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Old 12-15-2008, 02:16 AM
 
Location: Olympus Mons, Mars
6,286 posts, read 9,078,441 times
Reputation: 6591

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Quote:
Originally Posted by trishguard View Post
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!
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Old 12-15-2008, 03:16 AM
 
Location: State of Superior
8,632 posts, read 14,227,470 times
Reputation: 2777
Quote:
Originally Posted by k374 View Post
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 .
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Old 12-15-2008, 06:52 AM
 
Location: occupied east coast
884 posts, read 2,018,894 times
Reputation: 1873
Look everyone,

this topic has been bounced around, fluffed and sugar coated many times.

It all comes down to the fact that too many people over bought their homes !!!!

It is every bit this simple. Those who bought what they could afford are fine, those that over bought are defaulting.

Whose fault is this, certainly NOT MINE.

Apparently, the NEW concept of justice is that I can afford mine, so I should have to pay for theirs also.

If you can "saddle" me with enough debt to make me fail also, than those who over bought will be able to feel better about themselves.

Fuzzy logic !!!!
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Old 12-15-2008, 07:13 AM
 
Location: Heartland Florida
9,324 posts, read 24,253,912 times
Reputation: 4927
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.
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Old 12-15-2008, 07:28 AM
 
Location: State of Superior
8,632 posts, read 14,227,470 times
Reputation: 2777
Quote:
Originally Posted by tallrick View Post
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.
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Old 12-15-2008, 08:29 AM
 
878 posts, read 1,916,506 times
Reputation: 463
Quote:
Originally Posted by carp killer View Post
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.
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Old 12-15-2008, 08:38 AM
 
26,661 posts, read 40,589,239 times
Reputation: 14758
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....
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Old 12-15-2008, 08:38 AM
 
13,009 posts, read 19,207,366 times
Reputation: 21313
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)?
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Old 12-15-2008, 08:39 AM
 
5,460 posts, read 6,073,441 times
Reputation: 1805
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.

You can see the data at places like

NAHB/Wells Fargo Housing Opportunity Index (HOI)

Or grab the data from the BLS and OFHEO.

Last edited by KCfromNC; 12-15-2008 at 08:52 AM..
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Old 12-15-2008, 08:40 AM
 
2,197 posts, read 6,812,671 times
Reputation: 1687
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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