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The chickens have finally come home to roost. The real estate bubble is bursting, Realtors are going broke and all the corrupt, dirty, ignorant, disgusting people who made this possible are getting theirs. Unfortunately, their actions may well have ruined the country. And to think, these fools thought the gravy train would last forever.
Some of us Baby Boomers are doing just fine, thanks. If you really think renting is the better option, that's cool. Just make sure that check is in the mail to help pay the mortgage on my rental house.
Anyone who bought their home before 2004 and did not go wild with home-equity lines is fine. Unless they are unfortunate enough to live in Las Vegas, a couple of parts of San Diego or equivalent bombing markets.
The nice thing about a mortgage is that it is a set cost as opposed to rents which can rise. I imagine most Boomers have paid off their houses by now so they have no horse in this race since their present home and any future home are getting batterred equally.
people who made this possible are getting theirs...
Sounds like a little anger management issues perhaps? Yep, some greedy folks got caught and got burned, but remember, a lot of us locals sat around and watched other locals on TV glamorize speculation in quick buy-and-sell of flipping houses. Speculation is not inherently evil, but it is risky. Others were ruined because they did not have the education to understand the confusing mix of numbers presented to them, and they were "stupid" enough to actually trust someone. Many others were hurt whose only sin was to work for a company that couldn't make it.
Unfortunately, not everyone in our country is in a position of home ownership. Anytime efforts are made to advance that cause, cries of "socialism" begin to arise from under the rocks. Regardless, many baby boomers with decent jobs continue to participate in the benefits of responsible home ownership. Like stocks, the temporary drop in home value is important only if it is necessary to sell.
All that aside, the economics of long-term ownership vs. rental is a no-brainer. It's simple Econ101.
A mortgage is a set price? Come now...certainly you know better than that.
SOME mortgages are a set price, I'll agree. But ARMs and interest only loans are some of the major factors in the state of our country today. Those loans were designed to give people money who couldn't afford the payments. These shady home loans and the price of oil are what has gotten us in this predicament...in my opinion.
Those loans were designed to give people money who couldn't afford the payments. These shady home loans
That's exactly what caused the problem ... that is why we, the taxpayers, have ended up bailing out Fannie & Freddie, all the banks and AIG ... AIG is holding mega bucks of bad paper from the mortgage loans. Divisions of many insurance companies have always bought mortgage loans from lenders and in the past it was a money-making venture. Everything changed when pressure was applied to 'figuratively speaking here' put a chicken in every pot (Herbert Hoover) ... was it the government that applied the pressure to give people money to purchase homes they couldn't afford?? Or the lenders??
I am a boomer and we paid our home mortgage off several years ago ... we have our home & 4 acres of our very own, of course nothing is ever your very own ... we have to pay property tax to the county. The value has probably dropped but that doesn't matter we will just stay put. The company where hubby worked offered early retirement some odd years ago and he got out intact. It is very sad that boomers have worked and saved and dumped everything they could into retirement plans and 401k's and see that nest egg take a beating. I remember well October 19, 1987 Black Monday but I had time to recoup.
No, I don't think boomer homeowners are poorer then renters, I don't see your logic there. Most boomers bought their homes long before this economic mess exploded and have their home paid for or at least almost paid for ... the problems lay elsewhere not with the boomers.
I haven't had time to read the article yet, but I don't know that I'd dismiss all of it so quickly; seems like it comes from a legit source: Center for Economic and Policy Research.
Congrats to all of you who are doing OK and have done the responsible thing by paying your mortgages and not taken out 2nd mortgages time and time again to live beyond your means, or borrowed money you knew you couldn't afford to pay back (e.g., interest only loans, ARMS, etc.)
I do see another upside to renting, at least in this area ... as a renter I don't have to worry about wind/hail insurance for real estate. I do pay for renters / flood insurance, but that's only just over $30 per month.
If a hurricane blows over/floods my landlords house, I'm only out my belongings - he's got the property he's lost and still would have to pay a mortgage on. Plus, with 2-5% deductibles for most wind policies, that's expensive should we experience another hurricane some day. I bet a lot of people are under-insured around here.
Another big if ... the way the financial markets are going, what IF a big hurricane hit (we hope not, of course), but would the insurance companies (or the state for that matter) be able to pay out claims? Will there any bailout money left for hurricane victims?
I digress. Anyway, I don't think FK's observations are way off base - maybe just his delivery method sometime.
I haven't had time to read the article yet, but I don't know that I'd dismiss all of it so quickly; seems like it comes from a legit source: Center for Economic and Policy Research.
Congrats to all of you who are doing OK and have done the responsible thing by paying your mortgages and not taken out 2nd mortgages time and time again to live beyond your means, or borrowed money you knew you couldn't afford to pay back (e.g., interest only loans, ARMS, etc.)
I do see another upside to renting, at least in this area ... as a renter I don't have to worry about wind/hail insurance for real estate. I do pay for renters / flood insurance, but that's only just over $30 per month.
If a hurricane blows over/floods my landlords house, I'm only out my belongings - he's got the property he's lost and still would have to pay a mortgage on. Plus, with 2-5% deductibles for most wind policies, that's expensive should we experience another hurricane some day. I bet a lot of people are under-insured around here.
Another big if ... the way the financial markets are going, what IF a big hurricane hit (we hope not, of course), but would the insurance companies (or the state for that matter) be able to pay out claims? Will there any bailout money left for hurricane victims?
I digress. Anyway, I don't think FK's observations are way off base - maybe just his delivery method sometime.
I'm sure some don't like my delivery methods. However, when you consider the wealth that has been decimated, the lives that have been destroyed and the country that hangs in the balance thanks to what amounted to a big real estate ponzi scheme subsidized by the Feds, I don't think there are any words that are strong enough. As for the Realtors, all I ask is that they tell the truth. If they are not willing to do that, they should find something else to do.
Another big if ... the way the financial markets are going, what IF a big hurricane hit (we hope not, of course), but would the insurance companies (or the state for that matter) be able to pay out claims? Will there any bailout money left for hurricane victims?
I digress. Anyway, I don't think FK's observations are way off base - maybe just his delivery method sometime.
I've been thinking the same....if we have a significant natural (or worse) disaster in the coming months, then all bets are off.
AIG is already TU and the most of the other insurance companies and reinsurance companies are more than likely currently experiencing financial issues.
Not to mention that pension funds are heavily invested in insurance companies....we haven't heard a lot about their financial health although it's just a matter of time.
The merger of these financial train wrecks would ring the death knell for the financial markets.
FallingKnife just tells it like it is....he's very passionate about what he believes in.
This economic policy is absolutely RETARDED!!!!!!!!
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The value has probably dropped but that doesn't matter we will just stay put. The company where hubby worked offered early retirement some odd years ago and he got out intact. It is very sad that boomers have worked and saved and dumped everything they could into retirement plans and 401k's and see that nest egg take a beating. I remember well October 19, 1987 Black Monday but I had time to recoup.
