[CJFlorida]

Originally Posted by Hero

yeah you really can't blame those who fell into this bubble. At the time you were a fool for renting than buying and if you don't buy now, you never will. The way prices was going up back then, anyone would believe that.

I have to disagree. We began reading the housing bubble blogs in 2003. Every time we googled for housing information in our home search, they would pop up in our faces.

Using the information about fundamentals we found there, we purchased in Jupiter Farms in 2003 for $325,000 and sold for $550,000 in April 2005. Then took our cash and put it into 6% CDs. We found a great rental, negotiated a great lease, and will decide down the line which bargain house to pick up.

I am not claiming to be smart here, just that the information was readily available. Buying a house is a huge decision and deserves to be researched. Did the con men of the real estate industry do a number on many people? Yes. But others were never fooled. A con man depends on people who are greedy and/or do not do basic research. As brutal as it is, it was up to people to do more research before they signed on to buy properties. Many people did not do much research on a huge financial decision.

It was obvious back then that wages were stagnant, that information was easily available. The population of home buying aged Americans was available. Area median incomes was available. It should have been obvious that home prices can not increase 15, 20, 25% per year when the wages were staying flat. It was also common sense that areas with a median income of $40,000 could not support a median home price of $300,000!

My Dad told me when I was 17 that buying a house as soon as I could afford it was wise. But he said back then, never spend over 3 times what you make, never buy the fanciest house in the neighborhood, and check what houses are renting for that are similar to be sure the price is appropriate.

These basic fundamentals do not change. I feel bad for those that got caught in the bubble, but to say no one knew is wrong. Those bubble blogs and the thousands of posters and readers have been right all along. Their posts are documented and time dated.

[Wild Style]

Originally Posted by mystree

I am glad the prices are falling,but It's so sad so many people bought houses acting like if they didn't buy then they would never get a house.Now a couple years later struggling with payments or losing their homes.

don't feel bad for them. They were greedy and now they have to pay the price for that greed. No where is it written that you MUST own a home before you die, right? If they would have just lived with in their means we wouldn't be going through this whole mess as a country right now. Not only that though, now you and I (if it is with in our means) can go get homes at sensible prices.

Originally Posted by Hero

yeah you really can't blame those who fell into this bubble. At the time you were a fool for renting than buying and if you don't buy now, you never will. The way prices was going up back then, anyone would believe that.

NPR was talking about the developing housing bubble back in 2003. I remember they had the head of the E.U. bank on one day. They asked him what should investors invest in (American investors). He laughed a hardy laugh and then said "homes in italy". The interviewer said, no, seriously. The guy said yep, im serious, America is in for a disaster. My point in all this is, if people had educated themselves they would have known things were going to be bad. It was a lack of educating oneself coupled with greed.

My Dad told me when I was 17 that buying a house as soon as I could afford it was wise. But he said back then, never spend over 3 times what you make, never buy the fanciest house in the neighborhood, and check what houses are renting for that are similar to be sure the price is appropriate.

My thing is now, I will not pay more than double of what I make. My father in law made 25,000 back in the days and bought his home in Chicago for 50,000. That was the standard back then and thats what I am running with. If that doesn't happen then I guess I will rent till I die, that or move abroad.

[macguy]

Originally Posted by CJFlorida

I have to disagree. We began reading the housing bubble blogs in 2003. Every time we googled for housing information in our home search, they would pop up in our faces.

Using the information about fundamentals we found there, we purchased in Jupiter Farms in 2003 for $325,000 and sold for $550,000 in April 2005. Then took our cash and put it into 6% CDs. We found a great rental, negotiated a great lease, and will decide down the line which bargain house to pick up.

I am not claiming to be smart here, just that the information was readily available. Buying a house is a huge decision and deserves to be researched. Did the con men of the real estate industry do a number on many people? Yes. But others were never fooled. A con man depends on people who are greedy and/or do not do basic research. As brutal as it is, it was up to people to do more research before they signed on to buy properties. Many people did not do much research on a huge financial decision.

It was obvious back then that wages were stagnant, that information was easily available. The population of home buying aged Americans was available. Area median incomes was available. It should have been obvious that home prices can not increase 15, 20, 25% per year when the wages were staying flat. It was also common sense that areas with a median income of $40,000 could not support a median home price of $300,000!

My Dad told me when I was 17 that buying a house as soon as I could afford it was wise. But he said back then, never spend over 3 times what you make, never buy the fanciest house in the neighborhood, and check what houses are renting for that are similar to be sure the price is appropriate.

