It’s Monday, and you get the feeling that some folks are getting desperate when you find videos like this on YouTube:
So Doomers, it’s been awhile since we’ve had an open thread. Any other finds for us– links, stories, videos, comments?
Send us your comments and please humor Igor, housing’s only one word commentator, by feeding him his word. This thread’s for you.
I would very much like to hear from people who lived in areas with huge price declines, or were hit particularly bad by a recession.
I’m thinking 1982 Texas, Oregon, etc.
I know anectdotally that Oregon had 13 percent unemployment in that period, and families living in public parks. I know that scenario played out in parts of Texas, etc.
I don’t know what the price runups and declines were like, specifically. And lots of those stories aren’t online (pre world wide web).
In other words, could we revisit the historical pain, in narrative? I mean, since we’re headed that way again very soon.
The clip is sterile and I find myself feeling no empathy. There is no personal information for me to relate to. Also just how is $4,000 going to help out in the long term anyway. I think it is either a scam or the people need money for relocating not “saving the house”.
I think most people have hit a financial snag or two in their lives. And I’m sure most don’t resort to begging for help. The majority I’m sure are too proud to say or ask anyone for assistance. I would gladly help if they had children and needed food on their table but not to bail them out of a housing mistake that they made.
I saw a dirty, smelly, bust-out, begging for change. He had a sign, it read “Why lie? I need a beer!”
It was refreshing to see something that is in short supply these day’s..HONESTY.
So I gave him a buck. I’d rather buy a chronic drunk a beer, then give a dollar to all the lying,thieving, politicians!
So everyone thought they had a CASH COW and now it turns out to be a LIABILITY. WOW! I really have to pay this back? I can’t just flip it and cash out? Won’t someone please HELP ME. I’m destitute. The hounds are at the door. OH Wo is Me.
Every generation has it’s moment. My Dad was a citizen soldier and fought the great war. I’m part of the 60’s social revolution but settled down, worked hard and have done well. But all you Gen X/Y scoflaws it’s time to get off your butts. Your moment has come. God help us all!
Oh and here’s my thread.
A Long Recession Looms
Bernanke’s Failing Policies
“The U.S. consumer faces a constant drumbeat of bad news. Housing prices are falling, gas prices are rising, good new jobs are getting scarcer than hens teeth, and credit card terms are getting tougher, even as the Federal Reserve makes credit to banks cheaper.”
http://counterpunch.com/morici02252008.html
Someone told me today that Paypal would charge a processing fee [30 cents? 35 cents?] so a bunch of people sending in quarters would do no good at all.
Twist,
I have used PayPal quite a bit.
It depends on the type of account that you have.
Personal accounts did not have any fees to transfer money to people, depending on what type of money transfer you used.
I transfered small amounts, like 20 cents, just to test it out, when I first opened an account.
I have not used Paypal for about a year now, so I hope it has not changed.
Thanks Doc-
The guy who told me that has a vendor account.
Thanks you DocScience, who sent me 30 cents via PayPal. There’s was no fee, so I guess this could work if you could talk enough people into it.
Why Housing Prices Are Nearing Bottom http://www.fool.com/investing/general/2008/02/25/why-housing-prices-are-nearing-bottom.aspx
So my question to this forum is:
Have you seen any “reduction” in quality in the new builds in Vegas?
If so, what exactly are they cutting back on?
Deal Hunter:
There are a million ways to cut corners on construction. I understand they use them all, in Las Vegas.
Talk to someone who builds houses for a living. Buy him lunch, and find out. Then, go out to the new developments in Vegas, and count the number of cost cuts you can see. Then, double it, since you can’t see inside.
Plus, remember… in a hot market like Vegas, even the home inspectors were pressured to take shortcuts. Back in Florida, where a couple of hurricanes took roofs off houses, they were able to see similar ‘cut-large, kick it in place” techniques… including framers missing studs with their nails, drywall grouted, but untaped, missing hurricane plates (holds roof rafters to the walls), etc.
In Florida, roofing inspectors typically didn’t even carry ladders to inspect roofs. I’d expect similar nonsense in The Most Honest and Forgiving City in the US…. Vegas.
I wouldn’t touch construction built in The Housing Boom, if you gave me a no-doc zero interest loan.
Yossarian, I can bear witness to the extremes of a real estate market bubble, which is why I find myself coming to this site and I have tried to avoid the froth. I purchased a townhouse in Midland, Tx in 1982. During the preceding two years articles about the boom in Midland-Odessa were plentiful even a few at the national level. I remember in US World Report an article discussing how homeowners were leasing out their backyards to RV and tent users because of the shortage of housing. I was partial to wanting to own real estate and went there with the idea I needed to own something. Everyone would tell me “buy quickly, its not getting cheaper”, which I have learned means stay put.
The townhouse took about 6 months to complete and I closed on the purchase of a 1050sqft – two bedroom townhouse for around $57K in summer of 1982 at 4011 Livingston Street. I have told anybody who will listen that I think that peak of the housing market in Midland was the day I closed. There were three bedroom townhouses that sold for around $67-72,000. Within two years the market completely tanked on these and just about every other home in Midland. The main ways out were: 1) company (which happened with the big oil companies) moved you and bought home, 2) you rented (which is what I did) or 3) you walked. I left Midland in 1984 and after being told that the best I could get was in the high $40k and rented out my townhouse. I remember calling back to a neighbor of mine with a growing family and he told me that in 1985, he put the keys on the counter and “WALKED”. I found out that it sold through FDIC auction for around $35,000, ALMOST HALF! It took until the mid 90’s before I saw where I could sell my place for close to the $57K I paid. For what it is worth, I did a Zestimate and found it to be around $116K today. Main lessons learned: 1) if everyone is saying buy before its too late, stay put. 2) If the area is not landlocked for development, which is the case for areas like Midland, Houston, Dallas and Phoenix, be very careful of steep price hikes.
Balancedview-
There was a “herd mentality” when it came to investing in RE in the past few years. It would get reported that some market was “hot”, and the investors would rush in- then rush out when prices were up and move on to the next market.
The process has made for fewer investment opportunities nationwide.
It wasn’t very scientific, but I sat down with Craigslist a couple of months ago and looked at prices in every market they cover. I used Craigslist because there are a lot of properties that will give you a rent vs. buy comarison for the same property.
Now maybe these seller/landlords are all on Craigslist because they are delusional about the selling price, but I didn’t see one property that the purchase made to purchase for the cash flow.