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JWM in SD
Participant“If you can’t do basic math maybe you shouldn’t own a house.
How does it make you feel to know she might have worked with Carriers/Destroyers/Submarines/Missiles/Bombs/Aircraft… may be even Nukes?”
There is training and there is intelligence. Just because the military trains you well, doesn’t mean you’re smart. But then again, she was an officer….I think this once again illustrates that there is a portion of the population that is ignornant of basic finance issues.
October 11, 2007 at 9:59 AM in reply to: So you still think that a 50% correction or more is crazy??? #88040Participant“a drop is likely. guessing the decline is as futile as predicting the original bubble.”
Why? Just because you don’t want to acknowledge the possibility?
Too Bad.
October 11, 2007 at 9:59 AM in reply to: So you still think that a 50% correction or more is crazy??? #88045Participant“a drop is likely. guessing the decline is as futile as predicting the original bubble.”
Why? Just because you don’t want to acknowledge the possibility?
Too Bad.
Participant“In buying the condo, you could open a home equity line of credit (HELOC). For example, you could buy a $100,000 condo and get a tax-deductible line of credit for, let’s say, $50,000. It usually costs nothing to open and it is there for just such an emergency. It’s likely to be at a variable rate but the odds are you won’t need it and, in the meantime, you are saving a ton of money by not making that mortgage payment.”
$50K on a $100K condo???? Uh, yeah okay sure. Sorry, but this guy’s advice is as clear as mud. To me it’s simple, if you are in SoCal and you meet with a planner and they advise you to leverage into real estate right now or forseeable future…savings or not…they failed the litmus test already.
Participant“In buying the condo, you could open a home equity line of credit (HELOC). For example, you could buy a $100,000 condo and get a tax-deductible line of credit for, let’s say, $50,000. It usually costs nothing to open and it is there for just such an emergency. It’s likely to be at a variable rate but the odds are you won’t need it and, in the meantime, you are saving a ton of money by not making that mortgage payment.”
$50K on a $100K condo???? Uh, yeah okay sure. Sorry, but this guy’s advice is as clear as mud. To me it’s simple, if you are in SoCal and you meet with a planner and they advise you to leverage into real estate right now or forseeable future…savings or not…they failed the litmus test already.
October 10, 2007 at 12:43 PM in reply to: So you still think that a 50% correction or more is crazy??? #87840Participant“Over 50% would be several hundred dollars less than going rent…….”
Yes, but you are not accounting for what credit standards may be like at that point in time. Most likely much harsher than even now.
I think some of you are still not getting it. No, the rest of the country willn not suffer 50% losses (not nominal), but SoCal very well might. Sorry if you don’t like that, but historically things overshoot the mean in a correction. I wouldn’t bet against that happening.
October 10, 2007 at 12:43 PM in reply to: So you still think that a 50% correction or more is crazy??? #87845Participant“Over 50% would be several hundred dollars less than going rent…….”
Yes, but you are not accounting for what credit standards may be like at that point in time. Most likely much harsher than even now.
I think some of you are still not getting it. No, the rest of the country willn not suffer 50% losses (not nominal), but SoCal very well might. Sorry if you don’t like that, but historically things overshoot the mean in a correction. I wouldn’t bet against that happening.
October 10, 2007 at 9:44 AM in reply to: So you still think that a 50% correction or more is crazy??? #87770Participant“The small pool of willing buyers with good credit and cash in the bank are gonna wait till the bottom. We ain’t stupid.
Am I missing something?”
No, my horizon is 4 years. Cash and time are my friends.
October 10, 2007 at 9:44 AM in reply to: So you still think that a 50% correction or more is crazy??? #87775Participant“The small pool of willing buyers with good credit and cash in the bank are gonna wait till the bottom. We ain’t stupid.
Am I missing something?”
No, my horizon is 4 years. Cash and time are my friends.
October 10, 2007 at 9:33 AM in reply to: So you still think that a 50% correction or more is crazy??? #87762Participantyes alex, I guess we should stick with the MSM since their track record has been so good. Integrity in reporting…who needs it right? Certainly not the sheeple.
October 10, 2007 at 9:33 AM in reply to: So you still think that a 50% correction or more is crazy??? #87767Participantyes alex, I guess we should stick with the MSM since their track record has been so good. Integrity in reporting…who needs it right? Certainly not the sheeple.
ParticipantChirp,,,,chirp…..are you sure you are posting on the right board???
ParticipantChirp,,,,chirp…..are you sure you are posting on the right board???
October 10, 2007 at 9:03 AM in reply to: So you still think that a 50% correction or more is crazy??? #87748ParticipantThis is the point that I think a lot of people still don’t understand about this whole thing and why even if you can afford to buy right now you are still in jeoporday. This will launch a vicious cycle that feeds on it self. As comps get slaughtered, an incresing number of homeowners that might have otherwise weathered the storm will get dragged into this mess. It will stretch back into earlier layers of homeowners as the comps go down.
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