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PerryChase
ParticipantI find it surprising that you’d want to stay in that neighborhood and watch it go down, down… ?
PerryChase
ParticipantI’m going to take Barnaby’s side on kids. I believe that he meant that they buyer should not be speculating on real estate when they have 4 kids whom they have to care for.
I feel, in many cases, people have kids for their own well being and not for the kids. Why bring more kids into the world when we can’t even provide for the ones who are already here? Why do people need others (kids, wife, husband, parents, girlfriend…) to make them happy or motivate them? Wouldn’t it be easier to find happiness and motivation from within?
The main reason people have kids is “to be happy.” That’s the wrong way to be happy. People go shopping to be happy but at least purchases can be returned.
Once children are born, they are not mistakes. They should be cherished and cared for. However, it’s better for them not to be here in the first place. Notice that I said better for them, but not necessarily for the would be parents.
August 5, 2006 at 1:05 PM in reply to: Italy’s bank dumped billions $s of Treasury bonds ahead of dollar slide #30825PerryChase
ParticipantI think that China is now where Malaysia, Thailand and South Korea were in 1997. At that time, they were mainly export economies. They had a big crash but since they they have reformed and have been able to engineer a boom in local consumer spending (with easy credit). That lifted people’s living standards and make them less dependent on exports.
When China builds it middle class and gets to a critical mass when their own consumers can consume their own products, then they won’t need to lend us money so we can buy their exports. I already see that in the cities. China is focused like a laser beam on economic development. We are focused on terrorism and gay marriage. We’d better prepare now for when credit from China is not so plentiful.
Having said that, I feel that we still have about 10 years adjust.Japan is a little different. When China becomes their biggest trading partner, they’ll need to invest even more in China. I beleive that notwithstanding the political animosities, Japan, Taiwan, South Korean and China’s economies will eventually become inextricably linked (like the EU).
PerryChase
ParticipantMurray, could it be that people are putting rental house on the market hoping to get out? What do you think will happen to rents when empty homes have to be occupied again?
August 5, 2006 at 12:46 PM in reply to: Mortgage Lender to Answer Questions that You May Have #30818PerryChase
ParticipantPlease air all the dirty laundry and tell us why borrowers might not be able to afford their loans in the next few years. Remember, you’re anonymous as long as you want to remain that way. So no one will call you at the office.
Did borrowers get in over their heads and take on debts they could not handle. How much are buyers depending on appreciation? Are they refinancing ARMs into other ARMs in order to yet again delay making higher payments? Were “investors” getting loans as “residents” then ending up with 2 mortgages?
What’s your personal take on the RE market?
August 5, 2006 at 12:21 PM in reply to: Italy’s bank dumped billions $s of Treasury bonds ahead of dollar slide #30814PerryChase
ParticipantDaniel, I would agree with you that London is the canary.
Why do you think that our Fed will pause since our deficit is so much bigger than the Brits’?Real Estate in Germany has been flat. Do you think that there’s potential there? How about a castle in Bavaria?
Did you read about the Da Vinci Code castle and other real estate investments by American realtor mogul Olivia Hsu-Decker? She made her money selling houses in NoCal and parlayed that into castles in France.
August 5, 2006 at 12:05 PM in reply to: Wall Street talk of buying “undervalued” home builders #30812PerryChase
ParticipantIf I remember well, during the 1990 downturn the national builders weren’t as large. The market was much more fragmented with countless private companies. There’s been a lot of consolidation in the home buidling/RE industry but there’s still plenty more to be done.
In 1990 S&Ls made much of the development loans. The industry crashed and they had to be bailed out a taxpayers expense. Even S&Ls were a fragmented bunch with hundreds of them making loans to builders.
Lenders did not securitize their mortgage portfolios and shift risk to the extend they do now. And there was little activity in the exotic loan business. The subprime lenders are now big business and represent a big portion of lending.
Home building used to be a local business. I beleive that this is the first decade of truly national home building.
PerryChase
ParticipantAbout GM and healthy care costs, I find it interesting that larges corporations are now moving towards supporting health care reform because some form of universal health care will allow them to shift health care costs to the public.
One reason auto-plants and other manufacturing are viable in Canada is that businesses don’t have health care expenses.
Health care is a big burden that American businesses have to shoulder.
PerryChase
ParticipantOne more hike, then pause.
Paulson just said that he’s all for a strong Dollar. With declining confidence in America around the world, we have no choice but to backup a strong Dollar. World sentiment is now against America succeeding in foreign policy and economically.
Remember Greenspan “causing” Bush Sr. to loose the elections because he kept on raising interest rates?
PerryChase
Participantwaiting hawk, i love your “people have such a short memory” link. 🙂
PerryChase
ParticipantI think it’s a super idea to have reviews a la Amazon.com.
Zip Realty should keep a database on the homes in perpetuity so history of the homes can been seen by everyone.I don’t read the marketing either… but certain buyers might like to read about the neighborhood, the neighbor from hell, the teenager who plays loud music, the flipper who lost his shirt, etc… The more information, the better.
I’m also a glass-half-empty kind of person but I believe that people make better decisions with more data, not less.
August 5, 2006 at 8:49 AM in reply to: Danger of Stated income loans, 75% of borrowers face payment shock at least 50% #30787PerryChase
ParticipantBugs, my cousin who’s a banker also tells me the same thing. Many seniors have already given away wealth to their children to help them buy houses and cars. Could it be that retiring boomers who downsize will create a glut of big houses?
August 5, 2006 at 8:39 AM in reply to: San Diego lender allows 50% debt ratio on stated income loans #30786PerryChase
ParticipantI have a feeling that drug dealers would have the cash to buy a house (at least a substantial down).
I’ve talked to mortgage brokers and my feeling is that, the professor wrote in his piece, many homeowners are speculation the their own homes. Say two single sisters live together because the normally can’t afford 2 houses. They decide to “invest” in a house so they go out and buy a new house hoping to flip it. However, the market is stagnating and they can’t get out. They can refi once more at a teaser rate, until 2-3 year s from now, when they’re so much under water that they have to sell.
I’ve heard of mortgage brokers telling clients exactly want they need to make in order to qualify. Just about all buyers were getting the maximun house that they could qualify for. I’m not surprised at the study’s findings.
Also consider all the families who ended up with 2 primary residence homes who would normally qualify just one mortgage. They’re going to be up-the-creek when the investment property doesn’t sell. I believe that this second category is much greater than we realize.
PerryChase
Participantspeedingbullet, excercise of climbing up and down the stairs is a good idea. It’s better than nothing and I’ll keep your mother-in-law mobile longer than she would otherwise be. One of my auntie is 92 and she’s in super shape from stair climbing about 20 times per day. Everybid of excercise counts.
Yes, especially inland, the 2nd story gets hot. It’s good to have an attic fan set on thermostat that draws out the air as it gets warmed up by the sun hitting the roof.
Large 2 bedroom single level homes are best for seniors in wheelchairs.
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