Here I can rent a 450K house for maybe $1800. It makes buying a tough decision, if I needed a place like that. In markets like this, I think buying is an overrated investment.
I think these days, 5% safely is all one can wish for. Where to find it, I don't know. I'll admit I don't manage my investments very closely - I have a certain percentage taken out of my wages, and it just gets put away...I check the statements now and then, maybe change a contribution venue now and then just for kicks. I'm probably 30 years away from retirement if I am lucky...so I don't get into it too deeply. I need a bigger nest egg first.
Here I can rent a 450K house for maybe $1800. It makes buying a tough decision, if I needed a place like that. In markets like this, I think buying is an overrated investment.
Absolutely makes no sense. That happens here as well when people are trying to hang on to a house they do not live in. Most houses in that price range will bring $2400 per month and up. Of course location is everything. A house in Del Mar that is selling for a million would be a $300k house in my neighborhood. Not much rents there for under $3000 per month. In LaJolla $3600 rents you a townhouse 3 blocks from the beach.
A Dr friend just moved into a retirement home in LaJolla at $10,000 per month. He never owned a home, always rented. When his wife died he wanted a change.
He and his wife were both research doctors. No kids and lived very frugal. His Volvo is 20 years old. Has to have a ton of money that will probably go to his only niece in Mississippi.
I thought San Diego was over priced. Bellevue has us beat hands down. I guess your bubble hasn't popped yet. All those homes over a million are just crazy. At least here you get decent weather for your over priced homes. This place just sold in Bellevue for a $1.2million without an ocean view. That is absurd. No way I would buy in that market.
Here is a house my daughter is looking at as we speak. We may buy it and rent to them until they can qualify for a loan. This is an all brick home that will probably sell for $125k cash. My daughter's rent just went up from $750 to $850 per month in Evansville. I can buy the house and rent to her for $850 and make about 8% return. With property taxes under $1000 per year on that place. No wonder Indiana just got rated the best income to cost of living in the USA.
When that $800k home in Bellevue gets under $200k it will be time to think about buying. Unless everyone in WA makes $150k plus a year. My jaw dropped when I saw the prices. That would be high for Laguna Niguel homes. They averaged over a million in 2007, now they are selling under half a million. So my advice for those in Seattle, keep renting.
That first house is in Vuecrest...an expensive neighborhood. That house is maybe a mile from where I live. The average 1950s-60s house in this part of town is maybe 600K, even in this market. But there isn't much of anything detached on the market here for under 400K, even on the other side of town. No ocean views here, the ocean is some distance away...some places will have city or inland water views. I agree the market here is overheated - there are still many good jobs in the area, and dual income families where the total is 150K+. That inflates things...but a lot of people are paying huge amounts of their income towards the mortgage, and end up in trouble when something goes wrong. Maybe it shows how the upper-middle-plus corporate ranks are overpaid :shades:
When I see those midwest housing prices, I cringe with a little envy. I might even think about owning a rental house if I lived out there. That's probably a better area to invest in real estate than the east or west coasts, no bubbles.
I am currently hunting for a waterfront property in Sarasota, Fl. I was/am amaze at the peak prices of these properties. I think a lot of people are kicking themselves for not cashing in when the price was double or more. It's getting a little heated again there, I recently lost two bids on different REO/short sales properties at asking price or more :surprise:
I did not know it was top five... but I love it there too. Agree with location, location and location, as I am going all out for a small piece of paradise on Siesta Key. Plan B is a canal front home on the Sarasota main land.
Recently, I was reading that the Canadian economy is doing quite well, especially in light of the global picture.
Makes me think that our Canadian friend Dewey might have something to do with it... LOL. After all, he is an investment advisor, and smart financial wizard... and he would be a terrific member of this forum. He always had a brilliant perspective on the economy and business. I always enjoyed reading his analysis.
His only questionable perspective that I recall was when he strongly disagreed with me when I predicted, during the worst of the financial crisis, that there would be a bright future for Ford. He thought my positive outlook for Ford was crazy... but then again, so did a lot of folks at that time. But as it turned out, Ford has indeed emerged from the ashes.
