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Porsche-O-Phile Porsche-O-Phile is offline
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Join Date: Feb 2004
Location: A Rock Surrounded by a Whole lot of Water
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Its a killer. Market based and if you bought at the wrong time....



Most pensioners live in small apartments or had the properties before the boom.



Market here was stupid. For example, I bought my 1st house here for 200K (3K/ft) and at the peak I had offers at $900K. Stupid me that I did not sell then...



At least property insurance has reduced substantially also.
No definitely NOT "stupid for not selling then". You're smart for not buying then and if you'd sold, a lot of any profit you may have made would have probably gone towards getting another place (you have to live somewhere) so you'd have either been someone else's sucker to pay their inflated bubble price to buy or paid inflated rent. I don't know the specifics of your situation it you might've lost a ton due to capital gains taxes too...

The best way I've observed to deal with bubbles (particularly in RE) is to stay way the hell away from them. Sure you can profiteer off of them (or try to) but for everyone I know that made money in the bubble I probably know 2-3 others who lost, got foreclosed on or worse. Dangerous game. You're smart for buying in a good market and having a decent inflationary hedge (assuming a fixed-rate) and not getting involved with the shenanigans.

Last edited by Porsche-O-Phile; 04-28-2011 at 03:06 AM..
Old 04-28-2011, 03:01 AM
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