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Nope. I am just gonna sit back and watch your mortgages-you-fucking-should-never-have-taken-out-in-the-first-place go underwater with you ending up walking away.
1. Sell house.
2. Rent.
3. Wait for market to stop dropping.
4. Buy a house.
You fucks getting all this 'equity' from a bubble that kept me from affording a home
Check out the ETF that goes by the ticker "ITB"
If you bought the place to live in, who cares? Live in it.
If the price goes down - file for the property tax reduction.
B.A.C.A.H. saysIf you bought the place to live in, who cares? Live in it.
Your advice is just put my head in the sand and ignore the world around me? LOL!
You fucks getting all this 'equity' from a bubble that kept me from affording a home won't get much in the way of tears from me. Nope. I am just gonna sit back and watch your mortgages-you-fucking-should-never-have-taken-out-in-the-first-place go underwater with you ending up walking away.
just put my head in the sand and ignore the world around me? LOL!
If you bought the place as a speculation to flip, then flip the damn thing while you are ahead.
How much do you think real estate prices will fall in your area?
We're probably in line for a 40% correction, probably heading to 50-60%
no need for your tears. You can be bitter that I got lucky
I have no problem with house prices declining. I just want a put option on the value of MY house, or my region's housing.
By the way, if YOU think house prices are going to come down, you should be looking at the exact same thing I'm looking at. If you put some skin on housing put options, then when prices decline, in addition to getting a house at a lower price, you will have your put option money to buy that house with.
If you think we are in for more insanity of rising prices, or even just that prices won't decline, you can sell me the put options, and take my money in the form of an insurance premium. And if you are/have been irritated with prices rising out of your reach, and think that will continue, you can buy some call options, and offset your purchasing power loss as the prices rise.
Don't get angry, get educated, positioned, and risk mitigated.
Of course you won’t do this because deep down you realize that a 50% decline isn’t going to happen.
Explain step by step please? Who, what, where, when, how much etc. Like, who do I call to set something like this up?
According to the county, the median household income is 106k. That puts the median house price at 424k at 4x median income (the traditional rule).
I think that median house prices will revert to 3.5 - 4x the median income. I think they will overshoot heading there.
but people who bought 3 years ago or more have a fairly big equity cushion even if they only put 10% down
SunnyvaleCA saysbut people who bought 3 years ago or more have a fairly big equity cushion even if they only put 10% down
Do they?
DooDahMan gives some of the worst financial advise I've ever read. I'd speculate it's a Logan clone account
DooDahMan gives some of the worst financial advise I've ever read. I'd speculate it's a Logan clone account, as his original account has the record for ignore's, and reaches no one on this site anymore.
NuttBoxer saysDooDahMan gives some of the worst financial advise I've ever read
Doo Dah Man isn't concerned - you are still working and hoping to have a decent retirement etc.
As for Logan's advice - might be time for you to pay attention, he has a stellar track record, is a multimillionaire and has some great street creds. And yourself ?
with 8% inflation, which is probably closer to 20%, price of everything going up, that means price per square foot to build is going up, that means labor cost is going up, its not gonna get cheaper. housing like stock market, work on compound interest almost. that's just how it works out.
My mortgages on all my houses (primary + investments) are all significantly lower than market rents. Most homeowners are in the same boat.. That's probably true, but not for silicon valley! On the other hand, silicon valley is hardly a stand-in for any other part of the country.
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After purchasing a house a few years ago, even though I swore I was going to lose money, it turns out that for the time being, and on paper, I'm way up. But I, like many of you, feel that this entire market is back in 2007 levels of crazy, and ripe for decline with the interest rate hikes. That said, I live in a house I am comfortable with the payment on, but the "equity" I would get if I sold would be a significant difference in our retirement vs if that "fake money" just evaporates back to nothing.
So, finally, instead of hemming and hawing about sell, or not sell, it finally occurred to me that what people do in volatile asset situations is hedge. But here, I am a bit lost on how to hedge. So... does anyone else here have a similar predicament, and are any of you taking specific steps to hedge a house price decline?
Thanks!