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What about if I bought during the 'wrong' time? I would be saddled with debt and a huge APR, and also be underwater on my mortgage, which would affect my emotional balance, I am sure.
Donjumpsuit - I was going to try to write a substantive, (hopefully) helpful response based on what you had previously written about your situation.
However, it appears that I cannot in that you have largely deleted everything you have ever written on this site. May I politely ask why?
hanera
2013 Dec 30, 5:56am
It's all about monthly!!! For a family like mine it's the choice of renting vs monthly payment and for an investor it's about the monthly because he is looking for a return for his money. Very simple!!
For a family, agree is all about monthly (assuming a stable job and planning to stay for more than five years). No idea for investors.
hanera
2013 Dec 30, 6:03am
Funny that we ended up buying at 2003 levels anyways just 8 years later.
Which city? I bought in early 2011 at 2005 price level. Price is up 50% since. According to Zillow, the bottom price is 18% below the high in 2006.
hanera
2013 Dec 30, 6:24am
I have rented for the past 20 years, and the difference between you and I is that I could move tomorrow, and still have a life ...
I would have loved to be in your position, and most certainly would have bought, however, I was in between jobs and evacuating my 401k at the time.
Given your lifestyle choice, renting is the correct choice.
Now all I have to do is think about how much I would have paid in repairs, taxes, HOA, and interest to know that that is a small price to pay.
Said donjumps
-------------
That's the bare bones slum lord assessment. If you are like your typical mortgage debtor, you would inevitably fallen trap to tying up countless hours and dollars making your house a home, with all the quirky upgrades and fix er uppins
Not to mention the mindset that infects most any of the fools that buy into the housing numbers only go up baloney, is that, "hey, look at all this untapped equity!. second mortgafes, helocs, serial refinancing and spending outside you means. Its OPM, other peoples money! If you can't beat um, join um, and tap that equity like a nice olive skinned brunette"
YAY WOO WOO
YAY WOO WOO
Some days I am excited, some are less than the best, some days I am silly, some days I am making a stand for all humanity.
This makes it very hard to take anything you say serious then because we don't know if you are just having a bad day, drank too much, feel silly or try to attempt to save all of humanity.
I think people that post here don't think its just "fun" - its actually very serious matter what happens to your financial future. When I first showed up here I was destroyed by the rising housing market. My wife and I both just couldn't believe what was happening. A house would come on the market. Same day you check it out, people are writing offers on the hood of their realtors car hood...always over asking price. We thought we were the only ones that thought it was stupid. I came here and found others that felt the same and somehow it made me feel a little better. There was little fun involved. Mostly frustration and anger.
Glad we all serve your entertainment purposes. It didn't sound like you were laughing much in your last post...but hey, you are probably just feeling silly and don't really mean it. Might as well erase the post.
Strategist
2013 Dec 30, 7:09am
The graphs you posted end in 2011 but it's 2014 ...they are useless. Sorry.
they prove a point.. as Robert Shiller also points out, its very simple...
over the long run, prices appreciate at rate of inflation... if we went up
20% then its sure prices will correct downwards.. thats what the charts show.
Of course people in LA expect 20-30% per year appreciation forever... and ever !
If home prices only increased at the rate of inflation over time, Beverly Hills would be the same price as Barstow. San Francisco would be the same price as Stockton. How do you explain the difference?
If home prices only increased at the rate of inflation over time, Beverly Hills would be the same price as Barstow. San Francisco would be the same price as Stockton. How do you explain the difference?
what are you comparing ... the same 1950s shack in Beverly Hills to todays resale value... well yes.. (explain why prices fell by 50% in BH back in early 90s. and later in recent years)
or are you comparing 800 shack in BH to a 8000 sq ft mansion down the road ?
I could literally see some graduate psychology student reviewing a lifetime of back and forth between the two of you, set against the backdrop of Thomas' utterly wrong predictions and writing a treatise on the destructive power of permabearish thinking.
which prediction was that... my statement it was a good time to buy in Miami...
just dont trip over the dead bodies... that one ?
are you just another pathetic REALTOR troll... seriously...
