First crack in the high end?

[an]

Rustico, I’ll be buying as my primary resident and will be in it at least 5-10 years before renting it out and have my tenant pay the rest of my mortgage. So every year I wait, I’m speculating that price will go down further to offset the price different between rent vs mortgage interest every year. As I said, it’s a speculation, because there’s a possibility that price either stay flat or rates will go up to offset any price decline. That’s the risk I’m taking, hoping it’ll pay off.

[jpinpb]

Rustico – I suck at math. Can you give an example w/numbers what you mean w/the 8%.

I love you math wizards, BTW. My greatest admiration to you all. I just have a little common sense, but suffer and struggle in the math department. Somehow I manage. Maybe just luck saving me.

[jpinpb]

Rustico – I suck at math. Can you give an example w/numbers what you mean w/the 8%.

I love you math wizards, BTW. My greatest admiration to you all. I just have a little common sense, but suffer and struggle in the math department. Somehow I manage. Maybe just luck saving me.

[jpinpb]

Rustico – I suck at math. Can you give an example w/numbers what you mean w/the 8%.

I love you math wizards, BTW. My greatest admiration to you all. I just have a little common sense, but suffer and struggle in the math department. Somehow I manage. Maybe just luck saving me.

[jpinpb]

Rustico – I suck at math. Can you give an example w/numbers what you mean w/the 8%.

I love you math wizards, BTW. My greatest admiration to you all. I just have a little common sense, but suffer and struggle in the math department. Somehow I manage. Maybe just luck saving me.

[jpinpb]

Rustico – I suck at math. Can you give an example w/numbers what you mean w/the 8%.

I love you math wizards, BTW. My greatest admiration to you all. I just have a little common sense, but suffer and struggle in the math department. Somehow I manage. Maybe just luck saving me.

[an]

jpinpb, now looking back at 2003, you can say that some were making “informed” speculation as well. If you look at the data back then, rates were extremely low, price were only above rent by a little bit, all the easy $ start to come in, economy was just exiting a recession, etc. All the variables were the inverse of what it is now. The main point is, price was near fundamental, which is rent.

[an]

jpinpb, now looking back at 2003, you can say that some were making “informed” speculation as well. If you look at the data back then, rates were extremely low, price were only above rent by a little bit, all the easy $ start to come in, economy was just exiting a recession, etc. All the variables were the inverse of what it is now. The main point is, price was near fundamental, which is rent.

[an]

jpinpb, now looking back at 2003, you can say that some were making “informed” speculation as well. If you look at the data back then, rates were extremely low, price were only above rent by a little bit, all the easy $ start to come in, economy was just exiting a recession, etc. All the variables were the inverse of what it is now. The main point is, price was near fundamental, which is rent.

[an]

jpinpb, now looking back at 2003, you can say that some were making “informed” speculation as well. If you look at the data back then, rates were extremely low, price were only above rent by a little bit, all the easy $ start to come in, economy was just exiting a recession, etc. All the variables were the inverse of what it is now. The main point is, price was near fundamental, which is rent.

[an]

jpinpb, now looking back at 2003, you can say that some were making “informed” speculation as well. If you look at the data back then, rates were extremely low, price were only above rent by a little bit, all the easy $ start to come in, economy was just exiting a recession, etc. All the variables were the inverse of what it is now. The main point is, price was near fundamental, which is rent.

[jpinpb]

Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.

I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.

My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.

[jpinpb]

Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.

I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.

My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.

[jpinpb]

Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.

I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.

My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.

[jpinpb]

Ok. When the debt to income ratio is so out of whack and income is not even close to really paying for a house, it is speculation. The only information you have is rates are low and the possibility, which I think everyone will agree, that eventually the rates will rise. To speculate that rates would not rise is not being “informed” but stupid and/or ignorant and gamblig. To assume that one would continue to flip indefinitely, has never played musical chairs as a child.

I repeatedly have said, I do not have any kind of special degrees and the first to say my forte is not math, but even I saw that the subprime could only go one place, a very bad place. Until I came upon this board, I felt like I was the only one against the grain, refusing to succomb to this subprime insane train that everyone was eager to board, defying all logic.

My amazement is only that the ride lasted so long. And now I think the only amazement will be the reverse process.

I am sorry, but I disagree. I do not think there was any “informed” speculation. Only folly.

[Author]

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