If we are fortunate, Dewey is lurking out there somewhere, and will make a heroic appearance here. That said, I miss hearing from Dewey, and I really hope he is doing OK. It would be awesome to hear from him on this forum!
I have been seeing tons of advertisements and gorgeous promotional videos lately aimed at attracting tourists and businesses to visit and relocate to Canada.
So... if you are out there Dewey... best regards to you, and please stop by the forum, and say hi.
Most of the sheeple thought 20% annual jumps in housing prices would go on forever - paying no attention to the decline in real incomes, worsening jobs situation, or reckless lending standards. Serves those people right.
Speaking of bidding wars, a couple co-workers of mine have recently bought short sales, and claim there were enough bids to go above asking price too. I worry about some of this, as it makes me doubt if all lending standards have been reigned in. I know what these people make, I can guess what their spouses make, and when I look at their income vs the price of these houses, it seems pretty tight. After mortgage and taxes, I can't see how these people will be able to maintain the houses, not to mention other expenses. Maybe I am too conservative when it comes to spending, I just can't not have breathing room.
Speaking of bidding wars, a couple co-workers of mine have recently bought short sales, and claim there were enough bids to go above asking price too. I worry about some of this, as it makes me doubt if all lending standards have been reigned in.
One of the biggest mistakes made by the Federal government in the financial crisis is not breaking up the big banks and institutions that got us into this mess - including B of A, Chase, Citibank, AIG.
The Republicans recently tried to pass a bill that anyone using Freddie Mac or Fannie Mae or whatever had to pay at least 5% down. The bill was voted down. Chris Dodd said that Dems could not support the bill because if it passed the only people who could buy a house would be those who could afford it.
He he, that is so funny. US banks are now lending to foreign nationals like myself, but they require that we have at least 30% down for detached homes, and 50% for condos.
I wonder if there is even demand in other markets, maybe other than Japan and the Arabian peninsula...the Lexus love affair seems to be a primarily NA affection.
The initial info was approx 330 units were allocated to NA and Japan. The rest went somewhere else. In the article I posted above, 1/3 of Euro allocation went to Germany. I've also heard that China did not get any.
I guess that makes sense with Germans having the most money and best roads in that region. Maybe some of those will be exported privately too, perhaps to China.
Yes... I still do like Citi. It is by no means the only stock I own, but I do own a hefty number of shares. The stock still has pressure upon it, as do the financials anyway, but also because of the government's ownership of so many shares... but after Uncle Sam finally unloads all of its shares, I fully expect Citi's stock price to start growing enough to return 50% or throw a double. But this is the time to buy it.
Citi is a stock I just can't resist and I believe that if I am patient with it, the reward will come in time.
When they cap the oil well, I believe the market will turn...
I think you are on to something here Tony. I've been buying more at every dip. Not just the market dips, but also individual stock's dips. I think we are in for a healthy upward move in the near future.
If capping the oil well is what it will take, I'm for that. One other thing that I believe would help the markets would be some stronger clarity from China about what they specifically intend to do about their economic situation... it seems too vague, IMO.
It needs to be capped---not partially capped---We will have an explosion up when it happens, so a person needs to make their moves now......
On the drive from S C to N C --the economy is booming...big trucks everywhere, and lots of traffic.....If the market were regulated, as it should be, then these monster moves wouldn`t happen....As I am primarily in bond etf the moves really are not so great each day....but the C only has to move a few pennies for it to be a large percentage....Morgan Stanley is hosing it down each and every day, so that is something we can understand....Never the less a loss is a loss....Tony
Cool. Hopefully it is way up for the rest of the year!
Whoa... not so fast... I don't think it's going to pan out quite like that. Sorry to say this, but I think we'll see a continuation of volatility, with significant swings.
Also, I tend to agree with Tony's perspective... to a point We need to see that gushing oil contained. That will give the markets some reason to celebrate.
And it especially needs to be contained before it jumps into the Gulf Stream. I saw a scientific projection on a news program last night that explained the ramifications of the oil spill getting into the Gulf Stream. That would spell a disaster even bigger then the one already in the Gulf. Once trapped in the Gulf Stream, it would wrap around Florida, travel up the entire East Coast, and then work its way to Europe.
