patrick.net

Goran -

If your purchase is all cash, you're not really a debt slave, right? :)

Anyway, Congrats - hope everything goes smoothly.

You're right. I just sort of liked that term "Debt Slave".

I also miss the guy who said "Why buy now when you can buy for 30% later?"

So many memories on this website.

btw uomo, I never could tell, but are you on the renter or homeowner (bear/bull) side of the battle?

SFace says

Good luck. Hope no one shows up, who knows.

Views of the ocean near Newport Beach, Laguna Beach are in high demand. Combined with rising price and lots of agents, it may surprise you. But good luck

Yeah I keep thinking in the next few days, some guy may bid up the next 5%. If it happens, I guess I would be disappointed. Not sure if that's turning me into a housing lover now.

Would you not have been better to take out a mortgage for the tax write off ... with the security of having the cash in the bank as a backup if need be?

Jimbo in SF says

Would you not have been better to take out a mortgage for the tax write off ... with the security of having the cash in the bank as a backup if need be?

I'm not sure. Maybe? Would the difference have been huge? I doubt it.

I think there's a certain feeling that my only housing cost from now, until they drag me out of the house into a wooden box, will be property taxes and maintenance that soothes me more than having Bernanke destroy my money's value in the money market.

I do have reserves. I'm not buying a new Ferrari anytime soon, but I think I'll be good for a long while.

Goran_K says

Would the difference have been huge?

I know in my first year of home ownership, I paid approx $30k in interest ... writing that off reduced my taxes by approx $10k.

I guess it depends on your work situation ... do you earn a salary, or are you living off investments now?

With mortgage rates so low, it seems possible to earn a return on the cash you 'held onto' that would exceed 3.5% (typical mortgage rate), thus you might even come out ahead on the investments as well as the tax write off.

Interesting way to look at it gents.

Goran_K says

explicitly encouraging higher home prices.

In every possible aspect this the statement above is true.

What this says to me is that the Goldman Sachs, Citibank, and all the others don't give a rat's ass or a flying fuck about me, my life, my financial future or anybody else's for that matter.

As in Patrick's book, if your rich or poor, sure, buy a house, it doesn't matter either way.

And no, I don't begrudge you your money nor am I jealous and I hope you are happy there.

I learn a lot from this site.

David9 says

In every possible aspect this the statement above is true.

What this says to me is that the Goldman Sachs, Citibank, and all the others don't give a rat's ass or a flying fuck about me, my life, my financial future or anybody else's for that matter.

As in Patrick's book, if your rich or poor, sure, buy a house, it doesn't matter either way.

And no, I don't begrudge you your money nor am I jealous and I hope you are happy there.

I learn a lot from this site.

I'm not rich, I'm not old money or anything. I have a career that spans nearly two decades, and I've worked hard, and made somewhat more good decisions than bad.

You're right, don't trust those banks. I've worked for them. They are predatory entities looking to strip your last dime from the flesh of your body by any legal means necessary (i.e - to the extent of the law that they are allowed to rape/pillage you).

Thanks for the well wishes David. I hope you find your castle.

Well written thread.
Of course you can't get away without our massive criticism.

"..really liked the community here .."
You must be easily entertained.

"..school yard fights.."
They started it.
LOL

Goran_K says

They are predatory entities looking to strip your last dime from the flesh of
your body by any legal means necessary (i.e - to the extent of the law that they
are allowed to rape/pillage you).

Again, nothing wrong with money. I bought a condo in Dallas for cash just 7 years ago. Yes, I'm still figuring out a path forward.

Much happiness in your new home ! And thanks for the validation on the banks

Call it Crazy says

Speaking of maintenance, make sure you have enough cash left after the purchase to cover all the "honey-do" upgrades... you know how wives are with new houses!!

Man speaks the truth. That one happens pretty fast. I remember when we bought, within a week there was a list of upgrades that were outside the "necessary".

If you both like that stuff, it is fun.

Call it Crazy says

you know how wives are with new houses!!

Heh. That's funny, because I've always been more wifey in that scenario, in that it's me with the Honey-do. Gotta have my digs looking just right. I'm goddamn picky about things.

Congratulations and good luck, Goran -- you're a class act.

Why leave? We'd be very interested to hear how the probate sale turns out.

Peter P is back after buying a house too.

Why leave? We'd be very interested to hear how the probate sale turns out.

That's actually a really good point. That could a very illuminating thread for a lot of first timers.

Besides which, I've never really understood the dramatic exits that some Pat.net members have felt he need to make in past.

Why leave? We'd be very interested to hear how the probate sale turns out.

Peter P is back after buying a house too.

Hey Patrick.

I'm not going to leave completely, but I feel as if once I am in a home, I may not be as "fired up" about examining market indicators, theories, and so-on. Perhaps I'm wrong, and the fun part is in the act itself, not the end result and its effect on my home search.

I like the community here, and I'm not very good at being dramatic.

I do promise to keep the details up here for people so they know what to expect. I'll also post a few pics of the new digs (minus my address).

It's an emotional hot-button topic. Almost religious.

My main point over years has always been that it's not always better to buy to matter what the price. Sometimes it is better to buy, and sometimes it isn't. You have to actually do a little math with the price and the rents. But the realtors will always tell you to feed them more no matter what, a kind of systemic corruption in our culture.

I have no objection to anyone's buying if it's really an OK deal for them.

Goran_K says

I love Patrick

Nominated for next bumper sticker.

