From HousingWire:
CoreLogic: Negative equity props up home prices in toughest markets
The negative equity problem may actually be pushing up home prices at the bottom of some of the hardest-hit housing markets, according to a report from CoreLogic.
The national supply of unsold homes dropped to 6.5 months in April from nine months last June. But the decline occurred less because of an increase in sales. In fact, pending home sales dropped 5.5% in April, according to the National Association of Realtors.
Instead, fewer homes reached the market because the owners owe more on their mortgage than the home is worth and are trapped in negative equity, said CoreLogic Senior Economist Sam Khater in the report.
More than 11 million borrowers are underwater, according to CoreLogic.
“Negative equity is typically a demand-side obstacle to sales and refinances, but currently is also restricting the supply of homes for sale,” Khater said.
In markets where more than half of borrowers are underwater, the average supply drops to 4.7 months, compared to 8.3 months in healthier areas.
As a result of the restricted supply, lower-priced homes in these areas are actually rebounding at their fastest pace since the homebuyer tax-credit “boom” in 2010, according to CoreLogic.
…
“Paradoxically, as the flow of REOs has slowed over the last 18 months, negative equity has become a positive force in real estate markets by restricting supply in the face of increasing demand,” Khater said. “We have transitioned from pricing dynamics driven by economic weakness and high shares of distressed sales to one of restricted supply, which will likely exist for some time to come.”
From Banker and Tradesman:
U.S. Cities Struggle With Blighted Bank-Owned Homes
The smell of rotting food and decay inside 10956 South Wilmington Avenue, Los Angeles, was overwhelming.
A burst pipe in the kitchen ceiling leaked water onto a floor littered with half empty cans, razor blades, odd shoes, stained clothing and an upturned, mold-ridden sofa. Windows were smashed and boarded up.
The vacant home was foreclosed on in August 2011 by Bank of America, which has done nothing to repair it.
And in a cruel twist that underscores the connection between the housing meltdown and the fiscal crisis afflicting many local governments, the city of Los Angeles lacks the wherewithal to force the property owner to clean up the mess.
Across America, bank-owned, blighted houses sit untouched, sometimes for years, disfiguring what in many cases are already troubled neighborhoods. Activists say the problem is particularly acute in minority areas. And many cities do not have the resources, the will or the power to force banks to maintain their properties.
…
If it is a lack of resources that is part of the problem in Los Angeles, across the country in New Jersey it may be partly a lack of legislation.
Three cities in New Jersey – Newark, Camden and Edison – rank in the top 60 U.S. municipalities for foreclosures, as measured by the percentage of homes in foreclosure, according to the office of state Senator Ronald Rice.
He has introduced a bill that would empower cities in New Jersey to force out-of-state banks to appoint a local entity to care for the properties.
“By holding creditors’ feet to the fire in terms of maintaining these properties, we can avoid some of the blight which is infecting our communities,” Rice said.
Jason Butkowski, a spokesman for Rice, told Reuters: “Right now in New Jersey, there is no mechanism at all to force banks to repair these properties.”
Butkowski said even if Rice’s bill becomes law, they might still have to see “if we have the resources to enforce it.”
Cities with large minority populations, including the three in New Jersey that are near the top of the foreclosure rankings, face an especially difficult challenge. A report last month by the National Fair Housing Alliance (NFHA) found that banks poured many more resources into maintaining bank-owned, or “real-estate owned” (REO), properties in largely white neighborhoods than in African-American and Latino areas.
…
Back in Los Angeles, Zamperini stood outside 11211 South New Hampshire Avenue, a property foreclosed on in May 2010 and now owned by San Diego-based Guild Mortgage Co.
It is a shocking sight. Inside, where squatters had recently lived, the floors are covered with broken glass, used condoms, cigarette butts, toilet paper and filthy clothes. Names and numbers of local prostitutes are scrawled on the walls.
Guild Mortgage did not respond to repeated requests to comment on the filthy state of 11211 South New Hampshire Avenue.
“If you were a bank, and you got a $100,000 fine on a property like this, what would you do? You’d just walk away,” Zamperini said.
Depressing
Gary, no there is not another Gary. If interested send.
Good Morning New Jersey
Negative equity and foreclosures restrict supply, therefore they’re pushing up prices. Any questions?
It will get much worse.
Realtors may start listing negative equity as an attractive feature of the home, right up there with granite and blue ribbon schools.
North Dakota voting to abolish property taxes. Im very interested in this vote. If it passes I will be making a trip to that inhospitable place this summer.
The problem with North Dakota is its lack of negative equity. Hence the very low home prices.
Debt is money. We need more debt slaves. Who can we get to borrow? Maybe the college kids can be coaxed into a kittle more.
Turn the abandoned homes into dorms. How much different are they really?
“the floors are covered with broken glass, used condoms, cigarette butts, toilet paper and filthy clothes. Names and numbers of local prostitutes are scrawled on the walls.”
Problem solved.
No questions, but the constant upgrade mentality of most Americans actually reduces their chances of reaching financial independence — think of it this way, most “millionaires” buy a decent home in a safe low consumption town and stay there. If you are constantly upgrading you are in fact leading to your own enslavement to debt.
8. North Dakota has been looking for ways to get people to move there for years. Apparently if you want to work in certain labor intensive fields you can find jobs there. Good luck AG…remember to pack a jacket if you stay, it can get a bit nippy at night there in the winter.
Instead, fewer homes reached the market because the owners owe more on their mortgage than the home is worth and are trapped in negative equity, said CoreLogic Senior Economist Sam Khater in the report.
Weren’t we told that’s not the case here because we’re generally affluent and can ride out the bumps? Weren’t we also told that it’s different here, we’re insulated, it’s contained to subprime and that we’re close to NYC?
Marilyn,
I’ll send your BILaw an email today. Thanks again!
Does anyone actually believe Dumont ,Bergenfield,Lodi,Garfield,Wallington,and others are wonderful Bergen County communities ?
The light at the end of the tunnel has just been turned off. Next up on the Euro carousel of failure is Italy.
This sewage should be percolating up to France and Germany by the fall. Fun election ahead…should be entertaining listening to Bojangles complain that we’re circling the drain because of Urrp.
freedy (16)-
You bet. Were I looking to dump a corpse, those would be the first places on my list.
Bystander says:
Thanl you Steve Bernier for making this Ranger fan smile as the hockey uneducated Devil fans will whine for 24 hours before forgetting again they have a hockey team in Newark
June 11, 2012 at 9:21 pm
Thanks, Bernier. Your play will go down in Devils lore for all the wrong reasons. Ridiculous penalty during a crucial, crucial time.
freedy [16].