Let's face it... we are in a mess right now... and the markets reflect that. Fortuntately, the mess will likely create some buying opportunites.
Whoa... not so fast... I don't think it's going to pan out quite like that. Sorry to say this, but I think we'll see a continuation of volatility, with significant swings.
While my long holdings are back to where they've started beginning of the year, I can still make some money with these volatilities. It just require more careful studies of the trading ranges.
I think making money on constantly rising markets does not require much skill. This one will.
Greetings from Seattle to all my friends here. My wife and I are here for the next couple weeks helping out with the twin girls that my son's wife gave birth to about 4 weeks ago. The twins are very good babies since they only wake up about 2-3 times a night. So, we are not totally "Sleepless in Seattle".
The market continues to be crazy with incredible volatility. I still very much believe that the U.S. economic news will win out over the crap spewing out from other parts of the world. So, a strategy of buying buying on these big dips as TagMan and some others are doing is the correct approach.
That oil spill is making me sick :sick: every time I think about it. I feel just as bad about the poor animals that are dying as I do about human beings in the affected area. What an environmental catastrophe! I hope and pray that an ultimate solution is found very soon.
Thank you much Jose. I certainly hope that you are feeling a lot better these days after your rather severe accident some time ago. I also hope that Spain's economy is in better shape than what we are lead to believe here.
Jose, Did you get invited to Bilderberg Group meeting in Spain. Hopefully they don't do for Spain what they did for Greece after meeting there last year. Charlie, Congratulations on the twins. Love my grandkids. Not sure I would enjoy being woke up all night long. Have fun with them.
My Charlie that is the best news any of us have had in a while....It brings back memories
The disaster in the gulf is way bigger than any of us realize , and mentally draining to boot....So many people and the wonderful wilds being destroyed in such a fashion , right before our eyes, is heart breaking...I think it is poisoning the nation as it unfolds...A solution will be a great relief, and then we all can begin to focus on what we as individuals can do to help----other than paying taxes---:) Cheers to you Tony
Thank you gagrice (Gary?) and Tony! Our daughter gave birth to a beautiful little girl in the Detroit area for our first grandchild about 2 and a half years ago. We have had a double dose of good luck recently .... the twins and and our son- in-law finally got a job after being laid off by Ford almost 2 years ago. He just got hired by a company in Detroit supplying some parts to Ford. We have really been blessed.
IF the oil spill can now be totally contained and the clean-up begins, this would bring all of us tremendous joy.
The disaster in the gulf is way bigger than any of us realize
Something not being said, is the fact that we could be getting large amounts of oil in much safer shallow water drilling. The environmentalists have blocked it, forcing the oil companies to search in much riskier locations. If that had happened in a few hundred feet of water it would have been an easy fix. With little or no environmental damage. Do you think that will be discussed? Or will the current leadership just condemn all offshore drilling and production? Stopping much of the drilling as Obama has done will not protect one fish or bird from the current disaster out in deep water. Just put more people out of work and cut into our oil supplies.
I'm walking (though carefully) and trying to be busy again. My wife keeps telling me I'm walking too much too early. X-Ray and surgeon will tell better early this week.
As for Spanish economy, I'm less optimistic than I was a month ago. I'd rather had gone for not cutting so drastically public depth. My priority would have been not to put in danger real economy recovery. But I have no economical or political authority in that or any other matter and, jokes aside, one cannot easily navigate in this storm of gambling veering round winds which are apparently driving the financial markets now. Blood, more blood! Nothing is enough! Governs can only be humble and obey to the non-elected and thus immoderate body of decision-makers which are hidden deep in the markets (no conspiracy theory: only interests of big speculators; oligarch groups can be added to the plot, however: it is not lunatic to think so). Anyway, these hidden decision-makers won't be satisfied even if something more catastrophic will happen. Annus horribilis, not for making money but loosing independence in favor of such unregulated markets. Some would say that the markets are fair in the end, but I believe than in their current form the markets are only fair to those who have enough shares (true or false) to drive them. Nanosecond machines adding to the concoction. Also, political mistakes leading to dangerous spots of violence (not to be mentioned here but I'm sure there are in everyone's mind) are of no help at all.
