[quote=AN]Flu, i wish its as easy as you make it out to be. Like we’ve been saying, inventory sucks balls right now.[/quote]
I agree inventory sucks. But even more reason to keep trying. I’m actually entertaining looking in parts of LA. Some of the nicer areas haven’t recovered (yet).
You know what really concerns me? Holding cash will suck bigtime and so will depending on a regular paycheck. If we really have a devaluation that is severe in the future, buying overpriced home(s) right now my end up looking like a no brainer few years later…
And me thinks it’s just gonna get harder and harder for individuals to own in more than one ways. A lot of these tax changes is probably a precursor to what will happen to more people… The job market isn’t gonna get better in terms of pay. Pay isn’t gonna go up inflation adjusted. You might have a nominal higher salary, but inflation adjusted not really. Fixed income people are gonna eat it, and I suspect we’ll have a lot of those people as they approach retirement.. And then some tax rules probably won’t end up being inflation adjusted, so you end up with less money then before in your pocket. It’s gonna make it that much harder for people to “save”, on top of how in America savers are already punished…
Meanwhile, people who have accumulated RE,stock, etc can probably more easily borrow cheaper credit (as it is now) with asset collateral for cheap loans, and this will most likely continue… Just look at this current predicament. Some folks use cash to buy up an investment property, and then 6 months later cash out refi at a relatively low interest with high LTV, with still a decent return on the property..Then the take the cash and put into another investment property, probably at near all cash offer too or close to it…
Let this thing run for a few years, how is this really going to be a good environment for first time home buyers? So despite what some political diehards are you have from both parties, I haven’t seen anything material that suggests that either party is really doing anything to restore the middle class, or help people starting out.. And this sort of cliff compromise I think suggests that, same old, same old. Kick the can down the road. The divide between rich and poor is gonna get a lot wider…And some of the bottom rich are gonna end up being the new middle class.
So I guess just to survive, start by keeping your living costs down…Rent isn’t gonna get cheaper either most likely in the forseable future.
