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Old 11-25-2020, 08:02 PM   #972
berad001
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Join Date: Jul 2001
Location: Boston
Posts: 38,047
Quote:
Originally Posted by Darius View Post
I have two more Iím unloading. One rental and one vacation spot we havenít been using much since we pumped two kids out. One will be listed next week the last in a month or so.

I posted this somewhere else in here too but Im noticing people selling their current home at a premium because the market is hot but then upsizing into something even bigger and better because they just made bank on their sale. Of course paying a premium for the new place too. Itís hard to poo pop on your friendís parade but **** I hope some of the people close to me doing this arenít gonna get fvcked in the ass in the next year or two.

Iím good where Iím at. No plans to move. Will put kids through school here. If property value drops Iíll get a cut on my taxes and just ride it out.
I've got a couple of friends who've done the same recently, there is no talking to them though. I was straight up "you're being dumb" but whatever. Best case they can afford to be grossly upside-down forever in a bigger better house. Worse case they're unprepared and they lose their shirt on it. In my friends case they're not rich... In fact one particular friend owns a chain business that has been shut down for 8 months... but that PPP bruh (which, he's in for a rude awakening when he has to account for his PPP spending.

I tried to explain to my pals yes the house they're selling is grossly overvalued which is good, but anything new/competitive they're buying is also grossly overvalued. The before mentioned friend sold a house for 500 he bought for 250 4 years ago. Walked away with roughly 200 and change, now buying a million dollar house. Which again, if you're doing well enough where that mortgage payment is on auto pilot forever and you don't care about being upside-down fine. I personally wouldn't do it, especially with a business currently illegal to operate. It isn't just that the market is due for some correction (it was inflated before corona)... Now it is not only due for a correction, but it has external forces (covid) forcing it into turbo inflation mode with the floor potentially falling out. 500k houses selling for 800-1M. Again, it is framed like a competitive/strong market but it is falsely/artificially competitive.
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