Comments on: How I Find Value Where Others Do Not

By: Giving a Gift Someone Actually Likes/Wants Doubles the Value | Steadfast Finances

Sat, 05 Dec 2009 21:36:33 +0000

[...] remember that how a person like myself finds value can be just as varied as how you might assign [...]

By: Post Black Friday Spending Analysis: Foot Traffic Up, Consumerism Down | Steadfast Finances

Wed, 02 Dec 2009 16:22:24 +0000

[...] as much cash, you have to get as much bang for your buck as possible. Could shoppers be trying to get maximum value for their [...]

By: Matt SF

Matt SF — Tue, 03 Nov 2009 19:05:19 +0000

Glad you liked it Andrew. I worked on this one for a while since it’s my “self-justification” why I make some big purchases, but tend to be so frugal on others.

By: andrewbpaterson

andrewbpaterson — Tue, 03 Nov 2009 18:48:09 +0000

Great links, MattSF.
I think I clicked and looked at all of them!

By: Matt SF

Matt SF — Tue, 03 Nov 2009 16:04:11 +0000

Thanks Matt. I knew most people would like #4 considering “cost/hours worked” is one of the most underutilized metrics of the purchasing process.

Considering how easy it is to swipe a credit/debit card these days, I would hope that the idea can catch on the more we mention it.

By: Matt SF

Matt SF — Tue, 03 Nov 2009 15:50:35 +0000

I live in a place where the housing bubble was a relative non-event, so we don’t have anywhere near those problems (or opportunities). The New York Times published an excellent graphic earlier this year illustrating the severity of the bubble in some cities and the others that didn’t. Mainly those cities that aren’t known for their cultural achievements or media popularity.

However, I’ve seen Miami condos (www.condovultures.com) going for as much as 75% off their peak price. You can also find a video of new properties selling at 50% in the video link I included in the vulture investors heading above.

I’m questioning if real estate can ever be treated as an appreciating asset within the next 10 years. Seeing that credit is harder to get, and so many people got burned, if the demand will ever be sufficient to generate significant annual returns. Seems to me like it would be a cash flow business like it used to be.

By: Matt Jabs

Matt Jabs — Tue, 03 Nov 2009 15:02:18 +0000

Great topic Matt! If we do not employ some type of spending filters/value calculations we WILL fall prey to our own unending wants. It is intellectual indeed to process purchases in this way.

For me, the biggest filter I employ is “Do I need it?”

And my favorite that you mentioned is “#4 – The Hours Worked to Buy XYZ item”

Most of us fail miserably to consider how many hours we will have to (or had to) work to finance the purchase we are about to make.

Good stuff!

By: Financial Samurai

Financial Samurai — Tue, 03 Nov 2009 13:12:41 +0000

Hey Matt, good article.

I’ve been searching high and low to buy a vacation property in Incline Village, Nevada (Tahoe) but to little success. Prices are only down about 15% there which is frustrating.

Found a 3/2 for $700,000 on 0.4 acres of land. Sweat location, but it’s a tear down and I’d have to plop another 500K into it. Rental yield without fixing it up is still a pitiful 4%.

San Francisco isn’t that much better for prices. Actually, it’s worse.

The problem with buying places -50% from the peak is that they are places NOBODY wants to live in, in the first place.

Do you own property Matt? If so, do you mind sharing what your Zillow, or online valuation price direction looks like?

I did a recent post highlighting that all 5 properties I track have seen a 15-20% rebound since this summer Curious to know if it’s more widespread than California and Hawaii.