cheap? not really........overpriced?not really either.......one`s perception of cheap 3 to 4 years ago does not coincide to todays cheap..........taxes go 10k...that`s alot for a town without a high school or even with a school for that matter,but is more of less the standard for bergen county. if you`d like to dabble & speculate in "cheap" real estate.....i`d be happy to give you the addy?
It ain't over and I agree, stop gloating. These inane comments about "pigs getting slaughtered" just makes these mudslingers look bad. Just like the stock market's bubble bursting, the housing crash is effecting the average Joes who were just trying to find a way to raise their standard of living. Maybe they were speculators but many were duped or lured in from hearing how much money all the smart money made. How can you gloat when you hear stories of the middle class retiree having to go back to work as a mattress salesman? The greedy pigs who got in years ago already have flipped so many properties for huge profits it didn't matter that they sold their last one for a net loss. They hit the bid and are out. The pushed these things on the average Joe at the top and the Joe is left holding the bag. The one's who got fat off RE are still fat and gloating. Anyone who wants to gloat at the little guy's pain has some serious issues and insecurities. Gloat away.
10k's really not bad on a close to a mil home. By and large property taxes are the same high % everywhere. People often make the mistake of assigning present value relative to past valuations. Markets move. They revalue and many times they don't ever revert to the "old mean". Stocks and bonds are a perfect example. I can't tell you how EXPENSIVE SPX seems to an oldtimer (45) like me. Yet I doubt SPX will ever trade 500 again let alone 180. Why? Because on a p/e basis it's not horribly stretched. The same with housing. Rents are outrageous, rates are low and the dollar is weak. Not a good combo for RE to plunge. I've told friends of mine who are renting that I'd be less concerned 7 years out about RE crashing than I would be about some sort of massive inflation surge that causes EVERYTHING to quadruple. I'm not saying it's going to happen but to anyone who thinks cash is a "riskless" asset, I'd say wake up and examine the history of currencies.
I understand what you are saying...but "hogs get slaughtered" means dont be greedy. it isnt gloating, it is a lesson in life. Those who are greedy, often get it in the end. People who speculate in anything that dont pay attention to the risks, or dont do all their homework i.e. "dont see the warning signs" are going to get hit. The warning signs were everywhere...everywhere. it really was obvious, and still is. It isnt gloating off others pain or misfortune...it is not good to watch others suffer, and has nothing to do with security. It is amazement that people get themselves into these situations when history DOES repeat itself. It would be like someone taking out a loan to go long margined into this market with the expectation of holding into next year. If you do a bit of homework, you know the market is long in the tooth and there are warning signs everywhere. better to keep bets small or in cash. right? There is a possibility that you can make more money going long, but it is dangerous...and we will be talking about this nextyear about how todays pigs got greedy, turned to hogs, and got slaughtered. and the cycle of amazment will start all over again.
By the way my housing sentiment "alert" got triggered for a second time yesterday. Some of the home speculators I know with 3 and 4 properties are now talking about money being tight and rumors of potential bankruptcy are swirling among their friends. (In fact I sold my surplus home at a big discount to one of these guys late last spring when there were no real buyers around.) I know one guy in so deep that he has a home listed for 800 which in my mind would be scary to own at 700 in this market. He was offered 740 by a buyer who did not want to wait for a new home to be built (and as I have said the inventory of the good values has been picked off in my small subdivision of new homes walking distance to the schools.) Apparently he could not sell it. You are absolutely screwed when you have to sell your house for above market value --- the appraisers probably won't even allow him to get what he needs.
I know what you are saying and agree pigs do get slaughtered, I just see many of the people getting hurt today aren't sophisticated speculators and aren't necessarily greedy by nature. They lack the understanding of the financials to fully understand what they are getting into as the brokers and mortgage bankers of the world have enabled those who have no business in this business to get in with risky loan products.