Comments on: “To buy or not to buy…that is the question” http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/ Mortgage insiders view on mortgages, real estate, debt, and the housing bubble. site by SoCalMtgGuy, author of - Another F@CKED Borrower Tue, 07 Oct 2008 19:36:57 +0000 http://wordpress.org/?v=2.0.5 by: amoxil http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-126810 Thu, 01 Mar 2007 07:55:45 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-126810 <strong>amoxil...</strong> interesting...... amoxil…

interesting……

]]> by: Handbags http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-126194 Wed, 28 Feb 2007 05:28:56 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-126194 <strong>Handbags...</strong> interesting... Handbags…

interesting…

]]> by: tupac http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-123594 Thu, 22 Feb 2007 10:25:57 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-123594 <strong>tupac...</strong> shakira... tupac…

shakira…

]]> by: twins mom http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-207 Wed, 08 Feb 2006 22:16:33 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-207 Dorf, Thanks for sharing where you are at and the situation there. In the Los Angeles area (Santa Monica,Brentwood,high end areas of San Fernando Valley, Agoura , Westlake ,Calabassa and several others)prices are very high for those type of rentals as far I see. Of course rentals still are cheaper than owning and paying a mortgage but I have not seen a rental where you could get a 2 million dollar home for $4500.Of course way out of my price range but I have been looking in that range for my parents. Fast Eddie In California Thanks for sharing you concerns.I will give thought to what you said.In my wildest imagination I would never have thought that 2 years after filing bankruptcy the real estate market would take off like it did.Bankruptcy was not something entered into lightly . Dorf,
Thanks for sharing where you are at and the situation there. In the Los Angeles area
(Santa Monica,Brentwood,high end areas of San Fernando Valley, Agoura , Westlake ,Calabassa and several others)prices are very high for those type of rentals as far I see. Of course rentals still are cheaper than owning and paying a mortgage but I have not seen a rental where you could get a 2 million dollar home for $4500.Of course way out of my price range but I have been looking in that range for my parents.

Fast Eddie In California
Thanks for sharing you concerns.I will give thought to what you said.In my wildest imagination I would never have thought that 2 years after filing bankruptcy the real estate market would take off like it did.Bankruptcy was not something entered into lightly .

]]> by: dorf http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-198 Wed, 08 Feb 2006 20:16:24 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-198 ---Twins Mom asked: Where in California has real estate prices not gone up even on the high end? ---- I live in Marin County, just north of SF. The homes that were high-end ($2M+) in 2000-2001 haven't appreciated much at all during this 'boom'. Why? Not really sure. But you have to remember that SF had dot-com mania from 98-00. Lots of newly-minted millionaires (at least on paper) were created in a very brief period of time. Many of them bought fancy homes in Marin because it's 20 min to downtown SF and it's like living in the woods. That drove the high-end through the roof in the late 90s, but the low-mid end in Marin didn't move at all because the paper dot-com millionaires weren't interested in 3-br bungalows and ranchers. When the dotcom mania ended, the demand for $2M+ homes here in Marin fell off a cliff. So those homes haven't gone up much at all for the past 4 years. OTOH, the low-end (characterless homes that were $400K-$500K in 2000-2001) are now selling in the $850K-$1.1M range. The values b/w low-end and high-end have compressed over the past four years. You don't get much for $1M anymore here. But you can get a hell of a home for $2M if you've got the dough. —Twins Mom asked: Where in California has real estate prices not gone up even on the high end? —-

I live in Marin County, just north of SF. The homes that were high-end ($2M+) in 2000-2001 haven’t appreciated much at all during this ‘boom’.

Why? Not really sure. But you have to remember that SF had dot-com mania from 98-00. Lots of newly-minted millionaires (at least on paper) were created in a very brief period of time. Many of them bought fancy homes in Marin because it’s 20 min to downtown SF and it’s like living in the woods.

