Comments on: Will the Housing Market Drop out of the Race? Quick Media, Tell me how to Think! 3 Important Tips Buying in a Crashing Housing Market. http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/ How I Learned to Love Southern California and Forget the Housing Bubble Fri, 09 Jan 2009 13:19:13 +0000 http://wordpress.org/?v=2.2.2 By: Emmi http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9265 Emmi Sat, 08 Mar 2008 20:03:09 +0000 http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9265 Cash management at that level is no joke. My dad was executor on his good friend's estate and they were war refugees who came to the u.s. who both worked hard at professional jobs, no children, and they squirreled money away just everywhere for fifty straight years. You only want to keep 100k in a single bank (the FDIC insured limit, obviously) so you really have to stay on top of the statements and when the CDs are maturing, etc. 10mil... that's 100 bank accounts. I realize there are banks that handle this for you, but I'm assuming the added fees would leave your gains in the negative after inflation if you went that route. On the upside, not a problem I ever expect to have. Cash management at that level is no joke. My dad was executor on his good friend’s estate and they were war refugees who came to the u.s. who both worked hard at professional jobs, no children, and they squirreled money away just everywhere for fifty straight years. You only want to keep 100k in a single bank (the FDIC insured limit, obviously) so you really have to stay on top of the statements and when the CDs are maturing, etc. 10mil… that’s 100 bank accounts. I realize there are banks that handle this for you, but I’m assuming the added fees would leave your gains in the negative after inflation if you went that route. On the upside, not a problem I ever expect to have.

]]> By: Al http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9243 Al Sat, 08 Mar 2008 14:34:14 +0000 http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9243 One last jab for me Net worth $10,000,000 Net income $75,000 Rate of return after taxes: 0.75% Must have all his money in a chequing account. Way to invest. One last jab for me

Net worth $10,000,000
Net income $75,000

Rate of return after taxes: 0.75%

Must have all his money in a chequing account. Way to invest.

]]> By: Bob http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9226 Bob Sat, 08 Mar 2008 00:13:33 +0000 http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9226 One of the reasons I am a cash, versus paper-tiger, millionaire is that I don't fall for Gawain-style rhetoric, like "real estate always goes up," "real estate is always a good investment because they're not making any more of it," etc. $10 million of "market equity" (even if it's not made up market equity as I suspect it is in this case) means nothing, as tens of millions of deluded Americans will eventually discover as they try to cash out their housing "wealth" only to discover that all the next greater fools have already left the scene of the crime. Historically, real estate appreciates at a rate only slightly above the inflation rate, meaning that in real terms over the long term, RE is a crappy investment in the overall scheme of things. Just ask "millionaire" Carlton Sheets...or his bankruptcy attorney. One of the reasons I am a cash, versus paper-tiger, millionaire is that I don’t fall for Gawain-style rhetoric, like “real estate always goes up,” “real estate is always a good investment because they’re not making any more of it,” etc.

$10 million of “market equity” (even if it’s not made up market equity as I suspect it is in this case) means nothing, as tens of millions of deluded Americans will eventually discover as they try to cash out their housing “wealth” only to discover that all the next greater fools have already left the scene of the crime.

Historically, real estate appreciates at a rate only slightly above the inflation rate, meaning that in real terms over the long term, RE is a crappy investment in the overall scheme of things. Just ask “millionaire” Carlton Sheets…or his bankruptcy attorney.

]]> By: Andy http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9225 Andy Fri, 07 Mar 2008 22:08:33 +0000 http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9225 Oh ya my net worth is $57000000000000000000000.33. And my dad can beat up your dad. How do you like them apples? Realtors....Classic Oh ya my net worth is $57000000000000000000000.33. And my dad can beat up your dad. How do you like them apples? Realtors….Classic

]]> By: Priced out it the OC http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9224 Priced out it the OC Fri, 07 Mar 2008 21:47:50 +0000 http://www.doctorhousingbubble.com/will-the-housing-market-drop-out-of-the-race-quick-media-tell-me-how-to-think-3-important-tips-buying-in-a-crashing-housing-market/#comment-9224 If you followed the rules you laid out, any time would be good to buy. Great fact comparing the amount of books read by adults to homeownership by the way. If you followed the rules you laid out, any time would be good to buy.
Great fact comparing the amount of books read by adults to homeownership by the way.

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