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Old 12-15-2008, 10:07 PM
 
Location: Heartland Florida
9,324 posts, read 24,267,347 times
Reputation: 4927

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Quote:
Originally Posted by killer2021 View Post
yup, that is what the statistics are saying. So why does real estate go up 10% per year, on average? Because that is the rate of inflation!!!!!!
Thank you for the simple explanation. The "inflation" rate has been manipulated for years.
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Old 12-15-2008, 10:19 PM
 
4,271 posts, read 14,172,213 times
Reputation: 3374
Quote:
Originally Posted by killer2021 View Post
In Texas, it is much different. Not everyone wants to live there so high prices can't be sustained. There is multiple factors that go into it but I'd say that is a big part of it.
Texas real estate, overall, has been pretty steady, or at least steadier than most other areas because the housing market wasn't over-inflated. Some areas, like in Austin, there's even growth from what I hear.

Quote:
I already have enough saved up to put 20% down on a 150k home and I still have two years left to go. I am sure by the time I buy I'll put 50% down. The faster I pay off the home, the better !
Wow, GOOD FOR YOU!!!!!
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Old 12-16-2008, 01:24 AM
 
3,460 posts, read 5,072,134 times
Reputation: 6677
Quote:
Originally Posted by tallrick View Post
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.
You're missing one part of the equation: A house has the inherent value of being able to put a roof over your head, which saves you from paying rent to somebody else for that purpose.

Where I live, buying a house gives me 3-4% tax-free net ROI on my principal +/- changes in property value. Keeping that money in CDs and renting for a year will net me a 4-5% loss.
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Old 12-16-2008, 09:15 AM
 
Location: Great State of Texas
86,068 posts, read 74,761,325 times
Reputation: 27602
Quote:
Originally Posted by foma View Post
Texas real estate, overall, has been pretty steady, or at least steadier than most other areas because the housing market wasn't over-inflated. Some areas, like in Austin, there's even growth from what I hear.
Texas has very high property taxes and that is what kept RE prices in check somewhat. There were some boom areas that are now seeing prices deflate but nothing compared to other areas.

But the economy here is slowing down, homes not going up as quick as they did..empty subdivision roads and a tight job market.
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Old 12-16-2008, 12:44 PM
 
12,461 posts, read 18,059,107 times
Reputation: 6451
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 would have been shocked by her idiocy, but alas, I have become used to it.

As for her brethren out there in ARM Land, I reckon people who do not have the common sense to save a respectable down payment are hardly going to have the discipline to make a timely mortgage payment each month.

Let them lose their homes. They will learn a good lesson. And this feared surplus of homes can be bought by those who showed restraint but with lower prices, can now be responsible homeowners.
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Old 12-16-2008, 01:10 PM
 
Location: Charlotte, NC
2,193 posts, read 4,616,152 times
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Quote:
Originally Posted by Moth View Post
I would have been shocked by her idiocy, but alas, I have become used to it.

As for her brethren out there in ARM Land, I reckon people who do not have the common sense to save a respectable down payment are hardly going to have the discipline to make a timely mortgage payment each month.

Let them lose their homes. They will learn a good lesson. And this feared surplus of homes can be bought by those who showed restraint but with lower prices, can now be responsible homeowners.
This particular lady said she did put 20% downpayment on EACH home.

There were a lot of people who did pull out their lifesavings to purchase a home so I do feel bad for them.
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Old 12-16-2008, 01:23 PM
 
12,461 posts, read 18,059,107 times
Reputation: 6451
Quote:
Originally Posted by sheenie2000 View Post
This particular lady said she did put 20% downpayment on EACH home.

There were a lot of people who did pull out their lifesavings to purchase a home so I do feel bad for them.

Yes she did indeed put 20% down...on 5 homes if I recall correctly. She was speculating. And speculation on anything entails a risk.

So speculating on 5 homes with wacky mortgage instruments that came with paperwork she admitted to not reading in full.

No, I do not feel sorry for her. And people who put 20 percent down are NOT the people we are talking about.
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Old 12-16-2008, 01:31 PM
 
4,271 posts, read 14,172,213 times
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that's where risk comes in ... greater risk equates to greater return on investment ... but it also means a greater loss. she gambled and lost. no different than someone going to vegas and losing $100,000 (5 down payments on investment property at $20,000 each for example). win big lose big. i'm not saying that everybody deserves to lose their home or whatever but i think most of us can agree that this lady got greedy and did not think it through properly.
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Old 12-16-2008, 01:34 PM
 
Location: Great State of Texas
86,068 posts, read 74,761,325 times
Reputation: 27602
Quote:
Originally Posted by foma View Post
that's where risk comes in ... greater risk equates to greater return on investment ... but it also means a greater loss. she gambled and lost. no different than someone going to vegas and losing $100,000 (5 down payments on investment property at $20,000 each for example). win big lose big. i'm not saying that everybody deserves to lose their home or whatever but i think most of us can agree that this lady got greedy and did not think it through properly.
It's called "prudent investing" but that term got thrown in the trash years ago because "the sky was the limit and nothing could go down".

We were re-living the roaring 20's these past 10 years.
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Old 12-16-2008, 01:53 PM
 
Location: In My Own Little World. . .
3,238 posts, read 8,088,662 times
Reputation: 1601
Quote:
Originally Posted by sheenie2000 View Post
This particular lady said she did put 20% downpayment on EACH home.

There were a lot of people who did pull out their lifesavings to purchase a home so I do feel bad for them.
Yes, but how much do you want to bet she got that 20% by refinancing previous homes. Buy one house, 20% down, refi and buy second one with 20% down, refi, etc. etc.
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