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

To: KyrosL who wrote (25571)	12/1/2004 7:42:51 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

In your imaginary world, where the indigent pay cash for their modest homes and only "wealthy" people need a mortgage to purchase their house, you can make a case for a non-normal data set. This must be why the FHA cannot find anyone willing to accept a mortgage as small as $300k, or so you imagine. This is indeed typical of the sort of self-congratulatory nonsense that forms the basis of most of Grace's arguments. The sort of clown-world logic where tax-cuts paid for with debt somehow magically make the economy more "efficient" -- presumably because Monetarists like Grace, and Cheney, believe debt doesn't matter. Debt always makes everything better, with the only problem being how to create more debt, thus increasing the "money supply" which is the source of all wealth -- or so Grace would have us believe. .

To: KyrosL who wrote (25571)	12/1/2004 10:29:33 PM
From: Amy J	Read Replies (3) \| Respond to of 306849

According to a local real estate broker in 1999, more than 90% of local home owners that purchased a one million+ dollar home paid cash. He said, it's the ones with the smaller mortgages that don't pay cash. That was his experience. Like you, I would have thought it was just the reverse. On a different note, for some reason brokers prefer if you take out a loan - do they get a cut out of the real estate loan or something like that? On a related note, when I bought my car with cash, I refused to tell them whether or not I was going to take a loan until after the price was negotiated. For some reason the guy assumed I was going to take out a loan (maybe because of how old my car being replaced was), and he seemed to think his goal was to convince me to take out a loan from them rather than a bank. He seemed totally surprised when I paid cash (actually, I put most of it on my credit card to get the frequent flyer mileage and then paid the credit bill in full.) GM makes only 26% of its profit from its car sales, the majority of their profit is from auto loans. I suspect the other auto manufacturers are similar. Auto dealers don't especially like people like me that pay cash and buy a new car once every ten years. Regards, Amy J