Hi Traderlite,
<<Down payments ... usually ... 5 percent to 30 percent>>
Not enough, given the big picture, vs. the cost of new build, in view of equity hit and elapsed time to sunset years, taking account of boomer demographics and the expected weight of liquidation in a few years. One thing about the use is that there is no shortage of land, as the cities take their turn in becoming fashionable.
<<Still wondering ... so-far fictional people with negative equity ... going to materialize?>>
Ok to wonder, not so wise to discount the possibility, especially given that we are moving through poorly charted territory.
<<Hong Kong is a little far away for me to identify with>>
Identify with the facts, not so much the geography ... people over paid for homes, borrowed too much based on home value, not ability to pay out of sustainable income, and a few financial accidents sank them to status of LT investors. You know, like Hawaii a few quarters ago.
I already conceded that owner residents are a different species of animal. And for them, treating the house as an investment is a false construct but for the strange tax system in the US, and unless folks live in less popular places during retirement.
The home is, however, a forced savings of sort, as long as one does not keep refinancing it to fund SUVs once ever 36 months.
Chugs, Jay |
