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

To: Think4Yourself who wrote (181011)	2/1/2009 12:20:27 PM
From: bentway	Respond to of 306849

"is going to happen for at least non-primary homes" It should. Maybe with an exemption for people that actually NEED a non-primary home, like congresspeople! I think we should build a congressional dormitory, and require all congresspeople to live THERE, rooming with a person from the opposite party, if possible. Solves that problem..

To: Think4Yourself who wrote (181011)	2/1/2009 1:07:40 PM
From: Joe S Pack	Respond to of 306849

I agree with you that Government is capable of taking any measure necessary to protect its interest. If they eliminate interest tax breaks for, to being with, all non-primary residency, it will wipe out a lot of investors. Will the eliminate all mortgage interest tax breaks? What are the implications? What will be your course of action to protect the paper wealth? I think real estate outside the country or other real assets like Gold may be an option. But again, who knows what the Govt is capable of doing to confiscate wealth. As a saver we will be rammed front and back, IMHO. Item one in that article, "Eliminating the tax breaks for mortgage interest payments", is going to happen for at least non-primary homes. It has to. When it does all those "investors" who have been buying extra properties are going to get creamed. Most will be blindsided, despite the fact that it's already obvious it's coming. This country has WAY more homes than it needs yet many people are foolish enough to think home prices are going back up soon. I personally believe that when prices finally bottom a few years from now they will flatline for at least a decade. There is no economic rule that says what comes down must go back up. Supply is very high and true demand is virtually gone. A few will make money in real estate. The rest will be stuck with years of mortgage and/or tax payments on assets they can't unload without taking a large loss.