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

To: daffodil who wrote (25493)	11/29/2004 8:40:26 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 306849

Incredible, just incredible From Minneapolis Star Tribune: "When confronted with a series of financial crises -- divorce, loss of his job and $28,000 worth of credit-card and other bills -- Ed Derdzinski did what millions of other Americans have done over the past several years: He bet the house. Since buying and remodeling his owner-occupied Fridley duplex in 1996, the 38-year-old property manager has refinanced four times, a feat aided by rapidly rising home values and banks and other lenders hungry for his business. Along the way, Derdzinski pocketed $100,000 in cash that he hopes to invest in other properties. Meanwhile, the house that he originally bought for $105,000 now has a mortgage of $323,000; his monthly payment, originally $850, is now $1,680. Derdzinski, who makes about $35,000 a year, says he's not worried. Ed Derzinski"I want to retire at a reasonably young age," he said. "I'm not going to do that by working for someone else. It's up to myself and good investing.""

To: daffodil who wrote (25493)	11/29/2004 10:47:47 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

>>>>>someone is causing approximately HALF of each new home to evaporate...<<<<<<< It's my thinking that a fair sized number are second homes for the purpose of investment or not needing the proceeds, simply kept with the intention to rent out. It's difficult to weed out this number without access to Data Quick or possible through N.A.R. I did find an article that mentions a study in 1999 claiming 13 percent of all homes sales were second home purchases but nothing up to date. I speculate the number holds true for today but cant be sure. enquirer.com On the premise the percentile number has held true sense 99. I'm thinking this may be a contributing factor for the soft rental market here in N Calif and elsewhere. And a segment of ownership that will crack when and if a correction occurs. After all those that bought a second home and kept the first can still take advantage of the 250k/500k rule three years after they leave if they occupied for the previous two years.