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View Full Version : Is It Too Late For Us Now?



dirty old man
06-12-2007, 10:43 AM
It is for me. I didn't sell my boat last year when I had a chance, and now with the news of hi insurance, hi fuel costs, and our pending climate changes as seen by low lake levels, and future and extended droughts, its not going to be easy to sell a boat. I see on one thread, that the number of boats for sale is an all time high. That means buyers, if any will win, and sellers lose

photo chick
06-12-2007, 10:45 AM
Hey you could just move to Texas.....gas, living and insurance is much cheaper and our lakes are overflowing now!!! :D

riverbound
06-12-2007, 10:52 AM
ahhhhhh...the sky is falling :)

WYRD
06-12-2007, 10:55 AM
at least with global warming the lakes will feel heated:D

riverbound
06-12-2007, 10:59 AM
It is for me. I didn't sell my boat last year when I had a chance, and now with the news of hi insurance, hi fuel costs, and our pending climate changes as seen by low lake levels, and future and extended droughts, its not going to be easy to sell a boat. I see on one thread, that the number of boats for sale is an all time high. That means buyers, if any will win, and sellers lose
Here is my view on why there are so many boats for sale right now. During the home equity "boom" people started living grossly beyond their means. money was cheap and there seem to have been a race to outdo the jones's. s peope went out and pulled th emoney out of their house to be the bigger baller.....as time went the ARM they opted for to get the cheap payment on their home is up and now interest rates are not where they though they would be. so now they have a higher than normal house payment that they really couldnt afford in the first place...couple in the cost for them to fill the tanks in the large twin engined boat they bought and the increase in insurance. there is no wonder why they hve to get rid of the "paid off" bat they own.....although all they did was finance it for at least 30 years.
Definitely a good time to be a buyer...especially one who didnt fall for the bigger is better outdo the jones's mentality. I personally am waiting for these same people to start having to sell their homes that they can no longer afford ;)

DMOORE
06-12-2007, 11:04 AM
Well the good news is that the oceans are supposed to rise and it should be getting warmer , right? Sounds like great boating weather ahead. It's all how ya look at it. No doom and gloom here.:)
Darrell.

tamalewagon
06-12-2007, 11:10 AM
Here is my view on why there are so many boats for sale right now. During the home equity "boom" people started living grossly beyond their means. money was cheap and there seem to have been a race to outdo the jones's. s peope went out and pulled th emoney out of their house to be the bigger baller.....as time went the ARM they opted for to get the cheap payment on their home is up and now interest rates are not where they though they would be. so now they have a higher than normal house payment that they really couldnt afford in the first place...couple in the cost for them to fill the tanks in the large twin engined boat they bought and the increase in insurance. there is no wonder why they hve to get rid of the "paid off" bat they own.....although all they did was finance it for at least 30 years.
Definitely a good time to be a buyer...especially one who didnt fall for the bigger is better outdo the jones's mentality. I personally am waiting for these same people to start having to sell their homes that they can no longer afford ;)
We have a "bingo"!

Froggystyle
06-12-2007, 11:16 AM
Here is my view on why there are so many boats for sale right now. During the home equity "boom" people started living grossly beyond their means. money was cheap and there seem to have been a race to outdo the jones's. s peope went out and pulled th emoney out of their house to be the bigger baller.....as time went the ARM they opted for to get the cheap payment on their home is up and now interest rates are not where they though they would be. so now they have a higher than normal house payment that they really couldnt afford in the first place...couple in the cost for them to fill the tanks in the large twin engined boat they bought and the increase in insurance. there is no wonder why they hve to get rid of the "paid off" bat they own.....although all they did was finance it for at least 30 years.
Definitely a good time to be a buyer...especially one who didnt fall for the bigger is better outdo the jones's mentality. I personally am waiting for these same people to start having to sell their homes that they can no longer afford ;)
You are leaving out the biggest single factor, though you alluded to it...
In most previous years, to buy something this expensive, you needed to put about 10-20% down, and finance the rest... or you were wealthy enough to pay cash... one of the two. After two years, you really hadn't dented the principle by much, so on a $100K boat, you probably still owed 75-80K on the thing. As such, the boats all amazingly sold for right around there on the used market. Nobody could just take a loss, so you either kept the boat, or waited until your equity in the boat increased to a point where you could sell it.
Not so in the current market. With 100% down on the boat in the form of re-fi loans, people are able to sell the boat for a LOT less than they ever were able to in the past. Right now, they are looking at a boat that is "paid for" with house equity, and when the wolf hits the door, that $100K boat needs to go to pay for the home loans. In a competitive market, that will further reduce the sale price, and with enough clean, nearly new boats on the market only 2-3 years old... it depresses the price big time across the board. And of course, part and parcel to that is that a 1999 boat better be fire-sale priced to sell, because you could get a 2003 for what a 1999 is actually "worth".
Vicious cycle for builders... with nearly new 2005-2006 boats on the market... why would you buy new?
This kind of market has never happenned before to the best of my knowledge. Never before has the secondary market been quite so strong, or fueled by boat owners with the capacity to drop prices so dramatically.
Good time to be a buyer.

