[gdcox]

Graham

This raises the issue of land versus build costs.
For houses in ares not blighted by over-development or other excesses of the boom years (such as excessive developer profits), the brunt of the fall in the value of a house should be in the part of the house price that is the land value.

But do not the insurance polices for the burnt houses just over the re-build cost and owners only get screwed if they were under insured for that?

[gdcox]

Graham

This raises the issue of land versus build costs.
For houses in ares not blighted by over-development or other excesses of the boom years (such as excessive developer profits), the brunt of the fall in the value of a house should be in the part of the house price that is the land value.

But do not the insurance polices for the burnt houses just over the re-build cost and owners only get screwed if they were under insured for that?

[gdcox]

Graham

This raises the issue of land versus build costs.
For houses in ares not blighted by over-development or other excesses of the boom years (such as excessive developer profits), the brunt of the fall in the value of a house should be in the part of the house price that is the land value.

But do not the insurance polices for the burnt houses just over the re-build cost and owners only get screwed if they were under insured for that?

[gdcox]

Graham

This raises the issue of land versus build costs.
For houses in ares not blighted by over-development or other excesses of the boom years (such as excessive developer profits), the brunt of the fall in the value of a house should be in the part of the house price that is the land value.

But do not the insurance polices for the burnt houses just over the re-build cost and owners only get screwed if they were under insured for that?

[gdcox]

Graham

This raises the issue of land versus build costs.
For houses in ares not blighted by over-development or other excesses of the boom years (such as excessive developer profits), the brunt of the fall in the value of a house should be in the part of the house price that is the land value.

But do not the insurance polices for the burnt houses just over the re-build cost and owners only get screwed if they were under insured for that?

[gdcox]

Graham

Reading these columns in recent weeks I get the idea that everyone is addicted to fixed rate mortgages.

To get the Bernanke put for housing you are all going to have to get used to ARMs (standard ones I mean and ot the rip-off teaser type) to get the benefit.

If anything, the more Bernanke acts, the greater the risk that fixed rate mortgages will become more expensive.

The mortgage lenders o seem to be bending over backwards to help with their loan to value maximums. Then $64bn question I have about the current mortgage market in SC is why are sane bakers offering mortgages anywhere near 100% to buy in sub-prime high foreclosure areas; even if your income is good. I wouldn’t lend more than 70%.

[gdcox]

Graham

Reading these columns in recent weeks I get the idea that everyone is addicted to fixed rate mortgages.

To get the Bernanke put for housing you are all going to have to get used to ARMs (standard ones I mean and ot the rip-off teaser type) to get the benefit.

If anything, the more Bernanke acts, the greater the risk that fixed rate mortgages will become more expensive.

The mortgage lenders o seem to be bending over backwards to help with their loan to value maximums. Then $64bn question I have about the current mortgage market in SC is why are sane bakers offering mortgages anywhere near 100% to buy in sub-prime high foreclosure areas; even if your income is good. I wouldn’t lend more than 70%.

[gdcox]

Graham

Reading these columns in recent weeks I get the idea that everyone is addicted to fixed rate mortgages.

To get the Bernanke put for housing you are all going to have to get used to ARMs (standard ones I mean and ot the rip-off teaser type) to get the benefit.

If anything, the more Bernanke acts, the greater the risk that fixed rate mortgages will become more expensive.

The mortgage lenders o seem to be bending over backwards to help with their loan to value maximums. Then $64bn question I have about the current mortgage market in SC is why are sane bakers offering mortgages anywhere near 100% to buy in sub-prime high foreclosure areas; even if your income is good. I wouldn’t lend more than 70%.

[gdcox]

Graham

Reading these columns in recent weeks I get the idea that everyone is addicted to fixed rate mortgages.

To get the Bernanke put for housing you are all going to have to get used to ARMs (standard ones I mean and ot the rip-off teaser type) to get the benefit.

If anything, the more Bernanke acts, the greater the risk that fixed rate mortgages will become more expensive.

The mortgage lenders o seem to be bending over backwards to help with their loan to value maximums. Then $64bn question I have about the current mortgage market in SC is why are sane bakers offering mortgages anywhere near 100% to buy in sub-prime high foreclosure areas; even if your income is good. I wouldn’t lend more than 70%.

[gdcox]

Graham

Reading these columns in recent weeks I get the idea that everyone is addicted to fixed rate mortgages.

To get the Bernanke put for housing you are all going to have to get used to ARMs (standard ones I mean and ot the rip-off teaser type) to get the benefit.

If anything, the more Bernanke acts, the greater the risk that fixed rate mortgages will become more expensive.

The mortgage lenders o seem to be bending over backwards to help with their loan to value maximums. Then $64bn question I have about the current mortgage market in SC is why are sane bakers offering mortgages anywhere near 100% to buy in sub-prime high foreclosure areas; even if your income is good. I wouldn’t lend more than 70%.

[gdcox]

Slightly off-topic, but catalyzed by your observations above, you have to remember that part of the population, something like middle single digits, are sociopaths. That is they are born without the ability to have a conscience. Not surprisingly , they are well represented in sales and , I suspect, amongst politicos. Anyway they gravitate to different parts of the economy over time and you know one place where they concentrated in the last few years. It is big shame because their personable ways hide the lie and when they decamp the real , dependable professionals in the sector they affected have their group reputation shot to pieces by association.

[gdcox]

Slightly off-topic, but catalyzed by your observations above, you have to remember that part of the population, something like middle single digits, are sociopaths. That is they are born without the ability to have a conscience. Not surprisingly , they are well represented in sales and , I suspect, amongst politicos. Anyway they gravitate to different parts of the economy over time and you know one place where they concentrated in the last few years. It is big shame because their personable ways hide the lie and when they decamp the real , dependable professionals in the sector they affected have their group reputation shot to pieces by association.

[gdcox]

Slightly off-topic, but catalyzed by your observations above, you have to remember that part of the population, something like middle single digits, are sociopaths. That is they are born without the ability to have a conscience. Not surprisingly , they are well represented in sales and , I suspect, amongst politicos. Anyway they gravitate to different parts of the economy over time and you know one place where they concentrated in the last few years. It is big shame because their personable ways hide the lie and when they decamp the real , dependable professionals in the sector they affected have their group reputation shot to pieces by association.

[gdcox]

Slightly off-topic, but catalyzed by your observations above, you have to remember that part of the population, something like middle single digits, are sociopaths. That is they are born without the ability to have a conscience. Not surprisingly , they are well represented in sales and , I suspect, amongst politicos. Anyway they gravitate to different parts of the economy over time and you know one place where they concentrated in the last few years. It is big shame because their personable ways hide the lie and when they decamp the real , dependable professionals in the sector they affected have their group reputation shot to pieces by association.

[gdcox]

Slightly off-topic, but catalyzed by your observations above, you have to remember that part of the population, something like middle single digits, are sociopaths. That is they are born without the ability to have a conscience. Not surprisingly , they are well represented in sales and , I suspect, amongst politicos. Anyway they gravitate to different parts of the economy over time and you know one place where they concentrated in the last few years. It is big shame because their personable ways hide the lie and when they decamp the real , dependable professionals in the sector they affected have their group reputation shot to pieces by association.

[Author]

Posts