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kev374
Participantdoesn’t interest rates rise lockstep with inflation? If so, higher interest rates should keep the value of savings in the bank.
ParticipantCheck out this property:
An almost $100,000 price reduction and a loss of over $25,000. Motivated sellers are slowly coming out of the closet. Patience is key in this market because it is falling pretty quick.
ParticipantCheck out this property:
An almost $100,000 price reduction and a loss of over $25,000. Motivated sellers are slowly coming out of the closet. Patience is key in this market because it is falling pretty quick.
ParticipantI always hear this, but infact every neighborhood I have lived in, has had the same neighbors for YEARS. I find this hard to believe
Probably right. It’s prohibitively expensive to sell a house/move at the current price points, transaction costs and increased tax basis will not make it possible for most.
I know a few friends who want a bigger place but are STUCK in their homes because they cannot afford to upgrade even though they bought 7-10yrs ago.
ParticipantI always hear this, but infact every neighborhood I have lived in, has had the same neighbors for YEARS. I find this hard to believe
Probably right. It’s prohibitively expensive to sell a house/move at the current price points, transaction costs and increased tax basis will not make it possible for most.
I know a few friends who want a bigger place but are STUCK in their homes because they cannot afford to upgrade even though they bought 7-10yrs ago.
ParticipantThis is all inevitable however what we should be concerned is the fallout. These types of statistics cannot be good for employment and that affects all of us.
ParticipantThis is all inevitable however what we should be concerned is the fallout. These types of statistics cannot be good for employment and that affects all of us.
Participantcheck out westsiderentals.com
Participantcheck out westsiderentals.com
ParticipantThe idea is to lock in a fixed payment as opposed to being exposed to rapidly rising rents. After the 10 yr interest only period ends there is a reset but the buyer speculates that his salary would have increased by then but rents would have also increased tremendously (especially considering rents have been increasing 8-10% annually in South OC). He also speculates that 10yrs is a long enough time to ride out any temporary dip in prices. In addition for buyers in the high tax bracket who itemize anyway to deduct state taxes, the deduction of the entire IO payment is attractive since you recoup 37% of the payment back (assuming no AMT issues).
Personally I don’t like IO but I can see how some loan officers manage to convince their customers with these selling points.
ParticipantThe idea is to lock in a fixed payment as opposed to being exposed to rapidly rising rents. After the 10 yr interest only period ends there is a reset but the buyer speculates that his salary would have increased by then but rents would have also increased tremendously (especially considering rents have been increasing 8-10% annually in South OC). He also speculates that 10yrs is a long enough time to ride out any temporary dip in prices. In addition for buyers in the high tax bracket who itemize anyway to deduct state taxes, the deduction of the entire IO payment is attractive since you recoup 37% of the payment back (assuming no AMT issues).
Personally I don’t like IO but I can see how some loan officers manage to convince their customers with these selling points.
ParticipantDid Thornberg say declines of 15-16%? That’s way too pessimistic considering houses went up 130% in the last 5 yrs. I say minimum of 40-50% declines to revert to mean.
In the past prices have reverted to mean, there is no reason to believe that “this time it is different”.
May 15, 2007 at 12:56 PM in reply to: DR Horton Slashes prices $100k in Murrieta, Menifee, Wildomar and more in … #52912Participantthose neighborhoods are worthless and severely overpriced anyway. Houses that used to cost $75k there in 1997 now cost $400k and they slash it $100k.. not too exciting, they need to slash it like $250k for it to even be a reasonable deal considering that it is the boon docks!
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