At it's peak, Zillow had my house priced at $1.56 million (earlier this
year). Now, Zillow says it's worth $1.373 million.

I paid $825k in 3/04. Even in a worst-case scenario, I have three to four
hundred thousand more in equity in my home right now than when I bought it
in March 2004.

If I didn't get an interest-only loan at the time, I couldn't have bought my
house. Today, I could afford to pay $825k with a conventional fixed
mortgage...but the selling price would be $500,000 higher and I wouldn't
have been able to buy it.

I looked at my interest-only loan as a way to lock in 2004's price for 5
years down the road. When my rate adjusts, I simply "re-buy" my house for
$825k...even though it will be worth considerably more than that.




"JohnH" wrote in message
...
On 25 Aug 2006 05:07:50 -0700, "basskisser" wrote:


NOYB wrote:
"basskisser" wrote in message
oups.com...

Harry Krause wrote:
NOYB wrote:
"Shortwave Sportfishing" wrote in message
...
On Wed, 23 Aug 2006 20:26:02 GMT, "NOYB" wrote:

It's insurance! Or lack thereof. In Florida, it is now
impossible
to
insure a boat over 30' long valued at more than $100,000 if the
boat:

a) doesn't have a trailer

and/or

b) is more than 5 model years old (2001 and older are uninsurable
if
they're
over 30 feet and valued at more than $100,000)
Hmmmm. So here's a scenario for you.

I have a custom made trailer for my Contender which is used to
haul
the boat twice a season for a wash and wax. It also doubles as a
winter storage trailer - just put it on, park it and shrink wrap.

The only problem is if I wanted to take it from the yard, I would
need
a special permit because it's over-width for the highway. So I
couldn't just pick it up and move it away from the coast if a
storm
approached or whatever.

If that boat was a, say 2000, would it be covered?

No. A 2000 wouldn't be covered unless it was valued under
$100,000. A
2002
would be covered, but the premium for a $100,000 boat is nearly
$5000/year.


I have no place to store a trailer unless I'm willing to pay
$150/month
storage fee. Even if I pulled the boat, where would I put it? And
I'd
need
something that could tow upwards of 12,000 lbs that is 10'6" wide.





No room on the lot of that million dollar house to stash a boat
trailer?

Incredible.

Bwaaahaa!! He got hosed in the housing bubble. Along with an interest
only loan!

My house appraised in July, 2005 for 50% more than I paid for it in
March,
2004. The house next to mine is the same size, but sits on the end of a
canal (less desirable) and is listed for $1.59 million. They won't get
that, but if they lowered it to $1.2 million it would sell tomorrow.

But, what does it appraise for NOW as opposed to what you've paid for
it, and how much of that has been soaked up by the interest rate you're
paying??

If he's been in the place three years or more, chances are good that he's
way ahead of the game, and good for him!

Here's a site for a quick appraisal. It's been pretty accurate when
compared to what's been selling around here.

http://www.zillow.com/
--
******************************************
***** Hope your day is great! *****
******************************************

John

On Fri, 25 Aug 2006 18:45:59 GMT, "NOYB" wrote:

At it's peak, Zillow had my house priced at $1.56 million (earlier this
year). Now, Zillow says it's worth $1.373 million.

I paid $825k in 3/04. Even in a worst-case scenario, I have three to four
hundred thousand more in equity in my home right now than when I bought it
in March 2004.

If I didn't get an interest-only loan at the time, I couldn't have bought my
house. Today, I could afford to pay $825k with a conventional fixed
mortgage...but the selling price would be $500,000 higher and I wouldn't
have been able to buy it.

I looked at my interest-only loan as a way to lock in 2004's price for 5
years down the road. When my rate adjusts, I simply "re-buy" my house for
$825k...even though it will be worth considerably more than that.


You did good!

I say that even though we're going round and round with a dentist now.
--
******************************************
***** Hope your day is great! *****
******************************************

John

sip

I say that even though we're going round and round with a dentist now.

What the heck does that mean?


--
******************************************
***** Hope your day is great! *****
******************************************

John

NOYB wrote:
If I didn't get an interest-only loan at the time, I couldn't have bought my
house.