Take a walk through Main Memorial Park in Clifton on a nice Friday evening as the sun sets. It makes one yearn to reminisce about those wonderful times growing up in Kabul. :o
United Europe, what a concept. I bet the folks in the UK a r bloody glad they kept the Pound.
are, even
I wonder if this was unexpected?
http://online.wsj.com/article/SB10001424052702303901504577462013267298668.html
Spanish, Italian Yields Leap Higher
This morning, I dropped a spoon from the table and it unexpectedly fell to the floor. I am not sure what caused that to happen, as I could not see any cause for it. I will be sure to monitor the situation and I will be sure to note if any related, yet, unexpected events occur.
I never understand abandoned houses. The adjourning neighbors have several choices.
1) One neighbor buys it cheap and fixes up
2) Both neighbors buy it cheap, knock it down and extend their yards
3) Neighbors maintain outside on their own
4) Burn Mother Burn, just light the damm thing up so town condems homes and it is torn down.
5) Write multiple letters to town and bank to enforce code.
But neighbors sit and do nothing. Then complain to me.
I hate the house to left of me, I thought owner was going under. Was not and was a full market sale. I tried buy house on top of me. My plan is knock it down except garage, extend my house and add my garage to interior space. Make my driveway, garage, pool etc. all on that empty plot. The house next door if was in BK and cheap I would have bought. It is win win when you are next to an abandoned house. It is worth most to you and no one else and going dirt cheap.
Pretty much at Area, Danceteria, Studio 54 I have seen lots of spoons unexpectedly fall to the floor. But I knew the cause.
Shore Guy says:
June 12, 2012 at 8:10 am
This morning, I dropped a spoon from the table and it unexpectedly fell to the floor. I am not sure what caused that to happen, as I could not see any cause for it. I will be sure to monitor the situation and I will be sure to note if any related, yet, unexpected events occur.
from yesterday….
Fassbender played you…..
chicagofinance says:
June 11, 2012 at 6:27 pm
This is JJ’s bio….
http://www.youtube.com/watch?v=uuUSsFjyOZQ&feature=related
this reads like one of his stories….from a WIKI!
When Brandon gets home, he watches cartoons, and Sissy arrives and talks to him. She says that they are family and are supposed to help each other, but Brandon wants nothing to do with her, because he says all she does is drag him down. Brandon then heads out and tries to pick up a woman at a bar, but ends up being beaten up by her boyfriend. After he is denied entrance into a nightclub, he notices a gay bar across the street and enters. He walks to the back, where several men are having s-x; a man kisses him and performs fellat!o on him. On leaving the bar, he listens to a voicemail message from Sissy. He then enters an apartment occupied by two women, and the three have s-x.
#16 freedy:You left a few off, but that is a start.
BTW the real reason wealth fell, is not because home values fell. It is because people believed a mortgage payment is a form of saving. Anyone who ever bought a home and paid a mortgage will realize the first 15 years very little of mortgage payment goes towards principal. Add in Helocs and Home Equity Loans and Refinancing with Fees rolling in people also actually add to the principal.
Pretty much any home bought since 2000 has been a lousy well to increase wealth. The mortgage payment consumes your ability to max out 401K, max out 529 plan contributions and limits your ability to buy long term bonds, CDs etc. that pay a higher interest rate as you are fearful to lock up money as if you lose your job you need it to make the payment.
Plus we have the lack of diversification RE brings. RE also has an added twist. You are all in and can diversify. Like a Z-coupon bond.
For example lets time travel back to July 2012. Lets say you have 500K to blow.
But a house cash 500K. Buy a ten year A rated Muni bond at the time you could get up to 5.25%.
The house you are all in. The bond you have a $26,250 tax free annual income stream. Over the ten years of bonds you could have bought stocks in years like 2003, 2004, 2009, 2010 when stocks were low. Or more long term bonds in years 2006,2007, 2008 or put that cash into REITS, Commodities etc. Basically every year that goes by you can use income stream to diversify.
Your 2002 house purchase would have been way up by 2006. But that would even put more of your eggs in one basket. So in comparison the fall in value from 2006 to 2012 would be huge.
RE is risk as you tie up a large amount of worth in one asset group, you usually borrow to buy it as it is leveraged and unless it is a rental or investment property your home throws off no dividend or interest to reinvest and finally you cant take money off the table. For instance if you put 100K in Apple stock and it went up to 300K you could call broker and sell 100K in stock. Essentially getting back your investment and let the 200K ride. Houses you are all in all the time. You cant sell 1%, 2% 44% etc. It is sell 100%, transactions costs to buy and sell real estate is high. Which makes that impractical.
Homes are great. Great inflation hedge, place to live and when times are good a great investment. But it is only one leg of the four legged stool. 401K/Pension, Equities, Bonds, Cash/Commodities. Eggs in one basket means when you trip all the eggs break.
President Barack Obama explained in a radio interview Monday why he didn’t do more to help Wisconsin Democrats in their battle to recall Republican Governor Scott Walker: He was too busy.
“The truth of the matter is that, as president of the United States, I’ve got a lot of responsibilities,” he told WBAY of Green Bay, Wisconsin.
Really. Does this sit well with his supporters in Wisconsin and across the country? To add insult to injury, he just assumes that if you’re a democrat and/or union member, you’re automatically going to vote for him again. Personally? If I was a supporter, I’d be p1ssed off to the point where I’d pull the lever for someone else or not anyone at all.
[5] Nean – Using this logic, you would obviously be best off purchasing in the neighborhood with the most under water houses, right?
Negative equity and foreclosures restrict supply, therefore they’re pushing up prices. Any questions?
[10] AG – I’m sure you’ve heard this old adage:
Gold is the currency of kings.
Silver is the currency of gentlemen.
Barter is the currency of commoners.
Debt is the currency of slaves.
Debt is money. We need more debt slaves. Who can we get to borrow? Maybe the college kids can be coaxed into a kittle more.
29 –
I see your point but your logic is flawed. People who think a mortgage payment is savings would obviously never have $500K to blow. I guess maybe you are saying they do just for the sake of argument and to make your point but the scenario is unrealistic.
Plus where would they live if not with their parents? You left out that the person in your scenario would also be paying rent the entire time if they were not buying a house and tied up their $500k in Muni bonds.
Anyway thanks for posting Teach.
I am paying attention professor JJ.
ExPat [31];
No, it just means that a wise owner who didn’t HELOC phantom equity and thus can afford to sell, isn’t really facing the end of the world, because limited supply means he can get a market price. On the other hand, underwater homedebtors sloging through their payment books can’t afford to sell, so they have no influence on the market, full stop. Interesting argument.
31 – original. Thats right. Hence the sarcasm.
[19] pain,
Given the score, think that penalty hurt all that much?
[20] gary – You’re making me hungry for White Castle.
Take a walk through Main Memorial Park in Clifton on a nice Friday evening as the sun sets. It makes one yearn to reminisce about those wonderful times growing up in Kabul. :o
Expat [37],
White Castle is now called: القلعة البيضاء
[34] Moose – You’re preaching to the choir. When we bought in 2002, I fully expected the value of our home wouldn’t increase and I wanted to hedge against that and, as you said, not sacrifice mobility. That’s why we bought way less than we could afford with 40% down and have overpaid our mortgage ever since, we have close to 70% equity now and could pay off our mortgage and/or sell and move at any time.
