Luxury home mortgages are more troubled than subprime ones?

Discussion in 'Economics' started by latinotrader, Feb 6, 2011.

  1. After a brief look into magazine ads
    I concluded that luxury homes are even more unsellable than those with subprime mortgages

    Luxury developments were made for a market that just never really wasn't there.
    And there was way more speculation with luxury homes.

    Besides the double standard:
    When poor borrowers default they are irresponsible
    When rich borrowers default they are businessmen wisely getting out of bad investments.
  2. the1


    My wife's ex-boss bought for $1.1M. Price went up to about $1.2M, neighbor can't sell at $500k. Virtually identical house.

    Edit: And...ummm...can't afford the mortgage no mo cause binnes ain't been so good.
  3. Many people in fancy houses eat cerial for dinner.
  4. I just ate a bowl of that Fiber One Carmel Delight and it was spectacular :D
  5. The fiber in that cereal is from a wood cellulose additive.
  6. 377OHMS


    So true. There is a whole country famous for that. Scotland. :)

    A relation of mine holed up in a enormous castle in northern Scotland, heated only one room and mostly ate oatmeal.

    My dad keeps a little apartment at the beach and spends his time racing yachts, snow-boarding, cycling and eating at nice restaraunts.

    I fall somewhere in between the nut in the castle and my dad. :D
  7. I love cereal for dinner while I read the back of box. :D
  8. ddlee


    I just finished a box of Captain Candlesticks myself
  9. Eight


    There are two real estate markets that are above average in price volatility. One is the high end market, the other is overflow markets from urban centers, the "boonies". It all just goes to demonstrate that people whether poor or rich don't understand the business cycle...