Housing Bubble Bursting?

[moh malekpour]

So if an IRA is for RETIREMENT you don't move it in and out of different investment vehicles????

And if you have zzz$$$ for housing, you are not looking for the biggest bang for the buck either?

The only thing I'm trying to "prove" regarding housing prices is that I haven't seen a bubbler with the conviction to sell at the "top" and stay on the sidelines for awhile.

I do many appraisers who have remained on the sidelines their whole career.

Of course I do move my IRA. I do asset allocation all the times. At least every six month or a year. I move it from bond to stock, commodity, energy and money market depending on the market trend. But my IRA is an investment, my home is not. It is a shelter where I like to live. You are comparing apple and orange. Do you look at your home, where you have lived for many years, the same way that you look at the share of some stocks of the company that you have never seen or touched?

 

[DTB]

As a matter of fact my one year lease is up on July 1. I may extend the lease a bit, but that should be a decent time to enter the market again as price have already begun to slip in this area. Then again, my wife thinks maybe we should stick with renting (as you noted fewer headaches, especially in a hurricane area.) Currently, renting the house I'm in is cheaper than buying by just over $200 a month, not counting any unexpected expenses and purchasing with 20% down using a 30 YR fixed loan.

I am always glad to see a man of his convictions. Don't forget the interest income you are earning on the equity-hopefully- that you invested in income producing investments.

My example of 500K@ 5%+ earns more than enough to pay similar rent. It would be no money out of pocket.

Just trying to stay ahead of the wolves. Mid 90's I was all set to relocate to FLA. Could have sold my Chicago house, bought a Rutenberg with semi-indoor pool, 2 rentals and would have cost me $47 a month out of pocket. The little lady nixed the FLA part.

 

[George Hatch]

Mike,

Don't you have some fabulous wealth-building seminar to attend? Someplace where you can mingle with your peers and exchange the latest strategies for keeping it all going?

Why don't you try telling Richard he's gotta move from the 45th parallel or tell Steven (S) he has to come back to the east coast. Try telling Bobby Bucks that the ranch has to go. See if maybe they don't balk a little bit at the idea of exchanging lifestyle for cash.

I don't expect you to understand because we are coming from two very different points of view. I surf - you obviously don't. I appraise for a living - you don't. I prefer to live in a coastal community (for the surf) that's part of a larger metro area (for the work). Preferably someplace with a moderate climate - not too cold, not too hot, and not too humid. My family is here and my wife's family is here. My current situation fits all those criteria better than anyplace else on the planet.

My "money situation" is very secondary to all of those other concerns. If my money was more important to me I'd be in a different line of work or at the least would not be wasting time on an internet forum. That's how you can tell that the money isn't the big thing for me. I know you don't believe that, I know you can't conceive that and I'm not asking you to try. Still, it would be nice if you could somehow see your way clear to realizing that not everyone measures their life by their retirement plans or their portfolio or the size of their house or how much hair they have on their head.

And yes, I still have all my hair.

 

[Couch Potato]

Most of the "house" money is invested conservatively and earning 4.5%-5% in short term investments. Some of the money went into emerging market mutual funds which are up about 45% since last July and climbing. (I thought it was a good choice, but if I'd known how good I would have put all the money in it. LOL) I think real estate will continue to be a good long term investment, but in many areas of the country the market has gotten out of whack and its not a good time to buy. As with everything, that will change.

And yes, I still have all my hair.

I wish I could say that.

 

[DTB]

Mike,

Don't you have some fabulous wealth-building seminar to attend? Someplace where you can mingle with your peers and exchange the latest strategies for keeping it all going?

Why don't you try telling Richard he's gotta move from the 45th parallel or tell Steven (S) he has to come back to the east coast. Try telling Bobby Bucks that the ranch has to go. See if maybe they don't balk a little bit at the idea of exchanging lifestyle for cash.

I don't expect you to understand because we are coming from two very different points of view. I surf - you obviously don't. I appraise for a living - you don't. I prefer to live in a coastal community (for the surf) that's part of a larger metro area (for the work). Preferably someplace with a moderate climate - not too cold, not too hot, and not too humid. My family is here and my wife's family is here. My current situation fits all those criteria better than anyplace else on the planet.

My "money situation" is very secondary to all of those other concerns. If my money was more important to me I'd be in a different line of work or at the least would not be wasting time on an internet forum. That's how you can tell that the money isn't the big thing for me. I know you don't believe that, I know you can't conceive that and I'm not asking you to try. Still, it would be nice if you could somehow see your way clear to realizing that not everyone measures their life by their retirement plans or their portfolio or the size of their house or how much hair they have on their head.

