Real Estate Market / Inflation / Recession / Depression (Durango: relocation, vacation, jobs)

[Shuffler]

Originally Posted by formercalifornian

It's really hard to tell what's going to happen at this point. Indicators are all over the place, which makes me very nervous. I just bought a house. I have no idea whether or not that was a good decision from a purely financial stand-point. I do know that I'm happy to own again after two years of renting, and my spouse and I stayed well within our comfort range.

People around me seem to be going about business as usual. Restaurants are full at dinner-time, and Target lines are just as long. Are we in denial? Who knows. I think most people are confused about what the future holds. They're not sure what to do, so they maintain the status quo.

Personally, my family has pulled back a bit, but not drastically. We bought a smaller and less expensive house than we might have bought a couple of years ago, but we did buy new furniture for the living room and had the old re-finished. After ten years of kids, it was time! We needed to replace the second car, but instead we decided to move closer to work and sell the clunker. We can nurse the good car along for a few more years. We still eat out (mostly because our kitchen is in total disarray because of the move), but I'm planning & planting a large garden. We've canceled a few of the kids' activities, but they were already over-scheduled and it was crazy to drive to our old neighborhood to let them continue anyway. We've increased the amount of money we put into savings/investments, and we're watching that money carefully.

All that said, things in our household are really good. My spouse just landed a promotion and a generous raise. We carry no debt, and we have a very healthy bank account. We bought our house for cash, our car is in good condition, and everyone is healthy. I don't know why I feel anxious, but I can't shake this feeling that times are going to be rough for awhile.

sounds like you're in good shape....as long as you're in that house for the long(er) haul, I wouldn't sweat it just yet. More people are probably doing similar things to make adjustments like you are...being debt-free and living beneath your means will pay off in the long run. Dig some holes in the yard and start burying some cash...

I agree that it appears that nothing much is changing day to day and it still looks like the status quo persists....traffic is the same, people still eating out, shopping, flying, buying new vehicles, etc. About the only thing I've noticed is a few more bicycles on the rack here at work, and more people riding scooters around my 'hood.

[LBear]

I am also in the real estate field. I don't make claims of "having money" to buy properties free and clear. I have learned that those who make such claims are talkers and don't have money. I know millionaires, most don't boast or talk about their money, they look like Joe average. Those who talk are either liars or insecure about themselves. So beware of those who boast and claim to have "cash" to buy homes free and clear, most are full of hot air.

People are buying real estate. I just got off the phone with a friend from a title agency. She has had over 20+ closings on residential property since July 1st. That includes a 4-day holiday weekend, so only 4 business days. People are buying properties, especially bank foreclosures, there are many awesome deals out there. She can't keep up with the amount of closings. People are buying properties. Yes, most are bank owned and great deals but money is being exchanged and properties are moving.

There is one poster that I have caught in some blatant lies, I don't want to get into it, as it will cause a "war". This poster has lied about things, so readers beware what you read here. OK, one quick one. A claim was made that there is no hidden agendas or interests by this one poster, but it was latter revealed that there was some money to be made if certain things played out their way, all the time they were pushing agendas and ideas to help their "investment" move along.

[sterlinggirl]

Hey LBear....how's the weather been for ya lately?

[Bob from down south]

Originally Posted by LBear

I am also in the real estate field. I don't make claims of "having money" to buy properties free and clear. I have learned that those who make such claims are talkers and don't have money. I know millionaires, most don't boast or talk about their money, they look like Joe average. Those who talk are either liars or insecure about themselves. So beware of those who boast and claim to have "cash" to buy homes free and clear, most are full of hot air.

Financial talk show host Dave Ramsey makes a very public spectacle of people calling in screaming "I'M DEBT FREE!!" People there talk publicly, on a nationally syndicated radio show, about paying off their houses, buying cars and homes with cash, and other behaviors of financial winners. It serves to motivate others to eschew debt and do the same. I mention that I will buy my home with cash to help dispel the evil notion that debt is the only route to homeownership. I have found, in extensive investigation into public assessors' databases, that cash buyers are not such a rarity...definitely not the majority, but not rare either. If the only examples we see in day to day life are debt slaves burying themselves up to their necks in mortgage debt, how will anyone ever see the light??

This sounds to me like another debt-laden case of sour grapes.

Originally Posted by LBear

People are buying real estate.

According to the Pikes Peak Area Realtor's association, people are buying. About 24% less of them than this time last year--and last year was nothing to brag about.

