Crap like you with the entitlement mentality is why America is having such problems.
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Ok, guys…
While I agree with the regular Piggs that renting is by far the best option in the $800K range (as this range is most likely to take the biggest losses in the next few years), most of these homes are not really “high-end” homes. They were selling for ~$250K-$350K before the bubble.
It’s not that people were buying “too much house” that caused all the problems, but that people were taking on **too much debt** to buy those houses. There is a distinction.
The main problems, and the excessive “demand” during the boom came from the bottom — literally, people who were earning minimum wage getting mortgages for $400K to buy $100K houses. That money (the $300K difference between the new mortgage and the real value of these starter homes) is what pushed the prices up in the move-up and higher-end homes.
I agree with the poster, that a couple earning $250K DO “deserve” to live in a nice home (not a mansion) in a nice, middle-class neighborhood.
We needn’t be so extreme, guys. The message — don’t overpay and get into too much debt — is sometimes overwhelmed by the vitriol.
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Northcounty,
Forget about the sharp comments, but do pay attention to what these posters are saying. They know what they are talking about.
I also think the problem isn’t the 10% down, but the fact that you will be carrying two mortgages. From what I understand, if a borrower does not have 30% equity in an existing home, they will not qualify for a new loan; and that is a perfectly reasonable response to the actions of borrowers over the past few years.
