As we come to the end of the year, I want to highlight the top posts published in 2018. This year I spent more time than normal writing cautionary articles partly because I felt the good times were going away. It was important to share my growing concerns about the economy in order to better prepare the FS community.
My first hint of financial worry started in May 2017 when the asking rental price for my SF rental house dropped from $9,000/month to $7,500/month, a 16.7% decline after 45 days of diligent searching. May/June are generally great months to find tenants due to the end of the school season. After searching far and wide, there was only one party willing to pay $7,500, a family of six.
At the time, the drop in rents had not yet shown up in real estate prices, so I decided to give up my plan to own the property forever and sell. As a new dad, I didn’t want to deal with tenant hassles, maintenance issues, and pay $23,000 a year in property taxes anymore. I really struggled with this decision at the time, but in retrospect, I’m glad I simplified.
On November 14, 2017, I decided to publish: It Feels A Lot Like 2007 Again: Reflecting On The Previous Peak. My hope was to give people who had never experienced a downturn a glimpse at history in order to prepare for a potential downturn.
Given the rocky times we experienced in 2018, it’s no wonder why some of the most popular posts on Financial Samurai are also some of the most cautious. I know I won’t