tag:blogger.com,1999:blog-13164186.post2100194319509552450..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: The truth behind our financial systemDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger55125tag:blogger.com,1999:blog-13164186.post-29992710962185588782010-02-23T16:49:35.162-05:002010-02-23T16:49:35.162-05:00"When the conditions favor ownership then I&#...<i>"When the conditions favor ownership then I'll buy a house."</i><br /><br />That is a plan.<br /><br />There is a problem. At that moment in history that it makes perfect sense for you to buy, others will recognize the opportunity.<br /><br />By the time you gather your wits and make your move, the market MAY run away from you.<br /><br />Glance over at NOVA bubble. The doomers are gone, they're buying at prices that seem high to me.<br /><br />I'm not saying that prices are running up now, nor am recommending that anyone buy, sell, rent. That's up to them.<br /><br />Everyone can use solid information and make their own best decisions.AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-65898706193904375372010-02-23T11:07:41.273-05:002010-02-23T11:07:41.273-05:00Mortgages from before 2000 already are smaller tha...<i>Mortgages from before 2000 already are smaller than rent because the prices from before 2000 were low and loan amounts are small.</i><br /><br />Ajax,<br /><br />What is your point? If you bought before 2000, good for you. You bought at a low price. Nobody here denies that buying prior to 2000 was a good move. <br /><br />The question on this board has always been, should I have bought in 2006/2007/2008/2009/2010? We can't go back in time and buy a house in 2000. (I actually bought my first in '98.)<br /><br />For those who are arguing that in 30 years they'll have a paid off house. I'm renting a house for about $2000 a month. When I chose to rent that house, it would have cost me about $5000 a month to own it. Considering that I felt that the risk of rents and or house prices skyrocketing in the near future is minimal at best, the choice was a no-brainer.<br /><br />When the conditions favor ownership then I'll buy a house. Nobody said the only decision is to buy now or never in the next 30 years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-50793602032038331382010-02-22T20:18:41.974-05:002010-02-22T20:18:41.974-05:00"Does your mom lay your clothes out for you i...<i>"Does your mom lay your clothes out for you in the morning"</i><br /><br />Qua? <br /><br />State your point. <br /><br />If your point makes no sense or you are contentless troll, blog-readers will detect that. <br /><br />I put up a link to interesting local RE price maps.AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-7472437892801211552010-02-22T20:12:32.872-05:002010-02-22T20:12:32.872-05:00"Thats what I want to know from you."
I...<i>"Thats what I want to know from you."</i><br /><br />I didn't realize that I worked for you. Can I have a raise?AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-78304878362362970442010-02-22T18:47:48.256-05:002010-02-22T18:47:48.256-05:00Ajax,
Does your mom lay your clothes out for you ...Ajax,<br /><br />Does your mom lay your clothes out for you in the morning? Let's face it, any homeowner on this blog is unsure about their purchase. Homeowners with true peace of mind don't even go onto housing blogs tailored to renters and prospective purchasers. So Ajax and that other bird are nothing but rattled owners in Beltway shacks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-43009256209741323122010-02-22T16:43:44.685-05:002010-02-22T16:43:44.685-05:00AJAX when does it stop? If home prices keep doubli...AJAX when does it stop? If home prices keep doubling every 3 years or so, 200 years from now homes will be 6 hundred billion times average annual incomes instead of just 6 times like they are now.<br /><br />Tell me, is $750K the peak? How about 900K? What is the dollar mark that the houses stop inflating and stay stagnant until incomes can finally catch up AJAX?<br /><br />Thats what I want to know from you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-13449576526872289012010-02-22T11:10:48.535-05:002010-02-22T11:10:48.535-05:00200 years? NOVA housing Bubble blog is talking ab...200 years? NOVA housing Bubble blog is talking about <a href="https://www.blogger.com/comment.g?blogID=4787878578920468587&postID=1742499134598478221" rel="nofollow">buying $750,000 houses now. </a>AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-26337755162205821662010-02-22T03:30:51.953-05:002010-02-22T03:30:51.953-05:00"The mystery is why there's still a discu..."The mystery is why there's still a discussion."<br /><br />Come on, you know why. This area will have flat prices for the next 150-200 years. This is going to be a verrrrrrrrrrrry long conversation.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-27746992597025021682010-02-22T02:23:58.212-05:002010-02-22T02:23:58.212-05:00Anonymous said...
