So, DD #2 bought a house in this crazy high market...

[Dancing Fire]

I am happy for her but this housing bubble can burst at any moment now. She paid 4.5 X of what we paid for the same size house 31 yrs ago.... DD #1 was very fortunate to purchased her home 5 yrs ago when the market was near bottom.

 

[jordyonbass]

I am happy for her but this housing bubble can burst at any moment now. She paid 4.5 X of what we paid for the same size house 31 yrs ago.... DD #1 was very fortunate to purchased her home 5 yrs ago when the market was near bottom.

That's not too bad, my father bought his house around the same time (31 years ago) and he sold it end of last year for over 12x what he paid for it and he was disappointed because he had to fire sale the house and could have gotten more. Don't count on it bursting if your house prices are only 4-5x what they were 30 years ago...

 

[Dancing Fire]

That's not too bad, my father bought his house around the same time (31 years ago) and he sold it end of last year for over 12x what he paid for it and he was disappointed because he had to fire sale the house and could have gotten more. Don't count on it bursting if your house prices are only 4-5x what they were 30 years ago...

We live in the Sacto area not So. Ca or the Bay Area. The housing prices here have now hit the level of 2005 right before the bubble bursted.

 

[LLJsmom]

Congratulations to her DF!!! Don't worry about the bubble. Even if it bursts, it comes back. As long as she isn't planning on selling in the short run to grab a quick profit, which she probably could anyway, over 15-20 years the value will be higher. And over 31 years, you sure do hope it goes up 4x. In 1987, you could have bought a 3 bed 2 bath house in SF for under $300k. Now, you're easily looking at $1mm in the cheaper neighborhoods. She did so well by being able to buy that house.

 

[MissGotRocks]

I agree with LLJsmom - it is wonderful that she was able to purchase and over the long haul she should make money. Isn't it wonderful that they are both through school and are homeowners? Congratulations!!

 

[Hayley87]

Congrats!

Sac's market is crazy right now, but home values are projected to just keep increasing for a while because of an influx of Bay Area folks, Old Sac renovation, the Golden1 center, etc. If she plans to stay in the home a long while, she's fine. And in the short term, it'll be fun to watch her equity grow quickly!

 

[VRBeauty]

Is this the same daughter you were so concerned about after she bought facebook stock when it was first introduced?

I think the prices we're seeing in Sacramento right now - at least in the low and median price ranges - have more to do with lack of supply than with a "bubble." That lack of supply seems to exist in both the rental market and the lower end of the housing market, which provides an alternative for many renters. I also don't see new homes being built at a rate that would endanger this part of the market. I do wonder at some of the luxury home prices, as it's not clear to me that Sacramento has the jobs to support that end of the market... but then again, that might be just because I don't run with that crowd!

 

[Dancing Fire]

Congratulations to her DF!!! Don't worry about the bubble. Even if it bursts, it comes back. As long as she isn't planning on selling in the short run to grab a quick profit, which she probably could anyway, over 15-20 years the value will be higher. And over 31 years, you sure do hope it goes up 4x. In 1987, you could have bought a 3 bed 2 bath house in SF for under $300k. Now, you're easily looking at $1mm in the cheaper neighborhoods. She did so well by being able to buy that house.

Yeah, but I still don't wanna be a buyer during a seller's market. Oh well that's the way the ball bounces.

 

[LLJsmom]

Yeah, but I still don't wanna be a buyer during a seller's market. Oh well that's the way the ball bounces.

Lots of things we don't want. However, it is still better than the alternative, which is not buying a property. That's the reality of the situation. Your daughter was born when she was, which resulted in her buying a house in the current time period. Nothing you can do about any of this. Be grateful she is smart enough to even want to invest in property, and has enough money to do so. This is only a good move. Be positive for her and support her and tell her how proud you are of her. Just say the words and do it, if you haven't already.

 

[Dancing Fire]

Is this the same daughter you were so concerned about after she bought facebook stock when it was first introduced?