In all seriousness, years from now, Thomas very well could still be here, not changing his tune in the slightest, literally telling the year 2019 newbies the same tales that he did in 2006-2008 (when he was on his way to being right), and 2009-2013 (when he was horrendously wrong) damning each successive generation into a lifetime of renting - thus it would be helpful to see a former success story like you come back and counteract his unrelenting pessimism and deterministic thinking.
clearly in all this time you been on PNET.. you havent figured it out yet...
whats the proper RISKLESS PRICING OF ANY HOME given ANY YEAR..
bubble or not ! or are you a REALTOR troll ?
If home prices only increased at the rate of inflation over time, Beverly Hills would be the same price as Barstow. San Francisco would be the same price as Stockton. How do you explain the difference?
what are you comparing ... the same 1950s shack in Beverly Hills to todays resale value... well yes.. (explain why prices fell by 50% in BH back in early 90s. and later in recent years)
or are you comparing 800 shack in BH to a 8000 sq ft mansion down the road ?
Are you really not getting this?
Here is another example:
Lets compare a shack as you call it from 1950 in Barstow to the same 1950 shack in Santa Monica. How come they are priced differently? Should just stay on the inflation curve right? Should be the same price then.
Or...how come a house that was $20k in Malibu 1970 is now 2Million when that same house in Studio City is only 800k. Why? They should also be the same price according to your theories.
These are really just rhetorical questions...
Lets compare a shack as you call it from 1950 in Barstow to the same 1950 shack in Santa Monica. How come they are priced differently? Should just stay on the inflation curve right? Should be the same price then.
As Robert Shiller pointed out.. you need to compare apples to apples..the resale price of a single home over the decades... you can talk of one.. Barstow or Santa Monica.. not both....
And yes, for many homes in the USA, its already been proven real estate price will be the same over the long run from 1950 to today...
else no point to talk to someone who is living in ga ga land !
As Robert Shiller pointed out.. you need to compare apples to apples..the resale price of a single home over the decades... you can talk of one.. Barstow or Santa Monica.. not both....
Ok, then lets use the example of a Malibu 1950's home. How come it has gained much much more in value than the home in Barstow? I am not comparing the 2 I am asking you to explain why one home in location A gains 1000% in price and another similar house only 300%. How is that explained when you show a curve with a green line and tell me that all houses will end up at the green line level??? Do you not see the fault in that ?
I actually think you are the one living in a made up reality.
Ok, then lets use the example of a Malibu 1950's home. How come it has gained much much more in value than the home in Barstow? I am not comparing the 2 I am asking you to explain why one home in location A gains 1000% in price and another similar house only 300%. How is that explained when you show a curve with a green line and tell me that all houses will end up at the green line level??? Do you not see the fault in that ?
I actually think you are the one living in a made up reality.
NO ! you explain why Robert Shillers findings are all wrong...
You are out of your mind in believing 300% is typical appreciation...
at best we saw 100% appreciation over a highly inflationary period with economic boom
job growth and incomes from 1980 to 1985...
Bigsby
2013 Dec 30, 10:34am
NO ! you explain why Robert Shillers findings are all wrong...
You said many but not all places in the USA. And a lot of things have changed in the world economy (and population) in recent decades.
NO ! you explain why Robert Shillers findings are all wrong...
That's easy - according to him my house should have gone down in value but instead it has gone up :)
Also...more detailed description is here: http://themortgagereports.com/13424/flawed-case-shiller-index-shows-home-values-rising-nationwide-up-12-1-annually
Now your turn...please explain my question from the last post. You are backing out. You are the one posting graphs. So then explain why a Malibu home has gained much more percentage in the same time period than a Barstow home if all homes should follow the inflation line. Come on...I would like to hear YOUR explanation for it.
That's easy - according to him my house should have gone down in value but instead it has gone up :)
We are not in a rational market... hardly.. even Shiller will point out the Market
is driven by Govt policies over 90% of housing.
So no! your numbers are unrealistic.
So no! your numbers are unrealistic.
My numbers are the reality as they ARE the actual price on the street. Yours are unrealistic and exist only in a you tube video.
Strategist
2013 Dec 30, 10:44am
That's easy - according to him my house should have gone down in value but instead it has gone up :)
We are not in a rational market... hardly.. even Shiller will point out the Market
is driven by Govt policies over 90% of housing.
So no! your numbers are unrealistic.
