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

To: Tradelite who wrote (27864)	3/7/2005 11:26:32 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 306849

I would love to see their debt levels too.....high debt levels are all too often there but go unseen.

To: Tradelite who wrote (27864)	3/7/2005 12:11:01 PM
From: Rutgers	Read Replies (4) \| Respond to of 306849

These folks went into these situations almost right out of college with no thought of returning to any parent's home.If she purchased the Condo right after college/grad school, did her parents help/loan her funds? And, if they did not help her with a down payment, did they pay for both her undergrad and grad tuition? If they d/n and she has done everything on her own forever, the condo must be pretty cheap b/c it's hard to believe that many kids right out of school could afford to buy their own place w/o financial assistance. This sounds like it might be akin to the proverbial rich get richer thing. For example, even with your kids, which I applaud, paying for some or all of their schooling and purchasing their first auto. is a huge adv for them v. their peers. Other youngsters w/o support from their parents are stuck making that $2000/mnth college-grad school loan repayments and $500/mnth car payment, which, taken together, could have been applied toward a monthly mortgage payment...now, d/n misunderstand, it still takes someone with real financial discipline to purchase RE at such a young age, but it sure helps to have parents with $$$$$$

To: Tradelite who wrote (27864)	3/7/2005 1:11:52 PM
From: stockman_scott	Respond to of 306849

08:59 WSJ article on investment bubbles The Wall Street Journal's "Heard on the Street" column discusses investment bubbles. Doug Kass of the hedge fund Seabreeze Partners believes that much of the mania that was in Nasdaq stocks in the late 1990s has shifted into real estate. Along with big price jumps in many housing markets, 23% of U.S. home sales last year stemmed from investment purchases, according to the National Association of Realtors. "We have day trading in homes instead of day trading in stocks... It will end the same way, and it will be the same guys delivering the product," says Kass. Yale University economist Robert Shiller, who like Kass had a negative view on the U.S. stock market in 2000, also says the real-estate market is where the speculation is. In addition, James Grant, editor of the newsletter Grant's Interest Rate Observer, believes the Fed's moves helped drive greater speculation in the credit markets as well.