[PerryChase]

I think it’s helpful to look at the car market as an analogy to the housing market.

Someone leases a car but can no longer make the car payments. He can’t afford to dump it because he has no equity. So he turns the car back in to the the finance company. The finance company in turns dumps it to the dealership who turns around and marks the car right back up to the retail price.

The price depreciation and discounts and cars don’t appear until later in the cycle because you need large inventory to build up first.

Same with houses, except that houses last much longer than cars so the hang-over will last longer.

Homeowners can’t make the payments but can’t rent for cheap. They keep on asking high rents to cover their mortgages until the houses sit and sit and sit. Rents will go down when enough inventory builds up and the assets are transferred to owners with lower carrying costs. We are just in 1 1/2 of the real estate downturn so it’s not surprising to see slightly higher rents.

The mentality of the homeowner is “it’s not worth renting if I’m still losing money every month.” His house will eventually be foreclosed.

I predict rents lower in a couple of years. I’ll let time prove me right.

[PerryChase]

I heard that realtytrac.com provides that info. But since I don’t subscribe, I don’t know if it’s only for foreclosure properties or all properties. Can anyone clarify?

Foreclosureradar.com is another site.

If you can get the info online, you don’t need to waste gas or time driving to the County Recorder’s office. Why not ask your trusted Realtor? She may have access to information services with that info.

[PerryChase]

I heard that realtytrac.com provides that info. But since I don’t subscribe, I don’t know if it’s only for foreclosure properties or all properties. Can anyone clarify?

Foreclosureradar.com is another site.

If you can get the info online, you don’t need to waste gas or time driving to the County Recorder’s office. Why not ask your trusted Realtor? She may have access to information services with that info.

[PerryChase]

On the subject of love, what you love today you might hate tomorrow.

I used to like the Mediteranean, Spanish/Tuscan style houses. But now I hate them. I would love to have an airy modern comtemporary with lots of glass and clean architecture.

——
Rustico, how easy is it to add a bathroom in the garage? I assume the sewage drains are all in the garage. I noticed that many model home developments have restrooms in the garage accessible through a side door. When they sell the model house, they remove the restroom.

I think the concept of a dual use garage/bedroom/study is interesting. I remember some TV show where the main character would drive right into his living room.

[PerryChase]

On the subject of love, what you love today you might hate tomorrow.

I used to like the Mediteranean, Spanish/Tuscan style houses. But now I hate them. I would love to have an airy modern comtemporary with lots of glass and clean architecture.

——
Rustico, how easy is it to add a bathroom in the garage? I assume the sewage drains are all in the garage. I noticed that many model home developments have restrooms in the garage accessible through a side door. When they sell the model house, they remove the restroom.

I think the concept of a dual use garage/bedroom/study is interesting. I remember some TV show where the main character would drive right into his living room.

[PerryChase]

I just checked the agreement on my rental and I don’t have that provision. Something to remedy.

If were a tenant, I’d be pissed if 6 months into the agreement I were asked to show the house. I’d go to court rather than let some strangers disrupt my life.

Just finished watching WSJ with Bartiromo. The housing slump was big news. Her final advice is “buy the house you love, never time the market.” She repeated that several times. Sounds like an ad for the REIC.

[PerryChase]

I just checked the agreement on my rental and I don’t have that provision. Something to remedy.

If were a tenant, I’d be pissed if 6 months into the agreement I were asked to show the house. I’d go to court rather than let some strangers disrupt my life.

Just finished watching WSJ with Bartiromo. The housing slump was big news. Her final advice is “buy the house you love, never time the market.” She repeated that several times. Sounds like an ad for the REIC.

[PerryChase]

Rustico, does the contract require showing? I need to read it first. (I’ve not rented since my college days so I don’t know if that’s a standard provision of rental agreements these days).

Do you need the rent money? I think you need the money more than I need the house. Aren’t you the one attempting a short sale?

(Hope you don’t mind my sense of humor)

[PerryChase]

Rustico, does the contract require showing? I need to read it first. (I’ve not rented since my college days so I don’t know if that’s a standard provision of rental agreements these days).

Do you need the rent money? I think you need the money more than I need the house. Aren’t you the one attempting a short sale?

(Hope you don’t mind my sense of humor)

[PerryChase]

Good advise all around bugs. I appreciate that you’re choosing to be impartial.

When I read your posts, I always hear the voice of reason backed-up by decades in Real Estate. You’re gone through the ups and downs of real estate and you’ve got the wisdom to show.

We should sit back and let the market go where it may. In the mean time, we observe the market carefully and make the best financial decisions we can. Warm and fuzzy is generally not wise. Rarely can you have it both ways.

[PerryChase]

Good advise all around bugs. I appreciate that you’re choosing to be impartial.

When I read your posts, I always hear the voice of reason backed-up by decades in Real Estate. You’re gone through the ups and downs of real estate and you’ve got the wisdom to show.

We should sit back and let the market go where it may. In the mean time, we observe the market carefully and make the best financial decisions we can. Warm and fuzzy is generally not wise. Rarely can you have it both ways.

[PerryChase]

I’m with HLS. You have plenty of time.

Remember, as the tenant, the home is YOUR home for as long as you’re paying rent. You don’t need to facilitate the sale and make sure that the lender knows that you’re the tenant (so the lender doesn’t think that the owner is selling his personal residence. You know, people lie).

If I were you, I’d flatly refuse to show the house to potential buyers. You’re entitled to undisturbed enjoyment of the property you’re paying for.

[PerryChase]

I’m with HLS. You have plenty of time.

Remember, as the tenant, the home is YOUR home for as long as you’re paying rent. You don’t need to facilitate the sale and make sure that the lender knows that you’re the tenant (so the lender doesn’t think that the owner is selling his personal residence. You know, people lie).

If I were you, I’d flatly refuse to show the house to potential buyers. You’re entitled to undisturbed enjoyment of the property you’re paying for.

[PerryChase]

luchabee, are you working for a bank?

If I bought at the peak and my house went down 30% and I had no equity, I’d walk, no matter what financial situation I were in. If I have equity and want to protect it, that’s another story altogether.

Like I said, walking is an option provided by the loan agreement and is no indication of financial “responsibility.”

The financially responsible thing to do is walk, rent, then buy another house when prices come down. It’s possible to plan an early, orderly departure rather than wait for the Marshall to come and evict you in front of all the neighbors.

Working three jobs to keep a facade seem to me like the irresponsible thing to do. All your money goes to the bank and you have no time for yourself or your family.

Wow, this is kinda like Iraq now that I think about it. 😉

[PerryChase]

luchabee, are you working for a bank?

If I bought at the peak and my house went down 30% and I had no equity, I’d walk, no matter what financial situation I were in. If I have equity and want to protect it, that’s another story altogether.

Like I said, walking is an option provided by the loan agreement and is no indication of financial “responsibility.”

The financially responsible thing to do is walk, rent, then buy another house when prices come down. It’s possible to plan an early, orderly departure rather than wait for the Marshall to come and evict you in front of all the neighbors.

Working three jobs to keep a facade seem to me like the irresponsible thing to do. All your money goes to the bank and you have no time for yourself or your family.

Wow, this is kinda like Iraq now that I think about it. 😉

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