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

To: CalculatedRisk who wrote (36165)	7/24/2005 11:35:49 PM
From: Lhn5	Respond to of 306849

That is very good information. Thanks. By the way, I consider my house 90% a place to live, 10% investment. Even if this place is bigger than my wife and I need for ourselves once our kids are grown, there are 3 of them, and I think we will feel the need to keep this for a LONG time for visits etc. Plus, I don't see how or when anyone who will be graduating from college 2 or 5 or 10 years from now will ever be able to afford a house, but of course that will look different after the crash. Someone coming out of college with only educational debts will be rich compared to so many people upside down on their mortgage.

To: CalculatedRisk who wrote (36165)	7/25/2005 1:28:38 AM
From: Captain Jack	Read Replies (3) \| Respond to of 306849

Why any bank would give an interest only mortgage is a question. If the borrower cannot afford the principal payment, they simply cannot afford the home! Those making the such loans in hopes of selling in a few years are not gamblers, they are fools. Mortgages are usually required and at todays rates a bargain. As a RE broker in 1 state with a sales license in an adjoining state I discourage people from such potential disaster and lead them to another agency. Worse than those that take an 80/20 (80% mortgage and 20% 2nd) to purchase. Savings, gifts from family, anything to eliminate the PMI or again,,, consider renting. Flipping is a gamble-- currently like playing musical chairs, you don't want to be the last one standing when the music stops. Until last year I was buying as many as 12 homes (mostly condos) from developers at pre-construction prices. Today I own my 2 homes and hold only 2 in inventory as flippers. If they went to zero it would not be a problem as they were cash purchases made with prior gains. Bubble-- certainly not in the area of the mid-west where I keep a 2nd home to use when visiting family. Possibly a slight one in the coastal area of the Carolinas where I live but it is firmly believed there will be enough people from Yankee Land wanting to retire warmly keep a house from falling a huge amount, not so with the over abundance of condos that are being sold years before completion.