Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (160521)	10/27/2008 2:10:13 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 306849

P.S. I paid cash for a Bank Owned home in a well established neighborhood, so it was well below the typical retail asking price. === is it now cheaper for you to own v. rent?

To: Dave who wrote (160521)	10/27/2008 2:21:36 PM
From: John Chen	Respond to of 306849

"it was well below the typical retail asking price.". Congratulation, Dave. You're a winner. That's a very good starting point.

To: Dave who wrote (160521)	10/27/2008 2:25:25 PM
From: J. P.	Read Replies (2) \| Respond to of 306849

Disagree. I think Real Estate comes down another 20% at least. My gauge is affordability and real incomes. The simplest gauge is when a month's mortgage payment equals 1 week's pay, then we are priced correctly. Right now I'm probably in the top 1% of earners, but by my standards of "affordability" I can only live in the most modest of areas, where the average income is about 1/2 or less what my income is. That's always been my gauge, even 5 years ago when things started getting nutty.

To: Dave who wrote (160521)	10/27/2008 2:52:45 PM
From: patron_anejo_por_favor	Respond to of 306849

>>after being a long time renter I finally capitulated and bought my primary residence<< Congrats, I imagine you probably got a very good price!

To: Dave who wrote (160521)	10/27/2008 3:31:23 PM
From: Riskmgmt	Respond to of 306849

FWIW. I think you made a decision that you will be very happy with in future. And as you paid cash and you live there anyway whats not to like, better than having that cash in the stock market. Regards R.

To: Dave who wrote (160521)	10/27/2008 5:41:23 PM
From: bentway	Respond to of 306849

You'll be fine, especially if you intend to stay in your house a while. The values will come back, but may fall for a while still. With a house, if you're comfortable and don't intend to move anytime soon, it doesn't matter that you may have missed the absolute bottom. You've got to live somewhere. When the values recover to be some multiple of the mortgage you could be carrying, you'll be a happy homeowner. Especially if you sell, move to a less expensive part of the country and buy a house outright, like I did.