<<if you have a bunch of houses with million dollar loans on them >>
Right away, you lost all credibility with me. Lenders don't give out million-dollar loans easily....and ordinary folks don't qualify for them, no matter how lax you think lending standards have been. People who have millions of dollars pay cash their their homes--no loan involved.
Have you ever, in your entire life, met people who put down 30 percent, up to 100 percent, of their money to buy a house? I have, many times. People don't "leverage" as much as you might think. They come to the home-buying transaction with considerable money, whether it be from previous homes in which they had lots of equity, or inheritances, or gifts, or just huge incomes and lots of free cash.
The only thing I can agree with is your statement that real estate values might stay flat for a while.....which has happened many times during my lifetime.
Meanwhile, people with your bearish mindset might have to endure people who WANT homes, who NEED homes, and who HAVE LARGE AMOUNTS OF MONEY TO BUY THEM. History lives on......... |
