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PerryChase
ParticipantYeah, I don’t understand why people took on ARMs in 2003-2005 when interest rates where at their lowest.
It doesn’t make sense unless the ARMs (most specifically interest only ARMs) were the only things they could afford.
If that’s the reason, then any upward adjustment in monthly payments will cause real hardship.
Another point to consider is that buyers took on ARMs because they never planned on holding that debt beyond the initial “sweet” period. That means they were counting on appreciation to sell at a profit of refinance later.
Now that the market is down, all those buyers will be facing trouble.
Last year, I visited a project and the loan officer told me that nearly 100% of the buyers were 0% down ARM borrowers.
ParticipantThe weather in San Diego is worse now that it used to be 20 years ago. When I came to San Diego in 1986, we rarely needed air conditioning. Now, because of global warming, I’m having to use A/C in the summer, and I live near the coast.
We’re not even started on the downward slide. If you go to dinner parties, we can still hear people talking about real estate investments, albeit with caution. It won’t hit the general public that RE is down, until they experience the financial pain of having to sell.
ParticipantWarren Buffet lived with his mistress with his wife’s approval. Susan Buffet setup Warren with Astrid Menks and they signed their holiday cards with all three names. If it works for them, then that’s all that counts. Not a mistake in my book.
Participantsdrealtor, I agree that it takes 3 house purchases before you can find the best one for you.
I remember a poster here who said that the didn’t care what the statistics show. He looks at the market “with his feet” and researches the neighborhoods that he likes. He compares price history and rents then decides when it’s the right time to buy. I too believe that’s the best approach. Who cares what Greenspan or Bernanke say? All real-estate is local.
I’ve been looking at different neighborhoods that I like. The nice thing about the Internet it that it takes you from one property to the next and the next. I now have a pretty good idea of where prices are headed. We’ve only started on the downward slide so I’m pretty sure that another 20% drop is coming.
ParticipantOne thing is not yet quite clear to me is why would the Europeans support a strong Euro? Don’t they have export and employment to worry about?
ParticipantWhy work until I am ready to drop dead at 70 when I can retire like a king in my mid 40’s and have great weather and gorgeous women?
You’re right about that. I think that Chile is also a stable country on the way up. I have to go and check it out. There’s a Chinese saying that you need “parameters” for everything in life. That is one needs higher levels of certain qualities to compensate for defects that one might have. If a woman lacks beauty, she’d better have a pleasant personality. If a man is not handsome, he’d better be rich. I find foreign women beautiful and pleasant. Beautiful American women (of all races) are demanding and stuck-up. It’s all relative but once you’re experienced great service with delicious food, you don’t want to return to the old bad restaurant. (Alright, go ahead, lay it on me for generalizing).
Lindi, I’m not sure that builders pay high WC rates. Most of them subcontract their work out so it’s “out of sight, out of mind.” The building industry, like agriculture, would not do well without immigrant laborers.
ParticipantWhere are they? Can you give us a link?
Participantjg, once suggested that it’s “moral decay” that’s causing high prices on the coasts. If we all turn born-again, then prices will drop and we can all have wholesome lives with affordable homeownership. 🙂
December 1, 2006 at 11:43 AM in reply to: Loved the house, hate the agent, do I have to use him? #40933ParticipantLulu, when you say that you hate to put-off buying a house for that long (1 year), you’re acting on emotions. One year is NOT long.
Since you’re newly married, you probably have some notions of a perfect marriage that includes homeownership.
Try to think cold-hard cash and make your decision based on how much you’d save (for your family’s future) if you rented. If you’re prepared to pay $3500 in interest, property taxes and HOA each month, you can rent a much nicer house in a nicer neighborhood for the same amount.
ParticipantMixxalot, where would you buy in South America? Just curious. A friend of mine bought an old house in Costa Rica and renovated it in turn-of-the-century-style — simply beautiful.
ParticipantI believe that in the 1950s there wasn’t much of a difference between California and the heartland. The price gap widened more and more in the last 50 years.
My theory is that new immigrants on the Coasts drove up prices. Most immigrant come from poor countries where the home price to income ratio is very high. Relative to income, houses are cheap in America. I believe, this along with other reasons explains the home prices in coastal metropolitan areas.
For example, lets look at Little Saigon in Orange County (Santa Ana, Garden Grove area). Vietnamese immigrants are willing to pay $700k lousy old houses. Houses in Vietnam cost about $100k but income is only about $100-$200 per month. How do people manage? They stretch and find ways.
It’s the same for Hispanic, Chinese, Eastern European, and other immigrants.
November 30, 2006 at 1:20 PM in reply to: Loved the house, hate the agent, do I have to use him? #40863ParticipantI wish that we had a hybrid system where sellers would show their own houses. For example, buyers could search for houses on site such as ziprealty.com. Once they find and view the house they love, they could contract with an agent so submit the offer.
I believe that buying a house is much easier than selling one, especially in a down market.
Participantbgates, I admire your steadfast adherence to American ideals. I’m more pragmatic.
It’s true that despite the French’s egalitarian ideals, they love power (especially during the colonial era).
If it takes going all out, imposing a state of auterity, reintroducing the draft, raising taxes and sending all the troops necessary to secure and pacify Iraq, I’m all for it. I’m willing to put in my share of the cost. However, I don’t think that the president will call for that. I don’t think that the public would accept such sacrifice unless Bush came up with some more convincing arguments. So far the president has not asked for any sacrifice to support the Iraq war.
Muddling through won’t work. Sending reinforcements here and there will only be throwing goods men after good men. Asking Iran and Syria to help won’t work either because they are already signaling they aren’t that willing to help.
Failing a winning strategy, it’s time to find a face-saving way out.
ParticipantYeah, 25% increase is crazy. Time to move.
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