That drove the high-end through the roof in the late 90s, but the low-mid end in Marin didn’t move at all because the paper dot-com millionaires weren’t interested in 3-br bungalows and ranchers.

When the dotcom mania ended, the demand for $2M+ homes here in Marin fell off a cliff. So those homes haven’t gone up much at all for the past 4 years. OTOH, the low-end (characterless homes that were $400K-$500K in 2000-2001) are now selling in the $850K-$1.1M range.

The values b/w low-end and high-end have compressed over the past four years. You don’t get much for $1M anymore here. But you can get a hell of a home for $2M if you’ve got the dough.

]]> by: django316 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-188 Wed, 08 Feb 2006 14:23:22 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-188 And to those of you who post with your stories of how much you save, how you never buy anything on credit, I ask you this: 1. Do you have any kids, and if so, do you offer them opportunities for piano lessons, gymnastics, soccer, tutoring? Not all of those, of course, but at least one or 2 activities per kid. 2. Do you live in a high-rent or cheap-rent part of the country? Is it possible for you to pay less than $2K/month to rent? We Americans have it backwards. We feel that we are entitled to everything from Tennis lessons for us to piano lessons for the kids. You are supposed to work it backswards. You take 10% of the top from your salary into a direc deposit savings account and then make do with the rest. The if there is money left over for piano or tennis lessons or starbucks so be it. No one is entitled to anything. And to those of you who post with your stories of how much you save, how you never buy anything on credit, I ask you this: 1. Do you have any kids, and if so, do you offer them opportunities for piano lessons, gymnastics, soccer, tutoring? Not all of those, of course, but at least one or 2 activities per kid. 2. Do you live in a high-rent or cheap-rent part of the country? Is it possible for you to pay less than $2K/month to rent?

We Americans have it backwards. We feel that we are entitled to everything from Tennis lessons for us to piano lessons for the kids. You are supposed to work it backswards. You take 10% of the top from your salary into a direc deposit savings account and then make do with the rest. The if there is money left over for piano or tennis lessons or starbucks so be it. No one is entitled to anything.

]]> by: SiliconValley_Geek http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-184 Wed, 08 Feb 2006 08:07:10 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-184 I'm sorry if I've offended the smart women here. Almost all of my close friends have nesting wives, hence their difficulty in detaching emotions from a rational buy/rent decision. I’m sorry if I’ve offended the smart women here.
Almost all of my close friends have nesting wives, hence their difficulty in detaching emotions from a rational buy/rent decision.

]]> by: B. Durbin http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-179 Wed, 08 Feb 2006 04:57:10 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-179 I think the thing I like best about this site is the sense of perspective. Thankfully, I've had no outside pressure on me to buy a house... well, nothing that isn't defused by "Can't afford it"... but with four siblings who own and dozens of friends who own, I do feel left behind. So I read this site, and I realize I'm not left behind so much as playing a different game... or at least, not in such a bad position as I thought. Sure, my siblings have homes, but they're much older than me, except for the one who is a rocket scientist and makes enough money to afford a house. Sure, my friends own homes, but they got assistance from parents, from relatives remembering them in their wills, or just plain good timing. Most of them are older than me, too. It's the renting with kids that really bothered me, but many parents rent and turn out perfectly wonderful kids. So I don't have to freak out about getting a house before having kids. I keep reminding myself... :) I think the thing I like best about this site is the sense of perspective. Thankfully, I’ve had no outside pressure on me to buy a house… well, nothing that isn’t defused by “Can’t afford it”… but with four siblings who own and dozens of friends who own, I do feel left behind.

So I read this site, and I realize I’m not left behind so much as playing a different game… or at least, not in such a bad position as I thought. Sure, my siblings have homes, but they’re much older than me, except for the one who is a rocket scientist and makes enough money to afford a house. Sure, my friends own homes, but they got assistance from parents, from relatives remembering them in their wills, or just plain good timing.

Most of them are older than me, too.