My prediction is that this perfect storm has no end at sight in this moment. Thus, for the peace of my mind, I sold my shares in some European Banks (Credit Agricole, v. g.,) a fortnight ago. (But I've bought more Santander's in the most recent dip later last week. I couldn't resist the temptation.)
Gary, I was there escorting the Queen of Spain; how bad you didn't see me in the unofficial pictures. As well, I had a very interesting conversation with Bill Gates, who was reacting badly to my cutting off, due to the crisis, of aid for his philantropical organization. :P :P :P
Jose, I am very glad to hear that you are on your feet! You seem to be somewhat ahead of schedule. Next time you see Bill give him my regards. I will try to take up the slack and send him a few extra dollars this month.
You must be upgrading to System7 from that HORRIBLE Vista. It galls me paying $100 bucks to get rid of one of the worst operating systems that Gates and company has dumped on the consumers. When my main machine crashed a couple weeks ago. I put in a new motherboard and CPU. Fortunately I was able to get it back up on XP Professional and find all the right drivers. It was fast before now it is very fast. I like it. No plans to give Bill Gates anymore than I have to . I use Open Office on my laptops.
Jose, Don't over do your recovery. Keep US posted.
As for Spanish economy, I'm less optimistic than I was a month ago. I'd rather had gone for not cutting so drastically public depth. My priority would have been not to put in danger real economy recovery. Jose, I am not the expert on this topic, but if I recalled correctly, this was the way Canada built it strong financial foundation that help the country to be where it is today. It began in the early 90's right after the recession 89-91, we had a Liberal Government that was cutting spending and raising taxes constantly for at least half a decade. I remembered that we at some point were paying well above 50% of combined taxes on our incomes. However, It achieved annual budget surplus in the end at the cost of a very slow growing economy. All this happened while the rest of the world enjoyed the boom as we knew it. I used to hate the way it was done here too, but in hind sight, I think it was the right approach to cure our financial diseases.
Comments
I think these days, 5% safely is all one can wish for. Where to find it, I don't know. I'll admit I don't manage my investments very closely - I have a certain percentage taken out of my wages, and it just gets put away...I check the statements now and then, maybe change a contribution venue now and then just for kicks. I'm probably 30 years away from retirement if I am lucky...so I don't get into it too deeply. I need a bigger nest egg first.
Absolutely makes no sense. That happens here as well when people are trying to hang on to a house they do not live in. Most houses in that price range will bring $2400 per month and up. Of course location is everything. A house in Del Mar that is selling for a million would be a $300k house in my neighborhood. Not much rents there for under $3000 per month. In LaJolla $3600 rents you a townhouse 3 blocks from the beach.
http://sandiego.craigslist.org/csd/apa/1757935685.html
A Dr friend just moved into a retirement home in LaJolla at $10,000 per month.
He never owned a home, always rented. When his wife died he wanted a change.
http://www.whitesandslajolla.com/index.asp
He and his wife were both research doctors. No kids and lived very frugal. His Volvo is 20 years old. Has to have a ton of money that will probably go to his only niece in Mississippi.
This one at a mere 650K...why buy?
One could easily invest that savings over time and have enough for retirement housing when the time came, with a lot left over.
http://www.zillow.com/homedetails/9633-Vineyard-Crst-Bellevue-WA-98004/49113446_- zpid/
Here is a house my daughter is looking at as we speak. We may buy it and rent to them until they can qualify for a loan. This is an all brick home that will probably sell for $125k cash. My daughter's rent just went up from $750 to $850 per month in Evansville. I can buy the house and rent to her for $850 and make about 8% return. With property taxes under $1000 per year on that place. No wonder Indiana just got rated the best income to cost of living in the USA.
http://www.zillow.com/homedetails/3306-Aspen-Dr-Evansville-IN-47711/77083464_zpi- d/
When that $800k home in Bellevue gets under $200k it will be time to think about buying. Unless everyone in WA makes $150k plus a year. My jaw dropped when I saw the prices. That would be high for Laguna Niguel homes. They averaged over a million in 2007, now they are selling under half a million. So my advice for those in Seattle, keep renting.
When I see those midwest housing prices, I cringe with a little envy. I might even think about owning a rental house if I lived out there. That's probably a better area to invest in real estate than the east or west coasts, no bubbles.