"Don't use the lord'...Anonymous said...<br /><i>"Don't use the lord's name in vein!"</i><br /><br />Nobody used Satan's name in vain.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-76862052047208175912010-02-21T23:20:55.160-05:002010-02-21T23:20:55.160-05:00Don't use the lord's name in vein!Don't use the lord's name in vein!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-6316389823644533112010-02-21T21:54:32.566-05:002010-02-21T21:54:32.566-05:00The mystery is why there's still a discussion....The mystery is why there's still a discussion. Greater NOVA Housing Bubble Blog has turned into, "Is $750,000 a good price for a house?" <br /><br />There are no "It's a bad idea to buy" discussions. <br /><br />What's weird is that they're knocking around numbers that are out of my price range, but then, my concept of prices is so last century.AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-86014738064260730472010-02-21T19:35:53.703-05:002010-02-21T19:35:53.703-05:00"But neither of you understand the numbers be..."But neither of you understand the numbers because you're not bright."<br /><br />Really? <br /><br />1.2 million to purchase - 600K back when I sell 30 years later.<br /><br />vs.<br /><br />900K to rent for 30 years. $0 back 30 years later. <br /><br />Pour yourself another tea and explain it to me then...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-26392008303634733602010-02-21T08:40:12.173-05:002010-02-21T08:40:12.173-05:00Dont worry Ajax - I just like fu**ing with this du...Dont worry Ajax - I just like fu**ing with this dude. The math is not on his side and he knows it - thats why in his last reply he dropped the numbers altogether and went personal on me.<br /><br />Thats all the vindication I was looking for.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-34742385714945280472010-02-21T05:18:41.854-05:002010-02-21T05:18:41.854-05:00"I win you lose"
Don't feed the tro..."I win you lose"<br /><br />Don't feed the troll. He's not that silly that he doesn't realize that buying a place in Immundria (or other premium area) prior to the peak in 2006, is a winning strategy.<br /><br />He's bitter because he gambled and lost. How could anyone know that in 2010, there would be an Immunington and Immundria in the Immune Zone?<br /><br />Most were so certain that it was coming in, in side the beltway, to your city, your neighborhood, your street, your house.<br /><br />It stopped at the beltway. Wait, what? It's not coming? <br /><br />Small mortgage, small PITI, big equity, short commute, nice house. <br /><br />No wonder the doomsters ran away.AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-64361544236744184522010-02-21T01:19:39.898-05:002010-02-21T01:19:39.898-05:00You live in a shack and I rent a fine place. You...You live in a shack and I rent a fine place. You do not have the freedom I do. You are a slave to a 30 year mortgage I am not. You are the loser!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-12680417058455400402010-02-20T18:05:34.716-05:002010-02-20T18:05:34.716-05:00"After you paid 600k in interest sucker!"..."After you paid 600k in interest sucker!"<br /><br />Yep - I pay 1,200,000 to buy. I get $600,000 back. <br /><br />You pay $900,000 to rent. You get $0 back.<br /><br />I win you lose. Enjoy your tea.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-47746669407015048682010-02-20T17:56:36.335-05:002010-02-20T17:56:36.335-05:00"Thats fine. "
Yes it is. Applying the ..."Thats fine. "<br /><br />Yes it is. Applying the reasoning to the house in the Post's story. The owners paid $95,000 in 1965. Over the decades, they paid another $100,000 in interest, perhaps more. <br /><br />When they (or their heirs) sold recently, they received $1.35 million. That's not a bad amount of money.<br /><br />Along the way, they certainly made repairs, most likely paid someone to do it. This is not much different from a renter calling the landlord and the landlord calling a handiman.<br /><br />For the first 30 years, I estimate they paid about $800/month PITI. That was a lot compared to rents in the 1960's but not much compared to rents in the 1980's. <br /><br />From 1995 until they sold, they lived there with no expenses except for insurance and property tax. <br /><br />Buyer wins big over the long haul.AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-49313717083379224322010-02-20T17:41:44.722-05:002010-02-20T17:41:44.722-05:00After you paid 600k in interest sucker!After you paid 600k in interest sucker!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-3648597145833014722010-02-20T16:53:58.566-05:002010-02-20T16:53:58.566-05:00"I am relaxing enjoying my tea."
