[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

How low could it go? Its possible that it could get low enough for you to (theoretically) put 5% down, rent it out, and break even on the cash flow (including repairs, vacancy, taxes, advertising, etc). But no one knows if that will happen.

What you do know is that you have the opportunity to own for the same price as renting. If you like the house, you have a stable job, you won’t be struggling to make the payments, and plan to live there for many years (say, 10 or more), then I see very little risk in buying it. Personally, I would go for it.

[ltokuda]

I mentioned that to him and hopefully he'll start including CS HPI numbers.

What bothers me is not the fact that he's reporting the median price – that's okay.  But his conclusion was that prices were rising all the way into 2007 and came crashing down after that.  He thinks that prices have been declining for only 11 months.  All of the Piggies who have been around a while know that this is untrue.  So for an "expert" to come out an make that kind of fundamental error is, for me, a tell-tale sign that he's not to be trusted.

 

[ltokuda]

I mentioned that to him and hopefully he'll start including CS HPI numbers.

What bothers me is not the fact that he's reporting the median price – that's okay.  But his conclusion was that prices were rising all the way into 2007 and came crashing down after that.  He thinks that prices have been declining for only 11 months.  All of the Piggies who have been around a while know that this is untrue.  So for an "expert" to come out an make that kind of fundamental error is, for me, a tell-tale sign that he's not to be trusted.

 

[ltokuda]

I mentioned that to him and hopefully he'll start including CS HPI numbers.

What bothers me is not the fact that he's reporting the median price – that's okay.  But his conclusion was that prices were rising all the way into 2007 and came crashing down after that.  He thinks that prices have been declining for only 11 months.  All of the Piggies who have been around a while know that this is untrue.  So for an "expert" to come out an make that kind of fundamental error is, for me, a tell-tale sign that he's not to be trusted.

 

[ltokuda]

I mentioned that to him and hopefully he'll start including CS HPI numbers.

What bothers me is not the fact that he's reporting the median price – that's okay.  But his conclusion was that prices were rising all the way into 2007 and came crashing down after that.  He thinks that prices have been declining for only 11 months.  All of the Piggies who have been around a while know that this is untrue.  So for an "expert" to come out an make that kind of fundamental error is, for me, a tell-tale sign that he's not to be trusted.

 

[ltokuda]

I mentioned that to him and hopefully he'll start including CS HPI numbers.

What bothers me is not the fact that he's reporting the median price – that's okay.  But his conclusion was that prices were rising all the way into 2007 and came crashing down after that.  He thinks that prices have been declining for only 11 months.  All of the Piggies who have been around a while know that this is untrue.  So for an "expert" to come out an make that kind of fundamental error is, for me, a tell-tale sign that he's not to be trusted.

 

[ltokuda]

I thought it was a bad sign that Mr. Mortgage was referencing the median price instead of the Case-Shiller HPI. He didn’t seem to understand that the median price continued to rise into 2007 because of a change in the mix of sales. He also didn’t seem to understand that the rapid fall in the median price since its 2007 peak was exaggerated due to a change in the mix of sales. It suggests to me that this person might not be too thorough with his research. I’d have a hard time trusting his conclusions.

[ltokuda]

I thought it was a bad sign that Mr. Mortgage was referencing the median price instead of the Case-Shiller HPI. He didn’t seem to understand that the median price continued to rise into 2007 because of a change in the mix of sales. He also didn’t seem to understand that the rapid fall in the median price since its 2007 peak was exaggerated due to a change in the mix of sales. It suggests to me that this person might not be too thorough with his research. I’d have a hard time trusting his conclusions.

[ltokuda]

I thought it was a bad sign that Mr. Mortgage was referencing the median price instead of the Case-Shiller HPI. He didn’t seem to understand that the median price continued to rise into 2007 because of a change in the mix of sales. He also didn’t seem to understand that the rapid fall in the median price since its 2007 peak was exaggerated due to a change in the mix of sales. It suggests to me that this person might not be too thorough with his research. I’d have a hard time trusting his conclusions.

[ltokuda]

I thought it was a bad sign that Mr. Mortgage was referencing the median price instead of the Case-Shiller HPI. He didn’t seem to understand that the median price continued to rise into 2007 because of a change in the mix of sales. He also didn’t seem to understand that the rapid fall in the median price since its 2007 peak was exaggerated due to a change in the mix of sales. It suggests to me that this person might not be too thorough with his research. I’d have a hard time trusting his conclusions.

[ltokuda]

I thought it was a bad sign that Mr. Mortgage was referencing the median price instead of the Case-Shiller HPI. He didn’t seem to understand that the median price continued to rise into 2007 because of a change in the mix of sales. He also didn’t seem to understand that the rapid fall in the median price since its 2007 peak was exaggerated due to a change in the mix of sales. It suggests to me that this person might not be too thorough with his research. I’d have a hard time trusting his conclusions.

[ltokuda]

First, I would ask if the house is owner occupied. If not, then I would view the property as a business investment.

Next, I would ask if the owner had the income necessary to service the mortgage payments (after any teaser rates expire) when he purchased the house. If not, then the owner was either betting that the house would appreciate in value or that he would somehow earn more money in the future. Either way, its speculative.

[ltokuda]

First, I would ask if the house is owner occupied. If not, then I would view the property as a business investment.

Next, I would ask if the owner had the income necessary to service the mortgage payments (after any teaser rates expire) when he purchased the house. If not, then the owner was either betting that the house would appreciate in value or that he would somehow earn more money in the future. Either way, its speculative.

[ltokuda]

First, I would ask if the house is owner occupied. If not, then I would view the property as a business investment.

Next, I would ask if the owner had the income necessary to service the mortgage payments (after any teaser rates expire) when he purchased the house. If not, then the owner was either betting that the house would appreciate in value or that he would somehow earn more money in the future. Either way, its speculative.

[Author]

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