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patientrenter
ParticipantScarlett,
I was saying that your situation is an example of why our system is nuts. Why? For one, because you say that you won’t be able to increase your downpayment much over the next few years, so that means you have little future savings available to pay for housing. Since you also don’t have the current price of what you want to buy in cash, my conclusion is that you cannot afford to buy a house for that price. You don’t have the money now, nor do you have the saving power necessary to pay for it in the near future. Yet you consider it normal and rational to buy it anyway. You probably are not unusual. That this kind of behavior is normal in our society is, to me, nuts.
Now, there is a second reason why your situation shows that our system is nuts. You earn a good income, and hopefully have some (small) saving power, so you can afford a modestly priced home. That a modestly priced home is one that few middle class professionals would want to live in is also nuts. It’s the radical overpricing of housing problem. The causes are many, but the vast river of govt money going into measures designed to support sky-high home prices certainly doesn’t help. Without that river, you could actually afford a decent home at a decent price. Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.
patientrenter
ParticipantScarlett,
I was saying that your situation is an example of why our system is nuts. Why? For one, because you say that you won’t be able to increase your downpayment much over the next few years, so that means you have little future savings available to pay for housing. Since you also don’t have the current price of what you want to buy in cash, my conclusion is that you cannot afford to buy a house for that price. You don’t have the money now, nor do you have the saving power necessary to pay for it in the near future. Yet you consider it normal and rational to buy it anyway. You probably are not unusual. That this kind of behavior is normal in our society is, to me, nuts.
Now, there is a second reason why your situation shows that our system is nuts. You earn a good income, and hopefully have some (small) saving power, so you can afford a modestly priced home. That a modestly priced home is one that few middle class professionals would want to live in is also nuts. It’s the radical overpricing of housing problem. The causes are many, but the vast river of govt money going into measures designed to support sky-high home prices certainly doesn’t help. Without that river, you could actually afford a decent home at a decent price. Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.
patientrenter
ParticipantScarlett,
I was saying that your situation is an example of why our system is nuts. Why? For one, because you say that you won’t be able to increase your downpayment much over the next few years, so that means you have little future savings available to pay for housing. Since you also don’t have the current price of what you want to buy in cash, my conclusion is that you cannot afford to buy a house for that price. You don’t have the money now, nor do you have the saving power necessary to pay for it in the near future. Yet you consider it normal and rational to buy it anyway. You probably are not unusual. That this kind of behavior is normal in our society is, to me, nuts.
Now, there is a second reason why your situation shows that our system is nuts. You earn a good income, and hopefully have some (small) saving power, so you can afford a modestly priced home. That a modestly priced home is one that few middle class professionals would want to live in is also nuts. It’s the radical overpricing of housing problem. The causes are many, but the vast river of govt money going into measures designed to support sky-high home prices certainly doesn’t help. Without that river, you could actually afford a decent home at a decent price. Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.
patientrenter
Participant[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]
Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.
patientrenter
Participant[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]
Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.
patientrenter
Participant[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]
Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.
patientrenter
Participant[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]
Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.
patientrenter
Participant[quote=Scarlett]….In my case, I don’t have a big pile of cash at all, just enough for a 20% downpayment. ….. But realistically, with kids, for us is very hard to save money at a significant rate (other than for college/retirement), so our downpayment won’t increase substantially in the next couple of years. That’s why I *might* buy in the next year or so while rates are low.[/quote]
Not to pick on you Scarlett, but here is a person who cannot pay the price of a home (at least, not the home they want), and yet wants to buy one. That our system allows that is nuts.
patientrenter
Participant[quote=briansd1]Without the “infection” effect, the crisis would have been contained.[/quote]
LoL!
Yes, you can let housing become overvalued by ten trillion dollars, and lend against the overvaluation by another few trillion, and the problem is the “infection” of letting the values come back down to earth.
patientrenter
Participant[quote=briansd1]Without the “infection” effect, the crisis would have been contained.[/quote]
LoL!
Yes, you can let housing become overvalued by ten trillion dollars, and lend against the overvaluation by another few trillion, and the problem is the “infection” of letting the values come back down to earth.
patientrenter
Participant[quote=briansd1]Without the “infection” effect, the crisis would have been contained.[/quote]
LoL!
Yes, you can let housing become overvalued by ten trillion dollars, and lend against the overvaluation by another few trillion, and the problem is the “infection” of letting the values come back down to earth.
patientrenter
Participant[quote=briansd1]Without the “infection” effect, the crisis would have been contained.[/quote]
LoL!
Yes, you can let housing become overvalued by ten trillion dollars, and lend against the overvaluation by another few trillion, and the problem is the “infection” of letting the values come back down to earth.
patientrenter
Participant[quote=briansd1]Without the “infection” effect, the crisis would have been contained.[/quote]
LoL!
Yes, you can let housing become overvalued by ten trillion dollars, and lend against the overvaluation by another few trillion, and the problem is the “infection” of letting the values come back down to earth.
patientrenter
ParticipantPK is a hard-left political commentator – the left’s predictable answer to the right’s predictable Rush Limbaugh – who happens to be a very good economist in his private life.
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