And yes, I still have all my hair.

I don't recall the above named persons being unabashed bublologists do you?

I don't understand how renting in YOUR location, will upset your surfing plans. Maybe I'm dense, but I doubt it.

I don't make the rules, but in the business world, and I thought this was a "professional appraisers' forum", money is the scoreboard.

BTW, I appraise for a living. I like appraising, I also having other endeavors that make a ton more money.

Maybe you'll start taking potshots at the millionaire ranch developer, Ray Miller next.

 

[George Hatch]

I don't understand how renting in YOUR location, will upset your surfing plans. Maybe I'm dense, but I doubt it

No, no, you're pretty dense. I already told you about renting. There's nothing wrong with it but in my case renting would cost me more each month than my current payments. And that doesn't include the tax break. Everyone's situation is different, some by accident and some by design.

Who's taking the potshots here? You're calling everyone out with your "armchair QB comments" and I'm trying to explain why your assumption about money being the only thing that matters is incorrect. That's all. I'm not saying you're a bad person for being greedy or that you're a dummy for not realizing that some of these markets are headed for a fall and I'm not calling you names for being perpetually optomistic about future increases.

I'll let you in on a little something I don't think you realize. Back in '95 I was sure about the market heading up for a couple years before it went up, just the same way as I have been sure the market is now headed for a fall. See, the difference between us is that I can acknowledge both sides of the cycle, not just the one side that benefits me.

 

[Tim The Enchanter]

I don't expect you to understand because we are coming from two very different points of view. I surf - you obviously don't. I appraise for a living - you don't. I prefer to live in a coastal community (for the surf) that's part of a larger metro area (for the work). Preferably someplace with a moderate climate - not too cold, not too hot, and not too humid. My family is here and my wife's family is here. My current situation fits all those criteria better than anyplace else on the planet.

Just my 2 cent sidebar without going back to the last page. I don't surf, but it's fun to watch, takes a lot of skill, and guts obviously. I'll stick with motorcycles, I like the mountains, that's my thing. Dancing in the canyons instead of on the waves.



Work and money aren't everything. Or the only thing by any means. I do like appraising. Although both take a lot of my time and are important, family, friends, and a good environment come first. :new_usa:

Course if I was broke, I might think different. But I have work, and I can do a quality appraisal sans value pressure, so I'm happy.

 

[Pamela Crowley (Florida)]

For some, money is their God.

It's beyond the understanding of those that think, live, breathe for the accumulation of money, that everybody doesn't think just like they do. Those that are not just like them are considered fools.

 

[DTB]

Just for edification purposes, an appraiser who uses their knowledge and ACTS to make large sums of money is inherently consumed with money, greedy, doesn't appreciate the finer points of life, sacrifices all in the pursuit of money. Do I have it about right?

One can not have it all, or can they?

When an appraiser uses their knowledge to point out the foibles of others who pursue a financially successful path, they are elevated with Zen like qualities to a pious status among their peers.

When one reads the threads of how investors are evil, can't possibly sustain their gains, all AMCs suck, LOs are idiots, HOs lie through their teeth, blah, blah,blah....

It becomes clear how that disposition is like a ray of sunshine and must be spread. Anyone from outside the business would have quite a different view me thinks.

 

[Pamela Crowley (Florida)]

Difference being, some don't care how others choose to think and live their life as long as they are doing no harm to others. I will never say that someone is "bad" for not thinking and living as I do, nor do I think they are 'wrong'. We all make our own choices, then have to live with those choices. It's just a different 'mind-set'. BTW, my Mother would like your thinking as long as she doesn't have to spend a penny of her money to make more. She resents me for using her money via investing it real estate for her, but sure does love the ROI she got. Just because she couldn't 'see' it on a bank statement, she believed I had wasted her money; now that she made $100K in 2 years, she was the smart one because it's now back in the bank. Unfortunately, if she had been willing to spend about $10K more doing some proper repairs, she would have been another $50K+ ahead, but that is beyond her comprehension.

Mike, it appears from your writings that you think anybody that isn't doing what you are doing is wrong. I doubt anybody here is 'jealous' or thinks you're a fool. You're doing well with your real estate investing, and personally, I'm happy for you about that. I'm NOT trying to shove my way of thinking and living down your throat, but get the feeling that is what you are trying to do to us ('us' being anyone that doesn't believe and live as you do).

Real estate always was and always will be good for investing. Just as some buy different stocks, some buy different types of real estate for investing. If we ALL did everything exactly the same, life just wouldn't be any fun - and there wouldn't be any money to be made.