Wow - an article about me... and others like me, who figured out the economics of cashing in. Anyone else doing this?
I figured it was time to go when I couldn't rent my loft for $1000 a month, but could sell it for $320k - where the new owner would have a $2500+ per month carrying cost. The PE was out of whack
The American Dream comes with a twist for Dean Baker. Convinced that he lived in a housing bubble and that property values would crash, the economist sold his condominium and rented a similar condo two blocks away. Now he waits for prices to plunge so he can scoop up a new place at a bargain price.
Call Baker a bubble sitter. He and others have taken themselves out of the homeownership game. Now they sit on the sidelines, renting and waiting for a housing bubble pop.
December 02, 2005
Sell high, rent low: The Bubble Sitters
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4 comments:
the rent to ownership ratio is so far off, it's amazing we haven't crashed yet - but like 2000 when PE ratios got detached from stock prices, it'll take care of itself
PE ratio? Do you think anyone is looking at PE ratio?
Boy, they sure should be!
We sold out and are now renting. I'm preaching about the bubble too, over at realestatespot.blogspot.com.
nice information
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