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I notice the acupuncture lady takes no responsibility for her real estate investments.
She admits that she did not read the paperwork and then she claims she was misled. That does not make any sense at all! You can see greed with a capital G written all over her miserable face!
She admits that she did not read the paperwork and then she claims she was misled. That does not make any sense at all! You can see greed with a capital G written all over her miserable face!
I an Sorry , but in this Country , we reward people for being stupid .
I wish I could convert my savings into a few thousand barrels of oil and sit on them for one year to make a killing at resale time. Nobody ever believed me when I said that a real estate bubble was the first sign of economic collapse. Residential real estate does not produce anything, therefore it should never increase in value, only depreciate. You lose money every year in property taxes, so real estate is always a loser unless it is used for farming, mining or manufacturing.
I wish I could convert my savings into a few thousand barrels of oil and sit on them for one year to make a killing at resale time. Nobody ever believed me when I said that a real estate bubble was the first sign of economic collapse. Residential real estate does not produce anything, therefore it should never increase in value, only depreciate. You lose money every year in property taxes, so real estate is always a loser unless it is used for farming, mining or manufacturing.
Commercial Real Estate is over sold as well. Maybe even worse....the next shoe to drop.
Real estate prices are still to high compared to the income needed to buy a decent place.
Home affordability is based on four things: loan interest rate, income, home cost, and initial cost. So lets ask four questions:
What is a good home price to income ratio?
What percentage of workers should be able to buy a home?
What is a "decent" home?
What is a good interest rate?
If anyone can provide objective and supported answers to these questions, I would be grateful. Until then, the argument that real estate prices are too high is just smoke and mirrors. Prices will be set at whatever the market can support.
I'm totally not surprised about this story, but thanks for posting it.
What I see around me is people defaulting on ARM's that haven't even reset and people didn't even loose their job. They simple are defaulting because they couldn't even afford the premium as it was set in the first place. Some even changed jobs or started their own business since they felt so good and thought they could do it all and most of them have more than 1 property.......They were in it to flip and not to play Landlord and have no clue switching from investor to Landlord and just put people in their homes to receive rent, but forget that the property has to be maintained...than the HOA's are starting to send letters with fees and all of a sudden the HOA is a stupid thing, but really the people who bought these homes knew that there was a HOA and rules, but thought they would flip and buy another one....
Yeah and in the same night's episode they had the original "what me worry" guy Barney Frank saying - oh no problem, just bail everyone out and things will get better in a year.
Barney Frank, banking chairman, has got to be the biggest idiot politician there is. Why did 60 minutes give this guy a pass on this entire crises when it happend on his watch (something tells me it's because he has that D as in democrat next to his title)?
Look to what prices and incomes were before the bubble - say during the 80s and 90s. You'll find that it a lot of places the price to income ratio was pretty steady. There's no reason to think that the ratio isn't heading back there as lending standards slowly return to normal.
A lot of the wealth in this country came from savvy real estate investing. But who wants to bet that the Rockefellers, the Vanderbilts and the like actually read their contracts before signing them? Investors who buy smart, with a long-term plan, will STILL make money in real estate. Holding a property for 15 years and letting renters pay off your mortgage has always been a way to grow your investment. But you have to be smart about it, and you have to be willing and able to ride out the ups and downs.
The acupuncturist pretty much puts a face on the greed, stupidity and irresponsibility of this class of buyers. Yes, some homeowners have suffered an unfortunate reversal of fortune, but many more are just seeing what happens when you make poor financial decisions. They feel little remorse, assume little responsibility and expect others to pay for their mistakes. At some point, others will just say "no."
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You can see greed with a capital G written all over her miserable face!
