[Coronita]

Sorry, but there is no rational excuse to purchase real estate right now. If you do you are a dumbass, bottom line. You never want to purchase an asset of that scale that is about to plunge in value. Sure, new or luxury cars are a terrible investment in terms of devaluation as well. But let's be realistic with the scale here. While buying a new $50,000 Beamer is surely wasteful, but nothing like a $500,000 house.

 

You missed my point. For most people, purchasesare "never" rationale.

On the flip side, I would consider a person (like an ex-coworker), who rented for the past 10+ years an equal "dumbass",

1) for throwing money away to a landlord for 10 years

2) for throwing the rest of his money away on crap because he didn't have the discipline to save…This is the problem that a lot of people will have…They don't budget for a home, then they piss away everything anyway.

 

Now, I wouldn't be "buying" any real estate as an investment right now. But someone that "wants" a home and "can afford" one and doesn't mind a "correction" in the forseeable future, what's the big deal?

[Coronita]

Hype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…

 

What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably  record,  I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.

…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means.   And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,

Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks

[Coronita]

Hype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…

 

What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably  record,  I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.

…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means.   And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,

Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks

[Coronita]

Hype Buying something today, are we? Brilliant! There's no bubble, right? Riiiiight…

 

What's with the buyer flames anyway? The way that I look at it, most purchases everyone makes are rarely for financial reasons. Take for instance a car. Sure, it basic transportation, but I don't see so many folks driving that POS Kia Sephia. People make purchases based on what they like (and hopefully what they can afford). if someone has the financial means to "own" now, and doesn't need to stretch to do so, and feel comfortable doing so, well kudos to that person.If someone has the means to assume a $600k+ loan now, great. Not everyone (here) can. Doesn't mean they person is dumber than anyone else. He/she must be doing something right to have the means. It's no different than would be that you see some guy able to purchase say a sports car and think it's a stupid/POS thing to do because you don't own one. Sounds to me a lot of sour grapes imho. (ok, a lot finance them too, but that's a different story).I can say that while I exactly don't like driving a german car that takes a 25% depreciation the first year and has a horrible reliably  record,  I definitely prefer driving that than any domestic or Japanese brand because of the handling/ride/performance of the car.

…Now, if someone is going to stretch to the point that they really can't meet ends meet, well I can understand the ridicule of that. And frankly, I have little sympathy when those folks lose their homes, because they were irresponsible. But it's all about living in one's financial means.   And besides, not like any of this money is really good when your dead. Great that some folks can penny pince and save all they way up to when they are too old and veggitated to enjoy it. My philosophy, spend responsibly. If you have the means and don't mind the depreciation that's coming,

Anyway, back to the regular scheduled ridicule of the irresponsible ALT=A/subprime/refinanced to buy bling folks

[Coronita]

Pardon the ignorance. But I remember reading an article about Wells Fargo raising rates to 8% for jumbos. But isn't this just jumbo's done through mortgage brokers? If you apply directly from Wells, is it a different rate?

http://biz.yahoo.com/cnnm/070810/080707_jumbo_jam.html?.v=5&.pf=loans

 

Note on bottom of article:

Correction: An earlier version of this story did not make a distinction between loans made through mortgage brokers and ones offered directly by Wells Fargo, which, as of Wednesday, carried a rate of 7 percent.

If so, I'm wondering what if it's similar from the other institutions. If so, seems to me that mortgage brokers are going to get screwed.

[Coronita]

Pardon the ignorance. But I remember reading an article about Wells Fargo raising rates to 8% for jumbos. But isn't this just jumbo's done through mortgage brokers? If you apply directly from Wells, is it a different rate?

http://biz.yahoo.com/cnnm/070810/080707_jumbo_jam.html?.v=5&.pf=loans

 

Note on bottom of article:

Correction: An earlier version of this story did not make a distinction between loans made through mortgage brokers and ones offered directly by Wells Fargo, which, as of Wednesday, carried a rate of 7 percent.

