"So what if prices fall another 10% - if you plan on holding on to the house for five years or so, you will still walk away with a nice profit, tax-free." - Purva Brown for John Lockwood, Realtor® Elite Properties wesite.
Well give ole John the benefit of the doubt that it was an oversight to say "will" rather than "could" and of course it goes without saying that Realtortalk® is not investment advice no matter how much it looks like investment advice. Especially since were this investment advice it is collosaly bad.
Update: Purva wrote the article for John's website. John is the broker of record and responsible for the content.
Math innumeracy is a sorry thing to see.
19 comments:
People who post "first" are really lame.
BTW, shouldn't Countrywide laying off 12,000 warrant a separate post?
Nope, not unless you laugh at my Kucinich joke first.
Go to Calculated Risk. I'm off to Hall & Oates with the Spinners and Hollywood Bowl Orchestra in a bit.
I absolutely refuse to believe that anyone, anywhere would take seriously anything said by any realtor, ever.
Has anyone watched the News Hour with Jim Lehr? Currently they're featuring green pools in foreclosed homes - and West Nile concerns!
I'll be lame and post MURST BTW!
Dawg,
Watch out, boy. They'll chew you up.
Rob,
As I prepare to add chin-daddy to the Housing Bubble Hall of Shame®, I came across this:
Here was an interesting home listed at the blog:
Aug 2006: home for sale.. 4032 Birchgrove Way, $320K
Jun 2007: price reduced.. 4032 Birchgrove Way, $255K
Jul 2007: home sold........ 4032 Birchgrove Way, $290K * 1 year later *
John-boy: "...toward the end the winning combination was a deeply discounted list price and an above market commission." Funny business? Cash back? The true price drop appears to be 20%. The "above market commission" may have added back 10%.
Dawg, please, no more links to Purva's blog. That site irritates the hell out of me.
Lou,
That is not a f-ing penguin in his large neck pouch!!!
It is an endgame device frequently utilized by centipedes and such.
@Lou
The picture is meant to say "Despite my aftershave burn on my chin and stache, besides my alcohol induced rosy cheeks and wc fields like nose, despite my pubes sprouting up from my cleavage which I use to seem more manly (and man did it take a long time to grow em that long), I still have this stupid cuddly thing attached to my shirt so that I appear harmless, cuddly, and trustworthy"
Either that or it's his left testicle which he carries around as a souvenir.
Old John is slimy. Why wouldn't I wait to buy in that case in order to maximize my profit? Is he that stupid? He sure sounds stupid.
Purple fishnet porn in the works.
Additional sashimi coming soon!
I'm beginning to wonder if Purva is for real at all...
Stupid, stupid, stupid!
I've always maintained that if you buy a house in a good neighborhood, it will (mostly) maintain its value even in a bad market.
Um...yeah I'm sure there are lots of homeowners in nice neighborhoods all over Florida, California, Arizona...Christ the list goes on, who'd beg to differ (and share their own horror stories to boot).
(a couple who bought a home last year)...bought a fixer with a Cal HFA loan (not FHA) which was 100% financed with a silent second (state funded for first-time buyers.) Recently I heard that they have made a huge amount of repairs to the house and I will be getting "before and during" pictures, not "before and after." The pictures will be here soon.
It is my belief however that they will be laughing all the way to the bank when this market turns. And I will be the first to congratulate them. I'm so proud of clients that know what they want and go for it even in the face of fear.
You have to believe they will laugh all the way to the bank - God forbid they actually just pissed all the repair money away in lost equity. They bought last year for God's sake! It'll be a good while before anyone laughs their way to anywhere.
Also, those of you overly concerned about the state of the housing market can go see the US home appreciation chart from 1976 through the present.
And rest easy.
Um...this chart is for Arizona housing. Her blog post refers to Sacramento foreclosures... Also I'd like to be able to toy with that chart because I really don't see how it can "all be over" like that chart says.
But I'm one of those people Purva refers to as one of those mean 'ol nasty "bubble heads".
Sheesh. Denial still runs rampant in the ranks of the Realtor.
The actions of my POS condo HOA today reminded me yet again why I'm so f-ing pissed about the current state of the real estate market.
I was treated better as a f-ing renter (which was more expensive than buying in 2000)!
Somebody should tell Purva ( which means "of the East" ) should be spelt PurWa - I should know - my niece is called PurWa and I was consulted on the spelling.
And before somebody bitches about "spelt" versus "speLLed" - look it up please.
Of course if PurVa is of the Chandra Levy variety then - let it be.. let it be.
-K
I always thought the Schiller chart was quite a bit more accurate a depiction, you know being compiled from loads of information, adjusted for inflation and created by a Yale University economics professor.
In a little digging about to find out a little more info on the OFHEO, I dug up this interesting little article published at a rather interesting time - the peak of the mania.
I found this part to be rather interesting:
"In addition to Greenspan, Treasury Secretary John W. Snow has called for legal limits to both companies' portfolio of mortgage assets. They argue that Fannie and Freddie have used their government-sponsored advantage, most notably their ability to borrow money at favorable rates, to build outsized investment portfolios that could pose significant risks to taxpayers and the mortgage finance market if the companies fail."
Hmmmmmmmm. If the companies were to FAIL??? Who'd have thunk it in 2005? Greenspan knew we were in trouble then. He didn't mind other people being exposed to the risk, but as long as the government and the taxpayer weren't, he knew his ass was covered. Mind you this was before any talk of taxpayers fundong a bailout was even a glimmer in the eye of the most astute of lawmakers.
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