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

To: fatty who wrote (5447)	9/19/2002 2:17:08 PM
From: Jim McMannis	Respond to of 306849

RE:"My biggest complain is that while everything else in life is getting cheaper (relative to income), real estate isn't." Ta da!, the old, "they ain't making anymore of it" arguement the pro real estaters will say. Never mind the quad pumped tax breaks... Jim

To: fatty who wrote (5447)	9/19/2002 6:00:58 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 306849

>I guess the old standard of 25% of your gross was an outdated idea and we're in a new paradigm. Now it's okay to use 50% and more of your gross and put 0 to 5% down. With all these dirty cheap products available from walmart, kmart, target etc. It is actually possible to use 50% of your income for mortgage and still live a passable life. My biggest complain is that while everything else in life is getting cheaper (relative to income), real estate isn't. I hope this post isn't sarcasm... I actually agree! 10K/mo income, w/5k per month mortgage payments, leaving 2-3K mo discretionary seems just fine to me. Not financially prudent, or anything, but manageable. The old 30% mortgage rule along with the "jumbo loans" over 250K need to be rethunk. Jumbo is over 500K around here. (I think RE is headed for a nasty fall, I just wanted to comment on what I consider to be outdated ratios) Lizzie