Rising Housing Costs vs. Stagnant Incomes - What will come of it? (Orlando: 2014, rentals)

[lovfl]

Originally Posted by BrokerHarry

Darn that Bill Clinton & Barney Frank...it's all their fault the entire economy crashed...7 1/2 years into the Bush / Cheney administration.

Funny how that works.

This is how it worked!

[bmw335xi]

Originally Posted by lovfl

The banks were told to give mortgages to people who were not qualified or should I say, they did not have to be qualified to get a mortgage.

Yep, you could tell a borrower you need to make XYZ and all we need to verify is that you work for the employer you say but don't need proof of income.

[chopchop0]

Originally Posted by bmw335xi

The 2008/9 crash stemmed mostly from loose lending practices. People using stated income/stated assets to get loans they couldnt afford. Loan programs like neg-arms. Banks making risky investments. Basically greed from the very bottom to the very top.

Yup greed is apolitical. That being said, QE did happen under a republican president.. Gwb started the bailout of gm and tarp... The asset bubbles sparked by Alan Greenspan also flourished under gwb.

Thankfully the FED is raising rates now. Don't need this bubble to be even worse than it could be.

Bottom line....trump can say what he wants but the Fed will do what it wants...Just like it has always done. Greenspan made a big mistake, it wasn't the presidents fault

[OTownKnight]

Originally Posted by bmw335xi

Yep, you could tell a borrower you need to make XYZ and all we need to verify is that you work for the employer you say but don't need proof of income.

I'm assuming you've seen the movie The Big Short? Very entertaining movie about the crash.

"Most of the time they don't speak English and don't even know what they're signing, they're just happy to get a mortgage."

[chopchop0]

Both Orlando and Tampa are well below the national average for housing costs...

5 most and least affordable housing markets - Business Insider

[clearlevel]

I wouldn't say that prices are quite as high as they were in 2007. The houses were much higher then. That being said, there is still demand for Orlando. Meaning there are still lots of people from the North and throughout who are retiring with pensions and then they can buy up all the property. Also, there are professionals in Orlando that continue to buy up homes. Orlando is still building lots of new constructions, with apartments and new housing springing up in many places, so I think it seems pretty balanced to me. Lots of people are just gonna be renting. The people that can't afford housing or that have children and need a place to stay can qualify for government assistance and they can start paying rent that way.

Basically, Orlando has plenty of snowbirds that keep coming in. That being said, Orlando is not that expensive compared to other parts of the country. In San Francisco, Los Angeles, New York City and throughout houses start at $500,000 and go upwards. Yeah, those are totally economies.

[kyle19125]

Originally Posted by chopchop0

Both Orlando and Tampa are well below the national average for housing costs...

5 most and least affordable housing markets - Business Insider

Exactly but unfortunately a majority of residents in Orlando and Tampa cannot afford to sock away enough money on a down payment when they're paying rental costs way out of proportion to their salaries.

[chopchop0]

Originally Posted by kyle19125

Exactly but unfortunately a majority of residents in Orlando and Tampa cannot afford to sock away enough money on a down payment when they're paying rental costs way out of proportion to their salaries.

Proof?

[OTownKnight]

Originally Posted by chopchop0

Proof?

Economy should grow, but Orlando rent is a problem - Orlando Sentinel

[bmw335xi]

Doing a quick search online it looks like Orlando's homeownership rate is on par with the national average, maybe even 1-2% better.