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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: John Vosilla who wrote (63386)10/6/2006 1:23:04 PM
From: ChanceIsRead Replies (1) of 306849
 
>>>Seems only double digit increases in rents per year and 4% mortgage rates can keep the 'crash' from happening now that the psychology has changed.<<<

I agree. But can this happen??

Certainly Helicopter Ben can knock down the short end, and all those who were smart enough to get out of their option ARMs two years ago can switch back to the far left lane.

How do you get double digit increases in rent??? I keep reading that real wages have dropped. Would the government be so open minded as to make rent deductible??? After all, it is really the renter who pays the real estate taxes, which are deductible for the owner.

Would the government do the really smart thing by stop trying to micromanage the economy and go with a flat tax???

I see double digit rent increases as a complete impossibility.
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