Thats ..."I am relaxing enjoying my tea."<br /><br />Thats fine. Just remember, the $600K I will get back for my home in the immunozone is far far better than the $0 you will get back from your landlord in 30 years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-73712398440324619402010-02-20T15:59:15.408-05:002010-02-20T15:59:15.408-05:00Median household income in Arlington is $96,390 X ...Median household income in Arlington is $96,390 X 1.69 = $162,899.<br /><br />The numbers don't lie....<br /><br />Right, right. In 1998, median home price in Arlington was under 200K<br /><br />http://www.mris.com/reports/stats/route.cfmAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-6537275717548764482010-02-20T15:45:32.639-05:002010-02-20T15:45:32.639-05:00I messed up the 3:29 PM link.
The Weekend Post s...<b>I messed up the 3:29 PM link.</b> <br /><br />The Weekend Post story is about a $65,000 house on a $30,000 lot. The house was built in 1965 and recently sold for $1.35 million. They added $300K in upgrades. <br /><br />Check out <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/18/AR2010021803141_pf.html" rel="nofollow">the story.</a>AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-79489058225361709672010-02-20T15:36:16.823-05:002010-02-20T15:36:16.823-05:00This comment has been removed by the author.The Anonymoushttps://www.blogger.com/profile/09233501721660697800noreply@blogger.comtag:blogger.com,1999:blog-13164186.post-15950366897100761022010-02-20T15:33:37.035-05:002010-02-20T15:33:37.035-05:00Oops, here's the link to the $65,000 +$30,000 ...Oops, here's the <a href="http://www.washingtonpost.com/wp-dyn/content/gallery/2010/02/19/GA2010021902092.html?sid=ST2010021904825" rel="nofollow">link to the $65,000 +$30,000 shack.</a><br /><br />(hope I did it right this time.)AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-54911390014679070152010-02-20T15:29:34.281-05:002010-02-20T15:29:34.281-05:00The weekend Post on a local shack, "$65,000 d...The weekend Post on a local shack, <a rel="nofollow">"$65,000 dwelling ... built on its $30,000 lot"</a>AJAXnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-38416611932720434712010-02-20T15:25:35.872-05:002010-02-20T15:25:35.872-05:00Good time to buy?
"4. Washington: As the fed...Good time to buy?<br /><br />"4. Washington: As the federal government scrambles to undo the damage of the nastiest recession in decades, home prices in the Washington area have grown increasingly affordable. (This metropolitan statistical area includes portions of Maryland and Virginia as well.) House prices jumped nearly 86 percent from 2002 to 2007 before taking a 31 percent dive. As a result, the price-to-income ratio of the Washington area fell to 1.12 through the third quarter of 2009. That is significantly less than the area's average price-to-income ratio of 1.69 for the 15 years ending in 2003. Still, Moody's Economy.com projects that home prices in the area will continue declining into 2011 before they begin to climb higher."<br /><br />Maybe not! <br /><br />Median household income in Arlington is $96,390 X 1.69 = $162,899.<br /><br />The numbers don't lie....Anonymousnoreply@blogger.com