“The stock market has plummeted recently, similar to past real estate crashes in 2008 and 1990, which were triggered by financial market downturns. Real estate markets across Los Angeles are down compared to last year, and the Irvine market will eventually follow. When the stock market began crashing a few weeks ago, Apple (AAPL) shares remained strong and didn’t drop much. However, they have now fallen nearly 15% as of this week. Likewise, the Irvine real estate market, much like Apple shares, is expected to decline by 10-15%.”
Will Irvine Real Estate follow recent stock market trend?
- Thread starter DW92678
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Rough numbers here ....
In 2008 had you used 100k to buy a $500k home, you'd have about 1.5m of equity in your property, excluding rental income etc.
If you took that same 100k you had laying around in 2008 and bought AAPL, adjusted for splits, and if calculations are correct, you'd have about $200m of stock value, excluding dividend income.
20/20 hindsight is just another name for would'a, could'a, should'a and not a meaningful measure of "the right choice" being made, balanced against ones individual risk tolerance.
morekaos
Well-known member
10-15% pullbacks in the stock market are not only common…they are normal…that’s the market, it needs to breath and it’s why you make significantly more on your money (over time) than all the other dopes. It’s a big boy game.
A realtor told me the same thing end of 2008. Glad I didn’t listen to her…… LOL.10-15% pullbacks in the stock market are not only common…they are normal…that’s the market, it needs to breath and it’s why you make significantly more on your money (over time) than all the other dopes. It’s a big boy game.
miniDragonPaw
New member
The housing market is strange in Irvine.
I seen a few 3M properties bought and turned into rental for 7-8k/month. I assume the 3M was bought in full cash as you won't be any serious profit. Or maybe 40k return/year after the property tax, hao, mello roos, etc.
I assume the house is bought for financial safe haven. Return isn't important. Just don't loose money.
I seen a few 3M properties bought and turned into rental for 7-8k/month. I assume the 3M was bought in full cash as you won't be any serious profit. Or maybe 40k return/year after the property tax, hao, mello roos, etc.
I assume the house is bought for financial safe haven. Return isn't important. Just don't loose money.
irvinehomeowner
Well-known member
Well.. had you bought in 2008... or any time up to even 2018... you would be in so much equity right now.
GrowthStateofMind
Member
Everything in Irvine has recovered and then some if held since 2008. Stock market also experiences correction/10% dip on average once per year.
morekaos
Well-known member
Dow Jones bottom at 7900 in that cycle…It’s now what 40,000? I bought real estate right around that area and I’ve doubled my money which is fine but I did far better in the market.
sgip
Well-known member
Rough numbers here ....
In 2008 had you used 100k to buy a $500k home, you'd have about 1.5m of equity in your property, excluding rental income etc.
If you took that same 100k you had laying around in 2008 and bought AAPL, adjusted for splits, and if calculations are correct, you'd have about $200m of stock value, excluding dividend income.
20/20 hindsight is just another name for would'a, could'a, should'a and not a meaningful measure of "the right choice" being made, balanced against ones individual risk tolerance.
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morekaos
Well-known member
Now lever that up 5:1 like the real estate transaction and really
OCLuvr
Active member
Are you sure? Early 2010, which was Irvine bottom ( Martin can confirm), aapl was trading ~$10/ stock. Currently, ~250 ( probably a peak as Buffett started selling ~$185). So, a $100k around that time will give you $2.5M. May be I missing something?
sgip
Well-known member
It's actually much more!
The Google said Dec 2008 closing price was $2.57, (38,000 shares) then you have to factor the stock splits. (7-1 2014 and 4-1 2020 so 1,064,000 shares) x present value. I may have misfigured somewhere, so I bow low to crowd checkers to confirm what's what.
The Google said Dec 2008 closing price was $2.57, (38,000 shares) then you have to factor the stock splits. (7-1 2014 and 4-1 2020 so 1,064,000 shares) x present value. I may have misfigured somewhere, so I bow low to crowd checkers to confirm what's what.
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miniDragonPaw
New member
Just ask ChatGPT. 5.4M in today's market.