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Old 03-19-2007, 02:00 PM
 
Location: NY to FL to ATL
612 posts, read 2,774,549 times
Reputation: 230

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Quote:
Originally Posted by businessperson View Post
"everyone of those stupid buyers who bought in 04-05 and even 06 will drowned. all of those folks needed to get into the game of real estate because of fear that either they will be priced out or wanting to makemoney because they thought that the home prices will keep going up up up."




My husband and I bought in 04 for $166,000 a house that now appraises at $225,000. Our payments are less than what we were paying to rent a two bedroom apartment and we get a tax deduction for the interest. We've built equity and we're not paying someone else's mortgage with rent money.

If you don't want to buy, then don't. But don't call others who choose to make a sound financial investment in a home stupid. Home ownership is still the best single investment a person can make. They just need to be reasonable about it and buy within their means.

Well, I for one recently sold my main house that was bought in '04 and cleared more than 105,000. I also have another house I wasn't even trying to sell that someone offered to buy and I would have walked away with another 40,000. But, I'll wait til the market tightens up to sell that one and make a little more.

You do need to buy within your means as the above poster said.

 
Old 03-19-2007, 02:10 PM
 
1,453 posts, read 5,138,892 times
Reputation: 738
Quote:
Originally Posted by house-hunter View Post
I'm afraid that you have been mislead... firstly, I see that you are from NC and more specifically an area that has seen growth from an influx of northerners to your area. and thus, you may not see a huge loss or may break even when this is all over and the low hits its bottom.

However, if your home appraised for $225 its probably going to be worth half of that or $112,000... also who cares what you home appraises for? everyone knows that the only true value gage is what your home will sell for. Its like owning a stock and seeing it triple in value and saying look the price of my stock went from $10 to $20 to $30. as they say its all on paper until you liquidate. in other words it means absolutely nothing. that is unless you buy low and sell high. unfortunately for you, you have bought high, so unless you stay in it for the unforeseeable future you stand to loose value before it regains again. in the mean time your spending on utilities, insurance, interest ect. what you are getting back is a drop in the bucket compared to the all time low of renting. of course all of this is location sensitive. as I said in many forums on the subject be advised by your accountant and financial adviser for specifics.
You don't get it. We have to live somewhere and we live in our own home in a nice neighborhood in South Charlotte for less than what we could rent a small apartment in Rock Hill, SC., in a complex where there were murders in the parking lot. We don't have to worry about the rent going up every six months, or how loud the neighbors above us are. Buying was the smartest thing we could have done; I don't care what it will resale for because we aren't selling.

Flippers may be falling on hard times, but home ownership is still a better deal.
 
Old 03-19-2007, 02:36 PM
 
202 posts, read 470,235 times
Reputation: 37
just how stupid are we you ask??? here you go. have fun! I am proud to be an american but when I see this it shames all of us.

http://www.shoutfile.com/v/gSfSsCpR/Why_People_Believe_Americans_Are_Stupid (broken link)

they say you have to be able to laugh at yourself sometimes... In this sence. Its not hard to

Last edited by house-hunter; 03-19-2007 at 02:47 PM..
 
Old 03-19-2007, 02:51 PM
 
202 posts, read 470,235 times
Reputation: 37
Quote:
Originally Posted by dlh891 View Post
Well, I for one recently sold my main house that was bought in '04 and cleared more than 105,000. I also have another house I wasn't even trying to sell that someone offered to buy and I would have walked away with another 40,000. But, I'll wait til the market tightens up to sell that one and make a little more.

You do need to buy within your means as the above poster said.
case in point... buy low and sell high. you would say but you said....

we have not crashed yet. and if you bought in 04 and you sold in say mid 06 when it was just flatening than sure you would make some money. congrats for selling and making some money. can't say that on your second home. IMHO.
 
Old 03-20-2007, 10:17 AM
 
Location: NY to FL to ATL
612 posts, read 2,774,549 times
Reputation: 230
Quote:
Originally Posted by house-hunter View Post
case in point... buy low and sell high. you would say but you said....

we have not crashed yet. and if you bought in 04 and you sold in say mid 06 when it was just flatening than sure you would make some money. congrats for selling and making some money. can't say that on your second home. IMHO.
I sold the house in Jan 07 FYI.

There isn't a single house selling under 150,000 in the area where my second house is and I only owe 115,000 on mine and it was totally redone in 2005 when I bought it. It's by far one of the few nicest in the area.

You cannot argue with specific info. It's ok to generalize but I have the specifics to back up what I say for myself.
 
Old 03-20-2007, 10:49 AM
 
202 posts, read 470,235 times
Reputation: 37
Quote:
Originally Posted by dlh891 View Post
I sold the house in Jan 07 FYI.

There isn't a single house selling under 150,000 in the area where my second house is and I only owe 115,000 on mine and it was totally redone in 2005 when I bought it. It's by far one of the few nicest in the area.

