Who participated in the real estate bubble?

Question

Any stories...good or bad?

Lauren L, you are my kind of people. Although we may never meet, I wish I knew more people like you. Why?

Because you went with the flow, they then downsized you out of a job, and now you are moving back but wrote off the small loss and still have enough around from the first sale.

That's planning and working together...working around a problem created by the big capitalists who are largely responsible for the mess we are all in today.

Too many today feel overwhelmed by the powers that be, and take action at the closest person around.

You are the exception, Lauren L!

All the best of luck!

My hat's off to you and your husband.

What I meant Acermill is that the conventional manner in which property was once purchased fell by the wayside, you know, the old rule of thumb based on income and salary.

With the new mantra, we get all the phony gimmicks of carrying huge mortgages whereas all that need be done is give people sustainable, good paying jobs instead.

With that, you get pride of workmanship, pride of ownership, pride of citizenship.

But nooooo, it's now the opposite of what should be, and thus a glut of properties while many are condensing and caving in, living in small dwellings and sharing costs with relatives and the like.

In your neck of the woods, it's still relatively stable and should remain so.

That's where coastal people may need to go to for affordable housing.

Good input. Thanks.

Answer 1

We did, although unintentionally. We had owned our house for 7 years and made over $120,000 profit when we had to move over 1,000 miles for my husband's job. This money provided us a nice buffer and has allowed me to be a stay at home Mom for the last four years. (I'm going back to work when our daughter graduates in May.) We invested some and have used some for home improvements and still have a nice rainy day fund we didn't have before.
We did lose a little on the house we bought next because six months after we moved for his job, the company started massive layoffs. We decided to move back home to the east coast and we lost about $10K on the second house, but we just counted that as "rent" for the year we lived there.
We've heard some real horror stories from other people though. We are pretty lucky.

Answer 2

Well, I don't agree with your stance that the 'large capitalists' are mostly responsible for the real estate bubble. Always remember that 'it takes two to tango'. The lenders offered the money, but didn't force it down anyone's throat. The other half of the bubble was the hordes of folks willing to accept what the lenders offered, regardless of whether or not what was offered was sensible.

Personally, I started in real estate investment LONG before any bubble started developing. While my net worth has fluctuated with the bubble, I am still far ahead of where I started nearly two decades ago. Fortunately for me as well, the bubble where I purchased was nowhere near as severe as it was on either coast. I live in the Upper Midwest, and property values have weathered the bubble quite decently.

Answer 3

Got a house in 2001 in vegas. By the end of 2004 saw the bubble building. I dont know how other people thought they could jump on the train though. Sold the house mid-2005. Paid 148k in 2001, sold for 293k in 2005. (i also got 3% of the commission because i had a real estate license.) I had planned to take the profits and head to phoenix as i believed their real estate was about a year behind las vegas's market. I was wrong and missed it by 6 months. (There was a house i wanted to buy for 170k and by the time my house sold it had jumped to 250k) So now i rent but its looking like its almost a good time to buy again.

Answer 4

Real Estate, and land specifically, is what truly bubbled over; the cost of a structure itself alone has not changed as dramatically, but the land it sits on has probably already lost over half its value.

I blame appraisers, mega builders, predatory lenders, and capitalistic "profiteers;" they all played a hand in it. Anyone who believes they are not affected is totally delusional IMHO too; and, the current predictions of a decade of no growth in these sectors is optimistic at best.

But, when the price of land is being valued at over half the market price of the house one should see they are not taking a wise real estate investment risk.

Answer 5

Many individuals participated by buying and selling houses and other real property. Banks and mortgage companies participated by lending money to the buyers. Contractors participated by building houses to sell. Indirectly suppliers of lumber, cement, and other building materials participated. Because of the large number of participants, the slump in housing also affects the economy broadly.

Answer 6

properly if the bubble bursts and actual assets fees plummet which will carry approximately deflation of China's already undervalued remote places money which will advise much extra value-effective products in China which will slow US exports. this would enhance our commerce imbalance and extra thwart our restoration efforts. which will advise continued unemployment and depressed sales so extra deficits. extra deficits will carry approximately inflation and monetary destroy in u . s . of america. yet China which regulates their inner monetary device with an iron fist will extra often than not have the skill to hide the disaster from it is very own human beings and could use the decrease actual assets fees to allure to extra remote places investors into their united states of america. they're going to spin it into an outstanding for them. we are enormously plenty screwed the two way it is going.

Answer 7

I did made my money 5 times over