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Participant[quote=jpinpb][quote=AN]People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?[/quote]
And many are living for free. But eventually will be back to renting b/c of their indulgence and/or become mortgage slaves.[/quote]
How can you live for free and be a mortgage slaves at the same time? Also, there’s nothing wrong with renting. Many of these people probably shouldn’t have been able to buy in the first place. So, there’s no change for them.Participant[quote=CONCHO]I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.[/quote]
Again, I don’t think everyone would walk. Only those who depend on the deduction to make their mortgage comparable to rent. All the people who are paying less for mortgage than rent of similar house wouldn’t walk. I know I wouldn’t. All the people I know who are near or at retirement and own anywhere between $20k-100k left on their SFR wouldn’t walk either. Since their mortgage are currently well < $1k/month. They can't even rent a 1/1 apartment for that monthly payment. I can see a squish down but I don't see price dropping drastically bellow rent. If it does, you'll see many more investors jumping in to push up prices. I also don't think rent will take a whack either. Rent didn't drop 30-50% from 2005 like housing price.Participant[quote=CONCHO]I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.[/quote]
Again, I don’t think everyone would walk. Only those who depend on the deduction to make their mortgage comparable to rent. All the people who are paying less for mortgage than rent of similar house wouldn’t walk. I know I wouldn’t. All the people I know who are near or at retirement and own anywhere between $20k-100k left on their SFR wouldn’t walk either. Since their mortgage are currently well < $1k/month. They can't even rent a 1/1 apartment for that monthly payment. I can see a squish down but I don't see price dropping drastically bellow rent. If it does, you'll see many more investors jumping in to push up prices. I also don't think rent will take a whack either. Rent didn't drop 30-50% from 2005 like housing price.Participant[quote=CONCHO]I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.[/quote]
Again, I don’t think everyone would walk. Only those who depend on the deduction to make their mortgage comparable to rent. All the people who are paying less for mortgage than rent of similar house wouldn’t walk. I know I wouldn’t. All the people I know who are near or at retirement and own anywhere between $20k-100k left on their SFR wouldn’t walk either. Since their mortgage are currently well < $1k/month. They can't even rent a 1/1 apartment for that monthly payment. I can see a squish down but I don't see price dropping drastically bellow rent. If it does, you'll see many more investors jumping in to push up prices. I also don't think rent will take a whack either. Rent didn't drop 30-50% from 2005 like housing price.Participant[quote=CONCHO]I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.[/quote]
Again, I don’t think everyone would walk. Only those who depend on the deduction to make their mortgage comparable to rent. All the people who are paying less for mortgage than rent of similar house wouldn’t walk. I know I wouldn’t. All the people I know who are near or at retirement and own anywhere between $20k-100k left on their SFR wouldn’t walk either. Since their mortgage are currently well < $1k/month. They can't even rent a 1/1 apartment for that monthly payment. I can see a squish down but I don't see price dropping drastically bellow rent. If it does, you'll see many more investors jumping in to push up prices. I also don't think rent will take a whack either. Rent didn't drop 30-50% from 2005 like housing price.Participant[quote=CONCHO]I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.[/quote]
Again, I don’t think everyone would walk. Only those who depend on the deduction to make their mortgage comparable to rent. All the people who are paying less for mortgage than rent of similar house wouldn’t walk. I know I wouldn’t. All the people I know who are near or at retirement and own anywhere between $20k-100k left on their SFR wouldn’t walk either. Since their mortgage are currently well < $1k/month. They can't even rent a 1/1 apartment for that monthly payment. I can see a squish down but I don't see price dropping drastically bellow rent. If it does, you'll see many more investors jumping in to push up prices. I also don't think rent will take a whack either. Rent didn't drop 30-50% from 2005 like housing price.Participant[quote=briansd1]Deadzone makes a good point.
Now with the data. Consider that 31% of California homes with mortgages are underwater, with zero or negative equity, homeownership is really not working out for them. If they have any downpayments, those have evaporated.
Of course a great number of those people refinanced themselves into debt. So much for financial security and providing for their families.
http://latimesblogs.latimes.com/money_co/2011/06/number-of-underwater-homes-declines-slightly.html%5B/quote%5D
People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?Participant[quote=briansd1]Deadzone makes a good point.
Now with the data. Consider that 31% of California homes with mortgages are underwater, with zero or negative equity, homeownership is really not working out for them. If they have any downpayments, those have evaporated.
Of course a great number of those people refinanced themselves into debt. So much for financial security and providing for their families.
http://latimesblogs.latimes.com/money_co/2011/06/number-of-underwater-homes-declines-slightly.html%5B/quote%5D
People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?Participant[quote=briansd1]Deadzone makes a good point.
Now with the data. Consider that 31% of California homes with mortgages are underwater, with zero or negative equity, homeownership is really not working out for them. If they have any downpayments, those have evaporated.
Of course a great number of those people refinanced themselves into debt. So much for financial security and providing for their families.
http://latimesblogs.latimes.com/money_co/2011/06/number-of-underwater-homes-declines-slightly.html%5B/quote%5D
People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?Participant[quote=briansd1]Deadzone makes a good point.
Now with the data. Consider that 31% of California homes with mortgages are underwater, with zero or negative equity, homeownership is really not working out for them. If they have any downpayments, those have evaporated.
Of course a great number of those people refinanced themselves into debt. So much for financial security and providing for their families.
http://latimesblogs.latimes.com/money_co/2011/06/number-of-underwater-homes-declines-slightly.html%5B/quote%5D
People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?Participant[quote=briansd1]Deadzone makes a good point.
Now with the data. Consider that 31% of California homes with mortgages are underwater, with zero or negative equity, homeownership is really not working out for them. If they have any downpayments, those have evaporated.
Of course a great number of those people refinanced themselves into debt. So much for financial security and providing for their families.
http://latimesblogs.latimes.com/money_co/2011/06/number-of-underwater-homes-declines-slightly.html%5B/quote%5D
People who refinanced themselves into debt are actually loving this “American Dream”. How else can they would have bought all of those stuff?Participant[quote=FormerSanDiegan]
A name-caller responding to the alleged ass by suggesting that they are a bigger ass by not apologizing quickly and sincerely to the name caller makes the name caller look like an ass.[/quote]
That’s a lot of asses flying around. Nicely put.Participant[quote=FormerSanDiegan]
A name-caller responding to the alleged ass by suggesting that they are a bigger ass by not apologizing quickly and sincerely to the name caller makes the name caller look like an ass.[/quote]
That’s a lot of asses flying around. Nicely put.Participant[quote=FormerSanDiegan]
A name-caller responding to the alleged ass by suggesting that they are a bigger ass by not apologizing quickly and sincerely to the name caller makes the name caller look like an ass.[/quote]
That’s a lot of asses flying around. Nicely put. -
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