[Coronita]

Paranoid,

Are you nuts?

Sorry, but the last thing san diego has a shortage of land. Shortage of high paying careers and income. Yes. But land????

We’re not talking about the Bay Area. I would agree if you talked about the Bay Area. But what do you call all that space along 56????

[Coronita]

Paranoid,

Are you nuts?

Sorry, but the last thing san diego has a shortage of land. Shortage of high paying careers and income. Yes. But land????

We’re not talking about the Bay Area. I would agree if you talked about the Bay Area. But what do you call all that space along 56????

[Coronita]

Considering the a good portion of the average american kid ends up at a pretty lame job, yes I would agree that expectations are sort of wacked.

But that’s the price kids pay when they worship Britney Spears.

[Coronita]

Considering the a good portion of the average american kid ends up at a pretty lame job, yes I would agree that expectations are sort of wacked.

But that’s the price kids pay when they worship Britney Spears.

[Coronita]

This topic is SO over done. For those of us with a large cash position, or decent equity to put down on a house, rates going up will still help us, plus you can always refi later when rates go down! So save up some cash, stop worrying about the payment, and enjoy the rate hikes, as they bring the market down.

 

I was mainly addressing the crowd counting on a 50-60% decline, but doesn't have sufficient cash saved up… I mean, yes it's possible for a 50-60% decline…But judging by some of the comments, I doubt some of these folks waiting for that 50-60% decline, have a large cash position built up. (Not all, some do, but a lot don't), nor will their savings keep up with inflation from other expenses.

Personally, I won't be buying another home until a good portion of those baby boomers start selling their homes to pay for their golden years expenses. Probably not until 2012+. I don't personally think we'll see anything of greater magnitude until a large portion of the baby boomers are selling their assets to sustain post retirement. 

[Coronita]

This topic is SO over done. For those of us with a large cash position, or decent equity to put down on a house, rates going up will still help us, plus you can always refi later when rates go down! So save up some cash, stop worrying about the payment, and enjoy the rate hikes, as they bring the market down.

 

I was mainly addressing the crowd counting on a 50-60% decline, but doesn't have sufficient cash saved up… I mean, yes it's possible for a 50-60% decline…But judging by some of the comments, I doubt some of these folks waiting for that 50-60% decline, have a large cash position built up. (Not all, some do, but a lot don't), nor will their savings keep up with inflation from other expenses.

Personally, I won't be buying another home until a good portion of those baby boomers start selling their homes to pay for their golden years expenses. Probably not until 2012+. I don't personally think we'll see anything of greater magnitude until a large portion of the baby boomers are selling their assets to sustain post retirement. 

[Coronita]

Actually, since we're paying through the landlord, to be fair, our rent should be tax deductible…

 

Won't happen. government is broke. The mortgage rate deduction probably exists because of big lobbying groups from banks to encourage home buying.

…unless you can organize a big lobbying group on behalf of renters.

 

[Coronita]

Actually, since we're paying through the landlord, to be fair, our rent should be tax deductible…

 

Won't happen. government is broke. The mortgage rate deduction probably exists because of big lobbying groups from banks to encourage home buying.

…unless you can organize a big lobbying group on behalf of renters.

 

[Coronita]

"The way i look at it. Renters should pay prop taxes to support the "infrastructure" where they are using too. Don't they get a free ride?" This would be double taxation since the property owner already pays the taxes. Renters pay the rent which goes towards the carrying cost for the landlord or profit. But since we are trying to be fair, why not let the renters pay their fair share.

 

 

It's not like double taxes don't exist.

[Coronita]

"The way i look at it. Renters should pay prop taxes to support the "infrastructure" where they are using too. Don't they get a free ride?" This would be double taxation since the property owner already pays the taxes. Renters pay the rent which goes towards the carrying cost for the landlord or profit. But since we are trying to be fair, why not let the renters pay their fair share.

 

 

It's not like double taxes don't exist.

[Coronita]

The way i look at it. Renters should pay prop taxes to support the “infrastructure” where they are using too. Don’t they get a free ride?

[Coronita]

The way i look at it. Renters should pay prop taxes to support the “infrastructure” where they are using too. Don’t they get a free ride?

[Coronita]

PD,

The point i’m trying to make though. Is that higher interest rate on a mortgage isn’t going to occur in just a vacuum. Everyone is talking about if mortgage rates go up, home prices come down, they can go off and buy a home.

BUT, I think those people are neglecting that when mortgage rates are going up, everything is going to go up. Credit card aprs, car payments, utilities, etc. Inflation is going to be rampant. And companies are going to have harder time financing themselves.. Meanwhile, point me to a job that average joe’s have where the salaries are rising faster than inflation…

Those that are hoping for higher rates so that house prices fall may have a rude awakening. Unless you’re NOT average Joe that doesn’t need to work, you’re going to get hurt with higher interests across the board, anyway.When that happens, the economy is going to come to a standstill. most folks won’t have the financial capability to buy when prices are that low imho. Happened in the 80ies. Gonna happen again.

Given the choice, I’d settle for the lower interest, higher home prices..not necessarily for my own interests. I do think lower borrowing costs have generally stimulated other parts of the economy that wouldn’t have been possible.

[Coronita]

PD,

The point i’m trying to make though. Is that higher interest rate on a mortgage isn’t going to occur in just a vacuum. Everyone is talking about if mortgage rates go up, home prices come down, they can go off and buy a home.

BUT, I think those people are neglecting that when mortgage rates are going up, everything is going to go up. Credit card aprs, car payments, utilities, etc. Inflation is going to be rampant. And companies are going to have harder time financing themselves.. Meanwhile, point me to a job that average joe’s have where the salaries are rising faster than inflation…

Those that are hoping for higher rates so that house prices fall may have a rude awakening. Unless you’re NOT average Joe that doesn’t need to work, you’re going to get hurt with higher interests across the board, anyway.When that happens, the economy is going to come to a standstill. most folks won’t have the financial capability to buy when prices are that low imho. Happened in the 80ies. Gonna happen again.

Given the choice, I’d settle for the lower interest, higher home prices..not necessarily for my own interests. I do think lower borrowing costs have generally stimulated other parts of the economy that wouldn’t have been possible.

[Coronita]

Save for a down payment. It will put you in a better cash position in case rates go up. It's better to buy a home at a lower price and higher interest rate then a home at a higher price with lower interest rate, even if the monthly payment is the same. If rates go down you can refi, but your purchase price will stay the same. Also only your interest payment is higher, not your principal payment. Your taxes will be lower also. It's also better when you go to sell. You don't want to sell a home that cost you 600K for 500K even if your montly payment is low. Your cost basis is a lot more important than your monthly obligation.

 

You're assuming that rates are actually going to fall in the forseeable future. What if for the next say 10-15 years we have nothing but interest rates go up and up? Take your mortgage and imagine a 15% mortgage on that. BTW: if mortgages are 15%, can you imagine what the APRs on other financing will be like? Don't think 15% is possible, talk to someone that bought a house back in the early 80ies. 

 

I think the misconception some folks have is that they think home prices are going to have a sustained downward trend, but that mortgage rates are going to rise and then stay flat or even fall, when in reality, home prices are going to continue to fall, and mortgage rates are going to continue to creep up. Along with that, the cost of living is going to go up. Health care is going to get more expensive, daily necessities is going to get more expensive. Transportation is going to get more expensive. Meanwhile, wages are going to stay flat or rise at a lower rate…As we globalize, companies will find cheaper and cheaper labor elsewhere. The plight of the middle class isn't too promising moving forward.

[Author]

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