tag:blogger.com,1999:blog-18675105.post6163695889772072931..comments2024-01-15T12:16:41.302+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: HousingPANIC Stupid Question of the Daybloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger45125tag:blogger.com,1999:blog-18675105.post-17423483172558581832007-09-07T23:50:00.000+01:002007-09-07T23:50:00.000+01:00"Tell that to the folks in Detroit, Flint, Clevela..."Tell that to the folks in Detroit, Flint, Cleveland, New Orleans, and to the million dollar homes that went down with the mud slides in Laguna Hills and La Conchita, etc.<BR/><BR/>www.laconchita.net/photos.htm<BR/><BR/>BTW, insurance doesn't pay for land slide. Once the land is gone where the home sits, the property is gone forever. Good luck! "<BR/><BR/>No fundamentals can change a poor land purchase decision. That has NOTHING to do with RE as an investment. If you buy a home on a mountain side where you know that a heavy rain is going to wash it down the hill, in earthquake country - you are an IDIOT or a movie star, not an investor. If you purchase land in a place where dikes keep the ocean water from doing what ocean water does - collect at the lowest point and then are surprised when the ocean reclaims the land - again, you are an IDIOT, not an investor - BTW did you notice that the rich in New Orleans actually bought on high ground? And as far as Detroit and the other rust belt states, they are all tied to US autos and they have not been making money for years. It is all about location location location. If you are buying a stock, know what a PE is, if you are buying real estate, know what the location is.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39500216785932655582007-09-07T23:42:00.000+01:002007-09-07T23:42:00.000+01:00"I disagree. Considering that real estate typicall..."I disagree. Considering that real estate typically appreciates to keep up with inflation, I doubt that homes will ever again go for what they are going now in REAL dollars (at least in any HPer's lifetime)."<BR/><BR/>You are correct if you purchase the house in cash. However, if the house is purchased with good financing and good leverage - 15 to 20% down so the rent makes the payments, you are in a sense getting a dividend every month (Rent) then the appreciation that keeps up with inflation is leveraged so you make a good after tax return. If the tax laws change, then the bet is not as good, but in this environment I expect more tax breaks for RE moving forward not less. A car purchase on leverage is just worth $0 in the end. If you were Hertz or Avis you would make the money on renting a car as well. <BR/><BR/>RE will never be a car. Car depreciates in all economic climates, a house just depreciates in a deflationary one. Once prices are back in line with fundamentals, everything will return to normal. Sorry, no great excitement there. The housing bust - like the boom are way over hyped by the papers and media. they have to scare people on both sides of the sword to make ratings.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-37067043043930143572007-09-07T06:16:00.000+01:002007-09-07T06:16:00.000+01:00@ not facing foreclosure"No one in history has eve...@ not facing foreclosure<BR/><BR/>"No one in history has ever become poor from controlling the ownership of land over long periods (40+ years)."<BR/><BR/>Tell that to the folks in Detroit, Flint, Cleveland, New Orleans, and to the million dollar homes that went down with the mud slides in Laguna Hills and La Conchita, etc.<BR/><BR/>www.laconchita.net/photos.htm<BR/><BR/>BTW, insurance doesn't pay for land slide. Once the land is gone where the home sits, the property is gone forever. Good luck!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-54081754388842054752007-09-07T06:03:00.000+01:002007-09-07T06:03:00.000+01:00@ agent777Dude, you have a taste for the crappiest...@ agent777<BR/><BR/>Dude, you have a taste for the crappiest cars. Mustang and Durango?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-48385341890044453472007-09-07T03:07:00.000+01:002007-09-07T03:07:00.000+01:00You can drive your car to work and it can take you...You can drive your car to work and it can take you to the grocery store. A house cannot get you to work or get food for you. <BR/><BR/>I like having newer cars still under warranty because the repair costs today are ridiculous.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-57243910311089971372007-09-07T02:17:00.000+01:002007-09-07T02:17:00.000+01:00At this point in time, a new car is a much better ...At this point in time, a new car is a much better buy than a home in a bubble area.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-26855057996612773302007-09-07T02:06:00.000+01:002007-09-07T02:06:00.000+01:00not facing foreclosure said... What utter nonsense...not facing foreclosure said... <BR/>What utter nonsense. Being a landowner is totally different from owning a gadget that rolls around on rubber tires. No one in history has ever become poor from controlling the ownership of land over long periods (40+ years). Outside of a few specialty vehicles that become collectible, cars are depreciating assets.<BR/><BR/>Like Rockefeller said,"Control everything, own nothing". Land, and RE in general, can be controlled with minimal capital compared to most investments. That is why rich people own land and losers own pimped-out cars. <BR/><BR/>September 06, 2007 5:07 PM <BR/><BR/>---------------------<BR/><BR/>How much "land" do you think you'll be "controlling" by buying a bubble-area McMansion? We're talking about a 4000 sq. ft. "house" (giant shoebox) on a 4500 sq. ft. lot in many parts of SoCal.<BR/><BR/>Oh, and that leverage thing... watch out... it really burns on the way down.