Location, location, location.....
Makes me think that our Canadian friend Dewey might have something to do with it... LOL. After all, he is an investment advisor, and smart financial wizard... and he would be a terrific member of this forum. He always had a brilliant perspective on the economy and business. I always enjoyed reading his analysis.
His only questionable perspective that I recall was when he strongly disagreed with me when I predicted, during the worst of the financial crisis, that there would be a bright future for Ford. He thought my positive outlook for Ford was crazy... but then again, so did a lot of folks at that time. But as it turned out, Ford has indeed emerged from the ashes.
If we are fortunate, Dewey is lurking out there somewhere, and will make a heroic appearance here. That said, I miss hearing from Dewey, and I really hope he is doing OK. It would be awesome to hear from him on this forum!
I have been seeing tons of advertisements and gorgeous promotional videos lately aimed at attracting tourists and businesses to visit and relocate to Canada.
So... if you are out there Dewey... best regards to you, and please stop by the forum, and say hi.
TM
Speaking of bidding wars, a couple co-workers of mine have recently bought short sales, and claim there were enough bids to go above asking price too. I worry about some of this, as it makes me doubt if all lending standards have been reigned in. I know what these people make, I can guess what their spouses make, and when I look at their income vs the price of these houses, it seems pretty tight. After mortgage and taxes, I can't see how these people will be able to maintain the houses, not to mention other expenses. Maybe I am too conservative when it comes to spending, I just can't not have breathing room.
One of the biggest mistakes made by the Federal government in the financial crisis is not breaking up the big banks and institutions that got us into this mess - including B of A, Chase, Citibank, AIG.
2013 LX 570 2016 LS 460
2013 LX 570 2016 LS 460
On a separate note, Toyota has officially confirmed that all 500 LFAs are spoken for
News
New Lexus commercial featuring the LFA, enjoy.
Commercial
I always knew they would have no issue moving this car. Now my hope is that it will appreciate like crazy down the road.
US banks are now lending to foreign nationals like myself, but they require that we have at least 30% down for detached homes, and 50% for condos.
Hmmm... perhaps.
But he sure made plenty of terrific financial posts for a guy that doesn't like to talk about it.
Also, given that it's his professional career, I would think that he has a lot to contribute. His choice of course.
Still... I really miss Dewey's posts.
TM
Is this true?
Can they do it...legally?
In the article I posted above, 1/3 of Euro allocation went to Germany. I've also heard that China did not get any.
I just had a bond called, do you still like Citi? The Market was up big today but Citi hardly moved.
2013 LX 570 2016 LS 460
Citi is a stock I just can't resist and I believe that if I am patient with it, the reward will come in time.
TM
I think you are on to something here Tony. I've been buying more at every dip. Not just the market dips, but also individual stock's dips. I think we are in for a healthy upward move in the near future.
If capping the oil well is what it will take, I'm for that. One other thing that I believe would help the markets would be some stronger clarity from China about what they specifically intend to do about their economic situation... it seems too vague, IMO.
TM
Euro scraped below $1.20 for a bit...down baby, down...hit par and stay there.
Another buying opportunity for tagman!
Guilty as charged.
I bought more stocks today.
TM
Regards,
OW
On the drive from S C to N C --the economy is booming...big trucks everywhere, and lots of traffic.....If the market were regulated, as it should be, then these monster moves wouldn`t happen....As I am primarily in bond etf the moves really are not so great each day....but the C only has to move a few pennies for it to be a large percentage....Morgan Stanley is hosing it down each and every day, so that is something we can understand....Never the less a loss is a loss....Tony
I bought more stocks today.
Cool. Hopefully it is way up for the rest of the year!
Whoa... not so fast... I don't think it's going to pan out quite like that. Sorry to say this, but I think we'll see a continuation of volatility, with significant swings.
Also, I tend to agree with Tony's perspective... to a point We need to see that gushing oil contained. That will give the markets some reason to celebrate.
And it especially needs to be contained before it jumps into the Gulf Stream. I saw a scientific projection on a news program last night that explained the ramifications of the oil spill getting into the Gulf Stream. That would spell a disaster even bigger then the one already in the Gulf. Once trapped in the Gulf Stream, it would wrap around Florida, travel up the entire East Coast, and then work its way to Europe.