So according to you the house suboink purchased should be similarly priced to a similar house in Barstow because home prices can only go up with the rate of inflation. Local demand and supply conditions have absolutely no impact and no meaning. The high land prices in San Francisco compared to Stockton are a mirage.
So according to you the house suboink purchased should be similarly priced to a similar house in Barstow because home prices can only go up with the rate of inflation.
did I say that ? No... you need to read up again...
My numbers are the reality as they ARE the actual price on the street. Yours are unrealistic and exist only in a you tube video.
LOL! oh blame a You tube video... so your disputing Robert Shillers research on
Home prices over the long run ? is that what you want to debate...
Im sure there are lots of Realtors who dispute with Shillers numbers.
As Robert Shiller pointed out.. you need to compare apples to apples..the resale price of a single home over the decades... you can talk of one.. Barstow or Santa Monica.. not both....
Ok, then lets use the example of a Malibu 1950's home. How come it has gained much much more in value than the home in Barstow? I am not comparing the 2 I am asking you to explain why one home in location A gains 1000% in price and another similar house only 300%. How is that explained when you show a curve with a green line and tell me that all houses will end up at the green line level??? Do you not see the fault in that ?
I actually think you are the one living in a made up reality.
Is it really that complex?
Houses don't increase in value, the land they are built atop, that comprises the piece of Real Estate, goes up in price. Partly because population grows while available land remains constant. Partly because we price things in USDollars, which are constantly being diluted
Home prices over the long run ? is that what you want to debate...
You have still not answered my question. Typical.
So according to you the house suboink purchased should be similarly priced to a similar house in Barstow because home prices can only go up with the rate of inflation.
did I say that ? No... you need to read up again...
Of course you have said that. Posting a graph in conjunction with telling somebody NOT to buy means your graph should apply to my situation. Otherwise, why post it? I don't care about prices in Florida, I live in CA.
The high land prices in San Francisco compared to Stockton are a mirage.
under what pricing ... is that during typical bubble years and irrational exuberance ? Perhaps comparing price differences between Marin and Stockton would have been wiser.
http://www.nytimes.com/1997/04/27/realestate/live-work-law-for-artists-roils-san-franciscans.html
A report released this month by the National Association of Home Builders put San Francisco's median residential price for 1996 at $285,000. With prices beginning at $175,000 to $200,000, lofts are the cheapest nonsubsidized units on the market, according to David Becker, a broker with Ritchie Commercial Real Estate. They are, nonetheless, still too expensive for the artists for whom they were intended, Ms. Hestor said.
Of course you have said that. Posting a graph in conjunction with telling somebody NOT to buy means your graph should apply to my situation. Otherwise, why post it? I don't care about prices in Florida, I live in CA.
no... i posted Miami to show prices went down.
and I said... it was a good time to buy in Miami..
But what was true in Miami isnt true YET in SFBA.
You have still not answered my question. Typical.
Am i going to argue/debate with a scum realtor...
who cant even say the name of Robert Shiller,
a well respected economist who predicted and written excellent books
covering Stock and Housing Bubbles....
And you want to debate on PNet Shillers conclusion....
Go ahead debate ? we are all interested in hearing what Realtors want to say ...
And you want to debate on PNet Shillers conclusion....
No, I was asking YOU a question which you still haven't answered and explained. And then you call me a realtor?? Bizarre.
No, I was asking YOU a question which you still haven't answered and explained. And then you call me a realtor?? Bizarre.
pick it up at Amazon... knock yourself out !
http://www.amazon.com/Irrational-Exuberance-Robert-J-Shiller/dp/0767923634
Thanks!! I love science fiction!!
Exactly the comments a Realtor would say... they cannot even mutter
the name of " Robert Shiller " and totally dismiss his writings... TABOO!
I guess every buyer should bring a copy during a Open House....
I sure like to see the reaction on their face ... what a novel idea !!!
see you around Johnny Boy!
Suboink says
I think people that post here don't think its just "fun" - its actually very serious matter what happens to your financial future. When I first showed up here I was destroyed by the rising housing market. My wife and I both just couldn't believe what was happening. A house would come on the market. Same day you check it out, people are writing offers on the hood of their realtors car hood...always over asking price. We thought we were the only ones that thought it was stupid. I came here and found others that felt the same and somehow it made me feel a little better. There was little fun involved. Mostly frustration and anger.