No, it just means that a wise owner who didn’t HELOC phantom equity and thus can afford to sell, isn’t really facing the end of the world, because limited supply means he can get a market price. On the other hand, underwater homedebtors sloging through their payment books can’t afford to sell, so they have no influence on the market, full stop. Interesting argument.
The financial crisis wiped out 18 years of gains for the median U.S. household net worth, with a 38.8 percent plunge from 2007 to 2010 that was led by the collapse in home prices, a Federal Reserve study showed.
Median net worth declined to $77,300 in 2010, the lowest since 1992, from $126,400 in 2007, the Fed said in its Survey of Consumer Finances. Mean net worth fell 14.7 percent to a nine- year low of $498,800 from $584,600, the central bank said yesterday in Washington. Almost every demographic group experienced losses, which may hurt retirement prospects for middle-income families, Fed economists said in the report.
“The impact has been a massive destruction of wealth all across the board,” said Lance Roberts, who oversees $500 million as chief executive officer of Streettalk Advisors LLC in Houston. “What you see is an economy that’s really very, very stressed for the bottom 60 to 70 percent of the population that’s struggling just to make ends meet.”
The declines in household wealth in the course of the longest and deepest recession since the Great Depression have held back the consumer spending that makes up about 70 percent of the economy.
On the other hand, thank goodness the private sector is doing fine!
I was just keeping it simple with a 500K cash investment.
But you end up paying 3x over 30 years on a mortgage, so 500K is actuall 1.5 million for homes. Long term bonds double every ten years if you reinvest so the 500k would actually be four million after 30 years.
Lets back out 500K from both and if homes dont appreciate in value the two investments would be Negative one million for home, postive 3.5 million for bonds.
Home prices are predicated on fact homes appreciate greater than inflation plus interest rate on mortgage annually. Given we are at low interest rates and low inflation the bar is 6% homes have to rise annually to break even.
My home had the luck of going up almost 125% in value from December 1999 purchase to December 2005 well in excess of my mortage and inflation. Neighbors who bought in December 2005 had a mortage of 5% and inflation of 3%. they needed 8% a year to break even. Instead they got home returns of negative 5% a year. Borrowing at 5% a year to invest in an asset falling 5% a year is not so bad for one bad year, but six bad years in a row. WOW.
Real Estate they say is Location, Location, Location but realtors leave out Timing Timing Timing. You have to buy at right time. 1992-2002 or maybe now. 2003 to 2008 was a very bad time to buy.
Brian says:
June 12, 2012 at 9:15 am
29 –
I see your point but your logic is flawed. People who think a mortgage payment is savings would obviously never have $500K to blow. I guess maybe you are saying they do just for the sake of argument and to make your point but the scenario is unrealistic.
Slaves dont own debt they owe debt. I own debt. Debt is a wealth transfer tool. No money on a macro level is spent on debt.
Think about this. I own a Bank of America Bond paying 8%. On a macro level no money is bring spent. Lets say it is a 100K bond. Bank of America pays me 8K a year and I keept 8k. Just a funds transfer, money is still in system.
How is debt bad. They say consumer debt levels is high. But who is getting interest payments. You have a car loan, well on other side someone owns a Ford Asset Backed loan and gets most of your interest payment. You have a mortgage from Chase, well Chase shareholders get dividend. Trouble is broke people love to spend which is why they are broke, rich people dont like to spend therefore they are rich. The folds getting dividend or interest often just reinvest or save. The broke folks go spend.
The Original NJ ExPat says:
June 12, 2012 at 9:11 am
[10] AG – I’m sure you’ve heard this old adage:
Gold is the currency of kings.
Silver is the currency of gentlemen.
Barter is the currency of commoners.
Debt is the currency of slaves.
Debt is money. We need more debt slaves. Who can we get to borrow? Maybe the college kids can be coaxed into a kittle more.
42
If the debt is defaulted on, poof goes the asset/money. And since there is more debt than money on a macro level, the country is way oversaturated right now.
Someone loans 500K + interest against an ‘asset’ that’s allegedly worth 500K. Where does the money come from to pay the interest?
Macro speaking, the principal will not, can not, and won’t be repaid.
First of all. Homes are Fannie/Freddie backed. The people who buy govt sponsored MBS get their principal back. Uncle Sam just plays a game of zero sum.
If 500 million of housing value extinguishes, Uncle Sam can print 500 million more dollars with zero inflation. You cover your loss running printing press with no inflation effect.
joyce says:
June 12, 2012 at 10:19 am
42
If the debt is defaulted on, poof goes the asset/money. And since there is more debt than money on a macro level, the country is way oversaturated right now.
Someone loans 500K + interest against an ‘asset’ that’s allegedly worth 500K. Where does the money come from to pay the interest?
Macro speaking, the principal will not, can not, and won’t be repaid.
#40 gary: Everyone I know that is 40 or older, is no where near to having a paid off mortgage by 62/65 etc. Between HELOC’s and home equity loans, (college tuition, new kitchens, expensive cars and all the rest). The era of a paid off home in retirement is a n artifact form another generation.
How is there no inflation effect?
The creation of the debt/money which is fraudulent (think fractional reserve lending) just creating credit (again debt/money) in the first place causes the inflation.
So instead of removing that inflation from the system in cases of default, you would rather print the money to maintain the elevated levels of prices.
I forgot, bondholders now how stupid shall never be punished.
Meat,
What’s your expression? “yield must be paid m***!!”
should have said, no matter how stupid
45 – someone said to me the other day “I have 7 years left on my mortgage, about $100K and then I own it free and clear…but then there’s the $200K HELOC.”
3b, We are on track to finish our mortgage when we are 55. We could have paid it off already, if we were willing to take down our liquid balances, but I’d rather stay more flexible to make opportunistic investments, and/or keep a few years of living expenses in cash.
I don’t know if there will be anyone left to sell my house to when I retire and leave NJ. Maybe the town mayor, tax collector, or a school principal.
More good news for JJ’s progeny. Does the man know any bounds to his good fortune?
http://www.bloomberg.com/news/2012-06-11/older-fathers-may-produce-offspring-with-long-lives.html
Gary 38 Your Arabic is excellent
Mike [51],
You meant to say, the web translator tool is excellent. :)
“The era of a paid off home in retirement is a n artifact form another generation.”
We paid off ours years ago. It was suprisingly easy. First, we bought with 20% down. Then we looked at the am schedule and with each regular payment we would look at the principal payments for the next X-number of months, choose a number of months we could afford to pay, add the extra payments, and scratch off those months from the schedule. In the early years, one can lop of a year’s worth of payments by just not going out to dinner for a month or two. We looked at the interest savings and decided that the temporary benefit of a dinner out was not worth the extra interest payments.
