For Your Money, What House Should You Target in Silicon Valley?

When our friend SSS from Save. Spend. Splurge. asked us if we were interested in shining a spotlight on value-for-your-housing-buck in the Bay Area of California, we jumped at the opportunity.  Her prompt: What can you buy for $250,000, $500,000, $750,000, and $1,000,000 in your neck of the woods? We decided that our search space would be all of … [Read more...]

How Canada’s Real Estate Market is Like Beanie Babies

Remember Beanie Babies?  Those adorable little stuffed (with beans!) animals which set off a crazy toy bubble of epic proportions, right before the ensuing Tickle Me Elmo bubble really took off.  Yep, the 1990s were bullish for toys every bit as much as they were bullish for technology. Around a year ago we warned you folks, as a dispassionate … [Read more...]

Don’t Look Now, But Mortgages are Still Extremely Cheap

Dateline, DQYDJ's original research department: We decided to reprise one of our earlier data examination ideas with an even closer dive into inflation expectations than Monday's diversion.  We'll go a bit further - since the most popular mortgage types are 30 year fixed mortgages, the actual expected cost of a mortgage isn't the sticker price, but … [Read more...]

Inflation Adjusted Home Value Return Calculator

In this article, we present a Home Investment Calculator.  We estimate median values and actual returns for any of 356 American Metropolitan Statistical Areas in an attempt to tell all of our American readers exactly how well their homes have performed as an investment. Real Estate Return Calculator For those of you reading this on feed … [Read more...]

Keeping Up with the Joneses: Risk Tolerance

Much has been made on the blogosphere and even on our own website about keeping up with the Joneses, the desire to maintain expenses similar to your neighbors. They bought a new Infiniti, why shouldn't I? A similar, yet different, concept is the idea of lifestyle creep, the slow build-up of "necessary" expenses as your income increases. I myself … [Read more...]

How Many Mortgages Do You Purchase in a Lifetime?

In a recent post, I lamented the inefficiencies I saw in the mortgage process. Red tape, confusing questions, obscured data and dragging one's feet is all-too-common in the loan origination business. My main question I sought to answer today is 'Why?' With a purchase so large and significant, I would hope that the market provided a better answer, … [Read more...]

Part 4 of Tales of a Mortgage: Thank You for Selling!

Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing a few months ago on June 13th. I started looking in November just to see what was out there … [Read more...]

Part 2 of Tales of a Mortgage: Realtors Bite!

Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing a few months ago on June 13th. I started looking in November just to see what was out there … [Read more...]

Part 1 of Tales of a Mortgage: How I Learned to Stop Worrying and Love the ARM

Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing on June 13th). I started looking in November just to see what was out there but didn't … [Read more...]

Calculating the Salary Requirement Fallout from Mortgage Rate Increases

I wanted to follow up on our Monday piece with a bit more math (I'll do it for you - I know you don't want to bust out the TI-83 in a vacation week). Today's piece hinges on 'mortgage qualification', because of a few comments on Monday's piece.  In a nutshell, mortgage qualification comes down to two ratios: "Front End Debt To Income" - The … [Read more...]