I've been renting since 2008, when real estate prices were really low. I paid $2500/month to rent since Jan 2008. Every year, I threw away $30000 to my landlords, because I believed that this will be the year home prices fall 40+%...I did that in 2008...Then in 2009....and 2010....And then in 2011, my landlord jacked up rents to $3000/month. So starting in 2011, I ended up paying $36000 each year.... It still wasn't a good time to buy, so I paid $36000 in 2012. And then I couldn't afford a house after prices went above peak in 2013, so I had to rent for 2013 for $36000 and then in 2014 for $36000...And since I expect home prices to correct 20% before I buy, I'll wait until the end of 2015 and pay $36000 for 2015 also. In total, from 2008 to 2015, I spent a total of $270,000 on rent to my landlords instead of being a nice downpayment for my own house.... But I'm smart, and one of these days I will get my 20% price correction to buy a home, because that will be a great deal for me when that happens!
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Anonymous121446: Its not purely your fault...Last 7 year economy is artificial boosted by fed to avoid recession during 2008. bust..Lot of people regret not buying stock/house during 2008 slowdown but it was purely fed who artificially lifted the economy to jump start...it was gamble, Fed could have decided other way ( I heard there was lot of internal debate about which way to go...) and you would have felt very lucky that you made right decision to not buy house at that time. US economy is very special compared to other countries and fed have almost unlimited resources to control the economy. In my opinion fed did a very smart move to engineer excellent V shape recovery and now when sitting president exiting office I expect fed to start tightening to cool down economy in order to bring it more realistic level...Macro economic view, Local SD real state market may have other greater factor to influence real state market..
Socal real estate is a series of boom n bust
it's gonna haplen again for sure
The same story has a happy ending if you start in 2006. Worked for me. I saw no stickiness. Just capitulation.
@Anonymous121446 - you nailed it man, you nailed it... Housing prices are sticky, during the downturns owners hunker down and rent (sometimes at a loss) in order to ride out the downward cycle, hence limited drops in prices during downturns. That's why you saw very little price drops at the high value end of the market in 2008, owners just decided to ride it out and there was less pressure on prices (low value end of the market was another story as those folks had no options and had to foreclose). PartTimeRealtor is a FullTimeRenter with a flawed economic and business logic here, but, he'll learn with time.
Customer: How's the market?
Realtor: The market is weak. Now is a great time to buy!
Customer: Actually, I'm looking to sell.
Realtor: The market is strong. Now is a great time to sell!
I dont know. I think PartTimeRealtor will say Beanie Babies are way over priced and expect that a qualcomm layoff will cut the price of beanie babies by 20%
Is it better to buy or rent Beanie Babies?
Anonymous121474, an knowledgeable investor would have already figured PITI is on par with rent prices. And the mortgage interest deduction is just icing on the cake.
A knowledgeable investor would have broken that down into principal, interest, taxes & insurance.
HAHAHA PartTimeRealtor(Pretending to be Ron). Until I read the posts from PartTimeRealtor, I didn't think it was possible that people that dumb existed in San Diego. I guess these are the minimum wage non-engineer types.... You want fries with that?
Hello, PartTimeRealtor again. I think there is something called interest ,but I don't know what it means and how it factors into my price.
I don't know that mortgage interest is tax deductible and don't know how to calculate how much monthly payments are for a fixed rate mortgage. But by god, I'm smart! I've been renting all these years saving $270,000 to buy my $800,000 which I think I will get a discount off of when prices hit $720,000, which is what prices were close to in 2008 ...Because I'm smart!
buying a home is not so much nice either, dont forget the interest fees
buying a home is not so much nice either, dont forget the interest fees
Really it godown 20% I thought it is only 10-15%. I will sell my house before that.
Anonymous121446, HAHAHAHA.. So true... PartTimeRealtor, you got totally Pwned