After one gets into the habit of looking down the am schedule and seeing the return on investment one gets by paying off the debt, the process becomes addicting. If one has a $400,000 mortgage at 4 % (30 year fixed rate), the first payment would be $1,909.66 with principal amounting to $576.33. The other $1,333.33 is interest. If one pays an additional $578.25 one has just saved $1,331.41 in interest. In essence, one has received a 230% return — tax free.
On the other hand, one could “put the house to work for you” or “take a vacation on the house.” That works too.
53 – The era of a paid off home in retirement is a n artifact form another generation.
what generation are you from?
Next year when my daughter starts kindergarten while I am banging her teacher I need to remind her she better do a good job teaching her as she will live a long time.
My mother was 36 and father was 38 when I was born so hopefully that help me too.
Honestly I feel far too young to have a kid in kindergarten. Hopefully in around 40 when I am a widower I can go all Tony Randall and start a second family. Maybe I can have my grandchildren babysit my kids.
I was at a dance recital for my youngest a few weeks ago and guy I was sitting next too is a grandfather in his late 50s, was there with his 42 year old second wife watching his 4 year old daughter perform. Guy has street cred and a daughter who will live to 125
relo says:
June 12, 2012 at 10:39 am
More good news for JJ’s progeny. Does the man know any bounds to his good fortune?
http://www.bloomberg.com/news/2012-06-11/older-fathers-may-produce-offspring-with-long-lives.html
re: # 54 – ” artifact form another generation” My dear old mom paid off the mortgage over a decade ago when taxes were low and the principal balance was only 20k. Now taxes on her POS cape are approaching 9k in haughty BC, but as she says it is still cheaper than renting, which is true except she is not really including maintenance. She renovated the kitchen installed all new appliances, cabinets and did granite too, new 1st floor bathroom, refinished the hardwood, finished the siding on the gable ends, and the garage. Next up is a new roof, existing is around 22 years and getting a bit worn. Little old ladies can survive on their own for decades, there was one woman across the street who made it to 95 in a cape by herself. My wife’s Grandma is living in a small cape in the midwest by herself. She just turned 100 years old and only just lost her drivers license since the DMV would not renew it again. She cooks, cleans and attends church every week without and is of sound mind, although the hunch back is starting to appear. I gather besides needing long telomeres you also need to pay off the mortgage, have a nice Pension, Social Security, Medicare and savings if you want to make it to the status of artifact.
How hard is it to pay off a mortgage. Put a decent down payment and everytime you have a bonus or extra cash throw some at the mortgage. Tops maybe 7 years to pay off. I mean I see leased BMWs at $700 a month in driveways of houses with big mortgages, skip the BMW and put $700 extra in principal if you do math it would be shocking how quick your mortage is paid off.
seif says:
June 12, 2012 at 11:08 am
53 – The era of a paid off home in retirement is a n artifact form another generation.
what generation are you from?
It is too bad your Mom did not have any sons to help around the house.
Juice Box says:
June 12, 2012 at 11:24 am
re: # 54 – ” artifact form another generation” My dear old mom paid off the mortgage over a decade ago when taxes were low and the principal balance was only 20k. Now taxes on her POS cape are approaching 9k in haughty BC, but as she says it is still cheaper than renting, which is true except she is not really including maintenance. She renovated the kitchen installed all new appliances, cabinets and did granite too, new 1st floor bathroom, refinished the hardwood, finished the siding on the gable ends, and the garage. Next up is a new roof, existing is around 22 years and getting a bit worn. Little old ladies can survive on their own for decades, there was one woman across the street who made it to 95 in a cape by herself. My wife’s Grandma is living in a small cape in the midwest by herself. She just turned 100 years old and only just lost her drivers license since the DMV would not renew it again. She cooks, cleans and attends church every week without and is of sound mind, although the hunch back is starting to appear. I gather besides needing long telomeres you also need to pay off the mortgage, have a nice Pension, Social Security, Medicare and savings if you want to make it to the status of artifact.
n mid-January, sales managers in Wells Fargo & Co. (WFC)’s mortgage unit, the largest in the U.S., gathered at a hotel south of San Francisco dressed as cowboys, six shooters strapped to their hips.
The invitation said “40% or BUST!!” The goal: A bigger share of the business than they already control — about 34 percent of all U.S. home lending and 13 percent of mortgages for purchases in the first quarter. About a dozen managers urged the audience of 500 loan officers to lend more, according to two attendees who asked their names not be used because they aren’t authorized to speak publicly. Onstage, the men had fake mustaches and wore red-flannel shirts and jeans, the women long dresses like those in a movie western, one of the people said.
I don’t have a HELOC and am 18 years away from paying off two huge mortgages. Soon to be 15 years when the next country in Europe implodes. I am 42. I should be paid off by 55 or so, right about the time the little guy graduates college. Shore is right. The reason so many of our peers are broke is due to their inability to put off the instant gratification for much greater gratification a little later in life. The best way to build wealth is not to pay for debt. Unless you want to leverage, which creates too much risk. You can’t grow wealth without saving! It’s so simple, yet missed by so many.
The way you build wealth is buy saving. If one simply prepaid mortgage 2K a month, put 4K in stocks and 4k in bonds each month, maxed out 401k and 529 and bought the max of 20K Ibonds each year you would be suprised in just ten years you would have pretty good savings.
Libtard in Union says:
June 12, 2012 at 11:40 am
I don’t have a HELOC and am 18 years away from paying off two huge mortgages. Soon to be 15 years when the next country in Europe implodes. I am 42. I should be paid off by 55 or so, right about the time the little guy graduates college. Shore is right. The reason so many of our peers are broke is due to their inability to put off the instant gratification for much greater gratification a little later in life. The best way to build wealth is not to pay for debt. Unless you want to leverage, which creates too much risk. You can’t grow wealth without saving! It’s so simple, yet missed by so many.
Gary,
If the good (?) people of Montklair can reelect the bozos who got them into the financial mess they are currently in, then the good (?) people of the US of A will surely do the same with Obama. Barring Obama calling the public ‘honkeys’, he’s already won. You are better to stop paying attention and worrying about yourself than the supposed differences in the parties. Plus how many Franklin Mint commercials can you fathom?
57 – i didn’t say it was hard. the original post said it is an artifact from another generation…so i was curious what generation all the people who have paid or are close to paying their mortgage off are from…but PLEASE don’t let that get in the way of your pontificating. More stories, more, more, more!!!!
We never have any money so I suspect the wife is prepaying even though she is not working. Before she got pregnant we figured we would have the house paid off in 5 years. now it is looking like 12. Not terribly broken up about it but debt is definitely slavery and I hate being a bank slave.
Libtard in Union [62],
You’re absolutely correct because Amerikans are a bunch of pudgy muppets.
I’m off to a face to face interview with a global financial… this one is a FT position. I’ll threaten the b@stard!! :)
http://www.nj.com/news/index.ssf/2012/06/fancy_without_fortune_revels_r.html
Just what Atlantic City needed . Another Casino to swipe the revenue from the other
failing casinos. What were they thinking ?
