I always like your post QQQ. I know far too many people living in 1-2 million dollar homes on incomes of less than 150K/yr. Something just doesn't work with that equation... it's out of balance, IMHO. Most have a leased Escalade and a BMW/Benz in the garage as well. Live the high life while drowning in debt you can't afford to service.
Long term RE bear may not materialise if the gov takes hyperinflation path at the onset of a recessin. Few years of 10% annual inflation will solve few "problems" and "disbalances" in such a way that it would be difficult to point fingers. Foreign debt, mortgage debt - what debt ? And it is rather immature to think that politics cares about long term future. For this scenario - lock the morgage ASAP for times to come and fasten seat belt.
Keep two thoughts in mind. From a debt service standpoint, a guy making 150k and paying off a 1m mortgage at 6% is the EXACT same as a guy 20 years ago paying off a 150k mortgage on a 50 grand salary at 12% interest. Secondly, not everyone bought the highs. Many young people in these million dollar homes bought in the late 90's for 500k and had a 100k down payment. Perhaps in the meantime they've knocked it down another hundo. So in reality they're paying off a $300,000 mortgage on a 150k a year salary. Not exactly daunting.
Not the case. All purchased in the last 18-24 months. with the lure of CHEAP money and NONE are in FR loans...
Yeah, and there wasnt no 100K down. Its all about 100% interest loans here. Zero down, 100% interest and ARMS = disaster brewing. 85% of the people did that is san diego. Ludacris.
the condo conversions are coimng back to market as rentals- thats what im hearing. no entry level buyer, no trade-up market, no trade-up market, no bueno, la jolla, rancho santa fe have more cash buyers. we;ll see, im off to l.a. - here in paradise you have to get up early to beat the traffic!
That's a good point. Money problems is a major if not major cause of divorce. Frequently, one of the spouse's was against buying the house and when things good south one person starts blaming the other and then things just spin out of control. John
Yeap. The newly build condo on my block went from "for sales" to "for rent". The for sales sign was up for like 6 to 9 months, then changed to for rent, which is up for almost 6 months. Guess it's going nowhere.