Posted on 02/18/2023 7:22:50 AM PST by SaxxonWoods
Question: I was a victim of FOMO during the housing market craziness and bought a house for $200,000 over the asking price. Now house prices are coming back to reality, and I feel like I lost my hard-earned money. I don’t know what to do as I am living with constant stress thinking that I made a big financial mistake, and I’m not sure if I should consult a financing adviser for better decision-making and long-term investment planning.
My wife and I are in our 30s and are working in the Bay Area and making about $320,000 combined yearly. We live an average life and watch every dollar that we spend.
(Excerpt) Read more at marketwatch.com ...
California real estate has an amazing history of wild swings up and down—and you are correct that if folks wait it out they will be fine.
The problem these days is that many of the jobs disappear as fast as they appear—and the overleveraged young folks have no cushion—run out of cash before the real estate has a chance to go up again.
Most of my real estate clients were about my age until their kids grew up and I started selling them houses. Those clients bought bigger houses than I live in and drove newer cars.
Then I retired at 60 and they couldn’t figure out how I could do it. My extra money went into mostly raw land, it typically appreciates faster than developed land.
“but we drive luxury cars”
But we *don’t* drive luxury cars.
‘08 Frontier Crew Cab 4WD for dirty work.
‘16 F150 Super Crew XLT 4WD
‘19 Honda Passport AWD for the lovely wife and highway trips.
I bought a 2 acre lake lot twenty years ago for 50K to build a home on. It has appreciated threefold since.
Good point. Almost everything on the net is really just an advertisement.
Sounds wonderful! What part of TN?
I was a victim of FOMO during the housing market craziness...
I had to look FOMO up. It is "Fear of Missing Out."
IOW "envy."
I’ve never lost on a piece of land or a principal residence. house. Lost a little on my first income property, but only because I chickened out 2 years early. That was a very good mistake because I learned from it.
No kidding. What an idiot
My net worth doubled during his 8 years.
Nobody’s did look at the market during his chaos run and add the Obamacare chaos Solar company crash the cost the feds billions to pay out.
I helped a friend buy a gravel pit for $50k about 25 years ago.
It’s worth about $3.5 million now and he makes 4ok a year in water skiing memberships. It has no water rights other than recreation but stays full because it’s up against a river. He goes there to hang out in his trailer and fish, got it full of bass, catfish and hybrid bluegill.
Fear of missing out
Lordy I’m old and even I know that
Just walk away from the house. I’ve known people who did that back in 2008-09. Didn’t effect them or there credit one bit and they bought a new home a year later. One guy I know walked away from his house in Texas AND ran up a $100,000 credit card bill he defaulted on. No biggie. He was still getting offers for new cards.
I was selling, buying, renting out, flipping and developing real estate and had mineral rights under some land that had natural gas. Those rights are still paying.
People owning homes in the City have been making a run for it for years. You’ll find bay area people living up highway 80 all the way to Auburn and above. This is why they built a BART up there.
But they are many times stuck with the property in Frisco because no one will pay the price the owners got themselves into so the property sits vacant and is still being paid for somehow.
My suggestion is if you are not going to change your mind on living in the city, take what you can get out of a sale and escape. This has been going on for many years as far back as the late 70’s. When I was there the people were buying as far east as east Sacramento and Rocklin and selling the bay houses if they could. Car pools were big at that time.
wy69
I just feel so poor some times...
mineral rights under some land that had ***natural gas***.
Your full of BS nobody can get a permit or a lease now that chaos Biden is screwing things up.
Similar to my escape from Denver to a beautiful small farming town in the desert/mountains with 2,800 people, 31 wineries and surrounded by thousands of acres of produce, peaches, pears, cherries, apples, corn to die for and on and on. You can buy right direct the farmers’ stands. Great people, like going back in time 50 years.
I have three mineral right interests, I’ve sold all the land they are under and retained the rights. They are in Texas, been paying since the shale boom and are still producing. I got the first two in ‘84, and the last piece in ‘2004. Texas is different than most states.
I live in Colorado and land owners don’t own mineral rights here. They have to put up with wells and people on their land for nothing.
“It’s astonishing that $320k/yr is only able to ‘get you by’ in CA.”
If you are bound and determined to spend all you make, all income levels are just enough to “get you by”.
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