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-47574073399842210832007-09-07T02:03:00.000+01:002007-09-07T02:03:00.000+01:00Anonymous said... Go buy some land in Arizona or F...Anonymous said... <BR/>Go buy some land in Arizona or Florida today Mr. Troll<BR/><BR/>40 years from now you might have broken even (adjusted for inflation) <BR/><BR/>September 06, 2007 5:14 PM <BR/><BR/>---------------------<BR/><BR/>Adjusted for inflation, current prices will NEVER be seen again in the bubble areas... or at least not until the bursting of the current bubble is a distant memory.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-1162484494708683292007-09-07T00:00:00.000+01:002007-09-07T00:00:00.000+01:00Cadillacs are the most close thing to homes in the...Cadillacs are the most close thing to homes in the auto world. They can't move any metal these days because the home as a piggy bank is over. Cadillac STS is supposed to retail for over $55K. They are offering them for $38K in many dealerships. If you want to know how the housing market is doing just look at Cadillac sales and prices. <BR/><BR/>Oh, and pretty much every Cadillac that sells for over $40K ends up on the $4999 lot within 8-10 years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-64699480305578940212007-09-06T23:50:00.000+01:002007-09-06T23:50:00.000+01:00The way I see it, if you're talking about a straig...The way I see it, if you're talking about a straight out purchase with cash, buying a car is completely different from real estate for obvious reasons. However, if you consider that most people are buying real estate the same way they buy cars...no money down...then it is pretty much the same. You're destined to lose money unnecessarily unless you find the 'bigger fool'. Its just that in the last few years, fools were able to profit to some extent because of all the free money. But that party's over now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-45414998205406478462007-09-06T23:36:00.000+01:002007-09-06T23:36:00.000+01:00"Why buy a used car? it is someone else's headache..."Why buy a used car? it is someone else's headache."<BR/>---------------------<BR/>The second car I ever bought had 126,000 miles on it. 13 years later, when it had been driven 318,000 miles, someone ran into it and totaled it.<BR/><BR/>Because I took good care of it, the car held up fine with few problems. If you don't take care of your sh1t, it won't last, but you can make up all kinds of excuses about why it didn't hold up.<BR/><BR/>Paying for a new car is be a headache that may be avoided.<BR/>-MammothMammothhttps://www.blogger.com/profile/15331079890390629462noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-15237902748213979032007-09-06T23:22:00.000+01:002007-09-06T23:22:00.000+01:00I disagree. Considering that real estate typically...I disagree. Considering that real estate typically appreciates to keep up with inflation, I doubt that homes will ever again go for what they are going now in REAL dollars (at least in any HPer's lifetime).<BR/><BR/>September 06, 2007 7:15 PM <BR/><BR/>=====================================<BR/><BR/>You keep saying that to yourself over and over renter. Maybe it can lull you to sleep on those nights when your ghetto apartment neighbors are playing the jungle music extra loud.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-57871073297568985432007-09-06T23:18:00.000+01:002007-09-06T23:18:00.000+01:00Good point on the granite countertops. I can see u...Good point on the granite countertops. I can see us looking back in 20 years and going "ugh.."Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-56042547124929106592007-09-06T23:11:00.000+01:002007-09-06T23:11:00.000+01:00why buy a used car? it is someone else's headache....why buy a used car? it is someone else's headache.<BR/><BR/>I have owned two cars in my lifetime. Had the first one for 10 years and will have had the second one for 10 years this December. Would I have really saved an appreciable amount of money if I purchased a used car? <BR/><BR/>I will probably purchase another new car some time next year.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-79266950566318135412007-09-06T22:56:00.000+01:002007-09-06T22:56:00.000+01:0015 years from now, granite countertops will look l...15 years from now, granite countertops will look like green lineoleum floors of the 60's and people will be breaking them up with sledge hammers to put in something new (my bet is shiny chrome countertops). <BR/><BR/>That's funny. My parents bought a house in the 50's that was built in the 1800's. It had granite countertops because back in the 1800's the choices were wood or stone. They ripped out the granite and put in Formica because only poor people still had the "old" stone counters. It's funny how some things that were bad are now good and will probably be bad again some day. People who are slaves to style waste a lot of moneybrokersleaveyoubrokehttps://www.blogger.com/profile/17872742292613334422noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-4355110991749595552007-09-06T22:48:00.000+01:002007-09-06T22:48:00.000+01:00so a real beauty at a very good price last week an...so a real beauty at a very good price last week and might buy it for just that reason although I do not need another...and keep it for 14 yearsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-31935941510773295812007-09-06T22:16:00.000+01:002007-09-06T22:16:00.000+01:00Anonymous said... I would have to say, strictly...Anonymous said...