Odd, you admit that when you were on the outside looking in of political privilege, you were "destroyed". Now that you are on team FUCK YOU, you seem to be taking joy and gloating at the destruction of others,,,,,
Exactly the comments a Realtor would say... they cannot even mutter
the name of " Robert Shiller " and totally dismiss his writings... TABOO!
I ask you a question and you throw out a you tube video...
I ask you a question again and you call me a realtor...still no dialog about what I asked.
I ask you a question again and you throw out a book I should read...
I am not dismissing anything except the nonsense you post which you can't even explain yourself.
Every time somebody calls you on it you cop out by posting yet another link for shiller. If you have studied him so much why can't you answer a simple question like the one I posted above??
Shiller is ashamed of you.
Now that you are on team FUCK YOU, you seem to be taking joy and gloating at the destruction of others,,,,,
So when I finally worked my way up to buying a house I joined some team called "fuck you" ?? O-kay.
Why can I not be happy and share that? When I was down about the markets it never bothered me hearing somebody else's success story. It motivated me. And that's the intend of any positive message.
I am gloating at the destruction of others??? Where do you read that?
I am not dismissing anything except the nonsense you post which you can't even explain yourself.
what nonsense is that... your in LA it should by now be obvious even LA goes down to long term mean... which you completely dismiss. OK.. so a video by Shiller's work should answer your questions.
i suggest you snap out of it and deal with reality of home ownership.. just like I have for the past 20+ years... Over your lifetime your home will appreciate at rate of inflation... thats all.. Get over it..
You want more ? you want more bubbles prices that will put the next buyer and economy at risk ?
Every time somebody calls you on it you cop out by posting yet another link for shiller. If you have studied him so much why can't you answer a simple question like the one I posted above??
The most honest work out there regarding RE and Housing... if your a buyer You need to read yourself.
I am gloating at the destruction of others??? Where do you read that?
you dismiss home prices never correct to long term mean...which they do!
Bigsby
2013 Dec 30, 1:34pm
I am gloating at the destruction of others??? Where do you read that?
you dismiss home prices never correct to long term mean...which they do!
What's the long-term mean for San Francisco, LA, NY, London, Paris, Hong Kong...? Do you expect they'll all revert back to those numbers despite population growth and all the changes to the world economy over the past couple of decades?
What's the long-term mean for San Francisco, LA, NY, London, Paris, Hong Kong...? Do you expect they'll all revert back to those numbers despite population growth and all the changes to the world economy over the past couple of decades?
... you missed Germany and Japan on your list above!
I just know you werent born yesterday.. and you know better by now
what the answer is to your question.
you dismiss home prices never correct to long term mean...which they do!
oh yeah!!
Detroit, MI--> GREAT BUY!!! It's going to revert to 1950s prices + inflation, no doubt. Don't mind that it's lost more than 50% of the population, the graph never lies.
There's nothing like investing based on a graph.
Detroit, MI--> GREAT BUY!!!
yes, why would anyone want to overpay in Detroit or Chicago, Milwaukee, Minneapolis or other MidWest city/town. after all the realtors keep saying
buy here, prices never go down... never trust what a historical graph tells
you.. you have realtors to help you out...
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Well...I am back again like every year keeping everyone posted. Nothing new to say other than prices have shot up even further in 2013. So have rents. My mortgage is way under what it would cost to rent my own house (due to refi-ing at 1.25% lower than when we bought). Glad I snapped out of my own bear mindset that I had for years and pulled the trigger. When we bought we could not know prices would go up like they have and we didn't buy because I predicted prices to go up. We simply bought because we used to pay a shitload of money in rent and when we did the common sense calc we realized that its equal to buying. Then we found a place (after along long search) that we love and can afford (was exactly on par with the rent we used to pay - for a much smaller house). The fact that interest rates kept sinking was a pleasant surprise. It feels good to have a cheap mortgage locked in for 30 years. If I wanted to get out of this house and relocate it would be no problem. I could sell it for much more or rent it for much more than my mortgage so we feel barely "trapped".
Here is a link from my post last year and the year before.
Interestingly enough, most posters that advised me to not buy and that I made a huge mistake have disappeared from this forum or taken on new identities (lol - we know who you are). That is one way to deal with being wrong.
SubOink says
HAPPY NEW YEAR!!!
#housing