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

To: Micawber who wrote (27764)	3/4/2005 10:16:17 AM
From: RealityNotFantasy	Read Replies (1) \| Respond to of 306849

Who is the buyer of your over-inflated Real Estate? You wrote: "Mortgagees don't understand that renters have no equity in their apartments? What are you talking about?" IMHO... What I mean is that these homeowners / RE investors who think prices can keep going up forever have to consider WHO their prospective buyer is. Its usually the renter who is typically the prospective buyer and according to a recent statistic, most Americans have scant savings. Although, an investor with equity could be a buyer too. These investors with equity would be at risk though because they would have to pull equity from their other properties. This is even more exacerbated with Renters who probably have scant savings BUT NO HOME EQUITY to rely on. How can these renters afford to buy? Yes, at this time record low interest rates are a great boost to monthly payment affordability for renters who buy. As prices continue to climb though, there will come a point where even a zero interest rate will NOT offset a High Real Estate price for the renter to afford to buy a home. Just my two cents...