It’s the renting with kids that really bothered me, but many parents rent and turn out perfectly wonderful kids. So I don’t have to freak out about getting a house before having kids.

I keep reminding myself… :)

]]> by: Fast Eddie in CA http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-178 Wed, 08 Feb 2006 02:15:39 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-178 Probabably a late comment to "Twins Mom". Sorry to hear about your issues regarding getting a place to rent. Also sorry to hear about your issues with your bankruptcy and the health bills. But since so much of what we talk about here is relate to personal responsibility -- individuals taking ownership of their own actions, I've been a wee bit bothered all day about the outline of your situation. In short, unexpected medical bills ($100k) caused you to have to declare bankruptcy. But because you were able to retain ownership of your townhouse, you have (about 2 years later) about $250k in cash. Have you ever considered paying back those people/organizations that didn't get paid when you declared bankruptcy? I fully realize that you don't have any legal obligation to do so, but you received $100k in life saving service that has to be absorbed by society at large. Now I know that hospitals massively overchange (particularly the uninsured), but in lieu of paying the full amount, perhaps a small payment or donation to those who helped? Maybe $10k? Food for thought Probabably a late comment to “Twins Mom”. Sorry to hear about your issues regarding getting a place to rent. Also sorry to hear about your issues with your bankruptcy and the health bills.

But since so much of what we talk about here is relate to personal responsibility — individuals taking ownership of their own actions, I’ve been a wee bit bothered all day about the outline of your situation.

In short, unexpected medical bills ($100k) caused you to have to declare bankruptcy. But because you were able to retain ownership of your townhouse, you have (about 2 years later) about $250k in cash.

Have you ever considered paying back those people/organizations that didn’t get paid when you declared bankruptcy? I fully realize that you don’t have any legal obligation to do so, but you received $100k in life saving service that has to be absorbed by society at large. Now I know that hospitals massively overchange (particularly the uninsured), but in lieu of paying the full amount, perhaps a small payment or donation to those who helped? Maybe $10k?

Food for thought

]]> by: JV http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-161 Tue, 07 Feb 2006 19:16:21 +0000 http://housingbubblecasualty.com/to-buy-or-not-to-buythat-is-the-question/#comment-161 Bottom line is buying at the top of the peak (right now) does not make sense for anyone. Even if you have that kind of cash to throw around. Why buynow when there is a chance of it dropping soon? Hec, Its dropping now right? Why not wait and snap up a cheaper deal. But like it is mentioned in this post, buyers let emotions get involved. THe old 'if I dont buy now I will never get in!' I will admit that was me and my wife in 2003. Didnt know jack about the industry, just the basics. And let emotions get involved. I took the plunge for 230k on a nice home. Honestly, I a can say that was the best 'stupid' move I have ever made. Since then, prices have skyrocketed. I wouldnt be able to afford my own house right now! For me it was just simple luck that I barely got in. I have nothing against renting as I rented for years because I always thought homeownershio was an unreachable thing for single guy who just got his career going. I was wrong, my rent then was 1000k and now my house payment is 1400 (fixed). 400c notes more. Makes sense to me. Bottom line is buying at the top of the peak (right now) does not make sense for anyone. Even if you have that kind of cash to throw around. Why buynow when there is a chance of it dropping soon? Hec, Its dropping now right? Why not wait and snap up a cheaper deal. But like it is mentioned in this post, buyers let emotions get involved. THe old ‘if I dont buy now I will never get in!’
I will admit that was me and my wife in 2003. Didnt know jack about the industry, just the basics. And let emotions get involved. I took the plunge for 230k on a nice home. Honestly, I a can say that was the best ’stupid’ move I have ever made. Since then, prices have skyrocketed. I wouldnt be able to afford my own house right now! For me it was just simple luck that I barely got in. I have nothing against renting as I rented for years because I always thought homeownershio was an unreachable thing for single guy who just got his career going.
I was wrong, my rent then was 1000k and now my house payment is 1400 (fixed). 400c notes more. Makes sense to me.

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