'How we cashed in before the crash'

By Dave Fratello January 20th, 2008.

There's an interesting piece in the Sunday LAT by one of their reporters, who sold his Pasadena condo in 2005 and continues to rent while waiting for a housing market correction. Reporter Peter Hong says his condo had nearly tripled in value from the time he bought it and then sold it. Ka-ching!

The story (see "How we cashed in before the crash") also features another, somewhat more sophisticated, market timer – Pimco exec Mark Kiesel, who cashed out of his Newport Beach home after just 2 years (2004-2006) at a tidy 20% profit. Kiesel, however, doesn't suggest that others follow his lead:
"I wouldn't advise it at all," he said. "We were willing to sacrifice our living standards to make some money; not everyone should do that."
Meanwhile, Hong is still waiting, as the bubble's burst has, perhaps, just begun:
We do plan to buy again someday, on honest terms with a loan we can afford. We didn't expect to rent this long; our girl is 8, and we'd like to get into a house soon that she will truly feel is hers.
Well, that's the report from Pasadena and Newport. But this sort of thing doesn't happen in MB, does it?

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