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Started By
Message
I put my money where my mouth was - I'm out baby, I'm out!
Posted on 12/23/08 at 1:12 pm
Posted on 12/23/08 at 1:12 pm
I didn't want to mention it until the closing had actually happened, but as of Friday, I am a VERY happy renter. I sold my stupid piece of shite house (that I actually really enjoyed living in) for $3K more than I paid for it in Jan 2005. Of course, after fees, taxes and "upgrades", it was pretty much a huge loser over those 4 years, although the good news is that that's a sunk cost and I don't owe any money on sale.
I moved into a rental house about a mile down the road. It's not perfect, but by the time my 18 month lease is up, I'm sure the carnage will be such that I get a REALLY good rental lined up. Craigslist daily has like 100 properties coming on line for rent, and thus I expect a pretty good downward pressure on rental rates in this area.
The house I'm renting was on the market for 7 months. They paid $725K for it and had lowered it to $685 finally. I think fair value is probably $575K or lower. We approached the owners and suggested renting it, which they hadn't considered before, and they decided to go that route. I tried this approach with several owners and I can tell you - the amount of denial/ignorance is staggering. There is a complete and total disconnect between market realities and the mentalities of these owners. There will be an absolute deluge of foreclosures in 2009.
People, listen to me: DO NOT PAY "FULL" PRICE FOR A HOUSE. Just bide your time and buy it from the bank at 50 cents on the dollar.
Man, it feels good to be out.
I moved into a rental house about a mile down the road. It's not perfect, but by the time my 18 month lease is up, I'm sure the carnage will be such that I get a REALLY good rental lined up. Craigslist daily has like 100 properties coming on line for rent, and thus I expect a pretty good downward pressure on rental rates in this area.
The house I'm renting was on the market for 7 months. They paid $725K for it and had lowered it to $685 finally. I think fair value is probably $575K or lower. We approached the owners and suggested renting it, which they hadn't considered before, and they decided to go that route. I tried this approach with several owners and I can tell you - the amount of denial/ignorance is staggering. There is a complete and total disconnect between market realities and the mentalities of these owners. There will be an absolute deluge of foreclosures in 2009.
People, listen to me: DO NOT PAY "FULL" PRICE FOR A HOUSE. Just bide your time and buy it from the bank at 50 cents on the dollar.
Man, it feels good to be out.
7
Posted on 12/23/08 at 1:19 pm to Tiger JJ
quote:
We approached the owners and suggested renting it, which they hadn't considered before, and they decided to go that route. I tried this approach with several owners and I can tell you - the amount of denial/ignorance is staggering.
Have you ever considered that people have a natural aversion to being "landlords?" I've heard the horror stories all my life. One renter cut down a 100 year old oak tree for firewood when he skipped out in the dark of night.
Posted on 12/23/08 at 1:39 pm to Tiger JJ
From a fellow renter, who did almost exactly as you did: 
I didn't realize how stressed I was about the burden of owning a home in Marin County until I signed the papers. I wish my timing in the rest of my life was half as good as it was in selling my house and leaving California. I love renting! If we stay here in LA, I'm looking forward to buying a nice house on a big lot in my old neighborhood for a considerable discount from right now. The number of "For Sale by Owner" houses is a great indication of how unrealistic people are, still.
I didn't realize how stressed I was about the burden of owning a home in Marin County until I signed the papers. I wish my timing in the rest of my life was half as good as it was in selling my house and leaving California. I love renting! If we stay here in LA, I'm looking forward to buying a nice house on a big lot in my old neighborhood for a considerable discount from right now. The number of "For Sale by Owner" houses is a great indication of how unrealistic people are, still.
This post was edited on 12/23/08 at 1:48 pm
Posted on 12/23/08 at 5:06 pm to Tiger JJ
How long was your house on the market? Any other offers? Any super-lowball offers? (Just trying to get a feel for the housing marketplace in general from the ground level)
Posted on 12/23/08 at 5:13 pm to Tiger JJ
quote:Congrats!
Man, it feels good to be out.
Posted on 12/23/08 at 7:31 pm to Tiger JJ
Congrats JT!!!!
If only everyone were as sensible as you when selling their house.
People here in Boise still think their house is worth a small fortune. It's so damn frustrating.
I definitely won't pay full price, but I am willing to pay what I consider a fair price for the convenience of being able to move in relatively quickly. Unfortunately all the sellers think I'm low-balling them.
I guess I should just change my approach and start seeking out foreclosed properties. I don't have any experience with this, though....guess I better start researching.
If only everyone were as sensible as you when selling their house.
People here in Boise still think their house is worth a small fortune. It's so damn frustrating.
quote:
People, listen to me: DO NOT PAY "FULL" PRICE FOR A HOUSE. Just bide your time and buy it from the bank at 50 cents on the dollar.
I definitely won't pay full price, but I am willing to pay what I consider a fair price for the convenience of being able to move in relatively quickly. Unfortunately all the sellers think I'm low-balling them.
I guess I should just change my approach and start seeking out foreclosed properties. I don't have any experience with this, though....guess I better start researching.
Posted on 12/23/08 at 8:09 pm to Tiger JJ
quote:
People, listen to me: DO NOT PAY "FULL" PRICE FOR A HOUSE. Just bide your time and buy it from the bank at 50 cents on the dollar.
It will be like this in many areas of the country. Non-waterfront in FL. Many places in CA...
Oh, for $575K what size house are we talking about?
Posted on 12/23/08 at 8:22 pm to Tiger JJ
Welcome to the wonderful world of renting.
I've been doing it since June 2005.
I've been doing it since June 2005.
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