Have you adjusted you lifestyle yet?
- Thread starter JBZ4
- Start date
Things like this are bringing the financial crisis in America closer to the edge (see link below). The feds had been warning (financial insitutions through news letters and alerts) that the subprime crisis was going to come to a head about two years before the bubble broke. The past eight months they (the feds) have been warning banks (again through news letters and alerts) that they need to be worried about the values of the loans they are holding in relationship to the cash deposits on hand. The house values are being driven down and the banks now need additional cash to cover the loans where the house is worth less than the mortgage the banks are holding. We will get out of this but credit is market is going to get tight for a while. I mean its not time to panic, but like a hurricane it is good to prepare. Hold on to cash, get rid of debt, and try to formulate a long term or short term plan for your retirement. My two cents. 
http://wire.jacksonville.com/pstories/20080712/303037564.shtml
http://wire.jacksonville.com/pstories/20080712/303037564.shtml
Shipkiller
Veteran
Yep, I saw the news about IndyMac yesterday on CNBC...
Most of the experts think the FDIC will make good ALL money, not just the first $100,000.
Most of the experts think the FDIC will make good ALL money, not just the first $100,000.
JBZ4 said:
Three months later and we are at the edge staring into the abyss. Anyone else starting to get a little concerned? This was on the horizon when I started this post. Oh the times are a changing.
http://articles.moneycentral.msn.com/Investing/SuperModels/poof-there-goes-an-american-dream.aspx
JBZ4 said:
Why is everybody freaking out with these storms? There was a total of four weak hurricanes that landed in Florida in the last two years, which is highly unusual. The norm would be in excess of ten per year. You're right in the middle of hurricane season, you should expect this.
I am not sure that these downturns in the economy are not a good thing. Maybe it is a correction we need. Kind of like a baseball bat to the head to wake us all up. 
Your grandparents and great-grandparents lived through the depression. Look at how it effected their lives. I know my parents when they wanted something like a car, would save and after they knew they could afford it, would pay cash. They saved for everything and did what they could to live within their means because they knew what could happen and never wanted to be in that place again.
Contrast that with my kids. New houses, cars, furniture, big screen TV, etc in the first year of marriage. They want it all and they want it now. They were used to having everything they ever wanted, I saw to that. They were spoiled rotten as most kids are. Now they are learning the lesson of their grandparents and it is a bitter pill.
When I got married I lived in a run down apartment for years. Drove old beat up vehicles, and worked extra hours to get enough money for a down payment on our first home. A far cry from today where folks who don’t put anything down, and have no real income to support the payments. Now I am afraid we are all going to pay for that excess.
Your grandparents and great-grandparents lived through the depression. Look at how it effected their lives. I know my parents when they wanted something like a car, would save and after they knew they could afford it, would pay cash. They saved for everything and did what they could to live within their means because they knew what could happen and never wanted to be in that place again.
Contrast that with my kids. New houses, cars, furniture, big screen TV, etc in the first year of marriage. They want it all and they want it now. They were used to having everything they ever wanted, I saw to that. They were spoiled rotten as most kids are. Now they are learning the lesson of their grandparents and it is a bitter pill.
When I got married I lived in a run down apartment for years. Drove old beat up vehicles, and worked extra hours to get enough money for a down payment on our first home. A far cry from today where folks who don’t put anything down, and have no real income to support the payments. Now I am afraid we are all going to pay for that excess.
Shipkiller
Veteran
WaZZZZman said:I am not sure that these downturns in the economy are not a good thing. Maybe it is a correction we need. Kind of like a baseball bat to the head to wake us all up.
Your grandparents and great-grandparents lived through the depression. Look at how it effected their lives. I know my parents when they wanted something like a car, would save and after they knew they could afford it, would pay cash. They saved for everything and did what they could to live within their means because they knew what could happen and never wanted to be in that place again.
Contrast that with my kids. New houses, cars, furniture, big screen TV, etc in the first year of marriage. They want it all and they want it now. They were used to having everything they ever wanted, I saw to that. They were spoiled rotten as most kids are. Now they are learning the lesson of their grandparents and it is a bitter pill.
When I got married I lived in a run down apartment for years. Drove old beat up vehicles, and worked extra hours to get enough money for a down payment on our first home. A far cry from today where folks who don’t put anything down, and have no real income to support the payments. Now I am afraid we are all going to pay for that excess.
I'm finally feeling it now. I'm not one to go into details about personal financial matters, but I thought I'd mention that the economy has affected me. The housing market specifically, here in NJ. Although it's stable, due to the high cost of realtors and lack of appreciation, I've chosen not to sell. Hopefully I'll come out on top in a few years. I'm kind of nervous of the costs of being a landlord.
