The homeowners at 679 Oakwood Creek Place put their 2376 sq ft home on the market nearly 22 days ago at $400,000. This is the home they purchased in Jan 2005 for a mere bargain of $574,000 at the time.
Meanwhile, the homeowners at 657 Oakwood Creek Place weren't going to wait for 679's comp to hit the books, so 10 days later they list the 2400 sq ft home they also purchased in Jan 2005 for $599,500 on the market for $395,000.
Where is our government to help bail out these folks, lets give them a lower interest rate, or better yet lets buy their homes using tax payer dollars.....
The bottomline is in 2005 there were hardly any real homeowners buying, however there were many flippers in for a quick buck. When you treat homes as stocks you are liable to get burned, and you did. I sure as heck don't want the government bailing out these people or for that matter any banks either.
4 comments:
Great point! If I lost hundreds of thousands of dollars in the stock market, I wouldn't expect anyone to bail me out. These government proposals are ridiculous. Sometimes you have to burn your hand to learn that the stove is hot.
In June of 2005 my brother was building a house in Valley Center and selling his house in Escondido, my mother was also selling her house in Escondido. Sounds good so far, oops, they did not tell me that my mom after selling her house was going to buy the house my brother was selling. I argued strongly (told my brother he was ripping mom off)to have mom rent and pocket the $500k. Nope, she paid cash for my brothers house and they have not spoken to me since.
Wow, $200K under January of 2005 pricing. I am enjoying the trend.
I like to idea of investing in high quality real estate investment trusts that invest in brick ands mortar buildings. Not only do you get an annual dividend that increases usually ever year but you also get the benifit of the increasing value of the reits brick and mortar buildings over time. And well selected real estate could very well out perform stocks. Another possitive factor is a hedge against inflation rents generally increase over time along with the property values of the reits real estate holdings.
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