These basic fundamentals do not change. I feel bad for those that got caught in the bubble, but to say no one knew is wrong. Those bubble blogs and the thousands of posters and readers have been right all along. Their posts are documented and time dated.

If it was so easy, why did you flip only one house? You could have flipped a dozen and actually made some money.

[sunrico90]

Originally Posted by CJFlorida

I have to disagree. We began reading the housing bubble blogs in 2003. Every time we googled for housing information in our home search, they would pop up in our faces.

Using the information about fundamentals we found there, we purchased in Jupiter Farms in 2003 for $325,000 and sold for $550,000 in April 2005. Then took our cash and put it into 6% CDs. We found a great rental, negotiated a great lease, and will decide down the line which bargain house to pick up.

I am not claiming to be smart here, just that the information was readily available. Buying a house is a huge decision and deserves to be researched. Did the con men of the real estate industry do a number on many people? Yes. But others were never fooled. A con man depends on people who are greedy and/or do not do basic research. As brutal as it is, it was up to people to do more research before they signed on to buy properties. Many people did not do much research on a huge financial decision.

It was obvious back then that wages were stagnant, that information was easily available. The population of home buying aged Americans was available. Area median incomes was available. It should have been obvious that home prices can not increase 15, 20, 25% per year when the wages were staying flat. It was also common sense that areas with a median income of $40,000 could not support a median home price of $300,000!

My Dad told me when I was 17 that buying a house as soon as I could afford it was wise. But he said back then, never spend over 3 times what you make, never buy the fanciest house in the neighborhood, and check what houses are renting for that are similar to be sure the price is appropriate.

These basic fundamentals do not change. I feel bad for those that got caught in the bubble, but to say no one knew is wrong. Those bubble blogs and the thousands of posters and readers have been right all along. Their posts are documented and time dated.

Good post, but not every one did their research like you did. They are providing their opinions.

Thank you.

[thebigr]

I don't feel sorry for anyone. In this day with the internet, research is very simple. Plus a little common sense helps. Not sure if the government should bail people out. It just extends the problem.

[SKB]

Originally Posted by thebigr

I don't feel sorry for anyone. In this day with the internet, research is very simple. Plus a little common sense helps. Not sure if the government should bail people out. It just extends the problem.

The government is already trying to figure out ways for a bail out. They are trying to figure out how to freeze the teaser rates on ARMs.
Great idea reward the people that shouldn't have bought in the first place and punish the ones that can afford to buy with charging them a higher interest rate and then screw the savers with giving them next to nothing for interest in savings etc..

I certainly think if the Gov starts handing out bailouts they need to start sending checks to all of the people that rented between 2000 and 2005.

[CJFlorida]

Originally Posted by macguy

If it was so easy, why did you flip only one house? You could have flipped a dozen and actually made some money.

Our intention initially was not to flip the house. When we researched the purchase, the bubble had just begun in some areas of Florida. We looked for and found a house in Jupiter Farms that was still priced properly. Our goal was to get a house that was still priced right as the bubble was coming according to the blogs.

The seller was a recent widow, whose husband had designed and built the house for them to retire in. He died suddenly. We did not haggle with her, gave her full price and are still friends with her. She is very happy things worked out for us.

Anyway, our goal was to buy a house before prices went crazy and live it in a long time. The real estate agent who sold it to us would call every few months saying how much he could get us for it.

When he said he had a buyer at $550,000, and he had a rental for us at an amazing price, we took the deal. We have kids and wanted to make a smart financial move.

Like I said, I am not claiming brilliance here. All I said is that this bubble was not a shock to everybody. There are some very smart people running these housing blogs and they do not get enough credit for being correct.

Obviously this is a touchy subject to some so I will let it go and wish everybody good luck.

[SKB]

"When he said he had a buyer at $550,000, and he had a rental for us at an amazing price".

That is the part that is unbelievable to me, that your realtor encouraged you to rent and not trade up to a bigger and even more expensive home.
Sounds like you made like a bandit on this deal. Lucky you!!! I think that was a once in a lifetime deal the most I have ever made on a house was 30,000.

[Wild Style]

With the bailouts,

The government has already bailed out the banks. I think they should have let the ones who screwed up flounder as well. No one should have been bailed out in this situation.

[sunrico90]

Lets get back to the topic and stay away from personal comments.

Thank you