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What a difference a year makes! - Alembic Research Institute — LiveJournal [entries|archive|friends|userinfo]
Barleywine Gutenbiere D'Greenman

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What a difference a year makes! [Nov. 26th, 2008|12:45 pm]
Barleywine Gutenbiere D'Greenman
Last year at this time, my portfolio was up about 14.5% over the previous year!  Joy!

This year, it is down about 13.5% over last year. Wow!

I guess I shouldn't feel to bad tho, it could be worse, since the S&P500 is down about 35% over last year.

Also, house prices here have fallen about 30% over a year ago: so I could actually buy a house if I
could ever get myself to take the plunge.

I've kept about  $300k on the sideline for that purpose,  so I might actually to it within the next year.

It is hard to decide tho: some  economists says  house prices could still drop another 20% around here.

So I'll be making low-ball bids, trying to get that 20% off the  asking price.

Another thing I'm trying to decide is whether to get something fairly nice for $600k, and then get a $300k loan,
or if I should get something that is not as nice and/or fancy, for about $300k, and either pay
cash or get a smaller $150k loan.

Since I might be   working another 3 or 4 years until they offer me early retirement, I could make
the payments on a 300k loan.  However, a smaller 100k loan I could make the payments on
whether I'm working or not: in case they offer me early retirement much sooner.   But unfortunately,
I'm go valuble to THEM,  and I don't think they're going to offer me  it for a while.

Another thing is: I've gotten very comfortable where I'm at.  The bay area is such a darn good place to be!
The only thing I miss is a nice house where I can garden and do other "stuff" that home owners are
always able to do.

Decisions, decisions!
linkReply

Comments:
[User Picture]From: ilanarama
2008-11-26 11:31 pm (UTC)
I vote smaller house and smaller loan, because oog, that is so much money. Mortgages are getting cheap, too!

I don't even want to look at my portfolio. We do have about $100K in cash, though, so we're not hurting in the short term.
(Reply) (Thread)
From: (Anonymous)
2008-11-28 05:11 pm (UTC)
It doesn't have to be cheap or nice. Try to find something in the middle: not to expensive, and a little nicer. It's worked for Adie and I here in TX.

--Dean
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From: (Anonymous)
2009-07-22 01:53 am (UTC)

What a difference a year makes!

Do it John! You've been talking about this for years and now is the time.
Buy the crappiest house in a nice neighborhood and build some equity. That's what I did when the big boom happened. Bought ugly, sold nice and mortgage is now less than equivalent rent. Houses are going for a song here but then again, this is the Las Vegas Valley. Prices are bound to go up eventually. Remember that with a house comes maintenance and you don't want to be too much of a slave to your possessions.

Karl
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From: jojocuon
2011-04-13 01:10 am (UTC)
Great writing! I want you to follow up to this topic!?!

(Reply) (Thread)
From: judasqil
2011-11-02 08:28 am (UTC)
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(Reply) (Thread)