Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Lazarus who wrote (282911)	10/13/2010 1:12:52 AM
From: John Vosilla	Respond to of 306849

'unless you pay cash for a home you're paying for money. that is why when you look at your mortgage (when interest rates give a modest return to investors) you see that you're paying MORE FOR THE MONEY THAN YOU ARE FOR THE HOME. 200k at 6% over 30 years = $231,677 in interest' And exactly how much rent would you have paid those 30 years with nothing to show for it plus being the big loser to inflation? There is a reason the landowners are the rich ones and the tenants are poor. Don't confuse the recent bubble or expensive markets like Marin County with the norm for most of the country most of the time. I wouldn't recommend owning anything there now or even my home town of NYC. They haven't been bargains comparable to my world here in FL since the early 1980's and back then rates were quite high. You might not get bargain's in Marin county till interest rates are quite high again. A no win situation waiting for debasement and rent/wages to get in sink with values again. In low cost markets it is just the opposite..