Comments on: $5 Trillion in Housing Wealth Gone: The Impact of the Housing Bubble Bursting http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/ How I Learned to Love Southern California and Forget the Housing Bubble Tue, 06 Jan 2009 21:59:23 +0000 http://wordpress.org/?v=2.2.2 By: Venkat http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-3309 Venkat Sat, 15 Dec 2007 01:22:17 +0000 http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-3309 Hi! I read almost all your articles. I saw the housing bubble since long time. Most of the buble laughed at my analysis. Could you please write an article on San Francisco Bay Area and San Jose Area. Though I see similar bubble nature here in Bay Area like the Los Angeles Area, I don't see many articles on Bay Area except the patrick's site. It would be great, if you can write an article on Bay Area housing and the house prices. Hi!
I read almost all your articles. I saw the housing bubble since long time. Most of the buble laughed at my analysis.
Could you please write an article on San Francisco Bay Area and San Jose Area. Though I see similar bubble nature here in Bay Area like the Los Angeles Area, I don’t see many articles on Bay Area except the patrick’s site.

It would be great, if you can write an article on Bay Area housing and the house prices.

]]> By: Anonymous http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1309 Anonymous Mon, 09 Jul 2007 05:57:00 +0000 http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1309 Hello!!<br/><br/>You need a home based business, and get a ton of your tax money back...read anything by Robert Kiyosaki. Earned income is the worst type of income to be working for; the gub-ment takes 50%. 401K is next worst; the GM takes 20% at least, and B-quadrant business is THE best, because you pay taxes after you buy the stuff you need to run your business. I have learned a ton about financial mindset in the last month!! Good luck, everyone:) Hello!!

You need a home based business, and get a ton of your tax money back…read anything by Robert Kiyosaki. Earned income is the worst type of income to be working for; the gub-ment takes 50%. 401K is next worst; the GM takes 20% at least, and B-quadrant business is THE best, because you pay taxes after you buy the stuff you need to run your business. I have learned a ton about financial mindset in the last month!! Good luck, everyone:)

]]> By: Anonymous http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1291 Anonymous Sun, 08 Jul 2007 02:59:00 +0000 http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1291 My situation is something that tells me the market is still far away from a fair price as well in the Northeast:<br/><br/>I live in NY (outside Manhattan) and have a great income. I am looking to upgrade from my current 800 sf co-op but this is what I'm facing:<br/><br/>Manhattan (where I work):<br/>an avg. 2 bedroom condo with a bit more than 1000 sf costs about 1.2MM (of course you can find cheaper, but there are tons for over 2MM). In addition the taxes and mtc. adds another 1500 $ or so.<br/><br/>Even with a 30y mortgage (putting up a boatload of equity just for the 20% downpayment!!) you get to total costs of about 8k/month!! <br/><br/>And everyone is convinced that it'll not go down.. It's insane, you've got to compete with investment bankers making millions, CEOs, professionals, investors and wealthy internationals who want to have a piece of the city. Some of these folks making millions don't know where to stick their money anymore, so they buy up one apt. after the other... that keeps the prices of property in nyc high (at least as long as the market booms and bonuses are paid the way they currently are).<br/><br/>So even if you make good bucks, you can barely afford to live in anything decent. Someone making half of what I make in a place like NC can live in a nice house with a good piece of land.<br/><br/>And keep in mind that the American tax system isn't quite fair either. Living in a high income, high expense city such as NYC has the disadvantage that it brings you to the top tax rate (in addition to that you've got over 3 % city tax and 7 % NY State tax, giving a total top tax rate of 45 %). <br/><br/>Now with the tax man eating that much money away from you, suddenly the salary doesn't look that great anymore when you have to look at the housing prices that we're facing here... <br/><br/>Look at this example:<br/>An assumed 250k gross income would probably leave you with about 150k net income.<br/><br/>Now you'd like to live in a 2 bedroom in the city you work in and have to fork over 96k p.a. for that!<br/><br/>That is 64 % of the net income just for living in a 2 bedroom apt.????<br/><br/>I am wondering how anyone can live here with the median income (which is somewhere around 60k).<br/><br/>Even looking at new places just outside Manhattan but with a short commute, you still see 1MM for a 2 bedroom.<br/><br/>It's insane.. My situation is something that tells me the market is still far away from a fair price as well in the Northeast:

I live in NY (outside Manhattan) and have a great income. I am looking to upgrade from my current 800 sf co-op but this is what I’m facing:

Manhattan (where I work):
an avg. 2 bedroom condo with a bit more than 1000 sf costs about 1.2MM (of course you can find cheaper, but there are tons for over 2MM). In addition the taxes and mtc. adds another 1500 $ or so.

