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spdrun
ParticipantWhy can’t you co-sign the mortgages against existing properties then purchase the new property jointly, also co-signing the note?
ParticipantYeah, it’s just starting to thaw now from what the article said…Maybe we hit the bottom for 1st time buyers last week and it’s up and up now!
Hopefully it will be a brief thaw and the twitter-twit generation will keep renting for life, as is their proper place 🙂
One week of data don’t make a trend. U-T was rather skeptical about first time buyers last week:
http://www.utsandiego.com/news/2015/jan/27/us-home-price-gains-slow-in-november-on-weaker/
ParticipantEver cleaned a castle of the detritus of ten years of partying, sex, coke, and booze? Easier to clean out the Aegean stables.
Participantjoec- Fed funds rate has been at 0% since, what, 2009? Yet the 30-year has fluctuated between 3.5% and 5.2% during that period. 5.5 to 6% is easily possible with a 0.5 to 1.0% Fed funds rate.
FlyerInHI- exactly my point. SD real estate could be affected by any change in policy more than property in cheaper areas.
ParticipantNew York Times said the opposite last week:
Considering that lending terms were (only slightly) eased last month, there’s unlikely to be much data on how the market is affected by it for another month or two.
ParticipantEven 5-6% would do it, since affordability in San Diego sucks at present. A little bit is enough to gently nudge people into not qualifying, unlike in other markets where median income and price are more in line. As well as reduce the spread between income from holding property and income from interest, making property less attractive.
And if you don’t think the Fed is a political animal, you’e kidding yourself. How do members of the board get appointed and confirmed? 🙂
ParticipantI’d argue that smart business leaders love a recession, since it’s just an opportunity to outlast or buy weaker competition. They understand that it’s part of a cycle which can be timed for maximum growth of their business.
It’s like seasonal change for farmers. Winter provides a time to rest, repair equipment, purchase new equipment, etc compared to the frenetic activity of the other seasons.
ParticipantLots pressure from the GOP against the Federal Reserve? It’s all meaningless political talk for simpletons.
Push comes to shove, Wall Street and business groups want QE and an environment that is conducive to consumer spending and growth.
You’re both over- and under-estimating human rationality. On the one hand, a slowdown right now will make the sitting President look bad and make it less likely that anyone from his party will be elected in 2016. On the other hand, the wealthy profit most from a pump-and-dump, boom-and-bust cycle. Buy assets low, wait till the chumps start buying, driving prices up, dump the assets, repeat when the cycle repeats.
Wall Street loves volatility, whether they care to admit it or not. Especially if said volatility is somewhat predictable and can be timed well.
ParticipantWhy would I want to sell my homes and “fire” borrowed money from Fannie that I currently “employ” to work generating income for me, when I wouldn’t be able to “rehire” borrowed from Fannie (or any other source) to “work” in a 10% CD?
You’re not thinking like the average homeowner, who thinks in terms of resale value, not rental income. Values are dictated by the market. Most people don’t buy with cash, and won’t qualify at a higher rate at current price levels.
Whether rates will rise is a different question, but there’s certainly a lot of political pressure against further QE at this point, and things like 3% down are also being brought into question. Yay GOP!
January 31, 2015 at 8:56 AM in reply to: Great Summary of the American Dream – Top List (ZeroHedge) #782478ParticipantBy that asinine argument, we should dump all of our environmental and workplace safety rules because we can’t compete on a global basis with the Chinese if we keep them. We’ll have a manufacturing economy again, even if you’ll be able to cut out blocks of air with a knife and have workers working in Industrial Age conditions. Like it or not, working hours and time off are health and safety issues.
ParticipantAs it should be. In a volatile market like Southern CA, some cushion to keep homes from ending up underwater should be required.
January 30, 2015 at 8:23 PM in reply to: Real Estate Descriptions that you’ve seen before…..here’s what they mean #782467ParticipantWait, Amtrak trains run every 15 minutes? Do you mean SNCF or DB train?
January 30, 2015 at 8:05 PM in reply to: Great Summary of the American Dream – Top List (ZeroHedge) #782466ParticipantI disagree — there are plenty of knowledge worker jobs in countries that enforce more severe restrictions on time off and working hours. Most of the world other than the US and Asia, in fact.
People are pushed to work long hours with less time off because the law allows it. If the law didn’t permit it, the market and job descriptions would adjust.
January 30, 2015 at 7:50 PM in reply to: Great Summary of the American Dream – Top List (ZeroHedge) #782463ParticipantI don’t either. But what’s worrisome is that the recent trend is to longer hours, less time off, with less participation. Meaning the working world is polarizing to either jobs with unreasonable demands or no job at all. I think we can agree that that’s a bad thing.
I’d rather see higher participation but lower average annual hours.
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