AJ, if you have a really close friend nearby in NJ let him babysit (drive by's and perform little maintenace issues). I look over two close friends houses here on Amelia and and I am a owner occupied duplex owner. The big thing is references and credit report. I help my friends as much as I can and it is peace of mind to have me so close. Good luck, at least you are going to a market where the renter and buyer is king. PS. Try to get a really good lease contract, not some generic one.
flyboyaj, don't worry too much, you're doing the right thing, why sell cheap if you don't have to sell. I'm moving up North for 18 months or so to work on a project but I'm renting my house out too, I'd prefer to sell it but no way I'm going to give it away or sell it short
Even if I run into problems renting, hopefully it'll be better than losing thousands by selling now. A relative pretty much needs to sell now unfortunately, and it'll be going for 80% of its value 6 months ago.
Even if I run into problems renting, hopefully it'll be better than losing thousands by selling now. A relative pretty much needs to sell now unfortunately, and it'll be going for 80% of its value 6 months ago.
Thank you very much for the info. I've hired a local property manager that is recommended and trained by my bank that I trust - if he acts up, they've got my back. His team is going to take good care of it and we've entered into a contract that I am very happy with. We'll see how it plays out. The laws here in Jersey require a standard lease agreement and most of the law is in the tenant's favor, but I'm willing to risk it right now in lieu of shelling out some $$$ at closing in addition to loosing all equity to sell.
The housing in Vegas is phenominally in the buyer's favor right now so I'm going to make out really nicely out there. Something like 75% of the homes for sale are bank owned foreclosures and they are just giving them away!!! I'm looking for a property there that will be a great rental when I leave, so then I'll have two. My goal is to have three when I retire and that should augment my retirement quite nicely so I can either pursue my dream of sailing off into the sunset, or go to seminary and serve a rural community that could benefit from having a pastor that doesn't need much of a salary.
The housing in Vegas is phenominally in the buyer's favor right now so I'm going to make out really nicely out there. Something like 75% of the homes for sale are bank owned foreclosures and they are just giving them away!!! I'm looking for a property there that will be a great rental when I leave, so then I'll have two. My goal is to have three when I retire and that should augment my retirement quite nicely so I can either pursue my dream of sailing off into the sunset, or go to seminary and serve a rural community that could benefit from having a pastor that doesn't need much of a salary.
Yeah green valley is a real nice area, kinda far for AJ's commute though. But then I think his commute will be far anyways he play's it.
Yeah it's a crazy buyers market right now. I found out that one of the units in my condo that was foreclosed was getting auctioned off....starting price $70k. That's pretty much half of what my place is. There are a ton of forecloser signs and adds for sale here in Vegas, you'd have no problem if you want to buy.
I'm real worried if the AF makes me move away from here of getting royally screwed, I'm probably going to try to rent, but I'll still have to pay a bit out of pocket. It all depends on where I get sent from here if I leave.
Yeah it's a crazy buyers market right now. I found out that one of the units in my condo that was foreclosed was getting auctioned off....starting price $70k. That's pretty much half of what my place is. There are a ton of forecloser signs and adds for sale here in Vegas, you'd have no problem if you want to buy.
I'm real worried if the AF makes me move away from here of getting royally screwed, I'm probably going to try to rent, but I'll still have to pay a bit out of pocket. It all depends on where I get sent from here if I leave.
Can't make my mind up about the UK and this credit crunch :scratchhead:
This weekend is the first after payday, so you expect it to be a bit different, but last night I went to a nice little pub that I frequent with a mate and it was so busy that we gave up and ended up going somewhere else, but generally the place was pretty busy. Then today I went to the shopping centre / mall and about lunchtime I couldn't get a parking space in the whole place, unbelievable, and places where cars are usually double parked and abandoned were triple parked and everywhere was a nightmare. It's the busiest I've seen it apart from December when it's like this. Very strange.
What are people doing, are they drowning their sorrows and then using retail therapy to brighten up the credit crunch :idunno:
On another note, I'm ashamed to admit that, willed on by my "credit crunch conscience", I bought two jumpers from George
This weekend is the first after payday, so you expect it to be a bit different, but last night I went to a nice little pub that I frequent with a mate and it was so busy that we gave up and ended up going somewhere else, but generally the place was pretty busy. Then today I went to the shopping centre / mall and about lunchtime I couldn't get a parking space in the whole place, unbelievable, and places where cars are usually double parked and abandoned were triple parked and everywhere was a nightmare. It's the busiest I've seen it apart from December when it's like this. Very strange.
What are people doing, are they drowning their sorrows and then using retail therapy to brighten up the credit crunch :idunno:
On another note, I'm ashamed to admit that, willed on by my "credit crunch conscience", I bought two jumpers from George