You cannot argue with specific info. It's ok to generalize but I have the specifics to back up what I say for myself.
not arguing with specifics... exaclty my point. However, you help to make my point. If you are a seasoned investor which you seem to be than you know I'm right. everyone knows that the absolute low was in 98 and high was 2006 so your home you sold in 04 was still low fr begining of 07. this is why I have been saying that if tyou wait too long the prices will drop too much that you wont make money. keep a close eye on what is happening right now in the stock market. everyone is keeping thier eye on the feds and what they will do next. it is expected that they will raise the interest rate and when that happens... what do you think ios going to happen to the fairly small gap of your 40,000. do you think you will still make $40K? I doubt it. the longer you wait the more you need to stay in for the long haul. just my observation but as I have said time and time again talk to your accountant and financial advisor. they know best. good luck!
 
Old 03-20-2007, 01:04 PM
 
Location: Burlington VT
1,405 posts, read 4,779,834 times
Reputation: 554
"just my observation but as I have said time and time again talk to your accountant and financial advisor. they know best. good luck!"

house hunter, you've made your point.
But you continued on to call people stupid for owning thier own homes, and frankly, that undercuts your position, I believe.

Now you've given some excellent general advice - advice I (and most Realtors who work for buyer clients, I'd wager) give to every single buyer client I work for. But there's a problem: it doesn't square with your primary contention.
So let us try a little experiment.

If you're a CFP (Certified Financial Planner) or a CPA (certified public accountant), please tell us whether you think in think people (in general, all other things being equal) are "stupid" for buying / owning primary homes right now. I realize you, as a CPA or CFP tailor your advice to specific clients and thier situations - but your outlook in general would be helpful here.

Thanks,
David
 
Old 03-20-2007, 01:56 PM
 
474 posts, read 2,189,564 times
Reputation: 249
Highs and lows in real estate markets are historically regional. The real estate markets are always cyclical. There is always migration which creates an ebb and flow from one area to another.

Buyers of property are either buying to have a roof over their head, or they are investors. If you try to time the market, you can lose big. No one has a crystal ball.

Buying a home for your family is and always has been the best investment you can make over the long term. The average home buyer moves at around the 8 year mark. If you buy a home with an eye to making money on it, flipping it etc., then you become a risk taker with your money and become an investor. Investors have a very different agenda than Joe Homeowner with 3 kids.

Responsible professional Realtors who have seen the good markets and the bad markets are qualified to give sage advice in any market.

In the mid 80's every guy and his cousin with a toolbelt called himself a "builder", "contractor" and threw up boxy subdivisions or the odd 6 or 7 home "street". Things were booming. Many of them thought they were on the gravy train, until it all came to an end in the early 90's; when they dropped their toolbelts, settled the unworkmanlike lawsuits, and went back to pumping gas.

Just saying .....
 
Old 03-20-2007, 03:05 PM
 
202 posts, read 470,235 times
Reputation: 37
I will continue to say... NEVER, YES NEVER trust or listen to any realtor, lender, mortgage broker or seller if you are a buyer. they will say anything for the sale. after the sale its all your problem.

funny 2 years ago I never heard a realtor talking like apple annie above. take a look at this and other boards and you will see. in fact I had a realtor tell me that I should buy (this was in late 04) right away and spend as much as I can as the homes are going in one direction and it is going up with 20% returns and increases yearly. This was a seasoned realtor in the buis for over 20 years. i disagreed with her then and still today. needless to say I don't hear from this crook anymore these days. hmnn I wonder why? then when that first correction came in 06 I had another realtor tell me to re-evaluate my thinking as this is the best time to buy. prices droped only 5% coming off of historacle highs never seen before. so a home costing 100,000K only droped $5000 in other words a drop in the bucket. so she started her shpiel in telling me that interest rates are still historically low (they were) and this is the time to buy as the prices will turn again in spring of 07 and strat to go up again. now do you think that she ever speaks to me these days... nope because I disagreed with her than.

Moderator cut: personal - off topic

again listen to no one but your own qualified CPA or financial advisor. and this is in an up market or a down market. always question info coming at you from someone who is out for a commition. they don't have your interest at hand.

I'm not a CPA just a well educated person that knows and understands the cycle of the real estate market.

carful with those who now shift thier focus now that its a BUYERS market to become a BUYERS REALTOR. No such thing... commission comes from the sale of the home. a conflict in interest for a buyer.

Wait to buy a home two to three years will save you lots of money and you will thank yourself for doing so. I suppose there will always be that investor out there trying to make a penny. to Them I say good luck couse they are gonna need it. Its over folks, overdue for the flatening of the great big housing boom of the the new millenia. Time to clean up this mess. If we don't see a crash we will see our very lives in this great nation fall by the waistside allong with its quality. Terrorisim itself has nothing on what would happen if we don't see this type of correction.

Apple Annie is right after the boom in the 80's (upto 86 to be exact) we saw the fall in the housing market (86-89 to be exact) and yes we did see builders who went back to pumping gas BUT SO TOO WERE THOSE REALTORS

Last edited by Marka; 03-21-2007 at 03:54 AM..
 
Old 03-20-2007, 03:10 PM
 
202 posts, read 470,235 times
Reputation: 37
BTW, If anyone is wondering... I'm just a simple Architect.
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