Comments on: I told my daughter not to buy real estate http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/ Seattle's Leading Resource for Real Estate Information Thu, 18 Mar 2010 23:59:00 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318451 ARDELL Mon, 26 May 2008 03:04:25 +0000 http://raincityguide.com/?p=1895#comment-318451 tj, It's a really good time to sell :) tj,

It’s a really good time to sell :)

]]> By: Rhonda Porter http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318449 Rhonda Porter Mon, 26 May 2008 02:43:07 +0000 http://raincityguide.com/?p=1895#comment-318449 Geez tj. I was recently asked by a person doing stucco repair on our home if "now" is the time to buy. It's actually the first time I've been asked this during this market. I know nothing about him or his finances or goals...so I really couldn't answer him at all without knowing his "story". I think that's what Ardell's post is about...or at least, that's what I take from it. If you "have to have" a house you've had your eye on, you're going to make an offer. If you're willing to lose a house over not getting it for x sales price, then you may not get it...but you're willing to lose it. Every transaction is "one transaction". Every person has their own story, their own goals and their own financial scenario. No two transactions are alike. Geez tj. I was recently asked by a person doing stucco repair on our home if “now” is the time to buy. It’s actually the first time I’ve been asked this during this market. I know nothing about him or his finances or goals…so I really couldn’t answer him at all without knowing his “story”. I think that’s what Ardell’s post is about…or at least, that’s what I take from it.

If you “have to have” a house you’ve had your eye on, you’re going to make an offer.

If you’re willing to lose a house over not getting it for x sales price, then you may not get it…but you’re willing to lose it.

Every transaction is “one transaction”. Every person has their own story, their own goals and their own financial scenario. No two transactions are alike.

]]> By: tj http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318444 tj Mon, 26 May 2008 01:04:57 +0000 http://raincityguide.com/?p=1895#comment-318444 I see no reason to whine at you Ardell, homes are mostly sold one at a time and the market changes when people one by one stop accepting to overpay in an overinflated market. You more than did your part by advicing the one transaction you did have some power over and then blog about it. So you can't change it alone but you can be a part of driving change which you already are. I see no reason to whine at you Ardell, homes are mostly sold one at a time and the market changes when people one by one stop accepting to overpay in an overinflated market. You more than did your part by advicing the one transaction you did have some power over and then blog about it. So you can’t change it alone but you can be a part of driving change which you already are.

]]> By: ARDELL http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318417 ARDELL Sun, 25 May 2008 16:34:23 +0000 http://raincityguide.com/?p=1895#comment-318417 David, That sounds a lot like the position I took as in investment officer. I once had the accounts of two sisters who owned all private company stock of their father's business. One day the Company was bought out by Monsanto (a carpet business) and they ended up with $8M apiece to invest in something other than "Dad's company". This was back when $8M was a whole lot more money than it is today. We bought some stock and some bonds. Was the market high at the time? Maybe. But we dollar-averaged in over a period of months or even years. I think if you are buying one house to live in, it's not the same as an investment. Especially if you are young and not likely to hold it when you find the need to move. You can't "dollar average in" if you are going to buy one and never hold more than one. Often one day you just have to up and sell it on a day you do not choose due to a divorce, change of job, etc... So while Real Estate is "a market", each indiviudal in it does not always have "an investment" and is subject to the whims of the "changing" market. You can't tell someone "first of all the real estate market never changes" when they can't sell when they need to...because it did in fact...CHANGE since the time of purchase. David,

That sounds a lot like the position I took as in investment officer. I once had the accounts of two sisters who owned all private company stock of their father’s business. One day the Company was bought out by Monsanto (a carpet business) and they ended up with $8M apiece to invest in something other than “Dad’s company”. This was back when $8M was a whole lot more money than it is today.

We bought some stock and some bonds. Was the market high at the time? Maybe. But we dollar-averaged in over a period of months or even years.

I think if you are buying one house to live in, it’s not the same as an investment. Especially if you are young and not likely to hold it when you find the need to move. You can’t “dollar average in” if you are going to buy one and never hold more than one.

Often one day you just have to up and sell it on a day you do not choose due to a divorce, change of job, etc… So while Real Estate is “a market”, each indiviudal in it does not always have “an investment” and is subject to the whims of the “changing” market.

You can’t tell someone “first of all the real estate market never changes” when they can’t sell when they need to…because it did in fact…CHANGE since the time of purchase.

]]> By: ARDELL http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318415 ARDELL Sun, 25 May 2008 16:24:03 +0000 http://raincityguide.com/?p=1895#comment-318415 tj, Point taken. Maybe I should say "don't whine at ME :) I can't change the market for you. tj,

Point taken. Maybe I should say “don’t whine at ME :) I can’t change the market for you.

