Now I've seen it all... http://thereisnohousingbubble.blogspot.com/
But then again, I know some folks who don't believe in evolution, or the big bang, or global warming, so I guess utter complete ignorance is possible to achieve in this lifetime...
This blog is spot on as they would say
February 24, 2006
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16 comments:
I read it and I don't think it's serious. I sense heavy irony, though subtle. Can't be serious, can it?
Can it?
This HAS to be a joke!!
It's a joke folks. Read the whole thing.
can't be serious:
There are no "bad" neighborhoods in California. The so-called bad neighborhoods in California (places like Compton, Oakland, East Palo Alto) have been some of the most profitable homes in real estate history. Today you can not buy a home in these places for under $300,000 and often times these "violent palaces" run over half a million or more. Even today, after the large run up in prices, these homes are still profitable for the investor with foresight. Let's say you buy a home in the coveted neighborhood of Compton for $300,000. As the numbers above show after 5 years of 20% increases you'll have $450K in profit. Let's say you get robbed twice a year, average cost of $5K per robbery, and stabbed or shot every 2 1/2 years costing you $50K in lost wages/hospital bills. $450,000 - 2*5*5,000-2*50,000 = $300,000 PROFIT. I don't know about you but I will take the occasional shiv in the back for $300K every 5 years.
Note: I left out family members being murdered because with proper insurance there should be no net loss for this event. In fact, it could be an equity building opportunity if your loved one had large amounts of insurance.
And don't forget, in addition to that treasured Compton address you get the much sought after Compton schools, governance, and community. You can't put a price on that California lifestyle.
... HAHAHAHA
This one hurt me really hard:
Like the previous example let's look at 2 different people. Both are recent high school graduates. One decided to attend an Ivy League school for 4 years to get a degree in one of those outdated majors like engineering or one of the sciences. After graduation they attend grad school for 5 years and get their Ph.D. And now after 9 years of hard, menial, drudgery, what do they get as their reward? A job paying $50-60,000, if they are lucky. By the time this "genius" pays off their student loans they'll be 40 years old. 22 years of eating ramen and riding your bike to work might make some drugged out hippy happy but for us real Americans we want $$$
I busted my butt at an Ivy League university, got the PhD in physics, slaved for 10 years, and I am now involuntarily unemployed at 37.
Just like the mortgage brokers will be I guess, except I reckon they got laid about 30 times as much.
This was the tip-off to me that it was a joke. I enjoyed it - the reality is that someone out there will read it and BELEIVE!!!
But enough sloganeering, let's talk some real world numbers for a bit. Let's say you do something wise, you purchase a home in California for $500,000. This beautiful and desirable home will appreciate by about 20% per year. Therefore after 30 years that home that the renter unwisely turned his nose up to will be worth a little over $100 million. Now let's say you are even wiser than this. Let's say you use the rapidly rising equity in this dream home to purchase another undervalued home every year. So you'll earn 30*$100 million or over 3 BILLION dollars. That's right, you'll become one of the richest people in the world and all you did was sit back and let debt work for you.
like the subtle "you're kidding" announcement by patrick.net that we were all wrong, and there is no housing bubble
maybe it's patrick?
I love this stuff. #1 proof of the housing bubble is the inability to form an intelligent argument against it (sorry Bob Toll, sorry NAR)
I could understand the bubble cheerleaderOC Register not getting the joke. But Keith, com'on!
It's a joke. Just think about it.
Marinite
Marin Real Estate Bubble
It’s a funny joke, but let’s be clear; there are millions of uneducated, ignorant and stupid consumers out there that believe there is no housing bubble. In fact many homeowners believe it is their inherent right to see their home appreciate 15% a year.
And to think, this is all happening as the fat lady is warming up stage left!
The debate will be OVER SOON!
BTW, Homebuilder stocks are going to get crushed!
I think it is Patrick. Pretty funny, but too subtle. I've met _MANY_ people who believe in a reality identical to the thereisnohousingbubble's parody.
Those who see direct evidence of a bubble in their own neighborhood (FL, D.C., NYC, LA) should make a point to warn friends who are considering buying into areas of denial. (e.g. Ireland)
I love it. My realtor just called so I used the billion dollar scenerio on her. She said that I was off in my estimation because prices were only going up 10% a year for the next 10 years and not 20%. That means I will only have half a BILLION IN 10 YEARS.
I can't tell you how excited I am about our future. Just think, the prestigious Compton schools are busy preparing the next generation of real estate professionals, who will be the trillionaires of tomorrow. They will have absolutely no difficulty retiring the trillions of dollars of debt we have run up, using the quadrillions they will easily be able to borrow.
Millions of people in the emerging democracies in the Middle East will be eager to own second homes in resort destinations such as Compton and Barstow.
Ain't life grand? No child left behind!
The voiceover for a Ditech lending commercial I heard this morning was something like this: "I can't tell you how easy it was to refinance my house with Ditech. I paid off all my charge cards and I can't tell you how great it feels to be out of debt." This was not from a real estate professional, but likely a young graduate of Compton's prestigious schools.
There's another intresting perspective on changes in the mortgage market at bubbletracker.blogspot.com. It talks about how the indsutry is starting to change how they report thier data.. ironically enough.
Anon 7:07 -
That is too funny about your realtor!
It is starting to seem like there are going to be a lot of people who will get BLINDSIDED by this- as hard as that may be to believe.
You would think that the truth would gradually dawn on them.
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