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."

"NOYB" wrote in message
hlink.net...

"basskisser" wrote in message
ps.com...

ACP wrote:
"basskisser" wrote in message
ups.com...

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??

I didn't catch where he said his home is mortgaged. Not all of us have
mortgages.

Haven't been around long, huh? He's proud of his interest only mortgage!


It doesn't adjust for another 2 1/2 years. I'll have my business loan
paid off by then, and have another $6,000/month ($4500/month after taxes)
to pay for any rate adjustment.

But keep in mind that I had a rate of 4.25% locked for 5 years. If I had
a done a conventional 30 year loan at the time, the rate was around 6%. I
will have saved over $55,000 in interest for the first 5 years of living
in my house. Even if rates bump 2 points in 2009, and another 2 points in
2010, it would take until 2012 or 2013 until I'd have spent the same
amount that I would have spent on a conventional 30 year mortgage from the
get-go.

Not to mention the tax deduction you get......which likely makes your
effective rate around 3%

Kevin apparently still has not mastered Econ 101

Shortwave Sportfishing wrote:
On Wed, 23 Aug 2006 20:26:02 GMT, "NOYB" wrote:

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.
=

Actually, I would think you probably could. I know you'd get a ticket
if you got caught, and in an evactuation scenerio, I don't hink the
cops would be checking for such. but I really don't think it would be
that much outstanding.


To me it would be totally worth the expense of a fine, compared to what
the insurance, or lack of , would and could be.

YMMV

Insure it for liability only and accept your own risks in this world.

-W

"NOYB" wrote in message
.net...
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)


I just applied for quotes from NBOA, Boater's Choice, Progressive, and 2
or
three others. All said the same thing: no dice.

Progressive was willing to write my boat for $100,000 coverage (it's
valued
at $113k though) to the tune of $4500/year.

I'm with Boat/US, and insured for $113,000 for just under $3000/year. I
was
looking to save some money, and it's apparent that that isn't going to
happen.


Read this thread on thehulltruth.com to understand how bad it is in
Florida
now:

http://www.thehulltruth.com/forums/t...114956&start=1


Guys cannot get financing on boats because they can't insure them.

On Sun, 27 Aug 2006 11:50:32 GMT, Shortwave Sportfishing
wrote:

On Sun, 27 Aug 2006 10:26:27 GMT, "Clams Canino"
wrote:

Insure it for liability only and accept your own risks in this world.

When Nobby wrote this, I became immediately interested in this and did
some asking around with some people I know in the insurance business.

Apparently, even liability insurance is going to become hard to get.
The complete lack of common sense in the small boating world is
getting to them. For example, yesterday, I was talking with a DCR cop
before I launched (safety inspection of the boat) up at Lake
Chargogagoggmanchaugagoggchabungamungagogg, he said that him and his
partner wrote eleven tickets in 2 hours for everything from no PFDs to
overloaded boats with no PFDs, no fire extinguishers, children w/o
PFDs, etc. He wrote one pontoon boat up with 12 people on board with
open containers and the driver was .97 on the BA.

I don't know this for a fact you understand - that's just what I was
told - but companies have been taking a beating on boat insurance to
the point where it's not profitable anymore. I know with my Ranger,
which has a total replacement policy, boat, motor, trailer and gear at
a stated value, when I installed the new E-TEC 200, I insured it for
full replacement value of $17,000 - my insurance doubled. I didn't
change the value of the boat or trailer - just the engine.

I have never had a claim - ever - over 25 years with the same company
and they doubled my insurance premium. When I checked with two other
companies, I was surprised to learn they don't write stated value
replacement policies anymore and as to value, they will only write a
depreciated value - meaning that the lowest value even if the boat is
perfect and well maintained.

It's only going to get worse.

I must be very lucky. My current insurance runs $336/year for $26,500 limit
on the boat and trailer. I've got to call and have them adjust the limit
downwards to the current market value, which I'm guessing is in the $15K
range.

Where to get an estimate of current fair market value??
--
******************************************
***** Hope your day is great! *****
******************************************

John

"Clams Canino" wrote in message
hlink.net...
Insure it for liability only and accept your own risks in this world.


Can't. The bank requires insurance that covers the loan amount.

NOYB wrote:
"Clams Canino" wrote in message
hlink.net...
Insure it for liability only and accept your own risks in this world.


Can't. The bank requires insurance that covers the loan amount.

Pay cash.

"JohnH" wrote in message
...
On Sun, 27 Aug 2006 11:50:32 GMT, Shortwave Sportfishing
wrote:

On Sun, 27 Aug 2006 10:26:27 GMT, "Clams Canino"
wrote:

Insure it for liability only and accept your own risks in this world.

When Nobby wrote this, I became immediately interested in this and did
some asking around with some people I know in the insurance business.

Apparently, even liability insurance is going to become hard to get.
The complete lack of common sense in the small boating world is
getting to them. For example, yesterday, I was talking with a DCR cop
before I launched (safety inspection of the boat) up at Lake
Chargogagoggmanchaugagoggchabungamungagogg, he said that him and his
partner wrote eleven tickets in 2 hours for everything from no PFDs to
overloaded boats with no PFDs, no fire extinguishers, children w/o
PFDs, etc. He wrote one pontoon boat up with 12 people on board with
open containers and the driver was .97 on the BA.

I don't know this for a fact you understand - that's just what I was
told - but companies have been taking a beating on boat insurance to
the point where it's not profitable anymore. I know with my Ranger,
which has a total replacement policy, boat, motor, trailer and gear at
a stated value, when I installed the new E-TEC 200, I insured it for
full replacement value of $17,000 - my insurance doubled. I didn't
change the value of the boat or trailer - just the engine.

I have never had a claim - ever - over 25 years with the same company
and they doubled my insurance premium. When I checked with two other
companies, I was surprised to learn they don't write stated value
replacement policies anymore and as to value, they will only write a
depreciated value - meaning that the lowest value even if the boat is
perfect and well maintained.

It's only going to get worse.

I must be very lucky. My current insurance runs $336/year for $26,500
limit
on the boat and trailer. I've got to call and have them adjust the limit
downwards to the current market value, which I'm guessing is in the $15K
range.

I wouldn't change a thing with your current policy. If you bring attention
to your current policy, they'll find a way to raise it.