, contractors, etc., all costing money and time to fix the problem. The seller would have gained so much more by getting the work permitted in the first place. Then, when selling, he can say “all work permitted”, show the paperwork, and make it a selling point. The work would probably be better too.
One last point: when negotiating to buy such a property, add a clause stating seller must bring up to code. Let him or her research it to discover the high cost of compliance. They may not fix it all, but will have to accept a much lower price to sell it as is.ParticipantWhatever Mike92104 does with this, there is a lesson here for all of us.
Non-permitted work, esp. if there is an abatement order outstanding, can seriously erode the value of a property. Beware of handyman projects, especially additions, that the owner/seller thinks have added to the value of the house. More likely it has subtracted value. Mike is talking here about an engineer, draftsman, contractors, etc., all costing money and time to fix the problem. The seller would have gained so much more by getting the work permitted in the first place. Then, when selling, he can say “all work permitted”, show the paperwork, and make it a selling point. The work would probably be better too.
One last point: when negotiating to buy such a property, add a clause stating seller must bring up to code. Let him or her research it to discover the high cost of compliance. They may not fix it all, but will have to accept a much lower price to sell it as is.ParticipantI don’t buy your numbers.
First, the market peaked in 2005 by some measures (depending upon area). Some analysts put the peak in early 2006. But you say you sold in November of 2005 and it continued to go up by $700k? No way, no how. More likely you nailed the peak–give yourself credit for timing.
Your other numbers don’t make sense either. How can you be negative $400k from staying put? And please tell us what neighborhood peaked in “mid-late 2007?ParticipantI don’t buy your numbers.
First, the market peaked in 2005 by some measures (depending upon area). Some analysts put the peak in early 2006. But you say you sold in November of 2005 and it continued to go up by $700k? No way, no how. More likely you nailed the peak–give yourself credit for timing.
Your other numbers don’t make sense either. How can you be negative $400k from staying put? And please tell us what neighborhood peaked in “mid-late 2007?ParticipantI don’t buy your numbers.
First, the market peaked in 2005 by some measures (depending upon area). Some analysts put the peak in early 2006. But you say you sold in November of 2005 and it continued to go up by $700k? No way, no how. More likely you nailed the peak–give yourself credit for timing.
Your other numbers don’t make sense either. How can you be negative $400k from staying put? And please tell us what neighborhood peaked in “mid-late 2007?ParticipantI don’t buy your numbers.
First, the market peaked in 2005 by some measures (depending upon area). Some analysts put the peak in early 2006. But you say you sold in November of 2005 and it continued to go up by $700k? No way, no how. More likely you nailed the peak–give yourself credit for timing.
Your other numbers don’t make sense either. How can you be negative $400k from staying put? And please tell us what neighborhood peaked in “mid-late 2007?ParticipantI don’t buy your numbers.
First, the market peaked in 2005 by some measures (depending upon area). Some analysts put the peak in early 2006. But you say you sold in November of 2005 and it continued to go up by $700k? No way, no how. More likely you nailed the peak–give yourself credit for timing.
Your other numbers don’t make sense either. How can you be negative $400k from staying put? And please tell us what neighborhood peaked in “mid-late 2007?ParticipantStocktradr, what do you think of the ETF: DIG. It is long oil, double-leveraged, and seems a good way to play the fluctuations in oil prices, i.e., buying on the dips, selling on the highs.
ParticipantStocktradr, what do you think of the ETF: DIG. It is long oil, double-leveraged, and seems a good way to play the fluctuations in oil prices, i.e., buying on the dips, selling on the highs.
ParticipantStocktradr, what do you think of the ETF: DIG. It is long oil, double-leveraged, and seems a good way to play the fluctuations in oil prices, i.e., buying on the dips, selling on the highs.
ParticipantStocktradr, what do you think of the ETF: DIG. It is long oil, double-leveraged, and seems a good way to play the fluctuations in oil prices, i.e., buying on the dips, selling on the highs.
ParticipantStocktradr, what do you think of the ETF: DIG. It is long oil, double-leveraged, and seems a good way to play the fluctuations in oil prices, i.e., buying on the dips, selling on the highs.
ParticipantI too long bought into the wall street advice to hold for the long term–rates of return were (until recently) proven to be 9 – 11% on average if you encompass a half century or so into your tracking.
However that advice may not be fully up to date any more. If it doesn’t include the roughly 45% decline from one year ago, then those figures are too high.
In addition, the averages were pulled up by the remarkable, and abnormal, stock market growth of the 80s and 90s, when the averages went up something like eight-fold, trough to peak.
With investors now about even with 10 years ago, one has to ask if America is entering a new slow growth era. We are hobbled by a growing deficit at all levels of government, a dollar only temporarily stronger, a deflationary era not unlike the 1930s, and an incoming administration that favors much more regulation and higher taxes.
It is hard to take a buy and hold position with these trends in place. -
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