Thanks for the well wishes everyone.

I definitely will not be disappearing altogether. Love the community.

As a gift though, I will document every part of the process in doing a probate sale. Not sure if any of the other pros have gone through this before, but it's definitely different than a standard sale, or even a short sale.

Expect updates, and pictures as Goran goes through the process of closing.

I fully understand what you say below:

Goran_K says

How long should one wait for things to return to the "old normal"? 3 years? 5 years? 20 years? By that time, I'd be an old man, and my kids would be teenagers by then, nearly ready to leave for college.

Goran_K says

I never could tell, but are you on the renter or homeowner (bear/bull) side of the battle?

Owner, but only because it makes sense. If you read Patrick's site enough, you get around to thinking that even owning is basically renting but ensuring that you minimize your losses :)

uomo_senza_nome says

How long should one wait for things to return to the "old normal"?

All empires fail

Good luck with the purchase. Sounds like it will be a reasonable purchase in a beautiful area.

Make sure you parcel out some space to plant yams.

You probably did well BECAUSE you weren't timing everything.

Life happens best when you go with it...so go with it, and good luck!

CL says

Life happens best when you go with it

That's true...until it isn't!

Seriously - I can think of a dozen boomers (whose creed was a derivative of the above) living in basements, spare bedrooms, RVS. Etc.

I can tell that Goran is a thoughtful guy, and he will be fine.

SFace says

Any luck with this?

Goran is confirmed as the winner. I thought I would be, this isn't a home that would be easily rented (unless it was to 5-10 people), and probably never has made sense to buy as a rental investment since it was built.

We also passed the 15 day "notification of heirs" period where any objections from relatives could be brought to the court's attention.

I've been packing lots of stuff (toys, clothes, giving stuff away, etc), and I'm looking forward to settling down, and getting old.

Interestingly enough, the home across the street (lower level view and less sqft) was put on the market at $200,000+ what I am paying for my home. I wonder what it will eventually sell for.

Goran_K says

Interestingly enough, the home across the street (lower level view and less sqft) was put on the market at $200,000+ what I am paying for my home. I wonder what it will eventually sell for.

Just don't rub the fact in your new neighbors face when they move in!

I'm would never rub anything in anyone's face, I don't consider myself better than any homeowner, renter, investor, etc..

Like Roberto said, my main reason for buying is to buy a home. I'm not an investor/speculator, I just want something that's comfortable to live in, and somewhere I feel I can provide a good life for my family. I've always been a beach person. I work in a high stress industry, and if I didn't take time to relax and spend time with nature (the ocean), I'd probably have a stroke.

I'll be posting pictures soon, once I have keys and can sort of check things out. One thing I did find was some dry rot damage on the deck. Early estimate is around $1,500 to repair. I never had to do this as a renter... :)

Goran_K says

I've always been a beach person. I work in a high stress industry, and if I didn't take time to relax and spend time with nature (the ocean), I'd probably have a stroke.

Everyone should have an antidote. For me it's looking at the stars with my telescope and the smell of the creosote bushes after a good summer rain.

Goran_K says

Early estimate is around $1,500 to repair. I never had to do this as a renter... :)

Yeah, but you know how it is...spending money on someplace you like doesn't sting so bad. It's actually pretty satisfying to fix something up. And some of that stuff you can do yourself. Dry rot's a pretty easy deal. Hell, there's Youtube videos showing how to patch that up.

Glad it worked out!

Congrats on getting the house! That's wonderful. Definitely stick around. I'm looking forward to reading your probate purchase experience. After some months of honey-do's, you might find the interest in numbers and indicators again . . . one house is never enough after you are familiar with the home improvements. Growing homes is even more fun than growing flowers and vegetables.

Congrats Goran. I'm glad to hear that you managed ot get a fair sounding deal. Those are pretty rare in coastal CA these days. A college buddy of mine also recently got a good deal via probate sale in Ventura. Let us know how the honey-do list does as this progresses...I'll need to take notes!

bmwman91 says

Congrats Goran. I'm glad to hear that you managed ot get a fair sounding deal. Those are pretty rare in coastal CA these days.

Well to be fair, someone had to die...

But that's our market these days. :)

JodyChunder says

Yeah, but you know how it is...spending money on someplace you like doesn't sting so bad. It's actually pretty satisfying to fix something up. And some of that stuff you can do yourself. Dry rot's a pretty easy deal. Hell, there's Youtube videos showing how to patch that up.

I'm about as handy as a one armed man.

Goran_K says

It was a probate sale.

Gosh Goran, when I said a few months ago that you have to kill to get a home...I was only kidding.
Congrats on buying your home. You will be glad.

Goran_K says

One thing I did find was some dry rot damage on the deck. Early estimate is around $1,500 to repair. I never had to do this as a renter... :)

If you end up replacing the deck I'd look into Ipe or Cumaru. That plastic deck wood is pretty good too but doesn't look as nice.

If the damage is minimal you can probably just replace the bad boards. If possible treat the repaired deck with bora-care and seal it to prevent further decay.

Goran_K says

JodyChunder says

Yeah, but you know how it is...spending money on someplace you like doesn't sting so bad. It's actually pretty satisfying to fix something up. And some of that stuff you can do yourself. Dry rot's a pretty easy deal. Hell, there's Youtube videos showing how to patch that up.

I'm about as handy as a one armed man.

For some things you only need one arm...