]]> By: david losh http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318409 david losh Sun, 25 May 2008 16:01:04 +0000 http://raincityguide.com/?p=1895#comment-318409 ok, first of all the real estate market never changes. people buy and sell real estate every day for reasons having to do with personal choices. the price stays the same. just because some one wants $850K for a property makes no difference; don't pay it. you're right why pay $200 a gallon for gas. there are fringes that make up a special segment that insist that the real estate market has ups and downs so based on that you, the consumer, need to react accordingly. it's just baloney. real estate appreciates at a certain rate as a whole. there are always bargains, or over zealous buyers, but the core housing market is tied to inflation, Consumer Price Index, and the cost of money. Cost of money being last. real estate is a business. talking about schooling, children, or what my parents did has nothing, let me say that again, nothing, to do with business. if you want to rent go ahead. if you want to make money buy property. people talk about not having or wanting money like it's a good thing. the fact is there is always plenty of money you just have to earn it. real estate, for all the bad mouthing, is a level playing field. anyone can buy, sell, and trade in real estate no matter what your color, country of origin, education, or religion. i tell my children to buy as much property as they can, as young as they can, and hold on to it forever. ok, first of all the real estate market never changes. people buy and sell real estate every day for reasons having to do with personal choices. the price stays the same. just because some one wants $850K for a property makes no difference; don’t pay it. you’re right why pay $200 a gallon for gas.
there are fringes that make up a special segment that insist that the real estate market has ups and downs so based on that you, the consumer, need to react accordingly. it’s just baloney.
real estate appreciates at a certain rate as a whole. there are always bargains, or over zealous buyers, but the core housing market is tied to inflation, Consumer Price Index, and the cost of money. Cost of money being last.
real estate is a business. talking about schooling, children, or what my parents did has nothing, let me say that again, nothing, to do with business. if you want to rent go ahead. if you want to make money buy property.
people talk about not having or wanting money like it’s a good thing. the fact is there is always plenty of money you just have to earn it. real estate, for all the bad mouthing, is a level playing field. anyone can buy, sell, and trade in real estate no matter what your color, country of origin, education, or religion. i tell my children to buy as much property as they can, as young as they can, and hold on to it forever.

]]> By: tj http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318393 tj Sun, 25 May 2008 06:31:36 +0000 http://raincityguide.com/?p=1895#comment-318393 If noone complained about issues we wouldn't have a funtional democracy. If people just dealt with everything that are thrown at them it would be the equality of a nasty dictatorship where people are told to keep quite or else...I don't think people are going to just accept $200 gas for example and just deal with it by cycling or walking. A little whining/protesting is not always as bad as it sounds. It can help making things better without resorting the violence ala revolts or terrorism. A bit extrme in the context but the fundamentals are the same, don;t be afraid to raise your voice if you see issues that can be fixed, keeping quite can be the larger crime. If noone complained about issues we wouldn’t have a funtional democracy. If people just dealt with everything that are thrown at them it would be the equality of a nasty dictatorship where people are told to keep quite or else…I don’t think people are going to just accept $200 gas for example and just deal with it by cycling or walking. A little whining/protesting is not always as bad as it sounds. It can help making things better without resorting the violence ala revolts or terrorism. A bit extrme in the context but the fundamentals are the same, don;t be afraid to raise your voice if you see issues that can be fixed, keeping quite can be the larger crime.

]]> By: ARDELL http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318379 ARDELL Sun, 25 May 2008 00:17:09 +0000 http://raincityguide.com/?p=1895#comment-318379 No whining, tj. It is what it is. Deal with it by renting? OK! But no whining. No whining, tj. It is what it is. Deal with it by renting? OK! But no whining.

]]> By: Rhonda Porter http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318372 Rhonda Porter Sat, 24 May 2008 22:03:27 +0000 http://raincityguide.com/?p=1895#comment-318372 Ardell, I'm not one of those kids. ;) Ardell, I’m not one of those kids. ;)

]]> By: tj http://raincityguide.com/2008/05/23/i-told-my-daughter-not-to-buy-real-estate/#comment-318363 tj Sat, 24 May 2008 20:16:16 +0000 http://raincityguide.com/?p=1895#comment-318363 I think you got me wrong. I reject the tone that today's buyers should fork out whatever money they have to buy whatever is available even if it's a small little place in the sticks since that was good enough for earlier generations. A badly diguised self-interest attempt to get the market going. I absolutely 100% agree that you shouldn't buy more than you can chew. But if ou earn good money and whine because you think prices are inflated and don;t want to accept living in the boonies you are right to whine. Prices are to inflated. I think you got me wrong. I reject the tone that today’s buyers should fork out whatever money they have to buy whatever is available even if it’s a small little place in the sticks since that was good enough for earlier generations. A badly diguised self-interest attempt to get the market going. I absolutely 100% agree that you shouldn’t buy more than you can chew. But if ou earn good money and whine because you think prices are inflated and don;t want to accept living in the boonies you are right to whine. Prices are to inflated.

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