Comments on: Boston RE Broker & The Extortion Case http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/ Boston real estate, Boston condos, Boston luxury condos, Boston luxury real estate, Back Bay condos, Back Bay real estate, Back Bay luxury condos, Boston Back Bay condos Mon, 06 Feb 2012 05:38:19 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Mike http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/comment-page-1/#comment-13744 Mike Thu, 11 Feb 2010 14:50:51 +0000 http://www.bostonreb.com/?p=27358#comment-13744 "the smartest thing an investor could have done was to sell everything and sink it into a South End condo." Bradley, if you're an ordinary homeowner and not a professional developer, real estate IS NOT AN INVESTMENT. It's a place to live. That idea that your home is an "investment" is a myth and is what got us into the current predicament. Buyers, do yourself a favor - when you're looking at the rent versus buy decision, use the long term average home appreciation as your expectation - about 6%, or 3-4% after inflation. If the only way to make the sale price work is to assume 10% or greater price appreciation, you're looking for trouble. Those days are gone for at least a couple years. It's worth noting that, even though the S&P went down a whopping 37% in 2008, it also went up 27% in 2009, for a net of about negative 20%. As bad as that sounds, it pales in comparison to someone who bought a condo with 10% down in 2006 or 2007 and lost over 100%. If you look at the period after the major declines of Oct/Nov 2008, stock investments have had huge returns. Smartest thing you could do with your money was to buy a SE condo? Doesn't look that way to me. But maybe I'm using my calculator wrong. Mike “the smartest thing an investor could have done was to sell everything and sink it into a South End condo.”

Bradley, if you’re an ordinary homeowner and not a professional developer, real estate IS NOT AN INVESTMENT. It’s a place to live. That idea that your home is an “investment” is a myth and is what got us into the current predicament.

Buyers, do yourself a favor – when you’re looking at the rent versus buy decision, use the long term average home appreciation as your expectation – about 6%, or 3-4% after inflation. If the only way to make the sale price work is to assume 10% or greater price appreciation, you’re looking for trouble. Those days are gone for at least a couple years.

It’s worth noting that, even though the S&P went down a whopping 37% in 2008, it also went up 27% in 2009, for a net of about negative 20%. As bad as that sounds, it pales in comparison to someone who bought a condo with 10% down in 2006 or 2007 and lost over 100%. If you look at the period after the major declines of Oct/Nov 2008, stock investments have had huge returns.

Smartest thing you could do with your money was to buy a SE condo? Doesn’t look that way to me. But maybe I’m using my calculator wrong.

Mike

]]> By: Mary http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/comment-page-1/#comment-13703 Mary Wed, 10 Feb 2010 22:04:52 +0000 http://www.bostonreb.com/?p=27358#comment-13703 Really Braddy, is that the best you can do? 168 Marlborough was purchased in 2002 (before the worst of the bubble) for 1,995k, The owner is looking at big loss , just to keep up with inflation it would have to sell for close to 2.4 million . Imagine the losses for folks in the Back Bay who bought DURING the bubble...oh my Really Braddy, is that the best you can do? 168 Marlborough was purchased in 2002 (before the worst of the bubble) for 1,995k, The owner is looking at big loss , just to keep up with inflation it would have to sell for close to 2.4 million . Imagine the losses for folks in the Back Bay who bought DURING the bubble…oh my

]]> By: JohnF http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/comment-page-1/#comment-13701 JohnF Wed, 10 Feb 2010 21:26:03 +0000 http://www.bostonreb.com/?p=27358#comment-13701 Ouch! Kevin, I guess this saying is also true: "Boston real estate is a cut-throat business" Sorry, no pun intended. Ouch! Kevin, I guess this saying is also true: “Boston real estate is a cut-throat business” Sorry, no pun intended.

]]> By: John Ford http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/comment-page-1/#comment-13693 John Ford Wed, 10 Feb 2010 18:51:26 +0000 http://www.bostonreb.com/?p=27358#comment-13693 Thank you Bradley! Thank you Bradley!

]]> By: Bradley http://www.bostonreb.com/2010/02/local-boston-re-broker-developer-extorsion-case/comment-page-1/#comment-13692 Bradley Wed, 10 Feb 2010 18:47:28 +0000 http://www.bostonreb.com/?p=27358#comment-13692 Unfortunately Mike I'm just a poor slob who stretched himself as far as he could to stake my claim here a while ago. I'm in no position to extend myself any further! But fo-shizzle, if I ever do buy anything else, John Ford's the one who I'll have help me! :-) Unfortunately Mike I’m just a poor slob who stretched himself as far as he could to stake my claim here a while ago. I’m in no position to extend myself any further!

But fo-shizzle, if I ever do buy anything else, John Ford’s the one who I’ll have help me! :-)

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