Can you feel the shift?

[barnaby33]

I am surprised to find that people participating on a housing blog for two years would not want historically low interest rates at a time when housing starts to hit some serious affordability in their market.

Why the hell would I or anyone want low rates? I want high rates. That way when rates drop I can re-finance and win again. Low price/High interest beats the opposite every time if you stop and think about it. You’re stuck with the price, but maybe not the rate.

Josh

[hipmatt]

Rustico,

Josh did a great job explaining the very simple concept of why high rates are better. The biggest bonus is the fact that home prices will collapse. The next bonus is that you will have a smaller loan, pay less property taxes, have a cheaper escrow, cheaper homeowners ins., pay less origination fees if any, etc due to a smaller loan. Then when rates fall again, your cheap home will appreciate. So yea, if you don’t want to buy low and sell high, then we definitely follow different strokes.

Not related to housing as much, higher rates will help contain inflation, and that will keep the cost of living from out pacing my pathetic raises. It will encourage savings, and discourage irresponsible borrowing, which is hurting our country.

[hipmatt]

Rustico,

Josh did a great job explaining the very simple concept of why high rates are better. The biggest bonus is the fact that home prices will collapse. The next bonus is that you will have a smaller loan, pay less property taxes, have a cheaper escrow, cheaper homeowners ins., pay less origination fees if any, etc due to a smaller loan. Then when rates fall again, your cheap home will appreciate. So yea, if you don’t want to buy low and sell high, then we definitely follow different strokes.

Not related to housing as much, higher rates will help contain inflation, and that will keep the cost of living from out pacing my pathetic raises. It will encourage savings, and discourage irresponsible borrowing, which is hurting our country.

[hipmatt]

Rustico,

Josh did a great job explaining the very simple concept of why high rates are better. The biggest bonus is the fact that home prices will collapse. The next bonus is that you will have a smaller loan, pay less property taxes, have a cheaper escrow, cheaper homeowners ins., pay less origination fees if any, etc due to a smaller loan. Then when rates fall again, your cheap home will appreciate. So yea, if you don’t want to buy low and sell high, then we definitely follow different strokes.

Not related to housing as much, higher rates will help contain inflation, and that will keep the cost of living from out pacing my pathetic raises. It will encourage savings, and discourage irresponsible borrowing, which is hurting our country.

[hipmatt]

Rustico,

Josh did a great job explaining the very simple concept of why high rates are better. The biggest bonus is the fact that home prices will collapse. The next bonus is that you will have a smaller loan, pay less property taxes, have a cheaper escrow, cheaper homeowners ins., pay less origination fees if any, etc due to a smaller loan. Then when rates fall again, your cheap home will appreciate. So yea, if you don’t want to buy low and sell high, then we definitely follow different strokes.

Not related to housing as much, higher rates will help contain inflation, and that will keep the cost of living from out pacing my pathetic raises. It will encourage savings, and discourage irresponsible borrowing, which is hurting our country.

[hipmatt]

Rustico,

Josh did a great job explaining the very simple concept of why high rates are better. The biggest bonus is the fact that home prices will collapse. The next bonus is that you will have a smaller loan, pay less property taxes, have a cheaper escrow, cheaper homeowners ins., pay less origination fees if any, etc due to a smaller loan. Then when rates fall again, your cheap home will appreciate. So yea, if you don’t want to buy low and sell high, then we definitely follow different strokes.

Not related to housing as much, higher rates will help contain inflation, and that will keep the cost of living from out pacing my pathetic raises. It will encourage savings, and discourage irresponsible borrowing, which is hurting our country.

[NotCranky]

I agree with that point Josh. I think it works too. It also involves an element of luck.And a desire to keep paying more to rent than to own equivalent housing, and a desire to forgo a tax right of. ect. But yeah it could work out either way. I like the bird in the hand approach which has an element of wishing too(for not too much more depreciation) but I like the timing and the control. Oh well. I am sure there are more ways than one. Beside that everybody on piggingtons is all the sudden gonna come up with cash( that’s been raking in returns) OH well.
Don’t be so testy Josh!

[NotCranky]

I agree with that point Josh. I think it works too. It also involves an element of luck.And a desire to keep paying more to rent than to own equivalent housing, and a desire to forgo a tax right of. ect. But yeah it could work out either way. I like the bird in the hand approach which has an element of wishing too(for not too much more depreciation) but I like the timing and the control. Oh well. I am sure there are more ways than one. Beside that everybody on piggingtons is all the sudden gonna come up with cash( that’s been raking in returns) OH well.
Don’t be so testy Josh!

[NotCranky]

I agree with that point Josh. I think it works too. It also involves an element of luck.And a desire to keep paying more to rent than to own equivalent housing, and a desire to forgo a tax right of. ect. But yeah it could work out either way. I like the bird in the hand approach which has an element of wishing too(for not too much more depreciation) but I like the timing and the control. Oh well. I am sure there are more ways than one. Beside that everybody on piggingtons is all the sudden gonna come up with cash( that’s been raking in returns) OH well.
Don’t be so testy Josh!

