Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (3555)	7/23/2002 3:56:22 PM
From: Les H	Respond to of 306849

with all the bets on the short end, it makes it all more susceptible to a squeeze in short-term rates biz.yahoo.com

To: GraceZ who wrote (3555)	7/24/2002 8:38:29 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<People have become as neurotic and obsessive about watching their home values as they were about their stock portfolios>> LOL! And some are trying to "play" the two exactly the same way. Amazing story in yesterday's WSJ about "homeowners cashing out and returning to renting." Example was a 37-year-old in Michigan who felt home prices in his neighborhood had gotten "exorbitant", so he sold his and moved to a rental house down the street--"we didn't want to sell but we couldn't resist and were enthralled with all the money we would make." He got out about $120K profit. The rental costs $10K for eight weeks (WEEKS!); property taxes on his former home were $8K a year. I'd really like to see some follow-up on this fellow, and how he manages to worm his way out of that rental and back into the real estate market, and how he manages to decide when that should be done, and what price and interest rate he has to pay when he does it, and what his tax consequences will be in the end. Example #2 was a doctor in New York who cashed out of his apartment and rented a place where his rental payment is 25 percent more than his previous mortgage payment. "But with my cash from the sale in the bank, it is earning interest." (I'd like the name of his bank, so I can finally get some interest, too). The story did go on to point out the risks and costs of what these people did.