We wont see mortgage rates or home values this low again in our lifetime no matter how young we are!
do you know why they are so low? because our gov't is hoping to keep all the cards from tumbling, and have kept fed fund rates at .25% for over 2 years now.
the next recession we will see, our gov't will be handing out bonus money instead of charging and interest rate, if our history is any indication. it was 1% in 2002/3 and now .25%, it is imposable to go below 0% without giving said bonuses.
Last Edit: Apr 4, 2011 12:49:55 GMT -5 by maui1 - Back to Top
don't you people see that each financial emergency is worse than the last? each fix needed, a little larger than the last. there will come a time when our govt 'fix' will not work...........and we might be already there.......this fix has not solved our problems yet. i hope it will, so we have a little more time to make the changes that this country needs to get back on sound footing, so we will have an america for our children and grand children.
Post by bubblyandblue on Apr 4, 2011 18:06:09 GMT -5
I do not see the home ownership thing commong back anytime soon. I do not see improvement in income equal to the task of buying up homes at the current level. I do see people buying homes to rent to others at profit, however, this is not healthy in our economy. We do have a nation for sale on the global market so, we just might see foreign ownership of rental units to expand and, the rental prices will be pushed up to maximize profits - the only ceiling will be the gross ability of the occupants to be squeezed. We are a country with millions of homes empty and millions of people without homes = something is wrong.
Three doors down from me is "Hot Rod House", so called because up until summer 2008 a guy lived there who loved hot rods. He and his friends had American muscle cars and our street was a parade of rolling Detroit iron every summer.
In Summer of 2008 hot rod guy and hot rod guy's wife got divorced, quit making mortgage payments, and went their separate ways. Their 18-year-old son stayed behind in the house. He pays the utilities, mows the grass, shovels the snow, and generally behaves himself. He does not pay anything in mortgage or rent or taxes. No one has since summer of 2008.
I talked to the kid (now 21 years old) and he said his folks owe many tens of thousands of dollars more than the house is worth. Someone from the bank came 1 1/2 years ago and asked for his Dad. When told that Dad doesn't live there anymore the banker guy left and has never been back. The cops stopped shortly after and wanted to know who he was and how long he's been living there. He told the cop who he was and that he's lived there since he was 12 years old. The cop left and has never been back.
Hot rod kid plans to keep right on living there until someone tells him he can't. He has no mortgage or lease or anything in his name, so he figures no one is going to come after him for 3 years' (or more) of payments. Living rent-free has enabled him to buy a new Ford pickup and live pretty well for a young single guy. He works at an auto parts store and makes $12 an hour.
Last Edit: Apr 4, 2011 19:36:27 GMT -5 by maui1 - Back to Top
usa.........when you were a kid, in a candy store, and saw some candy on sale, that candy might have been the cheapest candy ever, but if you did not have a quarter in your pocket, you couldn't take advantage of that cheap candy.
there are also other factors that are hurting property values.........property taxes are going up, repair costs are going up, aoao fees are thur the roof, and rental risks are increasing.
not to mention all the inventory that is not reported, but waiting for the market to improve, like all the gov't inventory and all those properties that have deferrals, but still, way underwater.
i bought a 1b/1b condo unit for 20k a few months ago, in a condo complex that was selling these same units for 115k in 2006/7. now that this sale and other sales in this complex are public, all the other owners that bought in 2005/6/7, are upset with their loan against property value. a lot of people are 'walking' away from their units. both the units on either side of my unit, are vacant because the owners left. this does not support my lower buy rate, and property values will continue going down as more and more people realize there are in mortgage jail, and freedom is as easy as 'walking out that door".
Last Edit: Apr 5, 2011 9:43:54 GMT -5 by maui1 - Back to Top
Post by jarhead1976 on Apr 5, 2011 10:24:52 GMT -5
On Thursday, the Census Bureau revealed that 18% -- or 1.6 million -- of the Sunshine State's homes are sitting vacant. That's a rise of more than 63% over the past 10 years. That is almost 1 in 5 homes. More on the way.
Exciting times indeed. I have noticed over the past few days just how laxed america has been made aware of what has been going down. Dancing With The Starrs and American Idol seem to be of much more importance for the Puppet Theatre News on the television.
