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temeculaguy
ParticipantIf I were about to start a new deal right now with a tennant, I would want them to sign a two year lease too. Look at it from their perspective, there is no indication that rents will rise in the next two years and there is a possibility they will fall and you may have trouble renting it out. As houses are becoming harder to sell, more owners will become landlords, puts downward pressure on rents and harder to find quality renters. Every move costs a landlord money in advertising, cleaning and the cost of an empty unit between renters. Don’t sign a two year lease unless you get something in return. And yes, the bottom may hit in the next 24 months, don’t bring a date to this party, you’ll want to be single for this event.
ParticipantIf I were about to start a new deal right now with a tennant, I would want them to sign a two year lease too. Look at it from their perspective, there is no indication that rents will rise in the next two years and there is a possibility they will fall and you may have trouble renting it out. As houses are becoming harder to sell, more owners will become landlords, puts downward pressure on rents and harder to find quality renters. Every move costs a landlord money in advertising, cleaning and the cost of an empty unit between renters. Don’t sign a two year lease unless you get something in return. And yes, the bottom may hit in the next 24 months, don’t bring a date to this party, you’ll want to be single for this event.
Participant“These are not the droids you are you looking for”
Participant“These are not the droids you are you looking for”
ParticipantChris, you make a good point in looking at rates in 25 year cycles, maybe that is it. I didn’t research rates beyond the 1970’s nor did I do any research actually, just went off my observations of the last 4 decades. I am not in the industry, just a guy who had bought a few houses and had a few loans, I had an adjustable in the early 1990’s so I started to pay attention then. But in those 40 years it has gone up and down and yes it has trended downward overall in the last 25 years. When Reagan took office, prime was 20%. This article from time magazine in 1982 goes into some specifics and speaks of 6% mortgages as the halcyon days (golden days). My comments were just that golden days rarely become forever. I just thing that hoping that rates will always be low is the same as thinking real estate will always go up. The cycle may be longer but it is still a cycle.
ParticipantChris, you make a good point in looking at rates in 25 year cycles, maybe that is it. I didn’t research rates beyond the 1970’s nor did I do any research actually, just went off my observations of the last 4 decades. I am not in the industry, just a guy who had bought a few houses and had a few loans, I had an adjustable in the early 1990’s so I started to pay attention then. But in those 40 years it has gone up and down and yes it has trended downward overall in the last 25 years. When Reagan took office, prime was 20%. This article from time magazine in 1982 goes into some specifics and speaks of 6% mortgages as the halcyon days (golden days). My comments were just that golden days rarely become forever. I just thing that hoping that rates will always be low is the same as thinking real estate will always go up. The cycle may be longer but it is still a cycle.
ParticipantContraman is right but they may do more than just talk, they may throw in a token regulation or two that will only affect a small fraction of the market but give the appearance that consumer protection and forclosure protective measures were enacted. Something that will appease certain interest groups like advocates for the poor. My guess is that they will limit prepayment penalties but put the limit at where 95% of subprime loans are already in compliance. Something where the media will be able to find at least one family to interview that would have been protected. Average joe can watch 60 minutes and see that regulations would have saved the smith family and they will give it a cute name like the “predatory lending act.”
In 1999 or 2000 congress passed a law about PMI protection, I was a victim of a PMI dispute at the time and followed the law while it made it’s was through the process. I had bought a house with 10% down and my lender agreed in writing that as soon as my equity exceeded 20% they would drop the PMI but there was a one year minimum of PMI, since I dropped a deposit and secured the price six months before closing and prices were going up rapidly the price had almost gone up 10% by the time I moved in. I paid an appraiser of their choice at my one year anniversary of the loan who determined I had more than 30% equity, but the lender said that they changed the rule to 2 years minimum regardless of equity (of course after I paid the appraiser). The PMI law was passed but it had a clause that only loans originated after the law was enacted were eligible for the new rule. They don’t pass laws that cost financial institutions money and will allow them to price in the new rules.
My guess is that whatever the market mostly eliminates on it’s own, they will conveniently decide that will be what they make a rule about.
ParticipantContraman is right but they may do more than just talk, they may throw in a token regulation or two that will only affect a small fraction of the market but give the appearance that consumer protection and forclosure protective measures were enacted. Something that will appease certain interest groups like advocates for the poor. My guess is that they will limit prepayment penalties but put the limit at where 95% of subprime loans are already in compliance. Something where the media will be able to find at least one family to interview that would have been protected. Average joe can watch 60 minutes and see that regulations would have saved the smith family and they will give it a cute name like the “predatory lending act.”
