Hmmm… I thought the people who'd bought $2 million homes at the peak weren't subject to price pressures or foreclosure risk. It's fascinating to watch this tide go out.
Why would anyone borrow more than $1 million if the interest on the excess over $1 million is not deductible? Is everyone in the wealthiest 1% earning more than 6% on their money net of taxes?
Patient renter in OC
Poor decision makers (my euphenism for financial idiots) come in all shapes,sizes, and financial backgrounds. I would say traditionally in the past people who bought $2million+ homes usually don't need to "borrow" to buy.
Once "nice" thing about all the relaxed lending that happened in recent times is that you actually had people that stretched to pay $2million for homes. Seems like another case of trying to keep up with the Jones.