dirty old man
06-12-2007, 11:26 AM
Great points. How is the boat business, sales wise

WYRD
06-12-2007, 11:30 AM
Great points. How is the boat business, sales wise
**Insert cricket sounds here**

CARLSON-JET
06-12-2007, 11:36 AM
I wonder how the entry level sales are compared to the higher end deals.. The housing market entry level homes have not really taken the big hit percentage wise that I can tell compared to the upper spectrum.. There is always going to be the bull or bear market IMO.

rodnjen
06-12-2007, 12:10 PM
I disagree, I think entry level housing has taken a hit. I consider my neighborhood "entry level" with homes that are 1300 to 1500 sq. ft., 3 bed and 1 to 2 baths, yes I said 1 bath. They were listing and selling for $650,000 to $670,000 a year ago. Now, nothing seems to be moving unlesst it's in the $575,000 to $625,000 range. Furhter, the time on the market in my neigborhood has increased to approximately 120 days.
If interest rates continue to move up, or even stay where they are, you will see housing prices drop. This will definitely effect the price of toys in the primary and secondary markets.

Devil's Advocate
06-12-2007, 12:14 PM
Here is my view on why there are so many boats for sale right now. During the home equity "boom" people started living grossly beyond their means. money was cheap and there seem to have been a race to outdo the jones's. s peope went out and pulled th emoney out of their house to be the bigger baller.....as time went the ARM they opted for to get the cheap payment on their home is up and now interest rates are not where they though they would be. so now they have a higher than normal house payment that they really couldnt afford in the first place...couple in the cost for them to fill the tanks in the large twin engined boat they bought and the increase in insurance. there is no wonder why they hve to get rid of the "paid off" bat they own.....although all they did was finance it for at least 30 years.
Definitely a good time to be a buyer...especially one who didnt fall for the bigger is better outdo the jones's mentality. I personally am waiting for these same people to start having to sell their homes that they can no longer afford ;)
Yup, we didn't fall for it. The Jones' are kicking our ass.:D

Froggystyle
06-12-2007, 12:15 PM
**Insert cricket sounds here**
In a perfect world, I couldn't have said it better myself....

CARLSON-JET
06-12-2007, 12:17 PM
Are there alot of first time buyers dropping 670K on a house these days? That doesn't appear to be the norm in the full spectrum of housing.

Devil's Advocate
06-12-2007, 12:18 PM
Are there alot of first time buyers dropping 670K on a house these days? That doesn't apear to be the norm in the full spectrum of housing.
That seemed a little high to me too.:eek:

dunaholic
06-12-2007, 12:21 PM
This is why I never buy a new boat. I always buy used and finance it. Keep the liquid cash in the bank and earn a return on my investments instead of paying cash on a product that depreciates.

WYRD
06-12-2007, 12:25 PM
Are there alot of first time buyers dropping 670K on a house these days? That doesn't appear to be the norm in the full spectrum of housing.
But then again I cant imagine paying 25-30K on a new home as my grandparents did:eek: :)

OCMerrill
06-12-2007, 12:34 PM
Are there alot of first time buyers dropping 670K on a house these days? That doesn't appear to be the norm in the full spectrum of housing.
My sister and her husband .... bought a house in Corona 1 year ago just as you described.
80% 1st and (get this) a 30% second. The extra 10% to cover costs. :eek:
Now their house has slid back a bit and I start to hear them complain. Give me a break.
If they could have got an 80/40 they would have and spent the money up right quick.:idea: This is the problem.

rodnjen
06-12-2007, 12:38 PM
Two of the last three sales were to first-timers. The problem is that in one of the homes it appears to be at least two maybe three families. We are seeing a lot more of that in O.C. My point is that prices are high, equity has been extracted so that will have to put downward pressure on homes and luxury itmes. That being said, there is still lots of cash out there so when things are priced right, they will move.

Evin Rude
06-12-2007, 12:51 PM
I consider my neighborhood "entry level" with homes that are 1300 to 1500 sq. ft., 3 bed and 1 to 2 baths, yes I said 1 bath. They were listing and selling for $650,000 to $670,000 a year ago. Now, nothing seems to be moving unlesst it's in the $575,000 to $625,000 range.
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton

CARLSON-JET
06-12-2007, 12:51 PM
rodnjen, It was an honest question. I think your points are well stated. I really don't look at houses in Metro L.A. ... Much. Scary stuff..

