<<I will gladly take the trade of buying a house 20% lower even though I have the same payment. Taxes will be lower; insurance will be lower; I can pay down principal faster if I come into money; lastly, rates will have room to fall, and I can refinance.
So bring the prices down rising rates!>>
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Others have put the same positive spin on that situation, and left out a few questions and potential negatives. If prices are falling, would people dare to buy at all? Would you be able to sell to anyone if you need to? Will the bargain-hunters actually know when they've found a good deal, or keep waiting for a better one to come along? Can they refinance their higher rates, as you suggested, when prices are falling? And who can say rates would actually fall, anyway?
Meanwhile, I saw that Asian fellow whose name I can't remember who wrote "Rich Dad, Poor Dad" on Neil Cavuto's show yesterday. He says he's buying apartment buildings in Las Vegas. He sees great opportunities there because of new-job creation, which he says is going great-guns.
Thought to myself about all the people who think renting is becoming a better option than owning:
Hmmmmm.....I hate it when I pay rent to a guy who's getting richer and richer--and building HIS equity--on my money, and charging me regularly for any increase in his taxes, insurance, utilities and maintenance. <<gg>> |
