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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (24143)	10/12/2002 4:08:36 PM
From: maceng2	Read Replies (2) \| Respond to of 74559

is actually a put on your own house. I don't see it like that. If the value of my house falls, I don't make money. A call option perhaps. I bought my house in '95. It's worth at least twice that now. If I re negotiate my mortgage, I can have payments less then the cheapest rent for a slum flat while owning a detached house. But unless wages are going up 20 to 30% in a year, I think "what goes up, also falls down" is true of the property market. From what I have seen of wages they are not moving up at all. Crunch time is close. Mind you, if the house prices fall enough, and you are in deep doo doo financially, you can always say "OK here is your house" to the lender, ie "put" it I suppose. -g-