“I’m off to a face to face interview with a global financial”
Just channel JJ. Might I suggest you bring a cored Vidalia to the interview?
freedy,
Revel doesn’t get it…yet. Once they remove their ban on smoking, the hardcore Asian gambler will juice their revenues. You really can’t judge the place for a good year after opening. Their loyalty program needs a lot of tweaking too. I haven’t stepped foot in there since I heard they are not even comping room. This is starting to change. Though, I doubt it will be the savior to AC that so many imagined. AC needs to market its boardwalk as the differentiator from other gambling markets. The lack of the housing ATM isn’t helping them too. Nor will the continued downsizing of the public sector (of which many are high rollers).
JJ [61];
If one simply prepaid mortgage 2K a month, put 4K in stocks and 4k in bonds each month, maxed out 401k and 529 and bought the max of 20K Ibonds each year you would be suprised in just ten years you would have pretty good savings.
Let’s add that up: You’re assuming 10K of disposable after-tax income after paying rent or mortgage (~$2.5k?); energy/food/clothing/transpotation to work (~$1,500), health insurance (employee pays ~$750/mo. for family plan, pre-tax $); maxing out the 401k = $1,400/mo (pre-tax), the 529 max limit is $10k/yr, x2 for two kids, state (NY) tax-free, but fed taxes only deferred; plus $20k of I bonds.
Pre-tax exprenses (and I’ll assume the housing payment is mortgage, not rent, and also assume its I/O + property taxes so it all goes in the pre-tax column): Housing I+T $30,000; Med $9,000; 401k $17,000 = $56,000
Post-tax expenses: Basic living $18,000; 529 $20,000; I bonds $20,000 = $58,000/.67 (assumes 25% fed taxes and 8% state) = $86,500 + $56,000 = $142,500.
And that poor bastard isn’t even drinking $2 drafts at happy hour, much less hob-nobbing it in the Hamptons. Its amazing that I even took you seriously enough to pencil this out.
gary: you are way behind……get with the times in JC
http://www.urbanspoon.com/r/53/1682991/restaurant/North-Jersey/Jollibee-Jersey-City
gary says:
June 12, 2012 at 9:38 am
Expat [37],
White Castle is now called: القلعة البيضاء
So, who wants to go?
COUNCIL ON FOREIGN RELATIONS — DC
A Conversation with Timothy F. Geithner
U.S. Secretary of the Treasury
In advance of the G20 summit next week, Secretary Geithner will discuss the state of the global economy and the U.S. recovery.
Date: Wednesday, June 13, 2012
Event Time: 4:30 – 5:15 p.m.
“You can’t grow wealth without saving!”
Yo, Dude. Like, I know this guy, who knows this girl and, well, like this guy she knows, knows a guy who mad it big by running up huge credit card bills and winning a contest for like the biggest debt inthe shortest time. And, like, you know, there is the lottery two, and like people win that like all the time, you know? And like there are like these guys who make a fortune like just developing like apps for phones. So, dude, you are just so like out of it. It is not even like funny. You know?
Lib: Unless they rebuild Atlantic City into a reasonable venue,,, I can’t see these
Casinos ever really doing great again. Two much of the market has been taken
away by competing states.
Comp the room, smoking, whores give em what they want and they will come,but
never like it was .
The Boardwalk is a do over
My neighbors in their 20s are in a starter home. He a corporate attorney she a college graduate both working full time with no kids. People today make a lot, in particular younger folks.
Heck I was talking to a cousin and he does not like stocks. He is like 36. I go what do you do, he says since my mid twenties everytime I got to 10K in bank I bought a muni bond. He has a few hundred grand worth. He works, his wife works and get this they both have part time jobs and no kids. Look at tax returns of people. You always hear people crying about debt. But people do also have huge income streams, investment property, MLPs, bonds, dividend stocks, cap gains. Also remember we are coming off a 30 year bull market in bonds, a three year bull market stocks and a decade long bull market in commodites. We also have the Fed pushing us into high yielding investments.
I hear more from people they dont know what to do with their cash all the time. If you look at tax payer returns a suprising amount of the over 40 crowd has cap gains, dividends and interest as a good part of income. One can reach the 10K a month investment rather easy by just investing the few thousand a month interest and dividends. Also one should always live off one paycheck. Save one, Spend one.
Anon E. Moose says:
June 12, 2012 at 12:43 pm
JJ [61];
If one simply prepaid mortgage 2K a month, put 4K in stocks and 4k in bonds each month, maxed out 401k and 529 and bought the max of 20K Ibonds each year you would be suprised in just ten years you would have pretty good savings.
Let’s add that up: You’re assuming 10K of disposable after-tax income after paying rent or mortgage (~$2.5k?); energy/food/clothing/transpotation to work (~$1,500), health insurance (employee pays ~$750/mo. for family plan, pre-tax $); maxing out the 401k = $1,400/mo (pre-tax), the 529 max limit is $10k/yr, x2 for two kids, state (NY) tax-free, but fed taxes only deferred; plus $20k of I bonds.
Pre-tax exprenses (and I’ll assume the housing payment is mortgage, not rent, and also assume its I/O + property taxes so it all goes in the pre-tax column): Housing I+T $30,000; Med $9,000; 401k $17,000 = $56,000
Post-tax expenses: Basic living $18,000; 529 $20,000; I bonds $20,000 = $58,000/.67 (assumes 25% fed taxes and 8% state) = $86,500 + $56,000 = $142,500.
And that poor bastard isn’t even drinking $2 drafts at happy hour, much less hob-nobbing it in the Hamptons. Its amazing that I even took you seriously enough to pencil this out.
JJ did you see the median household has 77k net worth. Sure your relatives may be different, but most households have trouble saving 10k a year, or even saving anything. Dumb I know but that is reality.
75 – “Dumb I know but that is reality.”
not sure how long you have been following this board but JJ never lets reality, facts, math, grammar, spelling, self-awareness, etc. etc, get in the way of his posts.
Also savings grew superfast for those with foresight to invest long term. For example this AAA rate Fannie Mae bond issue in 1985 and non-callable had a coupon of 10.35%.
FEDERAL NATL MTG ASSN
10.35000% 12/10/2015DSM 15A
My broker told me his most successful client last 30 years just bought investment grade 30 year bonds every January for 30 years. Rain or shine. Most people would have let it sit in CDs or checking. His duration is not long as 3% of bonds every year for next 30 years. If his average coupon is 8%, think about it if he stops doing it in retirement and just spends the maturities he can go a long time and duration will fall every year. People in the savings account, CD crowd, Short term bonds got crushed when Ben ended free ride. For instance look at this bond. Back in 1990 issue with a 7.75% tax free coupon with a 35 year maturity. Still an active bond.
