Urbnlivn Matt G's New Digs

The_Tim

Any of you catch Matt's recent post at Urbnlivn about moving into his sparkling new condo?

Matt Goyer wrote:

I bought what is surely a great place but I don't think I'm alone here in having a serious case of second thoughts once you're past the point of no return.

Why's that? Tonight I visited my place twice and I should have been excited and ecstatic. I should have been bouncing off the walls. But instead I sat alone marveling at how small it was, how loud the traffic was, how its view wasn't as nice as my current view and surprised that for half a million dollars they only included 3 lights (that's right, the bedroom has NO lights.)

Allow me to step way outside my field of expertise and get a little psychological here. It sounds like Matt is experiencing a bit of cognitive dissonance. The conflict of the thought that "condos are great" and the reality that "this condo is maybe not so great?"

But not to worry.

Matt Goyer wrote:

I remember having these feelings the last two times I bought a place so I know it's temporary and will only last a night. Once I get my stuff in there it will turn around and I'll be super excited (hello multiple house warming parties!)

Confirmation bias will take hold soon, as the weight of spending that much money will subconsciously force the mind to notice only the positive attributes of the situation.

I'm just having a bit of fun at Matt's expense here. I seriously wish him well, and hope that the rental situation he worked out for his previous condo continues to perform acceptably.

perfectfire

I'm moving into a house (from an apartment) this weekend and I'm afraid that the same thing will happen to me.

In fact the very same thing happened when I moved here and started my job. You make an objective decision beforehand, carefully weighing the positives and negatives. But once you face the reality of the decision you made, I think it's natural for the negatives to stick out more than the positives (especially if you're a cynic like me).

fatsteak

Funkiness doesn't translate into good resale value and it was arguably bought at the height of the bubble. Are those sewing machines on the wall? The ceiling looks like a warehouse's. It is similar to how stores charge $200 for a pair of old looking jeans. The worn and unfinished look is golden. The noise? He got that one right. That is a busy intersection. He makes good money so it won't hurt too bad if the condo is worth 20% less in a few years. On the bright side, there is a view of the Ferrari dealership.

kpom

"He makes good money"

Good- he's going to need it.

femto

Wish him luck but it seems like a huge (and not entirely prudent) risk--owning two condos while working for a real-estate company. As real estate tanks the real estate industry will tank too, and Redfin (which earns what little money it does as a broker) may fall victim.

Ubersalad

quit acting like bunch of 10 years old girls and be a man about it.

"A man should act like a man, and a light beer should taste like a beer"

kpom

"...while working for a real-estate company"

Yeah, but unlike most people in the RE industry, he has highly transferable IT skills. He should be fine work-wise, unless the whole economy tanks, in which case we are all in trouble.

uwp

Read some more of his comments about the two condos.

And in response to the question about financing; I have a interest only jumbo ARM that I used stated income to get from Countrywide. And no, that does not keep me up at night. It's not less than 35% but I can afford my current lifestyle when I sell my boat.

http://www.urbnlivn.com/2007/09/17/firs ... ment-15973

So to recap; mid twenties, owns two condos, renting one out for a loss, paying more than 35% of his income on the other with a stated income IO ARM, and he owns a boat that he is currently selling so he "can afford his current lifestyle."
Plus he works for Redfin, which although he is pretty marketable in IT, it doesn't mean you just jump to the next job in 2 days. A month out of work could be the straw on the camel's back with these kind of expenses.

And I thought I was risk tolerant...

His Amazon wish list is pretty great, couple winners added in Dec 2006:
How to Invest in Condominiums: The Low-Risk Option for Long-Term Cash Flow (Gary W. Eldred) and Make Money with Condominiums and Townhouses (Andris Virsnieks)
I guess it's good that he's reading, but maybe if they're on the wishlist still it means he didn't buy them.