<BR/><BR/> I would have to say, strictly on buying a car that depending on the make/model the price may not be that much different. Example, 2006 Lexus IS250 used is 28k-30k+, new 2008 is $32k MSRP. Why would I buy a 2+ year old car with 20-30k miles on it for only a 2-4k difference? Depending on the demand for the vehicle, or its supposed demand, the amount may be negligible.<BR/><BR/> September 06, 2007 3:53 PM <BR/><BR/>------------------------------<BR/><BR/>Dude you really have no clue how to buy a used car. For the car you desrive the KBB is $25K for private party. That means you can find someone who needs to sell fast for $23K. That's a $9K difference plus the sales tax saved on $9K, plus cheaper insurance and cheaper registration.<BR/><BR/>Your $28K is if you buy retail and only a complete doofus buys a used car retail.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-7450462316084086242007-09-06T21:26:00.000+01:002007-09-06T21:26:00.000+01:00I guess you didn't see the realtor quote I linked ...I guess you didn't see the realtor quote I linked you to from Seattle in the recent post Keith where he said that we should look at condos up here in Seattle like cars and drive them a few years and then get a new one.<BR/><BR/>And he didn't even recommend a 30 year fixed loan.Econ_Ehttps://www.blogger.com/profile/02470203231777570022noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-32263506894740018352007-09-06T20:07:00.000+01:002007-09-06T20:07:00.000+01:00Overpaying for anything is always bad. Getting a b...Overpaying for anything is always bad. Getting a bargain on a needed essential is always good.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-15467925530935505792007-09-06T19:15:00.000+01:002007-09-06T19:15:00.000+01:00Anonypuss"Nah, home values will go back up eventua...Anonypuss<BR/><BR/>"Nah, home values will go back up eventually. 20 years from now a new car bought today will be worth $0. 20 years a house bought today will be worth more than purchase price." <BR/><BR/>I disagree. Considering that real estate typically appreciates to keep up with inflation, I doubt that homes will ever again go for what they are going now in REAL dollars (at least in any HPer's lifetime).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39897999765276702672007-09-06T18:49:00.000+01:002007-09-06T18:49:00.000+01:00Hmmmm...I agree with all the supermaterialistic ha...Hmmmm...I agree with all the supermaterialistic hating...I just sold last year in september...got divorced in october and downsized everything to just my necessities as a whole...BUT I still love my nice car...I don't want to drive a junker to save a few dollars...I actually enjoy my car...I work with people who take it to the extreame at work on both sides.<BR/><BR/>The young ones drive Hummers/Jags/Souped up Acuras.<BR/><BR/>The older ones drive these POS cars..."Beaters" we call em.<BR/><BR/>Hey how about a newer 325i?...Great looking car, good gas milage, very few probs and if it does they TAKE care of you at the dealership? I could get a Toyota but come on those things don't weigh anything...a gust of air and you're swarming all over the freeway.<BR/><BR/>MODERATION PEOPLE...Shoot for what's in the middle range for your income.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-58573152021053072052007-09-06T18:45:00.000+01:002007-09-06T18:45:00.000+01:00The truth is that over 120 years, up until 7 years...The truth is that over 120 years, up until 7 years ago, home values did not have any real increases, when all their costs and the effects of inflation were factored in.<BR/><BR/>This myth that housing is an investment is just that, a myth. A house is a place to live, not an investment.Unknownhttps://www.blogger.com/profile/10602004656204639734noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-25165278000007881872007-09-06T18:02:00.000+01:002007-09-06T18:02:00.000+01:00Mammoth Said "For some people, buying a new home i...<B>Mammoth Said "For some people, buying a new home is an attempt to fill that empty void within oneself – “I DESERVE to live in a new house,”</B><BR/><BR/>I had this very problem a few years back. I was working like a fiend, making gobs of money, and spending it all on crap to make me feel better, because I was miserable from working all the time. Thank god I had the presence of mind to pay down all my debt, or I would probably still be trapped in that cycle.<BR/><BR/>I think the only reason I escaped is I don't give a damn what anybody else thinks of me...that would probably have been enough to keep me on the hamster wheel until my plumbing blew.<BR/><BR/>Now I work when I get a notion to, and earn and spend very little. It's a damn fine way to live. People think I'm crazy, but that's kind of fun too.<BR/><BR/>A line from a song comes to mind...Ani Difranco, Garden of Simple:<BR/><BR/>They never really owned you<BR/>You just carried them around<BR/>Until one day you put them down and found your hands were free<BR/><BR/>Freedom is greatly devalued at this point in history. It's a great time to buy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-75066492196748384372007-09-06T17:46:00.000+01:002007-09-06T17:46:00.000+01:00A car can always move to a new location. Not many...A car can always move to a new location. Not many homes can say that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-52940478598721502092007-09-06T17:25:00.000+01:002007-09-06T17:25:00.000+01:00Big difference between cars and houses. Car price...Big difference between cars and houses. Car prices haven't doubled in the past 5 years. In fact, it is amazing how flat the prices have been.<BR/><BR/>Example: In 1994, I bought a new Suzuki Swift for $5999. They no longer make a Swift, but an equivalent 2007 car would be a Chevy Aveo which can be had for $6990. Thats about 1% yearly inflation for subcompacts.Anonymousnoreply@blogger.com