The cover article in Sunday's Chronicle about investors losing homes to foreclosure reads like a poor attempt by its authors aimed at sympathy for these so-called "investors." We will be having none of that around here. These people thought the market could never go down and it didn't matter if rents could not cover their holding costs - they would more than make up for it with continued insane appreciation!
For those of us who did get out in time, we can actually thank some of these investors for helping accelerate the run-up in prices. So to those of you who helped to increase my capital gains, I thank you now.
These numbers are only beginning to materialize here in the Bay Area and it is a matter of time before pre-foreclosure, short sale and finally, foreclosure listings, are everywhere. San Francisco seems to be the last place that is holding up and very well might do better than most in coming years, but it isn't "insulated" as many like to suggest.
2 comments:
those of us that loan have to believe we're insulated. that's part of the bargain.
and thinking it is one step in making it true. cause if everyone's doing it...everyone's doing it.
no one is ever truly insulated. it's all about timing and expectations. you ride the wave out over the medium- and long-terms. you gamble on the short-term and you can get killed.
if you bought before 2004 you're prolly in good shape. if you bought in 05-06 you are likely not in good shape - over the short-term, that is.
but everyone is not doing it anymore... we will be entering the fear stage of the cycle very soon...
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