The reason for this type of stupidity has been discussed. http://www.elitetrader.com/vb/showthread.php?s=&postid=2567528#post2567528 09-08-09 06:58 PM There has to be a total Armageddon like collapse of the system for the average idiot to change her ways. Yes, I use only HER, because based on observing my immediate friends and family, it's primarily the women in these households who keep the rest of the home addicted to Chinese made garbage and shopping with credit cards with usurious interest rates. Most of these guys have given up and do what their women want. The guys who put their feet down end up divorced and paying alimony and child support for kids they don't have visitation rights to. They read the silly womens magazines and think they're all martha stewart. They watch oprah and think all their men should be as wealthy and famous as oprahs guests. If you have little girls, bring them up the right way. They're not little princess and will most likely NOT grow up to marry a prince. The brainwashing of American women begins at a very early stage. The author is the idiot part of the relationship. ie the woman. she goes on to state ...... I'm excited because it's the best entertaining house we've ever seen. The house is built around a courtyard, and there's a barbecue. I love to entertain.
OMG. Look at their picture. She is thrilled.... he is scared to death! "Oh, I am blonde and 30 years young... and... like... like... I have a house with a barbeque... because, like... we like to entertain!" His eyes are saying "Holy crap, what I have to do for a good bj!"
He would have had to put some down payment for that. The bare minimum would've been 50k. I cant see any lender doing less than that and seeing how these guys are raving about the 8k, im guessing they did put down the minimum. So that leaves a mortgage of about 4k per month. Property taxes in CA are 1.25% so thats another $781 per month. Then you got insurance on top of that, so I'm guessing these guys are paying right around 5k per month on the house payment. But hey...at least that 8k will keep them afloat for 6 weeks if they lose their jobs! (as long as they dont pay for electricity, phones, internet, clothing, food...you know...the luxuries) I think it would've been smarter to rent this for $2,100 per month (which includes PG&E, water and trash!)http://sfbay.craigslist.org/sby/apa/1365121851.html and they could've pocketed 3k per month. I did the math and it seems that with the way rents vs mortgage is in the bay area, its way better to rent there than to buy even over the long term. 3k per month saved put into the S&P over the next 30 years at the historic rate of 10.5% = $8.7 million at the end of 30 years.(or $780k after 10 years, which is included the 50k down payment they saved, which would buy the house for cash) Do you think Real estate is going to go up in the bay area in the next 10 years(or anywhere in the US for that matter?) This just goes to show that the financial crisis is going to get even worse in the future.
Not only they have money to buy the house, they have money to remodel and then entertain in their house. All of us are invited.
Yes, I read this article, and they have like 7-8 stories, and this one stood out. They seem like morons to me, and she is a hair dresser (no offense), but let us see what kind of a house does a hair dresser live in the rest of the world. I think either the whole story is not given here as in they are getting some help from the parents etc, as in a free Put option, or some major help with the down payment etc. If not, then they win the morons of the century award. $8000 is help when you are buying 750K house, yikes. That will cover like 4 months of real estate taxes. If you like the views, just go take a stroll by those big houses, like I do.
$8000 tax credit on a $750k house is nothing, buying something in the $150,000-$300k range with a FHA loan, now the $8000 tax credit could probably help with about 75% of those closing costs. To run out and buy something priced that high to receive an $8000 tax credit is just foolish. I think there is no reason to rush out and buy as prices still have room to fall, I also think they extend the tax credit and probably increase it into the second half of 2010.
Heres another guy that bought a 550k house. He works at fed-ex and she is a physical therapist. http://money.cnn.com/galleries/2009/real_estate/0908/gallery.first_time_homebuyers/5.html Isnt it sad when the hairdresser, or the fed-ex guy is living in the houses that cost over half a million and the lawyer is living in the 119k home... http://money.cnn.com/galleries/2009/real_estate/0908/gallery.first_time_homebuyers/2.html or the RN and soon to be doctor living in the 115k home http://money.cnn.com/galleries/2009/real_estate/0908/gallery.first_time_homebuyers/4.html I guess being a hairdresser, mailman, or crane operator is better than being a doctor, or lawyer nowadays...I mean they get to live better than the educated people, right? Or better yet...how about the strawberry picker that got a 720k house? http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2007/04/13/carollloyd.DTL Whats next? The homeless getting to live in 5 million dollar houses? http://www.usatoday.com/news/nation/2007-03-23-homeless-mansion_N.htm