[VCJIM]

Your writing indicated a current condition of a falling dollar, not the possibility or prediction of a falling dollar. Perhaps a little more clarity would be in order, lest someone think that the dollar is currently falling when in fact, it is not.

[VCJIM]

PS,

You stated:

“All these recent comments from Treasury officials, the debt, and the falling dollar are really starting to scare me”

What evidence do you have of a falling dollar? I’ve been tracking the dollar vs. the Euro and Yen and it is holding strong.

In late July, the dollar was worth 117.2 Yen and .795 Euro. The low since then, the dollar 114.2 Yen and .776 Euro in early August. Today, it is worth 117.1 Yen and .782 Euro. Please provide evidence of a falling dollar.

[VCJIM]

Ah, I see now. Thank you.

[VCJIM]

It’s an SFH in a nice area with few rentals, moving would be a hassle. I’m not one to haggle, I’ll just pay the increase and buy house in a couple of years. They are nice landlords, and the price was reasonable when I took it originally.

[VCJIM]

PS or PD, I’m unclear on capital gains after two years of renting. Would you mind elaborating on the calculation?

[VCJIM]

Kaycee,

Have you considered renting it out using a rental agency? Since you’ve had the house four years, you would almost certainly be cash flow positive. If I hadn’t sold my house just prior to the peak, I would likely rent it out instead of trying to compete with 4 other houses and no buyers.

[VCJIM]

I just received a letter from my landlord that they are increasing rent 5%; this is after two years of stable rent. In the letter, they claim their loan has increased 8%. So it seems that increasing loan amounts are being passed on to renters, at least in my case.

[VCJIM]

Forever sounds like a reasonable time frame for paying off one’s home.

[VCJIM]

One anecdote: This happened aboutover a month ago, I’ve been super busy and haven’t had time to post it. I found a used car online and made an appointment with the owner to go see it. The owner and I started talking, and I found out that he and his wife are both appraisers. He said their business is down 30-40% from a year ago, and his wife told him he needed to sell his “toy” (the car). I think there will be a glut of expensive / luxury cars as housing continues to erode.

[VCJIM]

I am so weird! When I bought my house, I was 24 years old and requested a 15 year fixed loan. In addition to that, I made advance payments in the first year that took the mortgage from 15 to 11 years, it would have been paid off at the end of 2005 if I hadn’t sold it at the beginning of 2005. I hate debt of any kind.

[VCJIM]

Perhaps if people are no longer “rich” from the homes, they will no longer be able to afford private schools, and it will return to a net increase in enrollment for public schools. Fascinating how this all works out.

[VCJIM]

I sold in early 2005 and have often wondered if I should have waited for the Summer, the peak buying season. I was not under any financial pressure to sell.

My house had a nice lot, but was a horrible layout with bad construction, no a/c, bad electrical, etc. In the 10 years I lived there, I made almost zero upgrades other than a nice storage shed I built unpermitted. My realtor and I discussed frequently that I could invest in fixing up the house to make more money. Her arguments were convincing that the return on investment would not be there; someone buying this house would have their own plan for it. The offer I received covered seller’s commissions, no contingencies and “as-is”. The fact that I would not have to worry about fixing anything was a huge incentive for me. Anyway, I accepted the offer and escrow went smoothly, other than my uncertainties about selling.

The buyer instantly added a second bathroom and landscaping, it was back on the market in 3-4 months. It never sold again; I don’t know if the flipper is living in it or renting it out.

Since then, I’ve watched the market and have wondered if I should have held it a little longer. I’ve come to the conclusion that it was the right choice, given the condition of the house, my personal situation at the time, the ease of selling, etc. I would not want to be trying to sell that house now, or even 6 months ago.

[VCJIM]

I agree Beebo, the “enforced savings” of a house is very good for many people. I think few actual put the difference between renting and buying (right now) into savings or investments. Also, moving is expensive. The stability of a home, preventing someone from moving every few years, is generally a positive.

[VCJIM]

That is an awesome idea for a show! I wish I had thought of it. I wish I could watch, but no television in my house : (

[VCJIM]

I’ve heard (from a resident) that SoFla is a ghost town right now, many people afraid to be there with the hurricanes over the last few years. Many restaurants and other businesses are closing, he’s even worried about his business.

[Author]

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