NEW YORK N Y G.O. SERIAL BDS SER. 1990 07.75000% 08/15/2025 I
Bill Gross always talks about 31 year bond bull run. Interest and Compounding is a powerful tool. People love safety, liquidity and give up huge yield.
One whose only strategy was to buy either a 30 year Muni, 30 year Treasury, 30 Year GSE MBS or 30 Year investment grade Corporate every year for last 30 years every January 1st, would have a huge portfolio. It would be little at first. But by year 15 the reinvestment of interest would be huge. That 10K investement a month should be easily obtainable by a 50 year old almost off interest income alone. Sadly hard to do it today, we wont have a long bull bond market, it ends in 2014.
Shore Guy says:
June 12, 2012 at 12:56 pm
“You can’t grow wealth without saving!”
Yo, Dude. Like, I know this guy, who knows this girl and, well, like this guy she knows, knows a guy who mad it big by running up huge credit card bills and winning a contest for like the biggest debt inthe shortest time. And, like, you know, there is the lottery two, and like people win that like all the time, you know? And like there are like these guys who make a fortune like just developing like apps for phones. So, dude, you are just so like out of it. It is not even like funny. You know
Just closed in Tenafly…over list.
Last LP: $950,000 ML#: 1208060
Addr: 60 PARK ST RES/S
Twn: TENAFLY Zip: 07670
Orig LP: $950,000
Sold: $965,000
Taxes: $20,211
SD: 6/12/2012 UCD: 3/19/2012 DOM: 14
A complete lie. Have you every been to Roosvelt Field Mall on a Saturday. Short Hills mall even worse.
The reason they have 77K is three-fold. First the tied up majority of next worth in housing, Two they dont save much, Three when they do save they dont invest wisely.
December 2008 to December 2009 sale of the century on equities and junk bonds. December 2010 to April 2011 sale of the century in Munis.July 2006 to July 2008 sale of the century on ten year treasuries.Yet I know many people who had a modest next egg of 100K who just let it sit in ING direct at less than 1%. Perhaps they just dont want to make money. March 2009 one should have been buying stocks on margin, credit card loans, stealing from kids piggy bank, but no they did not. That 77K could and should easily be 777K. Heck Ford and Apple alone are up 1,000% over not that long a period. We need finance class in all High Schools.
Richard says:
June 12, 2012 at 1:12 pm
JJ did you see the median household has 77k net worth. Sure your relatives may be different, but most households have trouble saving 10k a year, or even saving anything. Dumb I know but that is reality.
79
As if it needs to be said, can you not read? Richard did not say they made the wisest choices with their money … he said the median net worth IS 77,000.
What does it matter what they COULD have done? They didn’t
So, it isn’t a lie genius… its a fact.
Do only people with high net worths go shopping? I was under the impression that people reckless buy things with their credit cards and used their houses as ATMs. I guess my recollection is incorrect.
Agreed, but what is the sale now?
1) European Equities
2) Emerging markets
3) Essex County Real Estate
Dunno if I want to touch any of them.
(Actually I have loaded up on European Equities recently. Have a look at boring utilities like EDF, that is a sale to load up on)
JJ [74];
Look at tax returns of people.
The family living like paupers on $142,500 gross according to your prescription is firmly in the top 10% of taxpayers nationwide. Median household income in this country is less than $50k. Get out of your zip code once in a while.
JJ [74];
Look at tax returns of people.
The family living like paupers on $142,500 according to your formula is in the top 10% of taxpayers nationwide. Median household income in this country is less than $50k. Get out of your zip code once in a while.
It has already been long established that JJ is incapable of changing his opinion based upon facts. He bases his opinions on what should be or should have been, in his own mind. Like the DosEquis most interesting man in the world, JJ plays by another set of rules.
I had a brother like him, he wanted to create a language that only him and I could speak so that no one could understand us, speak in code so to say. He proceeded to introduce a lot of new words as a simple subsitution cipher. When I wanted to add a word he just said, “no thats a stuipid word we would sound dumb if that word was added”. After about 10 times of getting my words rejected I just decided to not participate in his language. Good luck creating a language when only you speak it.
Eventually my brother developed schizophrenia.
JJ good luck developing a world in which others are incapable of participating. You may get your wish.
84 – he will inevitably respond to you Nicholas (ie. the scorpion that bites the frog – he can’t help it) something like this:
“Back when I used to get a Hamptons share every summer we had this guy who was a schizophrenic…”
-yawn-
Blue Chip DAX Dividend payer stocks and bonds look good. Europe may be in bad shape but non-financial services investment grade stocks and bonds are vastly undervalued. Think sell ATT buy Vodaphone, Siemans etc.
Broke people are broke for a reason, Medical, bad investments, disaster, uneducated, not so bright etc. But any half way inteligent, healthy ablebodied college educated male under 50 who is broke it is his own fault.
Richard says:
June 12, 2012 at 1:37 pm
Agreed, but what is the sale now?
1) European Equities
2) Emerging markets
3) Essex County Real Estate
Dunno if I want to touch any of them.
3b #45: I’m within 7 years of paying off the mortgage, which will make me 64. The secret?
1) We didn’t take out a bigger mortgage than we were comfortable with; and
2) We didn’t tap equity for home updates. Everything we’ve done to the house we’ve waited until we could afford to pay out-of-pocket, which is why our 5-year update plan has turned into 16 years and still nowhere near done…but we have under $100K mortgage.
Meanwhile, for gary and 3b, here’s what is regarded as important in WT: http://westwood-hillsdale.patch.com/articles/council-deadlocked-on-memorial-field
actually my old gf knew a smoking hot girl she knew through a friend of a friend who was schizophrenic. She seemed normal to me. Looked hot, lived in Manhattan in her own apt, but I was told she was on lithiumn or some wacky stuff. Anyhow, I was having a party after I broke up with GF and since I always invite hot girls I invited her, she said sure, also can I catch a ride with you maybe stay at your house. I am like no prob, no guest fee and extra seat in my car. Made some small talk etc, on way out, was talking to everyone in house etc, figured she is ending back at my place so why bother with her during party, next thing I know we are all inside around 3am and someone yells the pool is on fire. Your crazy guest set pool on fire. I am like WTF. The crazy nut for some reason wandered outside in dark, lit BBQ saw we had sparklers laying around from July 4th lit a few and somehow decided from there that putting all the rafts in the pool and throwing lit sparklers on top would be cool. House was wooded on an acre and this was about time of huge Pine Barron Fire so it was full panic time. Anyhow get fire(s) out get girl a place on couch she takes some meds, I drive her home the next day and she seems normal, another guy in house is in car, he decides to take her on date. He goes she is so hot, maybe she was just drunk. Well anyhow calls up confirms date, shows up, she is in a towel, forgot about date and wants to know why he is there, she is in mania they go on like a 15 minute date. My friend goes you know she is crazy. I go really, but once again he goes she is so hot. Tanya was her name. Only time I saw someone like that. The weird part was she was so normal acting and was hot 90% of time. But when Tanya went off her meds watch out.
seif says:
June 12, 2012 at 2:07 pm
84 – he will inevitably respond to you Nicholas (ie. the scorpion that bites the frog – he can’t help it) something like this:
“Back when I used to get a Hamptons share every summer we had this guy who was a schizophrenic…”
-yawn-
88 – Boom! goes the dynamite
http://www.trulia.com/property/3004496696-11-Clyde-Ct-Bergenfield-NJ-07621
How about this beauty in Bergenfield, with, did i read that right ? a 22k tax bill to go with it. Nice house ,pool,, etc howerver, the neighborhood,,, well that leaves a little to
be desired for this price range
88:
The myth is true – the sex IS better with crazy chicks.
