[no_such_reality]

Any meddling to maintain the prices will result in hyperinflation. In also results in punishing anybody that didn’t participate in an irrational market.

The chips need to fall where they fall without an attempt to artificially maintain an unsustainable situation.

[no_such_reality]

On one hand, folks complain about being outsourced to cheaper labor. On the other hand, folks aren’t willing to pay more. Why buy a $20 craftsman tool set from sears made in USA when you can buy the $4.99 special from walmart made in china?

F_L_U good point about the buying complaining hypocrisy.

Like the auto industry, sadly, the additional cost in many American made products provide little if any additional benefit to the casual user. More importantly, the casual American’s disposable mindset fits better with building junk that lasts one to two years than it does with building something that will last twenty.

Who knows maybe a twenty housing credit bubble hangover will due the US good.

[no_such_reality]

On one hand, folks complain about being outsourced to cheaper labor. On the other hand, folks aren’t willing to pay more. Why buy a $20 craftsman tool set from sears made in USA when you can buy the $4.99 special from walmart made in china?

F_L_U good point about the buying complaining hypocrisy.

Like the auto industry, sadly, the additional cost in many American made products provide little if any additional benefit to the casual user. More importantly, the casual American’s disposable mindset fits better with building junk that lasts one to two years than it does with building something that will last twenty.

Who knows maybe a twenty housing credit bubble hangover will due the US good.

[no_such_reality]

willing to buy @ 120-150 GRM which would make it $240k-$300k townhouse.

About the same GRM for rent-saving. Much lower GRM for investment. All depending on interest rates, which are looking up up up. Particularly for any kind of documentation gap.

Currently, in Irvine in the OC, you can readily rent a $600K plus ‘home’ for $2400. After taxes, assuming 5% annual rent increases, if home prices just stay flat, after five years, I’ve saved 1/3rd by renting, $100K+. If you look outside of Irvine in the OC, the numbers are actually more in favor of renting as rents are lower by a larger amount than home prices are lower.

[no_such_reality]

willing to buy @ 120-150 GRM which would make it $240k-$300k townhouse.

About the same GRM for rent-saving. Much lower GRM for investment. All depending on interest rates, which are looking up up up. Particularly for any kind of documentation gap.

Currently, in Irvine in the OC, you can readily rent a $600K plus ‘home’ for $2400. After taxes, assuming 5% annual rent increases, if home prices just stay flat, after five years, I’ve saved 1/3rd by renting, $100K+. If you look outside of Irvine in the OC, the numbers are actually more in favor of renting as rents are lower by a larger amount than home prices are lower.

[no_such_reality]

I believe Bugs once posted something about, ‘3-4% declines per quarter’ is reasonable. Effectively these losses add up to about a 10-12% decrease per year.

That would be 12-16% per year. Prices are going to drop, and while I think 20-40% on individual homes is possible, you’ll never see that kind of drop on the sale statistics.

In all actuality, I’ll be completely happy taking 10-12% drops annually. I’ll be estatic once the typical measures and media start reporting that home values really are down 10-15%. When that happens, the herd will realize the gravy train is over. They’re getting a whif of it now with the inability to reappraise and refinance, but once they get it in their face that like for like homes are really down 10%+ and that homes in general are down, the final psychology will dramatically shift.

[no_such_reality]

I believe Bugs once posted something about, ‘3-4% declines per quarter’ is reasonable. Effectively these losses add up to about a 10-12% decrease per year.

That would be 12-16% per year. Prices are going to drop, and while I think 20-40% on individual homes is possible, you’ll never see that kind of drop on the sale statistics.

In all actuality, I’ll be completely happy taking 10-12% drops annually. I’ll be estatic once the typical measures and media start reporting that home values really are down 10-15%. When that happens, the herd will realize the gravy train is over. They’re getting a whif of it now with the inability to reappraise and refinance, but once they get it in their face that like for like homes are really down 10%+ and that homes in general are down, the final psychology will dramatically shift.

[no_such_reality]

Renting is no worse a PITA than owning or even finding an appropriate home to own. More importantly, it’s much less a PITA when you have a job change.

For $2000, you can find a slew of quality rentals.

[no_such_reality]

Renting is no worse a PITA than owning or even finding an appropriate home to own. More importantly, it’s much less a PITA when you have a job change.

For $2000, you can find a slew of quality rentals.

[no_such_reality]

Here’s a link for finding the YSP on your settlement docs: Mortgage U

[no_such_reality]

Here’s a link for finding the YSP on your settlement docs: Mortgage U

[no_such_reality]

His advise now to every single person in the US who bought a house with an 2/28 ARM: “walk away…”

No, he said when you’re upside down by 20%, it doesn’t matter if you are prime or sub-prime, wealthy or not, it makes more sense to walk away from the loan than go bankrupt.

[no_such_reality]

His advise now to every single person in the US who bought a house with an 2/28 ARM: “walk away…”

No, he said when you’re upside down by 20%, it doesn’t matter if you are prime or sub-prime, wealthy or not, it makes more sense to walk away from the loan than go bankrupt.

[no_such_reality]

It’s still the same junk bond game that Milken was famous for.

[no_such_reality]

It’s still the same junk bond game that Milken was famous for.

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