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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (43527)	10/14/2005 7:57:47 PM
From: Ramsey Su	Respond to of 110194

I just had lunch with a property manager. She only manages residential properties and is of the opinion that the apartment sector is quite adequately cushioned. While financing for the 1-4s went berserk, the apartment loans still required debt coverage ratios and did not allow secondary financing. So even though the prices may be sky high, the debt was not. Furthermore, most of the loans have reasonably long fixed rate periods and would not be pressured by adjustments. I agree with her assessment. Even if the high prices driven by the condo conversion mania return back to earth, long term apt owners may be able to hang on and weather the storm. It would be interesting to see how a converter, such as this one, is going to hang in there. mpcondos.com I am not noticing many sales. Regarding UCLA, they have been bearish for a while now. Though I agree with their sentiments, I am not convinced on a soft landing scenario. Where is the safety net that is going to cushion a fall, especially in high priced California?