In other words, you could only afford it at all under
special conditions... conditions that amount to "play now,
pay later.'



I looked at my interest-only loan as a way to lock in 2004's price for 5
years down the road. When my rate adjusts, I simply "re-buy" my house for
$825k...even though it will be worth considerably more than that.


Maybe. If it's still standing.

Earlier you said that the lower interest rate on the first
years of the ARM would save you $55K... the only way you can
actually take this gain is if you could afford the higher
payment & invest the savings in something that gives a
higher return that the interest on the loan... relatively
easy to find in these days. You say you can't afford to do
that, therefor you're not really gaining anything other than
a big fancy overpriced house.

And think about this: banks can do math. Why would they hand
you a profit they could take for themselves?

Answer: risk!

DSK

DSK wrote:
NOYB wrote:
If I didn't get an interest-only loan at the time, I couldn't have bought my
house.

In other words, you could only afford it at all under
special conditions... conditions that amount to "play now,
pay later.'



Form: http://www.stock-market-crash.net/florida.htm


Florida Real Estate Bubble
The 1920's, in America, were a time of great prosperity. Skilled and
educated working Americans had jobs providing numerous fringe benefits,
paid vacations and pensions. In addition, automobiles were becoming
commonplace for the wealthy and middle class allowing cross country
travel. This good fortune set the stage for the Florida real estate
bubble.

Starting in 1920, many Americans became enamored by the materialistic
and prosperous lifestyle of the time. During this time, the stock
market was moving forward at an extremely fast pace. Many investors
were becoming quite wealthy. Florida became a hot spot for these newly
rich people, who didn't enjoy the cold. Many whole families took
vacations to Florida. It was at this point that tourism started booming
and land prices were skyrocketing. Many astute investors took notice
and started buying Florida real estate. The population in Florida was
growing exponentially and housing couldn't meet the demand. Florida
became the "playground of the rich and famous". Illegal casinos and
drinking parlors became widespread in Miami.

At this point, almost anybody could invest in Florida, even without
much money. Credit was plentiful and soon everybody in Florida was
either a real estate investor or a real estate agent. In 1922, the
Miami Herald became the heaviest newspaper in the world as a result of
its humongous real estate advertisements. People in the North heard
about the real estate prices "doubling and tripling", causing a
snowball effect. Capital was rapidly pumped into the real estate
market. Whole golf communities were developed, such as Temple Terrace.
Resorts and retirement communities were developed almost overnight.
Mansions were sprawling in every area, as were swimming pools. As
always, waterfront property was the most desirable. Florida was seen as
a veritable Utopia.

Real estate prices quadrupled in less than one year. An elderly man
invested $1,700 in property and by 1925 the property was worth over
$300,000! It seemed you could do no wrong by just buying any property
in Florida and become a millionaire. By 1925, real estate prices had
become so exorbitant that buying land wasn't affordable any longer.
New investors failed to arrive and old investors started to sell. Panic
arrived, as it always does, and the real estate market crashed. Prices
kept moving downwards as heavily indebted investors tried to sell to
avoid bankruptcy. In most cases, no buyers arrived, and the investors
were bankrupt from the enormous mortgages.

To make matters even worse, a highly destructive hurricane ravaged
South Florida in September 1926. The 125 mile an hour winds eventually
turned Palm Beach County into swamp lands. After the storm, a huge
tidal wave crashed upon the towns of Belle Glade and Moore Haven. Due
to these horrible turn of events, over 13,000 homes were destroyed and
415 people died. Additionally, the arrival of the Mediterranean fruit
fly obliterated the large citrus industry. It took years for Florida to
fully recover, even through the highly prosperous time from 1925 to
1929. Florida was barely affected in the stock market crash of 1929 and
the Great Depression, because of its poor financial state from the
start.

Market crashes always occur in the same manner. Regardless of the
market, the same simple psychological underpinnings are always at work.
People who are caught up in a bubble never look back for historical
examples. For this folly, they become paupers.

"Those who cannot remember the past are condemned to repeat it."