If so, I'm wondering what if it's similar from the other institutions. If so, seems to me that mortgage brokers are going to get screwed.

[Coronita]

Pardon the ignorance. But I remember reading an article about Wells Fargo raising rates to 8% for jumbos. But isn't this just jumbo's done through mortgage brokers? If you apply directly from Wells, is it a different rate?

http://biz.yahoo.com/cnnm/070810/080707_jumbo_jam.html?.v=5&.pf=loans

 

Note on bottom of article:

Correction: An earlier version of this story did not make a distinction between loans made through mortgage brokers and ones offered directly by Wells Fargo, which, as of Wednesday, carried a rate of 7 percent.

If so, I'm wondering what if it's similar from the other institutions. If so, seems to me that mortgage brokers are going to get screwed.

[Coronita]

I thought it was kind of funny that EVERYONE there was Asian! What is up with that???

 

Perhaps because they have decent paying jobs, have money, and/or plan to live there for a long time…….

Good news about the dollar devalued, is that houses are becoming dirt cheap for some, especially if for example they float the yuan. $700k USD won’t buy you anything decent anymore in shanghai for example.

[Coronita]

I thought it was kind of funny that EVERYONE there was Asian! What is up with that???

 

Perhaps because they have decent paying jobs, have money, and/or plan to live there for a long time…….

Good news about the dollar devalued, is that houses are becoming dirt cheap for some, especially if for example they float the yuan. $700k USD won’t buy you anything decent anymore in shanghai for example.

[Coronita]

I thought it was kind of funny that EVERYONE there was Asian! What is up with that???

 

Perhaps because they have decent paying jobs, have money, and/or plan to live there for a long time…….

Good news about the dollar devalued, is that houses are becoming dirt cheap for some, especially if for example they float the yuan. $700k USD won’t buy you anything decent anymore in shanghai for example.

[Coronita]

LOL, $6000 or even $4600/month in Murrieta…

That’s too funny.

[Coronita]

LOL, $6000 or even $4600/month in Murrieta…

That’s too funny.

[Coronita]

LOL, $6000 or even $4600/month in Murrieta…

That’s too funny.

[Coronita]

Why bother arguing with folks about this? Everyone’s has his/her own opinion, and he/she isn’t going to change his/er opinion. It doesn’t really matter what he/she “thinks”. Waste of time and energy, and we all know what’s going to happen. I had a coworker that use to tout what a great deal renting for 10-15 years was. I won’t go there either.

Regarding your co-worker’s comment….My observation would be that while several home owners “had” equity, a lot of them refinanced to buy all sorts of material possessions, and now don’t have the financial means to juggle credit card and balloon mortgage debt.. I would say this probably happens in areas where the average household income isn’t that great and/or don’t have great pay jobs, but still felt they could finance their way into BMW’s, iphones, etc.

Americans love to spend money they don’t have. You know, the buy now, pay later mentality. Again, not everyone is like this , but I would say that would be a good portion. I cannot believe how many people that drive expensive cars take out ridiculously expensive leases for example.

The only thing more sickening would be to expect a government bailout of some sort.

[Coronita]

Why bother arguing with folks about this? Everyone’s has his/her own opinion, and he/she isn’t going to change his/er opinion. It doesn’t really matter what he/she “thinks”. Waste of time and energy, and we all know what’s going to happen. I had a coworker that use to tout what a great deal renting for 10-15 years was. I won’t go there either.

Regarding your co-worker’s comment….My observation would be that while several home owners “had” equity, a lot of them refinanced to buy all sorts of material possessions, and now don’t have the financial means to juggle credit card and balloon mortgage debt.. I would say this probably happens in areas where the average household income isn’t that great and/or don’t have great pay jobs, but still felt they could finance their way into BMW’s, iphones, etc.

Americans love to spend money they don’t have. You know, the buy now, pay later mentality. Again, not everyone is like this , but I would say that would be a good portion. I cannot believe how many people that drive expensive cars take out ridiculously expensive leases for example.

The only thing more sickening would be to expect a government bailout of some sort.

[Author]

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