WYRD
06-12-2007, 12:53 PM
Two of the last three sales were to first-timers. The problem is that in one of the homes it appears to be at least two maybe three families. We are seeing a lot more of that in O.C. My point is that prices are high, equity has been extracted so that will have to put downward pressure on homes and luxury itmes. That being said, there is still lots of cash out there so when things are priced right, they will move.
seeing that as a trend more often, multiple familes moving in together.........like living in a third world country:rolleyes:

Froggystyle
06-12-2007, 12:54 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
All I can say is that in my neighborhood, that house would be over $1.25 million. But, it would be in an upscale suburb of San Diego, and unfortunately for the house, it is in Texas instead...
I think you would agree that the house would rather be in San Diego... ;)

MR.rvrluvr
06-12-2007, 12:55 PM
But then again I cant imagine paying 25-30K on a new home as my grandparents did:eek: :)
hey it was a pleasure meeting you at KL, gonna have to get together sometime up here in the HD...:D

havaduner
06-12-2007, 12:56 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
Nice house. You could fit four of my houses in that one, and that is the price houses are listing and selling for in my neighborhood.

Havasu_Dreamin
06-12-2007, 12:58 PM
Great points. How is the boat business, sales wise
Suffice it to say that I'm sure some builders are struggling to sell anything and others are booked out until the end of the year or longer.....

rodnjen
06-12-2007, 12:59 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
That place is unreal. I don't see us leaving So. Cal anytime soon, but that would be tempting. My wife can actually make just as much money if not more in other states than she can in California, but she will never leave.
It cost so much $ as a percentage of income to live here. Is it worth it?

WYRD
06-12-2007, 12:59 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
Now thats what I am talking about NICE:)
This is what you get in CA for 1/2 million (http://orange.yahoo.idx.prucalonline.com/details.aspx?firstrecord=1&VIP=Yahoo!+IDX&cc=realestate&fclose=n&newhome=n&za=and&searchgeo=Orange%2c+CA&searchtype=2&propertytype=1%2c2&sort=5&sortacdc=desc&searchminprice=450000&searchmaxprice=500000):eek:

Havasu_Dreamin
06-12-2007, 01:01 PM
It cost so much $ as a percentage of income to live here. Is it worth it?
The longer I stay here the longer I say no, it isn't.....

WYRD
06-12-2007, 01:02 PM
hey it was a pleasure meeting you at KL, gonna have to get together sometime up here in the HD...:D
For sure there are alot of us up there maybe we should plan a bbq or pizza/beer night:D

CARLSON-JET
06-12-2007, 01:05 PM
Now thats what I am talking about NICE:)
This is what you get in CA for 1/2 million (http://orange.yahoo.idx.prucalonline.com/details.aspx?firstrecord=1&VIP=Yahoo!+IDX&cc=realestate&fclose=n&newhome=n&za=and&searchgeo=Orange%2c+CA&searchtype=2&propertytype=1%2c2&sort=5&sortacdc=desc&searchminprice=450000&searchmaxprice=500000):eek:
Lot Size: 0.1 SWEEEETTTT... :D

Devil's Advocate
06-12-2007, 01:11 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
Unreal. Makes me want to move the hell out of here.

EmpirE231
06-12-2007, 01:12 PM
Unreal. Look, I know location, location and we cant all live in one state, but when I read the Cali home prices I have to laugh.
A $490K home near where I live, been on the market for over a year....
http://search.har.com/engine/dispSearch.cfm?mlnum=454242&class=1&leadid=6&sTYPE=0&backButton
dang that's a nice house.... just 100k more than what I got my 1900 square foot house in riverside :eek:

superdave013
06-12-2007, 01:13 PM
Are there alot of first time buyers dropping 670K on a house these days? That doesn't appear to be the norm in the full spectrum of housing.
I don't know how they do it either. I bought my place 7 years ago for 164K. Double lot with an extra garage. The house across the street just sold in the high 500k range. The guy drives an appliance repair van. How the heck he's swinging that nut is beyond me.

EmpirE231
06-12-2007, 01:19 PM
I don't know how they do it either. I bought my place 7 years ago for 164K. Double lot with an extra garage. The house across the street just sold in the high 500k range. The guy drives an appliance repair van. How the heck he's swinging that nut is beyond me.
refinance that mofo and go get a new DCB!!! what are you waiting for???:confused:
haha j/k :)

eliminatedsprinter
06-12-2007, 02:52 PM
Well the good news is that the oceans are supposed to rise and it should be getting warmer , right? Sounds like great boating weather ahead. It's all how ya look at it. No doom and gloom here.:)
Darrell.
The Mississippi basin was once a great inland sea. :) Wooo Hoooo