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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (6104)	5/16/2002 12:51:45 AM
From: russet	Read Replies (5) \| Respond to of 33421

My poll, I'll admit somewhat restricted to known bank employees, close friends, and family,...they seem to think that the best investment now is rental houses, and they say they know the renters so no problems could occur. Several things come to mind,... 1)The banks lending them the 90%-95% mortgages to buy the properties are pumping variable rate mortgages with 3 months at 2% below prime, followed by 3/8% below prime thereafter, but you are locked in for 3 years or you pay many months interest penalty. 2)What type of people will rent now, given anyone with any job and credit history can secure a mortgage to buy a house well beyond their means with no problem at all. 3)The only way many buy these houses are if they bid above the asking price to get it. 4)The people I'm talking about have no experience with renters. The bubble was not popped,...it just moved to another asset class.