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We can get into a big debate about that, to include how Chris Dodd & Barney Frank (D) as well as the Clinton administration basically forced lenders to lend money to people without the real means to pay it back. But anyway.....
Simple supply & demand economics hold the answers you seek.
I guess all those toxic zero down no qualify ARM's, CMOs bundled at 30/1 leverage by financial institutions
during the stupid phoney mania of 2003-06 where Bush and company was focused with being mayor spreading socialism in Bagdad rather than oversee the out of control spending and lack of any oversight as our banking system went crazy were also Bill Clinton's fault. We can only hope to see another period of prosperity like the Clinton years again in our lifetimes..and yes I am an independent and despise Wall Street with a passion too with the Dems taking control of Congress in early 2007 actually accelerating the downturn as needed regulations were put in but were unfortunately a good 2-3 years too late after all the damage had already been done....One for the economics textbooks for sure
I wish I would have sold in 2005 or 2006. We sold in 2007, owed 130K on our house, sold it for 210K. We could have gotten over 300K in 2005 but we were happy and didn't want to put our house on the market. We want to move again and our new house in NC is on the market and we will lose money but we want to go back to FL and pick up a cheap house because we sold our overinflated one 18 months ago LOL. But in reality, we won't lose anything because the profit we made in 2007 was 78K. Our home wasn't worth what we sold it for, was worth what we owed. So even if we "lose" money and only make a 50K profit, we haven't really lost because we never really had that money to begin with. It was all profit. I prob don't make any sense, sorry to ramble, been up and at 'em since 5am!
Oh, and NO I don't feel bad for selling when it was higher, thats the point of a home investment!
I wonder if the people that flipped houses and sold them at inflated prices to people that couldn't afford them to begin with feel any guilt at their hand in creating the mess we're in nationally ?
No I really doubt they will.
The people involved in house "flipping" are all about money and greed and power and only care about themselves. These are the people who want to live in the best houses, drive the best cars, wear the best clothes and yet they want to do minimal amount of work to achieve all that. Alot of "flippers" dont even have a college education, probably some dont even have a high school diploma. There very shady, arrogant people and I doubt few if any will feel any guilt for there hand in the economic mess this country is in. Its just not characteristic of them to take the blame for something.
The "house flippers" were a bunch of Donald Trump wannabes who wanted to get rich quick and go and bake there head in the sun all day and stare at Palm trees. Thats pretty much all the real estate people. They want to do minimal work and make as much money as possible with little to know effort. But the "flippers" who were buying homes , (some doing a little fixing up to the home, some didnt) would then sell them a very short time later for a much larger price. The reason they were able to do that was because of Predatory Loans. Alot of shady charachters involved in the whole situation from lenders, to flippers and everyone in between but basically nickle and dimers who stock shelves at Walmart could have been approved for an interest only loan, when in reality those people could not have been approved to rent an apartment, let alone buy a house. No credit checks , no income verification, what a big flaming joke.
I wonder where all these house flippers are now? Im sure VERY few made enough to never have to work again.
House flipping is bunch of crap and is another reason I hate Florida and California , because its filled with people who attend these Power hungry how to make money in real estate seminars and abuse and tarnish the concept of the american dream..which is buying a home. There buying homes but only to re sell for a larger amount to get rich quick and not have to do a lot of work in the process.
Where I grew up , which was in a average class neighborhood in New Jersey , when someone moved it was a rarity. It was actually the topic at dinner, because it was a big deal someone was selling there home. It was a situation of knowing who your neighbors are and trusting them, and actually liking living next to people you know and that want to actually live in the neighborhood. Not like the big shocker when I came to Florida in August 2003 and quickly realised that south east Florida had NO neighborly bonds, no trust, no sense of belonging, instead it was all about greed and money. For sale signs meant nothing anymore, it was just another person selling out and another "flipper" trying to get rich quick.
To be honest I am thrilled that the bubble burst. I am. Now people are forced to go back to basics, and relalize thats its not easy to become a home owner. Its not a right, its a priviledge that you earn and work for. No more predatory loans to people with drug dealer income and no credit or horrible credit and little income.
No more of people selling there homes for much more then they are truley worth.