Let's face it... we are in a mess right now... and the markets reflect that. Fortuntately, the mess will likely create some buying opportunites.
TM
While my long holdings are back to where they've started beginning of the year, I can still make some money with these volatilities. It just require more careful studies of the trading ranges.
I think making money on constantly rising markets does not require much skill. This one will.
The market continues to be crazy with incredible volatility. I still very much believe that the U.S. economic news will win out over the crap spewing out from other parts of the world. So, a strategy of buying buying on these big dips as TagMan and some others are doing is the correct approach.
That oil spill is making me sick :sick: every time I think about it. I feel just as bad about the poor animals that are dying as I do about human beings in the affected area. What an environmental catastrophe! I hope and pray that an ultimate solution is found very soon.
Regards,
Jose
Did you get invited to Bilderberg Group meeting in Spain. Hopefully they don't do for Spain what they did for Greece after meeting there last year.
Charlie,
Congratulations on the twins. Love my grandkids. Not sure I would enjoy being woke up all night long. Have fun with them.
The disaster in the gulf is way bigger than any of us realize , and mentally draining to boot....So many people and the wonderful wilds being destroyed in such a fashion , right before our eyes, is heart breaking...I think it is poisoning the nation as it unfolds...A solution will be a great relief, and then we all can begin to focus on what we as individuals can do to help----other than paying taxes---:) Cheers to you Tony
IF the oil spill can now be totally contained and the clean-up begins, this would bring all of us tremendous joy.
Something not being said, is the fact that we could be getting large amounts of oil in much safer shallow water drilling. The environmentalists have blocked it, forcing the oil companies to search in much riskier locations. If that had happened in a few hundred feet of water it would have been an easy fix. With little or no environmental damage. Do you think that will be discussed? Or will the current leadership just condemn all offshore drilling and production? Stopping much of the drilling as Obama has done will not protect one fish or bird from the current disaster out in deep water. Just put more people out of work and cut into our oil supplies.
As for Spanish economy, I'm less optimistic than I was a month ago. I'd rather had gone for not cutting so drastically public depth. My priority would have been not to put in danger real economy recovery. But I have no economical or political authority in that or any other matter and, jokes aside, one cannot easily navigate in this storm of gambling veering round winds which are apparently driving the financial markets now. Blood, more blood! Nothing is enough! Governs can only be humble and obey to the non-elected and thus immoderate body of decision-makers which are hidden deep in the markets (no conspiracy theory: only interests of big speculators; oligarch groups can be added to the plot, however: it is not lunatic to think so). Anyway, these hidden decision-makers won't be satisfied even if something more catastrophic will happen. Annus horribilis, not for making money but loosing independence in favor of such unregulated markets. Some would say that the markets are fair in the end, but I believe than in their current form the markets are only fair to those who have enough shares (true or false) to drive them. Nanosecond machines adding to the concoction. Also, political mistakes leading to dangerous spots of violence (not to be mentioned here but I'm sure there are in everyone's mind) are of no help at all.
My prediction is that this perfect storm has no end at sight in this moment. Thus, for the peace of my mind, I sold my shares in some European Banks (Credit Agricole, v. g.,) a fortnight ago. (But I've bought more Santander's in the most recent dip later last week. I couldn't resist the temptation.)
Enjoy your grand-childrens!
Regards,
Jose
:P :P :P
Regards,
Jose
2013 LX 570 2016 LS 460
Jose,
Don't over do your recovery. Keep US posted.
Jose,
I am not the expert on this topic, but if I recalled correctly, this was the way Canada built it strong financial foundation that help the country to be where it is today. It began in the early 90's right after the recession 89-91, we had a Liberal Government that was cutting spending and raising taxes constantly for at least half a decade. I remembered that we at some point were paying well above 50% of combined taxes on our incomes. However, It achieved annual budget surplus in the end at the cost of a very slow growing economy. All this happened while the rest of the world enjoyed the boom as we knew it.
I used to hate the way it was done here too, but in hind sight, I think it was the right approach to cure our financial diseases.