It’s the Appreciation Stupid!
How many times do I have to say it? Appreciation, appreciation, appreciation. I have little patience for flipping in this market, so that’s not what I’m talking about. I’m not interested in the short timers out there right now. They’re crazy. I’m talking about normal people buying homes that they will live in for 5 years or more. Those people with realistic expectations about buying a house and the promise of growing their investment incrementally over time. No whamboozles, fireworks or quick profits. Just the plain old regular hope that one day, through diligence and care, they will sock away a little nest egg for their futures and that of their loved ones. I think there are two categories of stupid investments. The first being inexperienced investors who haphazardly jump into a deal without doing their homework and laying out a proforma or development/rehab plan and, second, those people who so adamantly subscribe to the American Dream of home ownership that they are willing to do just about anything to achieve it. The second group is feeling the wrath of their hasty decisions and shame on those pirana lenders for capitalizing on their dreams. In keeping with my previous posts, buyer beware. For heaven’s sake pay attention and don’t get sucked into an investment without knowing what you’re getting into. It isn’t hard – I promise. All the tools are right here. With all the good buys on the market, there is surely one for you that will appreciate over time. Maybe your dream home or first pick is not priced right, but there are lots of good properties that will serve you well financially and emotionally. Here are some that missed the mark.
- 1927 single family home with 2 beds, 1 bath
- Sold on 12/14/07 for $455,000 ($632 per square foot – ouch!)
- Last sold on 2/15/91 for $132,500 (double ouch!!)
- Zestimate $447,500 (triple ouch!!!)
- Hillcrest condo with 2 beds, 2 baths
- Sold on 12/11/07 for $610,000 ($537 per square foot – ouch!)
- Last sold on 7/28/05 for $572,500 (double ouch!!)
- Zestimate $599,500 (triple ouch!!!)
- 1939 single family home with 2 beds, 2 baths
- Sold on 12/28/07 for $405,000 ($391 per square foot – ouch!)
- Last sold on 4/27/07 for $365,000 (double ouch!!)
- Zestimate $399,500 (triple ouch!!!)
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Rotten San Diego Home Sales – What’s that Smell?!
Hot Deals and Downright Steals (You’re Gonna Get Busted!)