No, that was DD#1. She told me to buy FB stocks for her the day it went public. She had about $12,500 in her Roth IRA so I bought $12,500 worth of FB stock for her at $38 per share. A few month after the IPO the stock hit a low of $18 per share then when it came back up to $35 per share I sold all her shares, and now it is trading at $164 per share. To this day I feel so sad for selling her stock at $38...

 

[Dancing Fire]

I agree with LLJsmom - it is wonderful that she was able to purchase and over the long haul she should make money. Isn't it wonderful that they are both through school and are homeowners? Congratulations!!

Thanks MGR...
DD# 2 started working full time just 7 months ago, so I'll give you one guess who help her with the d/p?...

 

[Dancing Fire]

Lots of things we don't want. However, it is still better than the alternative, which is not buying a property. That's the reality of the situation. Your daughter was born when she was, which resulted in her buying a house in the current time period. Nothing you can do about any of this. Be grateful she is smart enough to even want to invest in property, and has enough money to do so. This is only a good move. Be positive for her and support her and tell her how proud you are of her. Just say the words and do it, if you haven't already.

I wish! ...read my post above.

 

[LLJsmom]

I wish! ...read my post above.

These days that is perfectly common. I live in SF. When my friends work with a realtor, the realtor automatically asks them how much are your parents going to contribute to the down payment. My very unfortunate friends say "none" and that means they aren't even qualified to get into the house buying game. Your daughter is Brave enough and confident enough to assume she will be gainfully employed for the long term to take on a large loan and afford the monthly payments. You should be grateful that you have the means to help her. You should be grateful that she is willing to plan for her own future and take this big step, and that she is not to proud to accept help. Be grateful. Tell her that she is making a very smart and savvy move. The reality is that most college grads are in so much debt that they can't even afford to save for a house. Or that may mean she will leave CA for a cheaper state. Maybe you would be ok with that. Wish her good luck and bon voyage. But if you can help her to down the house while she makes the payments, isn't that a small price to pay to have your family close to you? She may raise her children in that home, and you get to be near your grandchildren. I'll say it again. Congratulations to you and your daughter. I challenge you to see the big picture and find the joy and be grateful about this situation. I would be thrilled if my children settled near me. I would feel privileged to help them. That is the price of living in relatively popular locations in CA.

 

[Calliecake]

Please listen to every word of LLJ'smom's post above Dancing Fire. Count your blessings that you have a wonderful daughter who lives nearby.

 

[Dancing Fire]

Please listen to every word of LLJ'smom's post above Dancing Fire. Count your blessings that you have a wonderful daughter who lives nearby.

Yes I agree with LLJ we wanted her to live close by us.

 

[monarch64]

I hope your daughters find new financial managers.

 

[VRBeauty]

No, that was DD#1. She told me to buy FB stocks for her the day it went public. She had about $12,500 in her Roth IRA so I bought $12,500 worth of FB stock for her at $38 per share. A few month after the IPO the stock hit a low of $18 per share then when it came back up to $35 per share I sold all her shares, and now it is trading at $164 per share. To this day I feel so sad for selling her stock at $38...

The point I was trying to make, albeit subtly, was that no one has a corner on the crystal ball market...

 

[madelise]

Wow, congratulations!

 

[madelise]

Thanks MGR...
DD# 2 started working full time just 7 months ago, so I'll give you one guess who help her with the d/p?...

ADOPT ME! I want help with a downpayment! LOL

 

[madelise]

LLJsmom + CallieCake -- YES, YES, YES.

Millennials are at a huge disadvantage for "grown up goals". You used to be able to save money from working low brow jobs to buy a home. Now you work 2 jobs in a high paying, high stress position and it is still a struggle.

She is lucky to have you, DF. But please remember, you are lucky to have her too. I know many friends with children who are complete fvck ups.

 

[Queenie60]

Congratulations to your daughter. Regarding the stocks - the stock market is a long term wait-it-out!