Good article about the smartest thing to do - SELL AT THE TOP AND RENT! However, it may be too late, we're definitely post-peak, and we're hearing it's tough to get buyers now... I'd still recommend selling - at any price. Nothing is going to be more painful for the next few years than "I wish we had_____" thoughts, as well as going to sleep and waking up in your worst investment decision. At least with a bad stock pick, you can just turn off the computer...
For the past few years, the run-up in home prices has been the hot topic at neighborhood gatherings. Now the discussion is dominated by another question: When will the ride end -- especially with Hurricanes Katrina and Rita casting a shadow on the economy? Rather than wait for price appreciation to slow, many homeowners have decided to cash in their profits and move on.
November 14, 2005
Time to Move On?
Subscribe to:
Post Comments (Atom)
2 comments:
I was able to get my cubical neighbor and myself out at the peak. We are now renting for cheaper.
I moved to a better neighborhood, closer to work and have roughly the same sqft for $700 less.
My neighbor sold to an investor and renting back from him. He is saving $600 a month.
These savings are based on 2003 refi mortgages too! So the new owners are paying a lot more into their places.
Between the two of us, we pocketed $300K.
beats working, eh?
I LOVE STORIES LIKE THAT! Especially the tax-free part of the gain. It almost seems illegal.
But the world isn't so nice that it lets everyone get rich. It's a zero sum game. So who will lose?
1) homeowners and investors who don't sell and ride this sucker down
2) the government (which is us) who is about to suffer a meltdown in receipts
3) the world economy
4) shareholders
5) bondholders
My recommendation - walk away. Sell your house, put the proceeds in a 4% FDIC insured savings account (or accounts - $100k max per account) and walk away. Don't even read stock tables, don't be tempted to invest in anything for 2 to 4 years.
Then - when the blood is in the streets, everyone HATES housing, go buy.
Cheers
Post a Comment