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

To: Elroy Jetson who wrote (26441)	1/5/2005 1:41:08 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

All so true. Those late to the party highly leveraged new age investors have to capitulate before the downturn happens. I have also found many long term owners of property in bubble areas are hoarding property they own. In Florida folks holding onto a now $300K house that rents for only $850 a month have little or no mortgage on the property and are happy just to collect what amounts to less than a money market type of rate for the near future. They tell me I'm crazy if I think real estate will ever go down or that they'll basically be working for free keeping the place rented the next decade or so. Another angle is even if interest rates double and property values drop in half they'll be able to get the same payment on a seller financed deal down the road anyway so it is win win....lol I'm sure it is a similar situation in California and other bubble markets.