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sdrealtor
ParticipantDo you think this only goes on in RE? Shady, back room market dealings go on everywhere in our economy from Corporate America to the Mom and Pop Convenience store on the corner.
ParticipantAN,
My case was based upon renting a similar house.Concho,
The marginal tax bracket I used is probably a bit high, I used a 5/1 ARM interest rate and I didnt factor in maintenance. For the record, I didn’t buy when it was cheaper or the same as renting, at least that wasnt part of my decision. I bought what I wanted, where I wanted and what I felt comfortable paying. While 1998 was not the bottom it wasnt much different than the bottom which was around 1996 by me.If it happens as you expect…GREAT…I’ll buy 2 or 3 more houses in my neighborhood like I should have last time around. I know a couple people that did exactly that.
ParticipantI’m talking dividend growth not share price. You are right on with the time frame. I owe it all to one of my best friends. I had two best friends in college. One was very wealthy and one was very smart. The wealthy one was an orphan that lived off IBM dividends and a RE portfolio in NYC. I always admired his parents foresight and always talked about looking for my IBM. The very smart one was a Comp Sci major. One night we were hanging around talking about life and he told me about a company that was going public which would change the world. They had a disk operating system that was a huge improvement in computing technology. I didnt know anything about computers but I knew he was brilliant and well ahead of his time. He didnt have any money to invest but told me to buy some right after the IPO. I waited a few months as I wanted to buy a new car first after graduating.
Fast forward, 20 years. The wealthy one is still wealthy and travels the world writing. The very smart one is a very successful senior executive at an Internet company who has made and lost a fortune several times. FYI, among other things I took him to the Super Bowl a couple years ago for the trip of a lifetime. They still are two of my best friends.
ParticipantI have a hard time seeing that happen. I bought my house in late 1998 and put 20% down. With excellent credit my rate was around 8%. My monthly PITI + HOA was significantly more than rent Pre-tax I spent about $10,000 more per year. After tax assuming a 37% marginal tax bracket I was slightly ahead.
That was definitely pre-bubble times and some would even say housing was undervalued. At the time we bought our house was 3 to 3.5 times our gross annual income.
ParticipantI’m guessing 5 to 10% growth per year.
ParticipantThe adjusted cost of my MSFT shares is less than 15 cents. I sold about 10% of my holdings in the late 90’s to put 20% down on my house. The rest I will never sell.
I dont worry about or care to be anything more than comfortable and secure with time to enjoy my family. In my world that makes me a billionaire already.
ParticipantBeebo,
MSFT is no longer the growth stock it was and like my house the stock price while nice to look at is not my primary concern. In another 20 years my mortgage will be paid off and I should be reaping 6 figure dividend income from MSFT.ParticipantJG,
I have a very large position in MSFT that I have held for close to 20 years which has started to pay big dividends literally and figuratively. I apreciate the advice but am very comfortable with my investments to date.
SDRParticipantAN,
That house went into escrow on 6/28/03 last time around so it is back to Summer 2003 pricing which is even very different from Fall 2003 when it closed. The comps look like peak pricing on that house was about $725,000. A price level of approx $500,000 was last seen in Spring 2002.SDR
ParticipantBrooke
I meant to type “Late” but mistakenly typed “early”. Other than the one mistyped word I stand by my statement. One of my best friends sold his house in mid November 2003 for $680K and in late January 2004 they could have gotten $850K just two months later. I saw this happen numerous times between Dec 2003 and Feb 2004 as nearly every property in SD spiked up by $100K to $200K.I dont doubt your friends skills and my comments were no disrespect to them but all the work they did does not come close to adding near $300K in value. The money they invested and their work could have added $100K or so but buying in Late 2003 rather than early 2004 accounted for the vast majority of their gains. The house they bought for $585K in Nov 2003 most likely would have sold as is for the mid 700’s a couple months later.
The luck of good timing, nothing more.
ParticipantBrooke,
I think you are giving the Mannions too much credit. They were lucky plain and simple to buy in early 2003 before a huge jump in prices. All their appreciation came in the first 12 months and had they waited even a month or two their return would have been dramtically smaller. Timing any market is extraordinarily difficult and they got lucky. The thing they deserve credit for is acting on Rich’s advice to sell at the peak. That’s all.ParticipantUpdate Time!
1044 pretty much the same as last week from 1043 last week. Basically a quiet week around the holiday. Total SD County listings for attached and detached properties are 15,775 down from 16,425.
A 4% drop in inventory this week was pretty much in line with what should have been expected. We’ll should drop under 16,000 this week before starting to build into the year. Inventory dropped by more than 1/3rd since the peak in mid-July which hasnt happened in a few years. The last few years have probably been more the exception than the rule.
New insight of the week. Talking to people at holiday parties I saw alot of money on the sidelines and alot of people making big money outside of RE. If prices get down another 20% from here I expect to see alot of competition for quality properties!
Cheers!
SDR
ParticipantI hate to say it but reading the article it sounds like it is better to be a friend of Rich (Mannion) than Rich himself.
December 23, 2006 at 9:14 AM in reply to: 3567 Calle Palmito & 3571 Calle Palmito, La Costa Oaks 92009 #42298Participantfarbet,
Neither of these appear of foreclosure.comThe one on foreclosure.com is at a different address and was purchased in 10/05. It’s one of the worst locations and is on its 3rd owner. 1st owner flipped 5 months after closing for $300K above what they paid, 2nd owner flipped 6 months later for $80K above what they paid (broke even after expenses). Current owner bought still unlandscaped and w/o window coverings from the 2nd flipper. She flopped.
However, unappealing there is nothing unethical or prohibited about flipping just as there is nothing unethical about buying and selling stocks.
To answer your other question, anyone with a real estate license is required to disclose that fact upfront in any real estate transaction. It is usually done in the MLS under confidential remarks which are only visible to Sandicor members and not in the listings that forwarded to the general public.
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