Did you guys notice that Centex and Barratt American now have monthly payments rather than prices in their ads? They are following the lead of auto dealers. The problem with houses is that the monthly payments are the low initial payments*.
*fine prints below.
I had to drive to La Mesa so I stopped by to look at the Barratt townhouses on El Cajon Bl. They were the stressing the monthly payments are lower than rent! Their argument was why rent when you can buy?
$500k of those townhouses in La Mesa? They are dreaming.
The sales pitch is why rent you can buy an investment. Real estate always go up. So in the future, you can always rent out your investment and save for retirement.
What’s left out of the sales pitch is that after the loan resets, your payments will double. Or that your payments are low but you’re adding on to your loan balance every month.
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