I would have to agree that the issue of house flipping needs to be dealt with. It would be a great way for states to raise tax revenue instead of throwing another dollar on a pack of cigarettes. Make it a sliding scale ,penalizing the hell out of folks who sell within 6 mos to a year. It's not that people are so incredibly smart, there are too many stupids out there far to impressed by a couple coats of paint and a stainless steel fridge.
I would have to agree that the issue of house flipping needs to be dealt with. It would be a great way for states to raise tax revenue instead of throwing another dollar on a pack of cigarettes. Make it a sliding scale ,penalizing the hell out of folks who sell within 6 mos to a year. It's not that people are so incredibly smart, there are too many stupids out there far to impressed by a couple coats of paint and a stainless steel fridge.
This issue has already been dealt with. The magical bubble busted. Its done. The housing market is trash now. I dont here much about house "flipping" these days.
Its one thing to buy an old crap house and put legit work into it and fix it up and hope to make a profit from it. Thats cool in my books, although I wouldnt buy one because if the house went to hell to begin with then the surrounding area is probably crap as well. But for people who dont mind living on the "other side of town" taking a run down house and making it look nice and reselling it is good for the "flipper" and the buyer and the seller as well (if there even is one, probably state owned) My problem was with the people who were buying multiple condo units at one price and selling them for double to people who couldnt have afforded them to begin with, which is one of the main reasons its Forclosuremania right now. Same thing with the get rich quickers who were buying a average house for say $145 G and selling it a month later for $230G and then the person who bought that sells the same house 6 months later for $280G. Its just using the house like a prostitute to make fast money. Eventually once the house was on the market for $350G and the market went cold and people realised that "flipping" and foreclosures were running wild then that person is stuck with the hot potato and cant sell it for that price. Now that the market is complete trash, a person like that who is stuck holding the hot potato has a house that doubled in value in 2 years but its true worth is only maybe $150G. So another foreclosure and another wild human who is taking a sledgehammer to the house, and removing everything worth of value including the kitchen sink to "stick it to the bank"
Its a complete mess and those greedy people should feel ashamed and I hope they had to declare bankruptcy and get a job at a warehouse.
At first- It was just more greedy people bragging about how much money they made off of selling their house/houses.........
Now- we are discussing the fundamental problems with RAMPANT, UNCONTROLLED real estate speculation.
Those values were COMPLETELY FAKE and Florida doesn't have the local economy to support such values.
Lets not forget......
There were also MANY, MANY people who got SCREWED from this whole deal just trying to buy a home to LIVE IN. They didn't have subprime loans and bad credit, ect.........
They were the victoms of REAL ESTATE FRAUD, MORTGAGE FRAUD, TITLE FRAUD, FRAUDULENT HOME INSPECTIONS, FRAUDULENT APPRAISALS, ect.........................
PLENTY of honest, hard working people got told (for 5 years non stop) that they were "wasting their money" by renting a place and that they were "crazy not to buy something NOW" and "gotta strike while the iron's hot" and all that crap.........
So lets not be so quick to judge everyone in foreclosure..............
Many of them were trying to do the right thing............ and got screwed.
Cape Coral:
Bought Dec. 2002 for $198K
Sold Dec. 2005 for $479K
Thank God I'm out.
Great profit!
Smart to sell then.
The downer is every states property took a hit and if that same property was anywhere but Florida you would not have sold it for that money in 2005.
So you benefited from owning a home in Florida which is great news for you and others.
Congrats on being smart and not so greedy and selling when it topped out.
As a side note, why did you leave Florida, I know Cape Coral is not to popular on this board and wondered why you left and not moved to another area in Florida.
At first- It was just more greedy people bragging about how much money they made off of selling their house/houses.........
Now- we are discussing the fundamental problems with RAMPANT, UNCONTROLLED real estate speculation.
Those values were COMPLETELY FAKE and Florida doesn't have the local economy to support such values.
Lets not forget......
There were also MANY, MANY people who got SCREWED from this whole deal just trying to buy a home to LIVE IN. They didn't have subprime loans and bad credit, ect.........
They were the victoms of REAL ESTATE FRAUD, MORTGAGE FRAUD, TITLE FRAUD, FRAUDULENT HOME INSPECTIONS, FRAUDULENT APPRAISALS, ect.........................
