[PD]

History has a nasty habit of repeating itself. The chances that the market will correct outwiegh the chances that it will not.

The consequences that zk outlined in the event the market does not depreciate are certainly true. However zk’s points also ignore the benefits of having sold.

I now have a significant amount of cash that is earning me money. Instead of this money sitting in my house, it is working for me, increasing my net worth.

We are saving hundreds a month in gas as my husband’s commute has been cut by 95% (This may not benefit some as they may want to stay in their neighborhood).

Most people who choose to rent can rent a house that is equal to or better than the one they sold for LESS money. This is more money in your pocket.

Renters do not have to pay for upkeep. This can translate into thousands.

So, if prices stay flat, it may not benefit me significantly to have sold (adding in added expenses like seller’s fees etc, and subtracting money gained like earnings etc).

But if prices go down…. HOMERUN!!!

If a person isn’t living in their dream home, they have the chance to get it when this all over… if they sell now.

Powayseller is showing her compassion for those poor souls who may be about to find their finances slaughtered.

[PD]

Do banks manage the foreclosed rental themselves? Is the lease still in effect or do you have to renegotiate with the bank? Do they even want to deal with the hassle of a renter? Does anybody know what banks do in this situation?

[PD]

I think that any company that makes products needed in new construction is going to see a decrease in sales. Air conditioners are still going be selling but as replacements, not new installations(for the most part).

[PD]

When comparing our current sitution to the 1990s through a mirror, I think it should probably be one of those circus mirors that make things look much fatter.

[PD]

If you are a renter living in a foreclosed house, would you have to pay the bank your rent? Would you end up living for free for months?

[PD]

I never thought I would short a stock but decided to go short the other day on two homebuilders. I didn’t make a big trade and have no worries about getting squeezed as I won’t be forced to cover the short. I’ll be able to hang in there for the long term. I’m already well in the black on both of them.
I probably should have bought Puts but I haven’t gotten my account approved for options yet. I guess I’m spending too much time on Piggintons!

[PD]

I have a friend overseas who just bought a house. She has only seen it over the internet. I tried to talk her out of it but she is determined go through with the deal.

[PD]

I did not like what they had to say for a few reasons.
You can’t tell a person to invest in a house if you don’t know about their local RE market. Buying a stock is the same for people in North Dakota, Georgia or New Mexico. The same does not hold true for homes. I thought the comments poorly thought out and flat out bad advice for some people.
Further, I thought their comments far too bullish on RE in general. Housing in areas that have not experienced a big increase may stay steady or even increase but they are giving general advice and you just can’t do that RE right now.

[PD]

I’ll try to be there.
john67elco, are you really attached to your signature line? Would you be willing to get rid of it?

[PD]

Something went wrong. 500% is way off.

[PD]

Powayseller, I agree completely. A few days ago I told her that I would advise her to sell her house if thought she would actually do it. She got angry and demanded to know what they would do then. I suggested renting one of the houses for rent on her street. She didn’t like that idea much. It is very frustrating because almost every penny of their retirement is the shrinking equity in their house. The builder has not dropped the base price yet but is offering huge freebies.

[PD]

I would say that the number of people in SD who aware of sites like this are probably less than 1%. I’ve been a housing bear for nearly a year and half but only discovered Pigginton’s a few months ago.
I’ve been warning my mother for some time that her house in Phx could go down quite a bit. She keeps telling me that I don’t know what I’m talking about. She reads the paper, she tells me, and knows all about RE. I pointed out that homebuilders and realtors pay a lot of money every month to advertise in the paper.

[PD]

I think an investment club would be interesting. I went short last week for the first time. I’m short two homebuilders and a lender.

[PD]

I thought it was a very good article. We bought in August of 2002. At the time, we thought we could be at the top of the cycle and were a little worried. We created a huge spreadsheet with every factor we could come up with, and determined that if the house depreciated 1%, we would break even. It worked out. Whew..

[PD]

Certainly, it is true that a person’s entire life a series of events, all interrelated with one another. By your definition, if you get in car accident, then the fault is your own for entering the car in the first place. In a way, I would agree with that idea, as the effect is reasonably predictable.
However, what if you are walking outside, on a treeless plain, the skies are blue, there is no wind, you are watching carefully for gopher holes and then WHACK, you get creamed by a meteorite. Bad luck or are you responsible for this happenstance? I contend that it is bad luck because this eventuality is so far from predictability that I would not take ownership of it.
I do happen to be a very empowered person. I don’t rely on luck. Instead, I try to order my life in a way where I am making my luck.
Your perspective is very interesting and I would really enjoy a discussion on the subject. I met a woman once who, along with her entire family, believed in reincarnation. They had a very elaborate belief system. It was fascinating. Perhaps she was right and that is way things really are.
Or, I’ve often wondered, could it be that if you believe it then the strength of your believe actually makes it truth?
Perhaps we are all right.
But then this makes you the most “right” out of us all. For if the strength of your belief makes it true, then that is the ultimate self-determination.

[Author]

Posts