Mortgate Rates falling?

[stockstradr]

Laugh if you want, but….

We’re now shopping for a home in Silicon Valley.

However, since we’re only going in with 10% down, mortgage rates are far more important to us than the concern of home values continuing to fall some additional (hopefully moderate) amount.

I still believe (opinion expressed at least six month ago on here) that after we move through this deflationary recession, then next comes a period of transition to very high inflation, which I’m defining as 10% or above CPI. So probably within a few years I see mortgage rates well above 10%. The smart move is to buy heavily discounted homes using a fixed rate loan and get help from high inflation to make future loan payments with dollars worth less and less each year.

I know investors that are already VERY cash-flow-positive on homes they bought within the last six months and are now renting, particularly in the outlying run-down areas of the Bay Area. We are talking about homes that are discounted 60% to 70% off peak values, located in Oakland, Stockton, Richmond. In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).

You think those investors give a shit if those rental properties fall another 15% in value? They don’t care because they are significantly cash-flow positive, so now they just sit back and let the renters pay rent for twenty years (and pay off the mortgage!)

[peterb]

You’d be wise to wait. Mortgage rates usually come down in a recession. They dropped from 9.5% to 5.25% from 1990 to 1994. Rates are dropping and unemployment is rising. Silicon Valley is just starting it’s lay-offs. See SUN, eBay, Yahoo, etc…
Rental units can be good if you dont experience a loss of occupancy. A couple of months a year can be tough. It’s got a mortgage, it’s got risk. I am seeing a lot of investors salivating at rentals that cash flow. A rare experience in CA. I am forecasting now that these will be the future foreclosure in a few years as rents too will break down in the final throws of this debacle.

[peterb]

You’d be wise to wait. Mortgage rates usually come down in a recession. They dropped from 9.5% to 5.25% from 1990 to 1994. Rates are dropping and unemployment is rising. Silicon Valley is just starting it’s lay-offs. See SUN, eBay, Yahoo, etc…
Rental units can be good if you dont experience a loss of occupancy. A couple of months a year can be tough. It’s got a mortgage, it’s got risk. I am seeing a lot of investors salivating at rentals that cash flow. A rare experience in CA. I am forecasting now that these will be the future foreclosure in a few years as rents too will break down in the final throws of this debacle.

[peterb]

You’d be wise to wait. Mortgage rates usually come down in a recession. They dropped from 9.5% to 5.25% from 1990 to 1994. Rates are dropping and unemployment is rising. Silicon Valley is just starting it’s lay-offs. See SUN, eBay, Yahoo, etc…
Rental units can be good if you dont experience a loss of occupancy. A couple of months a year can be tough. It’s got a mortgage, it’s got risk. I am seeing a lot of investors salivating at rentals that cash flow. A rare experience in CA. I am forecasting now that these will be the future foreclosure in a few years as rents too will break down in the final throws of this debacle.

[peterb]

You’d be wise to wait. Mortgage rates usually come down in a recession. They dropped from 9.5% to 5.25% from 1990 to 1994. Rates are dropping and unemployment is rising. Silicon Valley is just starting it’s lay-offs. See SUN, eBay, Yahoo, etc…
Rental units can be good if you dont experience a loss of occupancy. A couple of months a year can be tough. It’s got a mortgage, it’s got risk. I am seeing a lot of investors salivating at rentals that cash flow. A rare experience in CA. I am forecasting now that these will be the future foreclosure in a few years as rents too will break down in the final throws of this debacle.

[peterb]

You’d be wise to wait. Mortgage rates usually come down in a recession. They dropped from 9.5% to 5.25% from 1990 to 1994. Rates are dropping and unemployment is rising. Silicon Valley is just starting it’s lay-offs. See SUN, eBay, Yahoo, etc…
Rental units can be good if you dont experience a loss of occupancy. A couple of months a year can be tough. It’s got a mortgage, it’s got risk. I am seeing a lot of investors salivating at rentals that cash flow. A rare experience in CA. I am forecasting now that these will be the future foreclosure in a few years as rents too will break down in the final throws of this debacle.

[patientlywaiting]

[quote=stockstradr]In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).
[/quote]

I don’t necessarily agree or disagree with your other comments.

However, the Section 8 comments are a bunch of crap.

I happen to be very familiar with the process. It takes about 5 to 7 years on a waiting list to qualify for Section 8.

Plus, you have to prove legal residence in the country in order to qualify. Therefore, illegal aliens would never qualify.

Let’s be honest here and tell it like it is; but let’s not perpetuate false information.

[patientlywaiting]

[quote=stockstradr]In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).
[/quote]

I don’t necessarily agree or disagree with your other comments.

However, the Section 8 comments are a bunch of crap.

I happen to be very familiar with the process. It takes about 5 to 7 years on a waiting list to qualify for Section 8.

Plus, you have to prove legal residence in the country in order to qualify. Therefore, illegal aliens would never qualify.

Let’s be honest here and tell it like it is; but let’s not perpetuate false information.

[patientlywaiting]

[quote=stockstradr]In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).
[/quote]

I don’t necessarily agree or disagree with your other comments.

However, the Section 8 comments are a bunch of crap.

I happen to be very familiar with the process. It takes about 5 to 7 years on a waiting list to qualify for Section 8.

Plus, you have to prove legal residence in the country in order to qualify. Therefore, illegal aliens would never qualify.

Let’s be honest here and tell it like it is; but let’s not perpetuate false information.

[patientlywaiting]

[quote=stockstradr]In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).
[/quote]

I don’t necessarily agree or disagree with your other comments.

However, the Section 8 comments are a bunch of crap.

I happen to be very familiar with the process. It takes about 5 to 7 years on a waiting list to qualify for Section 8.

Plus, you have to prove legal residence in the country in order to qualify. Therefore, illegal aliens would never qualify.

Let’s be honest here and tell it like it is; but let’s not perpetuate false information.

[patientlywaiting]

[quote=stockstradr]In many cases they got the properties approved as Section 8; then the majority of the monthly rent check arrives in the mail direct from the government (= US Taxpayers). The Section 8 tenant only has to pay a fraction of the rent. The illegal immigrants run the scam of getting their rent paid by US Taxpayers because the immigrants work for cash income “off the clock” apparently staying within the poverty guidelines making them eligible for Section 8. Then the investors who own the properties get in on the scam by collecting the Section 8 rent payments direct from the government. America: what a country! (a country built upon scams built upon scams…but the house of cards seems to finally be tumbling down!).
[/quote]

I don’t necessarily agree or disagree with your other comments.

However, the Section 8 comments are a bunch of crap.

I happen to be very familiar with the process. It takes about 5 to 7 years on a waiting list to qualify for Section 8.

Plus, you have to prove legal residence in the country in order to qualify. Therefore, illegal aliens would never qualify.

Let’s be honest here and tell it like it is; but let’s not perpetuate false information.

[sdrealtor]

I’ve got a property in escrow around 500K. I just spoke with the buyers agent and last weeks interest rate improvement saved them about $300 a month. Thats real money in my book.

[sdrealtor]

I’ve got a property in escrow around 500K. I just spoke with the buyers agent and last weeks interest rate improvement saved them about $300 a month. Thats real money in my book.

[sdrealtor]

I’ve got a property in escrow around 500K. I just spoke with the buyers agent and last weeks interest rate improvement saved them about $300 a month. Thats real money in my book.

[sdrealtor]

I’ve got a property in escrow around 500K. I just spoke with the buyers agent and last weeks interest rate improvement saved them about $300 a month. Thats real money in my book.

[Author]

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