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exactley my feeling.... everyone wants to go for the bucks and act like investors but forget about all those warnings about risk and the market cycles.... back in 1987 i bought my first invstment property in nyc 2 weeks before the stock market crashed in 1987.. i paid 74,000 and it dropped in no time to 57,000..... today its 175,000. the drop was a non event long term
exactley my feeling.... everyone wants to go for the bucks and act like investors but forget about all those warnings about risk and the market cycles....
you can say the exact same thing about those people crying about losing in the stock, equity, whatever markets.
you could, but let em cry........ in fact id let the homeowners cry too except if i loose my job over it because the banks pulled all credit lines and my company failed.... if there was a margin call and a run on financial institutions from stock market events then they would be the ones getting bailed out..... since everything in our financial system hinges on the banks and their health then real estate gets bailed out
you could, but let em cry........ in fact id let the homeowners cry too except if i loose my job over it because the banks pulled all credit lines and my company failed....
so, i guess we're back to square one... we're all in the s_it hole unless something is done
the bottom line is whatever the under lying events are that are going to effect you and i and put us out of work as opposed to someones 401k or market investments which are more localized are the ones that have to be dealt with...
exactley my feeling.... everyone wants to go for the bucks and act like investors but forget about all those warnings about risk and the market cycles.... back in 1987 i bought my first invstment property in nyc 2 weeks before the stock market crashed in 1987.. i paid 74,000 and it dropped in no time to 57,000..... today its 175,000. the drop was a non event long term
Damn, $175K in NYC today, is this investment property like a parking spot or something. I thought property in NYC was at a minumum like $750K.
The banks will now have the power over the lives of millions of irresponsible homeowners. They can pay reduced rates, lower payments and refinance until they're old and grey...the New American Dream!
"The president says it helps responsible homeowners ....."
The problem is that President Obama and his staff have not yet defined what a responsible homeowner is.
Someone who "pay his/her mortgage on time" is still not responsible if they did a no interest/negative amortization loan with zero or very little downpayment.
Someone who put down 20%, pays into the principal and is underwater should get get.
But it's the government and they will cherry pick and there will be some lucky "winners" and unlucky "losers" like Mr Martinez who looks like he has been a responsible homeowner (for the most part except for the low downpayment on a 600K home)
As for the homeowner, "Mr Martinez" He is basically screwed. I feel bad for him (unlike others in way over their heads). He makes too much to qualify for financial assistance. He pays his mortgage on time (at least until he purposely missed 2 payments). Maybe the government needs to rethink its FHA 3.5% downpayment rule. If housing prices in the far off suburbs suffer further declines, those FHA loans will be the next subprime and will end up in the same situation as Mr Martinez. What's the government going to do then?
The main problem is that he purchased in Bristow, VA (one of the "far off suburbs..if you call a 1.5 hr/2 hr commute into Washington DC a suburb). That's the problem. These far off suburbs have suffered dramatic declines. If he would have brought inside the Beltway, his home would have only dropped about 10% in value instead of 30-35%.
Location, location, location.
I know a lot of things have changed in the world since this financial disaster struck last year. Many people have suffered. But we just need to go back to basics. The best locations always win. Most of those buying Single Family homes in McLean, VA even at peak are not suffering the same declines in home values. Maybe 10-15% but most who purchased in McLean or the inner suburbs put down a lot of money in order to afford those homes.
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