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

To: GraceZ who wrote (54388)	2/21/2006 8:49:03 PM
From: re3	Read Replies (1) \| Respond to of 110194

your case with the old lady who should have bought the house from you and not rented would have been correct years back, but what is the correct action now ? you haven't provided numbers to analyze of what the price to buy it now (add in taxes and maintenance, etc.) versus the rent. my example, if you review the numbers, yep, obviously someone should have bought the place at 60k...now that its $ 250k, why BUY it, pay out maintenance and taxes of $ 850 per month, when for $ 1350 (five hundred more)...you aren't locked in... i'm in the vancouver area right now...(don't live there)...i overheard a typical conversation in a restaurant..."well, they used to want 25 % down, but who can do that when the prices are 500 thousand" (yep, that's what stuff goes for here)...sure, nobody can actually PAY the ticketed price, so change the interest rates to accomodate ridiculous high prices, how far can the rate changes be pushed ? maybe, we should go to the extreme, 1/16th interest rates, and everyone can afford a million dollar home... but you know that isin't workable... anyway, it isin't pretty to hear about situations like you've presented, then again, often the result will be that you'll be subsidizing someone like her in subsidized housing...oh well... my point about what people are really inheriting should include a comment that i have no interest in verifying your number except that maybe it has not taken into consideration that an increasing number of these old timers will not end up leaving their kiddies as much as they planned (or the kids hoped!) as skyrocketing health care costs and pensions that disappear like a fart in the wind will affect their nest-eggs... there was another interesting article in the vancouver paper, a writer decided to track amounts on discarded ATM withdrawal slips...balances were pretty low...paycheque to paycheque people, obviously...more of them than one might think...