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Yeah, but how much value has your house lost so far already? You might get your new house for 140K less, but if you take a 120K loss on your current house is it really worth the hastle of selling and buying again?
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"The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously. -
Do you need to sell? I wouldn't, but then I'm on drugs so don't listen to me.
Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...Comment
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Interesting thought if you really think a house like yours will drop a lot but its essentially trying to "time the market" which can be tricky.Originally posted by Oerdin
I'm actually thinking of short selling my house. I mean that would impact my credit but I imagine in a year or two I could rebuy, especially if my father helped me, only prices might be 60% of their peak. Instead of $400k I might get a similar house for $260k. Of course I could wait it out the 5-10 years it would take for the market to recover but that's a long time to wait to get even and I'd still have to pay off the original balance. $140k off for a similar house sounds attractive.
Here, no drop is predicted, although the rate of housing price increase has slowed. But for me its irrelevant. My plan is to LIVE in my house regardless of where the market goes. Selling is only an option if I wish to change cities or perhaps on retirement
The fact that in 5 years I am up about 400K on an investment of 375K is simply a nice thought.
You don't get to 300 losses without being a pretty exceptional goaltender.-- Ben Kenobi speaking of Roberto LuongoComment
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Yeh, timing the market is tricky. The measures that I use (S&P/Shiller Indexes) are pretty accurate for a particular metro area such as San Diego, but they are 3 months old when they are released -- i.e., they measure the market 3 months ago. Also, the real estate market has a long lag time, often with several declines making up a bear market. In the early 90s, the bear market lasted 5 years, with 3 declining periods.
Further, buying and selling real estate has lots of expenses, such as loan transaction costs, realtor fees, taxes, etc. Those can make the proposition much less of a bargain. Lastly, you have to pay rent meanwhile.Last edited by DanS; January 18, 2008, 12:23.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Don't need to sell per say but currently it is down $120k from the peak and we're heading into a recession. I suspect it will fall even more during a recession. It would suck to lose my investment but then again $120k (right now) is a lot of money too. If I rebuy right after the recession I could conceivably pay $150k-$170k less which would mean I'd have a similar house but half the payment. Alternatively, I could wait this out knowing I won't be able to refinance for at least 5+ years due to being upside down in the house as I suspect it would take that long for housing prices to recover (assuming they do). That seems like a really big opportunity cost.Originally posted by chegitz guevara
Do you need to sell? I wouldn't, but then I'm on drugs so don't listen to me.
Try http://wordforge.net/index.php for discussion and debate.Comment
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Oh you mean sell and rent until the market improves before you buy. I thought you were talking about selling any buying again now.Last edited by Patroklos; January 18, 2008, 13:37."The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.Comment
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May I ask how much (as a percentage) you're underwater on the house?Originally posted by Oerdin
Don't need to sell per say but currently it is down $120k from the peak and we're heading into a recession. I suspect it will fall even more during a recession. It would suck to lose my investment but then again $120k (right now) is a lot of money too. If I rebuy right after the recession I could conceivably pay $150k-$170k less which would mean I'd have a similar house but half the payment. Alternatively, I could wait this out knowing I won't be able to refinance for at least 5+ years due to being upside down in the house as I suspect it would take that long for housing prices to recover (assuming they do). That seems like a really big opportunity cost.
It should be noted that housing prices don't necessarily follow the economy. San Diego has been in a housing decline for a little over a year and a half, but San Diego may never enter a recession.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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it is already 120k down!!!! whoaaaa... what is this almost 25% of 520 at the peak? adn you expect another 120k to go... must be some volatile area...
very interesting... I think last I read the housing assets were about 20% of US citizens net worth worth , but that being overall... I bet it is alot more in the first 80% of the population, so losing so much must be pretty painful for the % of people who bought the houses in last few years... I wander what will a 300$ tax rebate do for people 100k in debt now...
will be interesting to see what will be the correction here in UK once it starts rolling...Socrates: "Good is That at which all things aim, If one knows what the good is, one will always do what is good." Brian: "Romanes eunt domus"
GW 2013: "and juistin bieber is gay with me and we have 10 kids we live in u.s.a in the white house with obama"Comment
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San Diego in particular seems to be a very volatile area for house prices.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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More like a year or two from now. Yes, this would be attempting to time the market but real estate seems pretty easy to time if you pay attention since the changes tend to be broad casted several month in advance.Originally posted by Patroklos
Oh you mean sell and rent until the market improves before you buy. I though you were talking about selling any buying again now.Try http://wordforge.net/index.php for discussion and debate.Comment
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You seem to have more confidence in timing than I ever would. The early 90s downturn had a couple false bottoms.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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im against a stimulus plan too, especially one that is so freaking anemic like this one. that 800 bucks goes straight to debt repayment for me. what the hell is 1600 going to do for a family? buy food for 2 months?Originally posted by DanS
Most of ours are, with some unfortunate exceptions. (NB: I have no desire or intent to rub anybody's face in it.)
The residential market was not on a sustainable course in any event, so it was only a matter of time for a correction. There's no good reason why an 1,100 square foot condo in my neighborhood should go for $800k, as just one example.
For the record, I also am against a stimulus plan."I hope I get to punch you in the face one day" - MRT144, Imran Siddiqui
'I'm fairly certain that a ban on me punching you in the face is not a "right" worth respecting." - loinburgerComment
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has the experience of being down 120k taught you nothing about real estate investing?Originally posted by Oerdin
I'm actually thinking of short selling my house. I mean that would impact my credit but I imagine in a year or two I could rebuy, especially if my father helped me, only prices might be 60% of their peak. Instead of $400k I might get a similar house for $260k. Of course I could wait it out the 5-10 years it would take for the market to recover but that's a long time to wait to get even and I'd still have to pay off the original balance. $140k off for a similar house sounds attractive."I hope I get to punch you in the face one day" - MRT144, Imran Siddiqui
'I'm fairly certain that a ban on me punching you in the face is not a "right" worth respecting." - loinburgerComment
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JJ,
By no means am I a financial expert, and given the potent chemicals I'm on, only an idiot would listen to me, but unless I had to sell, I wouldn't. You're going to be going up very shortly against a wave of bank owned properties and buyers know that. You aren't going to be able to sell for what you think you can.Christianity: The belief that a cosmic Jewish Zombie who was his own father can make you live forever if you symbolically eat his flesh and telepathically tell him you accept him as your master, so he can remove an evil force from your soul that is present in humanity because a rib-woman was convinced by a talking snake to eat from a magical tree...Comment
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They are only really in debt if the lose their jobs or are forced to sell their house for some reason.I wander what will a 300$ tax rebate do for people 100k in debt now...
If you can sit on your property through the slump you are good to go, unless you did something stupid like use your equity for credit."The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.Comment
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