I bought a house in vegas in 2001 for 148k. Sold it in 2005 for 293k Refused to buy another house despite realtors saying real estate never goes down. So now its a few years later and i wonder about the people that bought my house. I kind of feel like i pulled one over on them. I knew that real estate was going to fall and now they are left holding the bag. They put about 50k of work into the house and I just checked though and they are trying to sell it for 239k (no doubt a short sale). The homes in the area now though are selling for less than they did in 2001. A house a block away on a bigger lot is in forclosure and the bank wants 69k for it. I feel really bad for those people as they were very nice. I notice there is not alot of talk of people selling their real estate during the boom, but there must be alot more like me that are just keeping quiet. Not everyone rolled their profits into more houses because if they did, the banks wouldnt be in such trouble. Alot of people had to have cashed out.
After writing that, i did a little more research and didnt realize how bad Vegas real estate collapsed. You can get a 2500 sq ft home there now for under 100k. Heck...live like a king in a 4700 sq ft home with 5 bed/5baths for 160k http://www.realtor.com/realestateandhomes-detail/3591--Algonquin-Dr_Las-Vegas_NV_89169_1106016575 You could rent out each room for 300 bucks and more than cover the mortgage. Man...its tempting to go back there now and pick up some property. But now seeing how hard vegas got hit, makes me really wonder if places like CA and FL have even further to fall. Could R.E. fall another 50%? I dont think its out of the questions now as i really cant believe Vegas got that bad.
You buy and sell when you need to. There will always be suckers to buy out there...case in point the nice upswing before the "tax credit" was ultimately extended last month. See how many of those fall behind in the next year or two...because they "had to buy." Not only that, there are plenty more out there kicking themselves because they went through the boom, but probably thought they could make even more and held off a little while longer to sell...until all hell broke loose and all bets were off. Most people are clueless when it comes to real estate...they listen to their "realtor" who "knows" about the "market." Most times, you don't need much to be one anyway...study a bit of info., pass a test, upkeep it a little, congrats you got your license! Many got weeded out post-boom; the rest are barely hanging on, sans the ones who adapted nicely and are doing just fine still. Will things fall further? In those places, probably if this next proposed round of foreclosures hits as predicted. I don't know about another 50% per say, but 20-30% wouldn't be out of the question. (which is why you buy @ 50-60% off now if you do)
All speculation is predicated on the Greater Fool. To buy higher or sell lower. How else does a trader profit ? We're all adults. The markets and real estate are far more complicated than any casino. Everyone participates freely, aware of this. I don't feel guilty. Granted, what I do contributes zilch to the real economy or upwards push in living standards. I justify that with the knowledge that in my personal life, I support real economic reform and would gladly resign my job as trader in exchange for a sustainable and fair monetary system that would bring immense benefit to humanity. Whatever form that might take. I see that as my patriotic and Christian duty.
My aunt and uncle lived in their house for 35 years. Paid the 30 yr fixed to completion and sold it a few years later at the absolute peak of the market. Cashed out, they now rent. Dumped their dollars into tax-free muni's and the interest pays their rent. I'm sure there are others. As long as you sold a habitable home, and disclosed any imperfections you knew of, there is no shame to be had. You feel bad because something unfortunate happened to people you know. That's just called being human.
i may be a failed trader, but my standards haven't dropped that low. your 'live like a king' standard are set at a pretty low bar. a 45 year old converted garage shit-hole in the middle of nowhere shared with a bunch of losers who are resigned to renting rooms in said shit-hole for $300/month? btw, they put the *best* photos in the ad- yes... those are the shots of the highlights! imagine what teh crappy rest of the place look like. dare to dream!
Dear peilthetraveler, First of all congratulation for your nice trade ! They wanted a House, you wanted money: Deals done ! However I clearly understand your feeling. It has been always a great pressure for me in my trading. I have had during a long the time the feeling to fuck people deeply everytime I traded... You know and when I was waiting for the market to come to me... and it did, I was... ouhhhaaa ohhh stupid. However recently, as my post history attests I can understand what is saying achilles28: In fact the only way to answer is to apply the Golden Rules... Facts : 1) Noone knows the future for certain. 2) You wanted to sell a house. 3) They wanted to buy a house. Golden Rules - = "That which you hate to be done to you, do not do to another" + = "That which you want for yourself, seek for mankind.â Conclusion : 1 Respecting the Will of a fellow being is okay with the rules. ( Lying is wrong as it's well said by : ) 2 They bought that house freely, Okay with the Golden Rules... Did they had all the information ? Anyway to only important information is what is going to happen in the future... and this one isn't avaible... So they were informed at the best they could ( Even if Dark Benny was ready to strike...) 3 You sold the house freely respecting what did say SomeYoungGuy... Conclusion Deal's Done ! Congrats... ( P.S. and if the price of the home had went up, like doubling how would you have felt ? )
simple. buy the house back for $400.000 and youll feel much better. then find a nice virgin in vegas to marry, live happily ever after. easy solution to living with your pangs of guilt
Agreed. That house and the neighborhood are no more than a glorified trailer park plopped down in the middle of a desert. You can make the argument that the place has zero value.