#54 seif: The tail end of the baby boomer’s. The most self absorbed, self important, over medicated, over theraparized (my own word), selfish, and, whiney generation in history.
Shore: told you about the NY Eco Club from Feb/Mar…..total scumbag….utter waste…I guess that brand of nonsense plays better in DC……
Shore Guy says:
June 12, 2012 at 12:51 pm
So, who wants to go?
COUNCIL ON FOREIGN RELATIONS — DC
A Conversation with Timothy F. Geithner
U.S. Secretary of the Treasury
In advance of the G20 summit next week, Secretary Geithner will discuss the state of the global economy and the U.S. recovery.
Date: Wednesday, June 13, 2012
Event Time: 4:30 – 5:15 p.m.
Need a tequila recommendation as a gift for client……
#62 lib: I am no longer convinced that O will be re-elected.
I dated one I would call completely crazy chick. She was very hot, but red flags everywhere, still in college, still lived at home, had car with over 100k miles, almost no cash, and had like 7 prior address, broke and engagement and lived with two guys.
But for some reason, she was crazy interesting. Like on a first date she brought a toothbrush and fresh undies, hey your never know is her motto. Always carried a few cold tall boys when she went out with girls. Smoked like a chimny too and swear wit the best of them. Liked to cooked naked so not to get clothes dirty, a third date discovery. I thought it was quirky till I went back to her house and saw her HS yearbook on ground of her messy room and said were you looking at it and she said not since HS, I looked around at dates of stuff on ground and room had not been cleaned in 14 years. House had no hot water, house had no locks, Dad was borderline alcholic. The crazinest ran deep. I lasted three months. Why did I last three months and why did a guy who was actually wealthy get engaged to her. Well five foot seven inch, blond, blue eyed, 130 pounds, beautiful, great body, and she had lots of brothers so she knew what guys really wanted, beer, chicken wings, a smoking hot girl on arm and lots and lots of you know what.
She was completely nuts. Flash forward after graduating school at the tender age of 31 she ended up getting married to some white trash broke guy in florida who is dead broke. Crazy is just crazy. A white irish catholic drop dead beautiful girl that would make every other man jealous who lives on LI cant find a rich husband, well the craziness will get you. After I broke up with her, she put sugar in my gas tank and clogged up my car. Her friend told me she must have really liked you. You left your car unattended for a few days and all she did was that. Wow true love.
POS cape says:
June 12, 2012 at 2:36 pm
88:
The myth is true – the sex IS better with crazy chicks.
3B [92];
To sum it up: The Locust Generation
O was always a one term president. He is not a leader. I read in Times this weekend that people thought of George W Bush as a leader and a CEO type person. They just did not agree with him. O must people do not think he is a leader, he is wish washy and not someone you would want in a foxhole with you.
Four election promises, no more bail outs, tax the rich, end bush tax cuts and universal medical for all. None of his main promises are done. Is his thing now just give me four more years, well bush wanted four more years. But hey you have to accomplish some of your things in first four years to get people to believe you can finish in 8
3B says:
June 12, 2012 at 2:43 pm
#62 lib: I am no longer convinced that O will be re-elected.
The market is up, more Fed easing on the way. Lib is going to get his 15 year.
#87 Jill: That is something to be proud of, and shows discipline. As far as the field, at least it appears that most of the comments are against spending all that money, which is good.
I have 29 years left on my mortgage and have to channel my inner JJ to justify the crazy Hillsdale property taxes.
Thsi guy is my new hero. I doubt they heard it or the parents will call for his head since their special snowflakes feelings were hurt
http://www.csmonitor.com/The-Culture/Family/2012/0608/David-McCullough-Wellesley-teacher-says-grads-not-special-video
JJ you are onto something there, some of the schizophrenic women (usually dancers) I have met in NYC over the years ended up moving to Florida. One from Yonkers I knew swore on tarot card readers. She would drag any guy she met to a tarot card card reader in the Village who would then tell her that her life is going to turn out wonderful and she would have a gaggle of kids and move to Florida. Well this did not go over well with most guys she dated and they split ASAP. Last I heard one summer she had dated about 20 guys she met from Long Island and New Jersey in the clubs in NYC before she finally found one guy that wanted to marry her and move to Florida and have a gaggle of kids, he was a landscaper from Long Island. I am sure they have a nice lawn.
#01 the crazy Hillsdale property taxes.
Be glad they are not River Edge taxes; now they are crazy.
Town is spending 66K a year educating my kids and my school tax bill is $4,900 a year. I think the town is the one channeling with me.
I told my inlaw who complained about sr. citzens paying school tax what are you talking about if average kid costs 20k a year for 13 years each kid is 260k from K to 12. With three kids and 8 grand kids you cost the schools $2,860,000 for your kids and grandkids yet your little cape only pays 3k a year in school taxes. She was like how am I respnsible for grandkids, hey you and your hubby having kids is what caused the grandkids.
Theo says:
June 12, 2012 at 3:18 pm
I have 29 years left on my mortgage and have to channel my inner JJ to justify the crazy Hillsdale property taxes.
The crazy girl Nancy and her friend Tanya both liked the bar Live Psychic in New York with Tarrot Card reader outfront. Funny I met my crazy in a club and she met some guy and moved to LI with. Maybe same girl.
Crazy girls are Crazy. Crazy hot beautiful girls to guys in their 20s to early 30s are like moths to a flame. Craziest one I once met in a bar had me do her in a gravel driveway behind bar as she like the feel of rocks on her butt. Apparantly my knees and elbows did not. Apparantly I think she knew that. She said do you want my name and number afterwards, I said no thank you.
Juice Box says:
June 12, 2012 at 3:28 pm
JJ you are onto something there, some of the schizophrenic women (usually dancers) I have met in NYC over the years ended up moving to Florida. One from Yonkers I knew swore on tarot card readers. She would drag any guy she met to a tarot card card reader in the Village who would then tell her that her life is going to turn out wonderful and she would have a gaggle of kids and move to Florida. Well this did not go over well with most guys she dated and they split ASAP. Last I heard one summer she had dated about 20 guys she met from Long Island and New Jersey in the clubs in NYC before she finally found one guy that wanted to marry her and move to Florida and have a gaggle of kids, he was a landscaper from Long Island. I am sure they have a nice lawn.
