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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (71599)	3/6/2011 8:32:52 PM
From: KyrosL	Respond to of 217820

There are other factors that will favor rentals. An important one is the change of the US mortgage market because of the eventual demise of Fannie and Freddie. Without US government subsidies, mortgages will now have to be priced based on market risk, and given the huge spike in perceived risk caused by the real estate disaster, I expect big down payments and much higher rates for fixed rate mortgages. US households will have to learn again how to save a large percentage of their income, if they want to buy a home. The bank owned condos I am buying are all cash transactions. In this market niche, is seems that the expected down payment is at least 50%, even though the prices are considerably below the "market". This is the kind of market dislocation that will probably persist for at least a few years.