Forum Replies Created
-
AuthorPosts
-
SD Realtor
ParticipantEx-SD –
Look… this house is a perfect case study isn’t it? 5 offers on a site unseen home. That is not cash flowing…
Now would you touch it? No. Would your friends touch it? I guess not.
However 5 people have and the seller has not even submitted his paperwork yet!
I am or would not call you stupid at all. I am just saying that it is a speculative argument that is in the eye of the beholder. That your opinion and your friends opinions do not cover or speak for many many others. You see what I am saying?
This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.
It is actually my belief that depreciation cycles provide much more ample opportunity for the rich to get richer, then to level the playing field. Opportunities like this abound for people who have money parked. Again, I do not think it will prop up the market but I do think there will be an effect. Again, not all people use the same metric as you or others do. The home may not need to cash flow for them, the home may not need to have carrying costs that equal rent. Do you see what I am saying?
I think a general fault is that everyone measures opportunity by the same metric.
Look your argument about loans given out to anyone is THE EXACT reason for the bubble. Bubbles are not caused by well to do people buying nicer properties. They are caused more by people buying things the CANNOT afford. By fervent purchases and such. Bright people who are wealthy, who have money now parked most likely were long gone by 03 or 04. Sure some of them purchased in the bubble but that was not to flip or invest, that was most likely to live in or to act as a shelter or to give to kids or family members.
I guess my point is not being well made.
Look I understand your point and your thought process… Perhaps it will happen in that manner for all neighborhoods alike, same price drop, same window of opportunity for everyone. I don’t see that. I see narrower windows of opportunity that will vary by neighborhoods and different depreciations as well.
SD Realtor
ps – EX-SD I am not saying your opinion does not make sense about not purchasing until the median/income ratio falls in line because it does…. I would just be more refined… For instance you cannot use the median income of San Diego County for the purchase of a home in this particular subdivision. A more accurate measure would be to find the median income of the homeowners in the subdivision and do it that way.
sdr – That sheister totally gaffed the keller williams agent. Did you see the cancellation was made after only I think 31 days…
ParticipantEx-SD –
Look… this house is a perfect case study isn’t it? 5 offers on a site unseen home. That is not cash flowing…
Now would you touch it? No. Would your friends touch it? I guess not.
However 5 people have and the seller has not even submitted his paperwork yet!
I am or would not call you stupid at all. I am just saying that it is a speculative argument that is in the eye of the beholder. That your opinion and your friends opinions do not cover or speak for many many others. You see what I am saying?
This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.
It is actually my belief that depreciation cycles provide much more ample opportunity for the rich to get richer, then to level the playing field. Opportunities like this abound for people who have money parked. Again, I do not think it will prop up the market but I do think there will be an effect. Again, not all people use the same metric as you or others do. The home may not need to cash flow for them, the home may not need to have carrying costs that equal rent. Do you see what I am saying?
I think a general fault is that everyone measures opportunity by the same metric.
Look your argument about loans given out to anyone is THE EXACT reason for the bubble. Bubbles are not caused by well to do people buying nicer properties. They are caused more by people buying things the CANNOT afford. By fervent purchases and such. Bright people who are wealthy, who have money now parked most likely were long gone by 03 or 04. Sure some of them purchased in the bubble but that was not to flip or invest, that was most likely to live in or to act as a shelter or to give to kids or family members.
I guess my point is not being well made.
Look I understand your point and your thought process… Perhaps it will happen in that manner for all neighborhoods alike, same price drop, same window of opportunity for everyone. I don’t see that. I see narrower windows of opportunity that will vary by neighborhoods and different depreciations as well.
SD Realtor
ps – EX-SD I am not saying your opinion does not make sense about not purchasing until the median/income ratio falls in line because it does…. I would just be more refined… For instance you cannot use the median income of San Diego County for the purchase of a home in this particular subdivision. A more accurate measure would be to find the median income of the homeowners in the subdivision and do it that way.
sdr – That sheister totally gaffed the keller williams agent. Did you see the cancellation was made after only I think 31 days…
ParticipantEx-SD –
Look… this house is a perfect case study isn’t it? 5 offers on a site unseen home. That is not cash flowing…
Now would you touch it? No. Would your friends touch it? I guess not.
However 5 people have and the seller has not even submitted his paperwork yet!
I am or would not call you stupid at all. I am just saying that it is a speculative argument that is in the eye of the beholder. That your opinion and your friends opinions do not cover or speak for many many others. You see what I am saying?
This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.
It is actually my belief that depreciation cycles provide much more ample opportunity for the rich to get richer, then to level the playing field. Opportunities like this abound for people who have money parked. Again, I do not think it will prop up the market but I do think there will be an effect. Again, not all people use the same metric as you or others do. The home may not need to cash flow for them, the home may not need to have carrying costs that equal rent. Do you see what I am saying?
I think a general fault is that everyone measures opportunity by the same metric.
Look your argument about loans given out to anyone is THE EXACT reason for the bubble. Bubbles are not caused by well to do people buying nicer properties. They are caused more by people buying things the CANNOT afford. By fervent purchases and such. Bright people who are wealthy, who have money now parked most likely were long gone by 03 or 04. Sure some of them purchased in the bubble but that was not to flip or invest, that was most likely to live in or to act as a shelter or to give to kids or family members.
I guess my point is not being well made.
Look I understand your point and your thought process… Perhaps it will happen in that manner for all neighborhoods alike, same price drop, same window of opportunity for everyone. I don’t see that. I see narrower windows of opportunity that will vary by neighborhoods and different depreciations as well.
SD Realtor
ps – EX-SD I am not saying your opinion does not make sense about not purchasing until the median/income ratio falls in line because it does…. I would just be more refined… For instance you cannot use the median income of San Diego County for the purchase of a home in this particular subdivision. A more accurate measure would be to find the median income of the homeowners in the subdivision and do it that way.
sdr – That sheister totally gaffed the keller williams agent. Did you see the cancellation was made after only I think 31 days…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
Participantnsr that was well put. Interest rate shock would indeed rachet pricing down in an appropriate manner. My read is that pricing would be slow to respond at first, then catch up, maybe even overshoot a tad, then come back to the correlating interest rate environment. I would also agree that buying a lower priced home in a high interest rate environment is always better then a higher priced home in a low interest rate environment.
Beyond recurring carrying costs there is refinance opportunity sometime down the road, you already have a higher equity stake, and people who are saving or have saved cash are in a good position.
I also think it is not a question of if rates will rise but when… I think in order to get the economic house we all share back in order we need to do this… Unfortunately back in 03 I was spouting off that within a few years rates would HAVE to be higher…
How wrong I was…
ParticipantI will take 5 of those please…
SD Realtor
ParticipantI will take 5 of those please…
SD Realtor
ParticipantI will take 5 of those please…
SD Realtor
ParticipantI will take 5 of those please…
SD Realtor
ParticipantI will take 5 of those please…
SD Realtor
-
AuthorPosts