Even with a 30y mortgage (putting up a boatload of equity just for the 20% downpayment!!) you get to total costs of about 8k/month!!

And everyone is convinced that it’ll not go down.. It’s insane, you’ve got to compete with investment bankers making millions, CEOs, professionals, investors and wealthy internationals who want to have a piece of the city. Some of these folks making millions don’t know where to stick their money anymore, so they buy up one apt. after the other… that keeps the prices of property in nyc high (at least as long as the market booms and bonuses are paid the way they currently are).

So even if you make good bucks, you can barely afford to live in anything decent. Someone making half of what I make in a place like NC can live in a nice house with a good piece of land.

And keep in mind that the American tax system isn’t quite fair either. Living in a high income, high expense city such as NYC has the disadvantage that it brings you to the top tax rate (in addition to that you’ve got over 3 % city tax and 7 % NY State tax, giving a total top tax rate of 45 %).

Now with the tax man eating that much money away from you, suddenly the salary doesn’t look that great anymore when you have to look at the housing prices that we’re facing here…

Look at this example:
An assumed 250k gross income would probably leave you with about 150k net income.

Now you’d like to live in a 2 bedroom in the city you work in and have to fork over 96k p.a. for that!

That is 64 % of the net income just for living in a 2 bedroom apt.????

I am wondering how anyone can live here with the median income (which is somewhere around 60k).

Even looking at new places just outside Manhattan but with a short commute, you still see 1MM for a 2 bedroom.

It’s insane..

]]> By: Anonymous http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1283 Anonymous Sat, 07 Jul 2007 06:05:00 +0000 http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1283 When Americans return to the time tested policy of buying a home to live in for enjoyment and raising a family the foolish speculative buying will stop. If you can afford to buy a home in any area of the country and plan on living in that home for at least the next 5-10 years than buy it. Home appreciation at the very least will end up keeping pace with inflation, you will have a dependable annual tax write off and the bank you are sleeping in will provide an excellent souce of revenue when it is time to trade down and/or retire. Unfortunately a large per centage of the population is living beyond their means and will end up taking substantial losses due to overextending themselves on many types of credit, interest only mortgages and wild, speculative buying. There will not be a nationwide housing crash, however the east and west coasts along with a few other overvalued metro areas will certainly see corrections of 10-20 percent over the next 18-24 months before inventories decline and the market stabilizes. When Americans return to the time tested policy of buying a home to live in for enjoyment and raising a family the foolish speculative buying will stop. If you can afford to buy a home in any area of the country and plan on living in that home for at least the next 5-10 years than buy it. Home appreciation at the very least will end up keeping pace with inflation, you will have a dependable annual tax write off and the bank you are sleeping in will provide an excellent souce of revenue when it is time to trade down and/or retire. Unfortunately a large per centage of the population is living beyond their means and will end up taking substantial losses due to overextending themselves on many types of credit, interest only mortgages and wild, speculative buying. There will not be a nationwide housing crash, however the east and west coasts along with a few other overvalued metro areas will certainly see corrections of 10-20 percent over the next 18-24 months before inventories decline and the market stabilizes.

]]> By: Dr Housing Bubble http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1280 Dr Housing Bubble Fri, 06 Jul 2007 21:19:00 +0000 http://www.doctorhousingbubble.com/5-trillion-in-housing-wealth-gone-the-impact-of-the-housing-bubble-bursting/#comment-1280 @son of brock landers,<br/><br/>Yes, <i>Boomsday</i> by Christopher Buckley. It was recommended by a reader on the site and I must say that even though it is fiction, the author has a strong sense of the current culture in America including the blogger world.<br/><br/>I try to read one book per week. The last few that I've read are:<br/><br/>Evolutionary Psychology: Robin Dunbar<br/><br/>100 People Who are Screwing up America: Bernard Goldberg<br/><br/>Audacity of Hope: Barrack Obama<br/><br/>I try to read books from all vantage points. Although I don't agree with everything I read, it helps to get a perspective from all sides. <i>Boomsday</i> in many ways reminds me of a modern day <i>Catch-22</i>. I'll make a final comment once I complete the book. @son of brock landers,

Yes, Boomsday by Christopher Buckley. It was recommended by a reader on the site and I must say that even though it is fiction, the author has a strong sense of the current culture in America including the blogger world.

I try to read one book per week. The last few that I’ve read are:

Evolutionary Psychology: Robin Dunbar

100 People Who are Screwing up America: Bernard Goldberg

Audacity of Hope: Barrack Obama

I try to read books from all vantage points. Although I don’t agree with everything I read, it helps to get a perspective from all sides. Boomsday in many ways reminds me of a modern day Catch-22. I’ll make a final comment once I complete the book.

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