Posted on 06/22/2006 11:27:32 AM PDT by Hydroshock
CINCINNATI, Ohio (Reuters) - When Keith Gersin saw the perfect four-bedroom house in southern Ohio four years ago, he jumped to buy it before anyone else could snap it up. When he finally sold it last month, it went for $30,000 less than he had hoped -- and that after seven months on the market.
In retrospect, the 41-year-old physician admits he overestimated the U.S. housing market, which has begun cooling after five years of record-breaking sales and double-digit price appreciation.
"I was naive," said Gersin, who sold his Cincinnati-area home in May to move to North Carolina with his wife and son. He made about $60,000 on the sale, but had hoped for better.
"Everyone thinks their house is the most beautiful in the world, so it comes as a bit of a shock when it doesn't sell right away."
The housing slowdown -- sharp in some regions and more gradual in others -- is seen by many economists as an inevitable and even healthy moderation to an overheated market. Even so, for many homeowners, real-estate agents and builders, the market's new direction is not particularly welcome.
(Excerpt) Read more at today.reuters.com ...
(Denny Crane: "Every one should carry a gun strapped to their waist. We need more - not less guns.")
He made 60M on the sale and he's upset?
Typical physician investor. Think they know everything.
Well, Doc, you're human just like the rest of us.
BTW, Doc, there's no such thing as a bad profit.
What goes up must come down!
Hint: Buy low, sell high.
Moral: You should have bought 10 years ago, sold a year ago and be ready to buy more in about 3-5 years.
In the mean time, some stocks are going at a decent price... but beware, what goes up must come down!!
:)
Maybe you should take some time to reassess your priorities.
A 300k house in Cleveland is like a 1-2 million house in areas like NYC or San Fran... You have to understand the market they are talking about.
for 1/2 a million in Cleveland you could get what would be easily 5Million or more in other areas.
They MADE $60K on the sale - I take that to mean it was the equity and/or profit. I seriously doubt it was the selling price.
But while on the subject - the housing market for existing houses has cooled off. That started around here a couple of years back. The hot thing is NEW construction. I just heard a report on the radio just a few days ago stating that new housing starts had jumped up significantly starting in May coninciding with the dry weather. People are looking at the options - and seeing how older houses are still over-valued, are choosing to build - thus getting exactly what they want.
When we first moved to this town some 11 years ago, you couldn't find a house (existing) to buy or rent. When one did appear on the market, it was usually on the market a matter of days. In fact, when we finally did buy a house, we made an offer the day it went on the market.
Yet when we put it back on the market last November - it took until February to sell - even with improvements. The issue - new construction.
But I do see the entire market, both for existing and new construction, to begin sagging with the progressively higer interest rates... If anyone wants to gripe - blame the Fed. (you know, the unconstitutional manipulator of our economy and money supply).
He lived in a nice house for 4 years with tax breaks galore and only made $60K profit when he sold.
The horror of the bubble dooms yet another American to sorrow and misery.
The journalist wants to write an article on the "cooling" market and how it is "pinching" people. The journalist doubtlessly searched around for the best example available and found ... this??
A physician who, on the side, buys and sells houses to supplement the income from his medical practice. This little "part-time" job netted him at least a $60,000 profit last year. And that's as bad the crisis is at this point.
Cooling market? I won't argue that. Big problem? No.
Who will suffer? People who have made foolish financial decisions. And it was ever thus.
When I was looking in the past I was kind of shocked at how hideous most homes looked. Some hadn't vacuumed in months. Others had those hideous cheap flowery wallpaper borders in every room. And most homes are filled with junk and catboxes. It's not at all like those shows on HGTV.
The first thing you do to sell ahouse is what my dad calls, "Lipsticking the pig." Declutter, clean, patch and spackle, clean up the yard, do any minor repairs, and touch up the paint. Pack up crud you do not need and place it in the garage.
So the poor doctor only made 15,000 extra untaxed dollars in each of the four years that he owned his home.
Some one should have told him that he could earn that SAME $15,000 income per year by investing in CDs (assuming they earned 3% -- 2% after-tax), if he had just purchased CDs valued at $750,000 instead of buying the house.
Oh? What's that?
The poor doctor didn't have the $750,000 to invest in CDs?
Then, IMHO, he should be crying all the way to the bank.
(Basic) reading comprehension is your friend...
Were you looking at rural real estate? Some years ago hubby and I went looking for a house on acreage. We saw some really unkempt properties; I could not believe people actually lived that way. After we went through one house I was literally gagging. The owners had several big dogs and there was dog feces everywhere. The realtor, hubby and I were quietly freaking out while the sellers were smiling and welcoming us in and acting like it was normal for dog piles to be all over the place. And this was not a cheap house! Long story short, we ended up buying some land and building. I'd seen enough. Those slobby people are probably still wondering why their house didn't sell.
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