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

To: patron_anejo_por_favor who wrote (84674)	8/11/2007 1:04:23 PM
From: Dale Baker	Read Replies (1) \| Respond to of 306849

Renting also makes much more sense in an overpriced market where even a 20% down payment would leave you paying more interest to the bank than rent to the landlord. The only way you come out ahead is long-term price appreciation, which could be years away here (just down the road from Tradelite, in fact). I am in exactly that situation now, waiting for more blood in the streets before I even consider buying anything.

To: patron_anejo_por_favor who wrote (84674)	8/11/2007 1:11:40 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<Renting's a hell of alot better than buying when the roof leaks, or the washer breaks>> Ownership does imply responsibility. Being responsible means having the money on hand to handle the cards that are dealt with ownership. Too bad so many unprepared folks thought buying a home would be an all-expense-paid trip, courtesy of their friendly local loan broker. My younger son scared the daylights out of me not too long ago. He rents part of a townhome owned by his boss. His boss decided to buy another place, moved out, and is allowing my son to stay there without an increase in rent. Sounds like a pretty good deal if his boss will allow it to continue. However, son said he was planning to move out and was thinking about buying something. I almost croaked. THIS IS EXACTLY THE TYPE OF BUYER WHO PROBABLY COULD HAVE GOTTEN A LOAN JUST A SHORT WHILE BACK, BUT DEFINITELY SHOULD NOT. Doesn't make enough money. Doesn't know a thing about home maintenance and wouldn't have time for it anyway. Hasn't got much of a credit record at all; he's never been in debt but the flip side of that is, he has no creditors to prove he can pay a loan on time, so he'd probably have to pay a premium interest rate on that basis alone. There is a time and place for a person to become a buyer and assume all the responsibility that comes along with it. Markets have gotten pretty messed up with wrong people at the wrong time.

To: patron_anejo_por_favor who wrote (84674)	8/11/2007 1:13:27 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<Renting's a hell of alot better than buying when the roof leaks, or the washer breaks>> Ownership does imply some responsibility. Instead of assuming that home ownership is an all-expense-paid ride courtesy of the friendly local loan broker, people do need money on hand to play the cards that ownership will deal out. Wonder if anyone ever checked to make sure the most recent crop of foreclosure-prone buyers even had any reserve funds in the bank when they got their loans?