Thread Drift

[Pax]

Thanks Indy, it's a pretty sad thing, we're all ten years or so from retirement and all of their plans are up in the air. I don't think any of us expected this.

[BleeckerSt_Girl]

I got a marriage proposal from my favorite elderly food pantry client today. I told him I suspected he just wanted me for my canned beans. We both cracked up.

[VeganBikeChick]

Along the lines of Knotted's post, I'm a renter, too and very ambivalent about it. I've yet to own a house and feel I'm lacking for doing so, yet I have the freedom to move anywhere. I go back and forth between wondering if I should have something with equity built up or be happy that I'm able to contribute to my savings account every month, while if I had a house I know $$ would be tight for me.

The grass isn't always greener, no matter what side you're on!

[NbyNW]

After dealing with foundation repairs last winter I'm no longer in love with the idea of being a homeowner, but I do love the home we currently own. Thankfully our neighborhood seems to have held its value, but if we move again for DH's work we plan to rent ... if we can find something that is dog-friendly. Real estate is just not a good investment right now, and why tie up your savings? There are so many other ways to stash and grow your nest egg.

[Crankin]

Ah, my son and DIL are looking for their first house. They have been approved for a first time buyer FHA loan, special program from the Commonwealth of MA. Condos are not excluded... he's looking at both single family, and condos.
Could this be a regional thing, based on the market? I was surprised they were approved for up to 325K, although he is looking at 250-275. He's seeing a lot of crap out there, and a bit discouraged.

[Pax]

I got a marriage proposal from my favorite elderly food pantry client today. I told him I suspected he just wanted me for my canned beans. We both cracked up.

LOL!!!

Ah, my son and DIL are looking for their first house. They have been approved for a first time buyer FHA loan, special program from the Commonwealth of MA. Condos are not excluded... he's looking at both single family, and condos.
Could this be a regional thing, based on the market? I was surprised they were approved for up to 325K, although he is looking at 250-275. He's seeing a lot of crap out there, and a bit discouraged.

It could be regional, here we have large numbers of unoccupied condos so their value has plummeted.

[Trek420]

It could be regional, here we have large numbers of unoccupied condos so their value has plummeted.

It is nationwide. It might be better or worse in some areas but nationwide.

IMHO condo values have plummeted and are sitting vacant in part because the entry level market now is a single family home.

Why would you pay HOA fees when you can get a single family home for the cost of a car? Do you really hate mowing the lawn that much?

I bought very low for the market at the time.

No matter how fairly I'd price my recently remodeled condo even if a buyer wants my condo (for the location, bikeable to BART, AMTRAC, trains, farm markets, indie coffeeeee, shopping, Bay trail, lots of green space to walk the doggeee, walkable to schools ...) I am being undercut by short sales and repos.

Thing is short sales and repos are sold as is; no inspection, gaurantees and often in pi$$ poor shape. But if you have the cash and construction skills to fix them up, replace the fixtures, appliances, counters and lights distressed desperate sellers rip out to sell when they leave (go tour a repo open house ) you can snap them up, fix and rent it out.

You'll need both, the cash and skills because banks are not lending. Therefore Pax's brothers neighbor, the investor with lots of ready cash to snap up deals in good or good enough shape to rent it out? That's the norm. America is for sale my friends.

Nothing's selling, nobody is flipping except me, I'm flipping out. But if anyone on TETD wants to rent a beautiful bikeable condo in the Bay area let me know.

[Pax]

My mom, honey, and I were having a conversation about this last weekend. None of us (especially my mom) EVER expected to be living like this, in an abysmal economy with no sign of it getting even a little bit better. None of us expected to be rich, but we did expect that a lifetime of work would allow us to live without the fear of losing everything. Guess I should have been a banker.

[NbyNW]

My mom, honey, and I were having a conversation about this last weekend. None of us (especially my mom) EVER expected to be living like this, in an abysmal economy with no sign of it getting even a little bit better. None of us expected to be rich, but we did expect that a lifetime of work would allow us to live without the fear of losing everything. Guess I should have been a banker.

Pax, I think very few professions are safe from the recession. Wall Street is a big scapegoat and rightfully so, but remember that a lot of rank-and-file to middle management in the financial sector lost their jobs in '07-'08, across the country (not just in financial centers). Many of the institutions that stayed afloat instituted hiring freezes, so they didn't necessarily absorb all of these new free agents. DH's company went through several rounds of layoffs and eventually went under. It was not pretty. Some people found other work, others are changing careers, and some are still hurting very badly. Some really excellent people have been out of work for far too long, and things are not looking better.

One of the few people I know who says she has weathered this pretty well is my hairdresser. People still need to look good when they are interviewing for jobs, sometimes they are coming every 6 weeks instead of 4. Her DH is a bartender and he has stayed busy. Guess people still need to blow off steam and drown their sorrows.

[Blueberry]

Why would you pay HOA fees when you can get a single family home for the cost of a car? Do you really hate mowing the lawn that much?

And you can pay someone to mow the grass and do lots of other stuff for way less than the condo dues....Condos here are still going reasonably well, though - lots of students who have parents with a LOT of money (and not a lot of sense...)

[Trek420]

lots of students who have parents with a LOT of money (and not a lot of sense...)

True, that. With my condo near several colleges/universities (Duck on Wheels was on loan from her institute of higher learning to UCB for close to a year. She biked to her office sometimes. On days off biked to favorite bird sanctuaries to do photography) in the past I might have sold to a parent wanting the sweet 4 year tax deduction rather than pay rent.

With the market now they'd better hope their student stays the full 4 in the same area, then a masters, go for a Phd ... on to be a TA ....

[Blueberry]

Trek -

Our market is lucky. It never went as high as CA, but it hasn't crashed. Some areas haven't lost value, a few are still appreciating. Days on the market are still not bad for good homes (the ones that are in bad shape sit there, and always would have).

Still....we're thinking of selling our home. Because - if things get worse (as I think they might well), who knows if we would remain stable. Real estate used to be safe - not so much anymore

[Pax]

Blueberry - we're in the same place, thinking about selling our home. Primarily because my SO's job is ending in November, she can make twice what I do so is looking at jobs around the country. Fortunately except for a tiny mortgage we're debt free, so if we end up staying here we can keep the house on my salary alone. It just puts her in a bad situation job/retirement wise.

[Crankin]

Condos are actually selling well here. Because, maybe, you can still buy one cheaper than a house. When the average price is 300K, things are different... of course you can get a condo much more expensive than 300K, but there aren't tons of empty ones sitting around.
I am surprised by all of the negativity. The unemployment rate here is better than the national average, but still at 6-7%. But, truthfully, I don't know anyone , really know, who has lost a job. I got a job within 2 weeks of graduating in my new career. My son got a new job in 2010, just a year ago. He's had raises and other good things happen. My DH's company (software) is doing the best it has ever done. They are giving everyone double their stakeholder shares (it's a privately held company). This isn't bragging, but, I think this economy thing is very field specific and also regional. All I can say, is that I am glad I left AZ. The foreclosure signs on every block were just depressing. But, I saw that bubble waiting to burst many years ago. There's more to life than endless summer.

[Blueberry]

Crankin-

Some industries have been hit harder than others. I've been either unemployed or significantly underemployed (or working in a nightmare of a job where I might or might not actually see my paycheck) since June of 2008. I'm well qualified and I've been working my butt off in the jobs I've had/been able to get and trying to find others.