"nooooo...........but the good times are coming, just the same".
the 'good times' might be coming, but it will be by way of another gov't stimulated bubble, if it comes at all. if it does come, wait for the fallout from that bubble.........it should knock the usa back to the civil war.
Post by jarhead1976 on Apr 5, 2011 14:37:32 GMT -5
It will take years Frank... "According to the most recent S&P Case-Shiller housing index report, 19 of the largest 20 markets fell in January. The prospect of a double-dip housing decline seems likely. Prices in Atlanta, Cleveland, Detroit and Las Vegas have dipped below their January, 2000 levels."... In my own hood , A home purchased at $150,000 range in 2004, sells for @ $136,000 today. I see more housing trouble ahead and much not yet on the books.
The spooky thing about Hot Rod House is that they bought the place before there were all these weirdo financing packages available, and enjoyed several years of remarkable appreciation. I'm sure they got into trouble by doing cash-out refinancing or home equity lines-of-credit to support their interest in souped up muscle cars. She has a 1960's Mustang and he has a show-class 1960's Impala. They literally sucked all the equity out of the house and drove off with it.
Hot Rod House may be an isolated example or it may not. Most likely the title to the house is a complete mess or the bank would have made a move by now. Several similar houses on my block have been put on the market and sold in the past three years - it's not like nothing's selling at all.
My Brother-In-Law bought a house in 1995 for $90K with 20% down (gift from his Mother) and a 30 year mortgage. The house is now listed at $153K on the tax rolls and they're underwater on the place. They cash-out refinanced THREE TIMES! Idiots.
He works for an insurance company in the industrial park, commutes to work in a Ford Super Duty pickup truck, and likes to piss and moan about the price of gasoline.
Last Edit: Apr 5, 2011 18:26:30 GMT -5 by maui1 - Back to Top
Once the nice weather hits the "boomerang kids" are going to come crawling out of their parents' basements, blink at the sunshine, and realize it's time to make some life changes. And the first step is a nice 2700 sq ft starter home! Beige siding, two car garage, granite kitchen countertops - the works. Have the buddies over for burgers & brewskis on the patio this summer.
The re-awakened demand for starter homes will drive prices up, allowing average homeowners who have been yearning for a trophy house the chance to sell their 2700-footer and move up to a 4000 sq ft McMansion in a gated community.
We'll run low on McMansions. The homebuilders will call back their legions of carpenters. Once again the sound of nail guns and circular saws will fill the Nation's air from dawn to dusk.
Now in Lee County, Florida, it’s possible to buy a brand new four-bedroom, three-car-garage house for just a dollar down…
-The Daily news site video, April 3
Want a brand-spanking new home for just $1 down? It’s possible. And all the risk lies (once again) with the American taxpayer. Sarah Ryley of the news website The Daily wrote on Sunday:
All it takes is $1 down to buy a brand-new $150,000 home in this foreclosure-wracked community, thanks to two government programs that guarantee loans for buyers who want a house but can’t scrape together enough cash to cover closing costs, let alone a standard down payment.
The dollar-and-a-dream offer makes good sense for builder Adams Homes — it pockets the full purchase price, regardless of whether the cash-strapped buyer continues making payments.
That’s because all the risk in this very risky transaction lies with the federal government.
You can read the rest of Ryley’s piece on The Daily site here. By the way, the complexities of the arrangement are explained in the accompanying video.
Last Edit: Apr 6, 2011 9:17:28 GMT -5 by maui1 - Back to Top
i am starting to believe our gov't really wants our country to fail.
the best (worst) part about the above deal.........is this area is full of newly built vacant homes, like the above, that are selling for 75k. so as soon as someone moves in, they will be 75k underwater.
just think.....in this environment, you can move into a 4/2/3 home, with nothing down, live there for at least 2 years without making one payment, then 'walk', when the gov't gets the time to look at why you are behind on your payments. and.......chances are, our gov't will feel sorry for the poor soul, and will reduce the note to whatever the market is at that time. all the while, other homes in the area, are sitting vacant, with our gov't holding most of the notes on those units.
really? is this really what we want from our gov't? i mean.......REALLY?
Last Edit: Apr 6, 2011 9:38:52 GMT -5 by maui1 - Back to Top