Originally Posted by LBear

There is one poster that I have caught in some blatant lies, blah blah

There you go with another personal attack. You have caught no one in a lie here. If this is another one of your fantastic conspiracy theories about closet socialists about to emerge, I feel certain that the moderators will dispose of this one just as quickly as they disposed of your previous ad hominem rantings.

[Bob from down south]

I just noticed...we're now in our 100th page!!

[jazzlover]

Whether LBear likes it or not, there are some people out there who are essentially debt-free. They are often not people who have multiple-million dollars of ASSETS (which is what people usually can physically see--big house, fancy car, etc.) and also have huge debt to go with this. Usually, debt-free folks are the type of people who live conservatively, and their substantial net worth is often not readily apparent to outsiders. And, when it comes to buying something, they adhere to the philosophy that cash talks, and bull**** walks. It's amazing what you can do and the deals you can make when you can write a check for it--a check that's good.

I have also run into plenty of real estate people, stockbrokers, and others with holes in their shoes and zippo net worth who spend their days telling people who actually have some money how to get "rich"--if they will just listen to them. If those "experts" are so damned smart, why aren't they rich themselves? I haven't spent time in this thread telling people what a "great" investment this or that is--rather that we are entering a period that is likely to suck financially for just about everybody. As for personal gain--guess what?--my pension fund is getting hammered just like everybody else's is these days. It's not about "getting rich" now--it's about capital preservation, baby.

Oh, and Bob, I'm sure you'll want to comment on Fannie Mae's sinking fortunes and what this will mean to the real estate markets. From MSN Money today Market Dispatches - MSN Money :

The financial damage was widespread
The battering sustained by Fannie Mae and Freddie Mac came because of fears the mortgage-finance companies may not have enough capital to weather the biggest housing slump since the Great Depression. Both have raised billions of dollars in new capital this year, but the stocks were roiled by reports early this week that they may need to raise as much as $75 billion more.

The companies buy mortgages from lenders, replenishing their cash to make more loans. If Fannie Mae and Freddie Mac must raise more capital, their ability to replenish lenders' coffers will be crimped and could lengthen the housing slump substantially.

If Fannie and Freddie are put on the sidelines, banks and other financial institutions with heavy exposure to construction lending and the like also could be threatened.

And that's why so many financial stocks were hit hard today.

Anonymous quote I saw the other day on a humor website: "When Rosy the Riveter got replaced by Rosy Scenario is when the United States started going to hell."

[sterlinggirl]

The battering sustained by Fannie Mae and Freddie Mac came because of fears the mortgage-finance companies may not have enough capital to weather the biggest housing slump since the Great Depression.

That's gonna hurt....

[formercalifornian]

Originally Posted by LBear

I am also in the real estate field. I don't make claims of "having money" to buy properties free and clear. I have learned that those who make such claims are talkers and don't have money. I know millionaires, most don't boast or talk about their money, they look like Joe average. Those who talk are either liars or insecure about themselves. So beware of those who boast and claim to have "cash" to buy homes free and clear, most are full of hot air.

If that was directed at me, I'm not sure how to respond. It's true that I bought a house for cash, but you don't have to believe me. I agree that most people with money don't talk about it much, and it's certainly not something I share with the neighbors.

My spouse and I are not millionaires, but we do look like average Joes. Am I insecure? I suppose the argument could be made in certain circumstances. That said, we absolutely had enough to buy a modest house out-right. Unfortunately, we still have to work for a living to cover all our other expenses. I can't force you to believe me, but please refrain from calling me a liar.

[Bob from down south]

Originally Posted by formercalifornian

If that was directed at me, I'm not sure how to respond. It's true that I bought a house for cash, but you don't have to believe me. I agree that most people with money don't talk about it much, and it's certainly not something I share with the neighbors.

My spouse and I are not millionaires, but we do look like average Joes. Am I insecure? I suppose the argument could be made in certain circumstances. That said, we absolutely had enough to buy a modest house out-right. Unfortunately, we still have to work for a living to cover all our other expenses. I can't force you to believe me, but please refrain from calling me a liar.

Hey formercalifornian...it may have been directed at you, but I say we need about 200,000,000 more winners like you guys in the game. The pigmen in commercial banking and the pitiful overleveraged masses that are their willing prey are playing a game which will soon end tragically in Sudden Debt overtime. They know that they can't win when people like you are in the game to backlight and expose the depth of the insanity. So they send defamers and representatives of the beast to try and bring everything and everyone that has risen above the madness down to the lowest common denominator.

"...and the borrower is servant to the lender." -Proverbs 22:7

[LBear]

Originally Posted by formercalifornian

I can't force you to believe me, but please refrain from calling me a liar.

I was NOT talking about you...It was someone else...