JJ not sure how up you are on NJ taxes but if it was spread evenly across ther state for education. Everyones taxes would be significantly cheaper. Right now the Abbott districts get all the cash from the income tax which was to support education in the state and those of us in the burbs get screwed. So our towns whose residents send the majority of the income tax get less than 10 cents back on average for every dollar sent to trenton. So our taxes are through the roof so our kids can get what resembles an adequate education. All the while kids in Newark Camden Asbury Park etc. remain uneducated while the adminstrative staff in those towns feather their nests.
not to say we would see a precipitous decline in out property taxes if it changed but if it wasn’t for the ridiculous supreme court in this state we wouldn’t be renting from the towns for the privledge of living there.
#06Nancy and her friend Tanya
Kerrigan and Harding?
[39] gary,
“Personally? If I was a supporter, I’d be p1ssed off to the point where I’d pull the lever for someone else or not anyone at all.”
I hear that all the time from my sociali, er, progressive friends. I remind them that they will still pull the lever for Chairman O because the alternative is more unpalatable to them.
Americans vote for the lesser of evils, and the parties well know that the prospect of the repugnant is less unappealing than the prospect of holding one’s nose and voting for the guy who is closer to you. Obama will have the disgruntled left voting for them and he knows it. This is why when Obama was elected, I warned the progressives that they were going to get a long, long look at the underside of a Prevost motorcoach.
s/b “less appealing”
I just saw this crap and am now seeing red. The stinking Ruskies and China are in the damn Syrian/Iran camp and that’s total bullspit. What seems to be emerging is a very ugly alliance. The worst damn alliance you can have is a radical Islamic commie alliance. Tell you what, these damn commies are getting in the damn way and if they don’t get with the program, they’ll soon find out that some of us red blooded rock ribbed meat eating conservatives are real men and we don’t mind marching into Moscow and Bejing if we have too in order to kick ass and take some damn names. Pukin had better watch his damn step:
http://news.yahoo.com/us-russia-sending-syria-attack-helicopters-170359102.html
Nom not me the joys of living in this liberal Utopia is that I can vote with my conscience knowing that the mouth breathers in this state will overwhelm me with the blueness. It sucks that it won’t change but at least I can say I voted for neither guy.
reinvestor101 I think you’ll find the rebels are the Islamicists
I love RE 101!!
In Massachusetts nobody even talks politics. They all know they’re going to vote a straight democratic ticket, so there’s nothing to talk about, except maybe Scott Brown.
when no one talks about real estate anymore on a real estate blog does that signal a bottom?
No it signals we are bouncing along the bottom for an extended period. If it was a V shaped bottom I would be buying with both fists.
seif says:
June 12, 2012 at 4:15 pm
when no one talks about real estate anymore on a real estate blog does that signal a bottom?
seif – We don’t need to talk about real estate 24 x 7 that would be crazier than a club full of bleach blond long island chicks! Anyway here is some meat for ya, did you know Hoboken has hit $500 a sq ft again and inventories are down to 3 months almost where it was in 2006! Time to Sell Mortimer! Sell Sell Sell!
Seif unfortunately the prophets here were proven right. So basically everyone has been patting each other on the back anxiously awating how the end game plays out. The other side of the argument got religion and left a long time ago.
So now we sit here regaled by JJ’s penthouse forum light tales and the occasional idiocy of re101 while waiting for Godot (booyah Bob?) or the European meltdown. Whichever comes first.
We are all aware how it is going to end just want to have someone to share drinks with when it does.
I don’t know where you’re getting your information, but I checked all the damn news programs (after checking Fox first) and all of them are saying that the rebels are freedom fighters and the Syrian government is a brutal tyrannical regime that killed a bunch of kids. We only support those who want freedom and democracy and this is what this whole damn thing is about–just as it was in Libya. What?? The first thing the rebels did in Libya was set up a central bank? Who the hell cares–they were just anticipating the powers of freedom would get rid of that dirtbag Ghaddafi.
Stick with the damn party line or else I’ll suspect you’re a damn radical Islamic commie sympathizer.
>>>Richard says:
June 12, 2012 at 4:09 pm
reinvestor101 I think you’ll find the rebels are the Islamicists<<<
Hey, let’s get something damn straight. Marriage is between a damn man and a woman. I don’t play that shlt.
>>JJ says:
June 12, 2012 at 4:11 pm
I love RE 101!!<<
Chi (94)-
Ocho Vintage Blanco or Reposado or Siete Leguas.
Seif 116 Facebook must also be hitting a bottom
NH2bA9 jygoaasfdopb, [url=http://ibgmkdsqrwlb.com/]ibgmkdsqrwlb[/url], [link=http://hnafvajbjtev.com/]hnafvajbjtev[/link], http://bkimsexsngzc.com/
There’s one born every minute!
http://www.homes.com/listing/161640265/60_Park_St_TENAFLY_NJ_07670
——————————————————————
Just closed in Tenafly…over list.
Last LP: $950,000 ML#: 1208060
Addr: 60 PARK ST RES/S
Twn: TENAFLY Zip: 07670
Orig LP: $950,000
Sold: $965,000
Taxes: $20,211
SD: 6/12/2012 UCD: 3/19/2012 DOM: 14
There must be some pretty unicorns living in Tenafly!
Hadn’t seen this one….Vermont Maple Syrup….
http://www.sogoodblog.com/wp-content/uploads/2008/11/vermont-fail.jpg
Thank you
here Went Meat says:
June 12, 2012 at 4:29 pm
Chi (94)-
Ocho Vintage Blanco or Reposado or Siete Leguas.
This is a real estate blog?
1. Avoid car loans and leases.
2. Avoid student loans.
3. Pay your entire credit card balance every month, no matter what.
4. Max out your 401K, early in the year if you can.
5. Save 6 months salary and then start really saving.
6. Save a 40% down payment down for your home and get a 15 year fixed mortgage.
7. Over pay your mortgage almost every month and keep saving.
8. Diversify your investments.
9. If you just can’t do 1-8, be sure to opt for rich parents who will set you up with trust funds.
This article lists a number of reasons the wealthy in NYC are renting.
http://finance.yahoo.com/news/heres-why-rich-still-renting-184943047.html
But to me, there is one reason that is conspicuously not discussed.
Rut ro, they read the fine print:
http://www.latimes.com/news/nationworld/world/la-fg-spain-euro-20120613,0,570367.story
Rut roh,
“We believe that regulatory changes following the financial crisis, including the announcement of thrift capital requirement last week, have ended the viability of the thrift industry,”
http://www.cnbc.com/id/47766439
“get a 15 year fixed mortgage”
Disagree, get a 30-year mortgage and send in extra each month, or double (if finances allow).
With a 15-year mortgage, in the case of job loss, you still have to make that double payment, while the 30-year gives some breathing room and flexibility with a required payment that is 50% less.
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