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(former)FormerSanDiegan
ParticipantNet worth of 1.6 million … You mean their purchase prices of the properties that their payments to the banks are based on = 1.6 million. AKA their debt = 1.6 million. The aren’t worth 1.6 mill, they owe 1.6 mill. They are worth what the properties can be sold for after they pay the banks off AKA – selling price – 1.6 million.
If they sell for 1.6 million they are essentially at 0. Sell for less and their net worth is negative.
So the media is also confused between debt and wealth.Though I’d agree that the media are usually are confused, you are incorrect.
If you read the article there is a column on the right-hand side listing assets and liabilities.
Net worth = Assets- liabilities.Assets were estimated at nearly 2.4 million
Liability (primarily mortgage debt) was ~ 750KYou could argue that their assets aren’t worth as much as they estimate. But please get the facts straight before typing.
ParticipantNet worth of 1.6 million … You mean their purchase prices of the properties that their payments to the banks are based on = 1.6 million. AKA their debt = 1.6 million. The aren’t worth 1.6 mill, they owe 1.6 mill. They are worth what the properties can be sold for after they pay the banks off AKA – selling price – 1.6 million.
If they sell for 1.6 million they are essentially at 0. Sell for less and their net worth is negative.
So the media is also confused between debt and wealth.Though I’d agree that the media are usually are confused, you are incorrect.
If you read the article there is a column on the right-hand side listing assets and liabilities.
Net worth = Assets- liabilities.Assets were estimated at nearly 2.4 million
Liability (primarily mortgage debt) was ~ 750KYou could argue that their assets aren’t worth as much as they estimate. But please get the facts straight before typing.
ParticipantEl Jefe – Do you own that Tatoo parlor in OB ?
🙂 Or is that Dr. Jefe ?ParticipantEl Jefe – Do you own that Tatoo parlor in OB ?
🙂 Or is that Dr. Jefe ?ParticipantBummer. Maybe you can buy it from the new owners in 3-5 years for 1.1 Mil, assuming they don’t improve the property.
ParticipantBummer. Maybe you can buy it from the new owners in 3-5 years for 1.1 Mil, assuming they don’t improve the property.
Participant“I expect he could buy back a similar property in 3-5 years for half the price.”
That is the definition of speculation. Selling with the expectation of a future lower price.
Furthermore, the cost to participate in this speculation is approximately 25% or more of the sales price.
Participant“I expect he could buy back a similar property in 3-5 years for half the price.”
That is the definition of speculation. Selling with the expectation of a future lower price.
Furthermore, the cost to participate in this speculation is approximately 25% or more of the sales price.
ParticipantSell = speculation, Keep=investment
Keeping this property is a long-term investment.
Selling it (and paying 25% in taxes and selling costs) in anticipation of future price drops in excess of 25% is speculation.
ParticipantSell = speculation, Keep=investment
Keeping this property is a long-term investment.
Selling it (and paying 25% in taxes and selling costs) in anticipation of future price drops in excess of 25% is speculation.
ParticipantMy best guess is that it will be like it was in 1996 near the bottom of the last cycle when we bought our first house …
Criteria were: 5% down with PMI, 28% PITI to income ratio, 36% total debt ratio, good credit scores.
ParticipantMy best guess is that it will be like it was in 1996 near the bottom of the last cycle when we bought our first house …
Criteria were: 5% down with PMI, 28% PITI to income ratio, 36% total debt ratio, good credit scores.
Participantn_s_r – Thanks for hitting the nail on the head. People need to consider the guaranteed money spent in taxes and selling costs today, versus potential future losses.
Assuming inflation, a dollar spent today is more valuable than a dollar lost in the future.
Participantn_s_r – Thanks for hitting the nail on the head. People need to consider the guaranteed money spent in taxes and selling costs today, versus potential future losses.
Assuming inflation, a dollar spent today is more valuable than a dollar lost in the future.
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