[NotCranky]

I agree with that point Josh. I think it works too. It also involves an element of luck.And a desire to keep paying more to rent than to own equivalent housing, and a desire to forgo a tax right of. ect. But yeah it could work out either way. I like the bird in the hand approach which has an element of wishing too(for not too much more depreciation) but I like the timing and the control. Oh well. I am sure there are more ways than one. Beside that everybody on piggingtons is all the sudden gonna come up with cash( that’s been raking in returns) OH well.
Don’t be so testy Josh!

[NotCranky]

I agree with that point Josh. I think it works too. It also involves an element of luck.And a desire to keep paying more to rent than to own equivalent housing, and a desire to forgo a tax right of. ect. But yeah it could work out either way. I like the bird in the hand approach which has an element of wishing too(for not too much more depreciation) but I like the timing and the control. Oh well. I am sure there are more ways than one. Beside that everybody on piggingtons is all the sudden gonna come up with cash( that’s been raking in returns) OH well.
Don’t be so testy Josh!

[temeculaguy]

Matt, The taxes I quoted was based on the posted taxes, 2006 $6037 based on a tax valuation of 436k. 220k is close to half, thus resetting the taxes to the new sale price, probably about 3600 or 300 a month, insurance being no more than 100 a month on a 220k property. On zillow it listed the taxes at 3000 in 2004, with a valuation of 175 for the first 9 months of the year and then jumped to 6000 for 2005 because it sold for 415k at the end of august 2004. I very much doubt the taxes would be 4800 a year for a 220k sales price, 3600 is a much better estimate, the 3k on 175 included 1750 for the 1% and the add ons that are mostly fixed per lot, adding 45k to the sales price should add 450 a year plus another 150 for the value based add ons, making 3600 damn close.

Nobody said you had to pay full price and even if it goes for that, there are so many more coming available with great prices that they wont be exeptional, but rather the norm, the original reason for this thread.

[temeculaguy]

Matt, The taxes I quoted was based on the posted taxes, 2006 $6037 based on a tax valuation of 436k. 220k is close to half, thus resetting the taxes to the new sale price, probably about 3600 or 300 a month, insurance being no more than 100 a month on a 220k property. On zillow it listed the taxes at 3000 in 2004, with a valuation of 175 for the first 9 months of the year and then jumped to 6000 for 2005 because it sold for 415k at the end of august 2004. I very much doubt the taxes would be 4800 a year for a 220k sales price, 3600 is a much better estimate, the 3k on 175 included 1750 for the 1% and the add ons that are mostly fixed per lot, adding 45k to the sales price should add 450 a year plus another 150 for the value based add ons, making 3600 damn close.

Nobody said you had to pay full price and even if it goes for that, there are so many more coming available with great prices that they wont be exeptional, but rather the norm, the original reason for this thread.

[temeculaguy]

Matt, The taxes I quoted was based on the posted taxes, 2006 $6037 based on a tax valuation of 436k. 220k is close to half, thus resetting the taxes to the new sale price, probably about 3600 or 300 a month, insurance being no more than 100 a month on a 220k property. On zillow it listed the taxes at 3000 in 2004, with a valuation of 175 for the first 9 months of the year and then jumped to 6000 for 2005 because it sold for 415k at the end of august 2004. I very much doubt the taxes would be 4800 a year for a 220k sales price, 3600 is a much better estimate, the 3k on 175 included 1750 for the 1% and the add ons that are mostly fixed per lot, adding 45k to the sales price should add 450 a year plus another 150 for the value based add ons, making 3600 damn close.

Nobody said you had to pay full price and even if it goes for that, there are so many more coming available with great prices that they wont be exeptional, but rather the norm, the original reason for this thread.

[temeculaguy]

Matt, The taxes I quoted was based on the posted taxes, 2006 $6037 based on a tax valuation of 436k. 220k is close to half, thus resetting the taxes to the new sale price, probably about 3600 or 300 a month, insurance being no more than 100 a month on a 220k property. On zillow it listed the taxes at 3000 in 2004, with a valuation of 175 for the first 9 months of the year and then jumped to 6000 for 2005 because it sold for 415k at the end of august 2004. I very much doubt the taxes would be 4800 a year for a 220k sales price, 3600 is a much better estimate, the 3k on 175 included 1750 for the 1% and the add ons that are mostly fixed per lot, adding 45k to the sales price should add 450 a year plus another 150 for the value based add ons, making 3600 damn close.

Nobody said you had to pay full price and even if it goes for that, there are so many more coming available with great prices that they wont be exeptional, but rather the norm, the original reason for this thread.

[Author]

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