In 1999 or 2000 congress passed a law about PMI protection, I was a victim of a PMI dispute at the time and followed the law while it made it’s was through the process. I had bought a house with 10% down and my lender agreed in writing that as soon as my equity exceeded 20% they would drop the PMI but there was a one year minimum of PMI, since I dropped a deposit and secured the price six months before closing and prices were going up rapidly the price had almost gone up 10% by the time I moved in. I paid an appraiser of their choice at my one year anniversary of the loan who determined I had more than 30% equity, but the lender said that they changed the rule to 2 years minimum regardless of equity (of course after I paid the appraiser). The PMI law was passed but it had a clause that only loans originated after the law was enacted were eligible for the new rule. They don’t pass laws that cost financial institutions money and will allow them to price in the new rules.
My guess is that whatever the market mostly eliminates on it’s own, they will conveniently decide that will be what they make a rule about.
ParticipantInitially I was confused because I only read the article and wondered why it made you ill, then I saw the image link and saw the equivalent of a Paris Hilton for poisoned Kool-Aid ad.
That article was written by a realtor, it was sensible, cogent and easy to understand, are you sure it is really from a realtor, he must be a closet pigintonian. He is going to get beat up at the next caravan for those blasphemous rumors. I guess I’ve seen everything now, a realtor with his picture, website link and e-mail listed in plain view telling people not to believe the median and the market is going to hell in a handbasket. Now tomorrow if I read the headline in the paper “Realtor beaten and sodomized by co-workers” I’ll know why.
ParticipantInitially I was confused because I only read the article and wondered why it made you ill, then I saw the image link and saw the equivalent of a Paris Hilton for poisoned Kool-Aid ad.
That article was written by a realtor, it was sensible, cogent and easy to understand, are you sure it is really from a realtor, he must be a closet pigintonian. He is going to get beat up at the next caravan for those blasphemous rumors. I guess I’ve seen everything now, a realtor with his picture, website link and e-mail listed in plain view telling people not to believe the median and the market is going to hell in a handbasket. Now tomorrow if I read the headline in the paper “Realtor beaten and sodomized by co-workers” I’ll know why.
ParticipantHow could a group of highly intelligent people who all see that housing cannot remain beyond normal highs and not see that interest rates cannot remain beyond normal lows. Look around, you people are are the ones who did homework and still do it. Regardless of your age, education or wealth, you find it entertaining to do more in your free time than is required to get a degree in economics. Almost everyone here will be successful, whatever the future brings because you are not the ones who wait to do what experts tell you, in many cases I’ve seen more insight in some of your writings than mainstream media writers. I won’t cite all the reason rates are required to return to at least a normal rate, regardless of what the fed or the federal government wants. It just is, accept that cycles exist and they do what they are supposed to, cycle. Low rates are good for some, bad for others, high rates, the same. Rising housing prices are good for some, bad for others, low prices, the same. The most obvious part of this patern is that it is a patern, do I have to quote some Lao Tzu to get you to realize that cycles have always existed.
Stop worrying, do what Perry says and figure out how to make whatever comes work to your advantage, life may give you lemons, oranges or apples, who cares, just figure out how to make juice.
ParticipantHow could a group of highly intelligent people who all see that housing cannot remain beyond normal highs and not see that interest rates cannot remain beyond normal lows. Look around, you people are are the ones who did homework and still do it. Regardless of your age, education or wealth, you find it entertaining to do more in your free time than is required to get a degree in economics. Almost everyone here will be successful, whatever the future brings because you are not the ones who wait to do what experts tell you, in many cases I’ve seen more insight in some of your writings than mainstream media writers. I won’t cite all the reason rates are required to return to at least a normal rate, regardless of what the fed or the federal government wants. It just is, accept that cycles exist and they do what they are supposed to, cycle. Low rates are good for some, bad for others, high rates, the same. Rising housing prices are good for some, bad for others, low prices, the same. The most obvious part of this patern is that it is a patern, do I have to quote some Lao Tzu to get you to realize that cycles have always existed.
Stop worrying, do what Perry says and figure out how to make whatever comes work to your advantage, life may give you lemons, oranges or apples, who cares, just figure out how to make juice.
ParticipantA lot of schools let out this week, if you have kids it’s a pain to move during the school year, that is why there is always an uptick at the beginning of the academic summer. Usually the buyers come out now too, if they don’t the end of the summer will be very interesting.
ParticipantA lot of schools let out this week, if you have kids it’s a pain to move during the school year, that is why there is always an uptick at the beginning of the academic summer. Usually the buyers come out now too, if they don’t the end of the summer will be very interesting.
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