Less than 20% fall in home prices will destroy the banking system?

Discussion in 'Economics' started by moo, Mar 28, 2007.

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  1. PS: Imperial Beach is considered a shit hole by my friends...lol

    Its between downtown and the border with mexico. They would rather live in crime ridden pacific beach than imperial beach
     
    #111     Mar 30, 2007
  2. I said his rent was 1700 not 1500.

    I also already explained that these homes were purchased long ago when mortgages/prices were much lower, thats why they can rent for 1700 and the market will only support 1700/month.

    Try buying that house now for 600: and renting it for 1700 and you would be an idiot :D



     
    #112     Mar 30, 2007
  3. Signing off, but my original point stands, ive proven it, rent is a lot cheaper than buying in SD these days. There is a huge gap to fill and I predict housing will come down to fill it.

    Lots of good rental deals these days too since there is such a large supply. My rent just went down
     
    #113     Mar 30, 2007
  4. volente_00

    volente_00




    Who will rent a 350k home for only 1000k a month when their taxes and insurance are costing 1000+ a month minimum ?

    Why would this person not sell and and instead collect $175000 risk free in a cd or money market ?
     
    #114     Mar 30, 2007
  5. volente_00

    volente_00



    I was using Texas rates for insurance and tax which I am sure are way lower than cali's. My point is why would these people sit on on 400,500, 600 + k in order to make so little return ?
     
    #115     Mar 30, 2007
  6. volente_00

    volente_00



    LOL, you do know what section 8 means right ?
     
    #116     Mar 30, 2007
  7. 600k, even with 5.0% (IY) does not support 1700. Unless they put down over 20%.

    So, your telling me that 600k houses are being rented for 1700?

    That area has crashed.
     
    #117     Mar 30, 2007
  8. Are you even bothering to read my posts????


    The person who is renting the home for $1700, DID NOT pay anywhere near 600K for it. That is what its worth today.

    Their mortgage payment is less than $1700 a month.

    Ok, now im out

     
    #118     Mar 30, 2007
  9. volente_00

    volente_00




    No sane person would rent a 600k house for 1700 when they could get 30k risk free in a cd or mm account without having to deal with renters and fixing things that break.
     
    #119     Mar 30, 2007
  10. Not sure where you are at, Im a developer in TEXAS. (not from Texas but my LLC is in Texas , SA area and Boerne Tx area).

    I dont know of any homes in the area at that price point renting for 1700.

    Dallas, ATX and Houston are all stable right now.

    Growth is in SA and down south, 11-12% project this year. Alamo Hights is number 1 for appreaction and boerne is number 14 in the state.

    Taxes are 2.5% on land/Real Estate in SA/Kendall county.

    So, im not sure where you seeing this.
     
    #120     Mar 30, 2007
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