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PD
ParticipantWe also focus on data. The data we have dissected here on Piggingtons indicates that there is a very large probability of a significant downturn in real estate prices…..starting in 2005.
ParticipantI just reread that post. Your friend might have engaged in mortgage fraud by getting cash back in an attempt to falsely support the comps. This kind of activity is mileading all buyers.
ParticipantI just reread that post. Your friend might have engaged in mortgage fraud by getting cash back in an attempt to falsely support the comps. This kind of activity is mileading all buyers.
Participantmeadandale, nice illustration of “stupid.”
Participantmeadandale, nice illustration of “stupid.”
ParticipantMyito, you appear to have ignored the meat of my post. Just because you lost money while investing in something other than real estate, does not mean that others will do the same. My investments are fairly conservative.
I just ran a homebuyer calculation on a comprehensive spreadsheet my husband created (factors in prop taxes, income taxes, and many others). Lets say I bought right now in my target market and you assume the following:Home prices froze for 5 years (don’t go up, don’t go down)
I would have gained 5.2% on my down payment, conservatively investedMy net worth would be $260,000 less than if I had rented during that time. If home values go down, that number goes up, up, up. You have some huge blind spots.
ParticipantMyito, you appear to have ignored the meat of my post. Just because you lost money while investing in something other than real estate, does not mean that others will do the same. My investments are fairly conservative.
I just ran a homebuyer calculation on a comprehensive spreadsheet my husband created (factors in prop taxes, income taxes, and many others). Lets say I bought right now in my target market and you assume the following:Home prices froze for 5 years (don’t go up, don’t go down)
I would have gained 5.2% on my down payment, conservatively investedMy net worth would be $260,000 less than if I had rented during that time. If home values go down, that number goes up, up, up. You have some huge blind spots.
ParticipantBugs, nice post. Most people are assuming that the next cycle will top out above the peak of this last cycle. It might not happen that way. We might have to go through two cycles before peak buyers are saved.
ParticipantBugs, nice post. Most people are assuming that the next cycle will top out above the peak of this last cycle. It might not happen that way. We might have to go through two cycles before peak buyers are saved.
ParticipantYou don’t only lose if your equity is negative. You lose the opportunity cost of your downpayment and you lose the money you pay on your mortgage over what you would pay for a similar property in rent.
ParticipantYou don’t only lose if your equity is negative. You lose the opportunity cost of your downpayment and you lose the money you pay on your mortgage over what you would pay for a similar property in rent.
ParticipantHowever, no smart person will call anyone dumb or stupid for buying now.
Not true. Anyone who has heard housing analysis but buys right now at peak prices thinking they are going to make money in the next couple of years is dumb or stupid.
If you buy knowing that prices may go down significantly and have decided that you can tolerate the losses, that is another thing (like Chris).
ParticipantHowever, no smart person will call anyone dumb or stupid for buying now.
Not true. Anyone who has heard housing analysis but buys right now at peak prices thinking they are going to make money in the next couple of years is dumb or stupid.
If you buy knowing that prices may go down significantly and have decided that you can tolerate the losses, that is another thing (like Chris).
ParticipantLostkitty, you and I agree on something. 🙂
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