PLENTY of honest, hard working people got told (for 5 years non stop) that they were "wasting their money" by renting a place and that they were "crazy not to buy something NOW" and "gotta strike while the iron's hot" and all that crap.........
So lets not be so quick to judge everyone in foreclosure..............
Many of them were trying to do the right thing............ and got screwed.
I agree with you on somethings. It was not the poor or lower income people who got screwed in this mess, it was the hard working people who make decent money who did.
Now, what I disagree with you on is the fact that people need to not trust everyone and everybody. If you signed that dotted line then you, YOU, agreed to everything being ok.
If you are smart enough to make a decent wage, save money and have good credit then you should have been smart enough not to get yourself into a mess. That is why you are suppose to have an attorney look over your deal before you sign on it.
Now Obama wants to help the same people Clintons did by forgiving loan amounts, getting them lower rates, deductions etc when the people WHO SHOULD BE GETTING THE HELP, meaning those who have decent paying jobs, make good choices, have good credit and have done everything right are the ones who should be getting help. Not the freeloaders!
NOT the people who should not have bought a house in the first place. Obama is going to help the same people and bail them out and not you or I.
Another freebie for those who bought homes with lousy credit, work history etc.
I blame those people for most of this mess, the government and groups like ACORN put people in homes they did not deserve or need. That drove a ton of our problems today.
Now, you seem angry that people made a profit.
There is nothing wrong with posting your profits here at all.
You say this thread is coming around, well it was until you unleashed your jealousy towards those who were smart enough to sell at the right time.
So, did you lose money on your home? Something tells me you did?
Did you have an attorney look over your paperwork before buying? How did you get defrauded?
My opinion is this, if you signed the dotted line then you agreed to make that payment for that amount and you should NOT be allowed to let it go unless you have a major reason why. Not just because you do not want to pay it anymore like so many are.
Sure some people had problems and caused foreclosures, real problems, but many did not, they just wanted to walk away and stick the rest of us with their bill. If you had a medical issue or something happen then I can see it, but if you did not, then you deserve to be judged.
It drives me nuts to see people whine when they buried themselves and now want to walk. Most refinanced their homes and you know it to buy toys, cars, travel etc and when they owed to the max on it and could not sell it they blame everyone but themselves.
The bank should force those who want to foreclose on a home to prove a legitmate reason for doing so. If you do not have one such as a medical issue, family issue etc then you should not be allowed to do this. Should be easy to prove IF YOU have a legit reason.
So go ahead people post your profits, I am not jealous of you and I actually feel it is great that you were able to make a profit. Shows me that you have the brains to do so.
Post on. Did you make money in this market? Many of you did and it is so cool to see it.
I would have to agree that the issue of house flipping needs to be dealt with. It would be a great way for states to raise tax revenue instead of throwing another dollar on a pack of cigarettes. Make it a sliding scale ,penalizing the hell out of folks who sell within 6 mos to a year. It's not that people are so incredibly smart, there are too many stupids out there far to impressed by a couple coats of paint and a stainless steel fridge.
So you do not believe in Capitalism? Freedom to own your own business and make a profit?
Have you ever bought a car? A dress? A purse? Tickets to a concert or game? Dinner out?
If so and I know the answer is yes, then you need to penalize those people too because they all made a profit off you because you did not know you can buy it cheaper somewhere else. Like you said they take advantage of stupids. We are all stupids then because we all buy something someone else made look great!
If you do this to houses then you need to do this to the car dealers and one heck of a lot of other people. Therefore killing 90% of our economy as you would be putting those people all out of business.
And yes, those house flippers were smart, it takes a smart person to be able to run a business and make money at it. Stupid people cannot run a business and make money.
Its called INSPECTORS! They get paid to uncover all those issues for you.
Again, if you bought a flipped house and it is junk then that is your fault. Inspectors, attorneys, carpenters, etc would helped you before you signed the dotted line.
And do not forget the banks, they are also suppose to have the house looked at.
Now we are blaming the flippers. Goodness.
Perhaps the smartest group of people out there.
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Im sure VERY few made enough to never have to work again. 
