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Senior Contributor
Posts: 4,635
Registered: ‎03-11-2007
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Re: A different take on the housing downturn



HinH wrote:
Understand your "theory" and it does hold true, however some (including me and my family) took our down payment money and put it into the house for repairs and stuff.

I may not have been clear. You and I are in agreement. I don't blame folks for trying to get hold of something before they are faced with the prospect of moving to Mexico to improve their standard of living.
Regular Contributor
Posts: 153
Registered: ‎07-13-2007
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Re: A different take on the housing downturn



Noah_Bodie wrote:


HinH wrote:
Understand your "theory" and it does hold true, however some (including me and my family) took our down payment money and put it into the house for repairs and stuff.

I may not have been clear. You and I are in agreement. I don't blame folks for trying to get hold of something before they are faced with the prospect of moving to Mexico to improve their standard of living.





Yup, I know we agree (I know the "theory" part may have thrown you ;-] )...I saw something else interesting, a company that helps people walk away from their mortgage. I am going to post in another thread...just sad.
Regular Contributor
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Re: A different take on the housing downturn

[ Edited ]

masdeocho wrote:







Noah_Bodie wrote:

Since the soapbox is now free ...


When rents are rising 8% a year, home prices are rising 8-10% a year, incomes are rising (if you're lucky) 1-3% a year, if you don't already have a down payment, what exactly are the Vegas odds you'll have one in 3-5 years?

...




Where in the country is that happening?? Not in my 'hood.






Still happening in Huntsville, AL (SE)...houses are staying on the market longer, but outlook is good.

Message Edited by HinH on 03-11-2008 12:52 PM
Established Member
Posts: 10
Registered: ‎10-15-2007
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Re: A different take on the housing downturn

When you live in the S.F. Bay Area and a housing averages $650k a year who the heck has $130k to put down... surprising how judgemental people can be.
 
But I guess its easy to judge when you only paid $230k for your home!
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Re: A different take on the housing downturn

[ Edited ]
I agree with you when it comes to people jumping into something they cannot afford.  But in my area (Los Angeles) the cost of renting vs. the purchase of the same type of home would equal out to the same payment...plus or minus a a few hundred tops!! It is outrageous and therefore...EVERYBODY is stuck between a rock and a hard place with nowhere to go but head first...:smileyindifferent:
 
 
 


Message Edited by happy0510 on 03-25-2008 12:36 PM

Message Edited by happy0510 on 03-25-2008 12:38 PM

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Registered: ‎03-25-2008
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Re: A different take on the housing downturn

How true blaming everyone and their mothers implies irresponsibility I like the one sentence from the article
 
"Up to a point there's a case for providing relief to some mortgage borrowers. In many cases everyone would gain if lenders and borrowers renegotiated loan terms to reduce monthly payments. Losses to both would be less than if their homes went into foreclosure and were sold. The Treasury has organized voluntary efforts.
 
I know this would add to falling home prices but something has got to give.
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Posts: 22
Registered: ‎01-16-2008
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Re: A different take on the housing downturn

Up here in Alaska houses have increased to 3 times that of the 2004 prices.  To get a decent home (2,000 sq ft ) in a neighborhood that won't drag your home value down, you will pay in excess of $350,000.   Prices up here have not come down and considering that the average family income up here is under $60,000, you can see how people are getting in over their heads.  I totally agree with the fact that incomes are not going up as fast as the cost of living which is also contributing to the problem.  We are paying rougly 15-25% more for goods up here than we were 6 months ago.  I pay $4.06 for Diesel fuel and $3.56 for one loaf of bread. 
Although there are many contributing factors, I believe that until the ridiculous prices of homes come down and the predatory greed of corporate America is put in check, we will always be susceptible to this type of downfall. 
New Member
Posts: 2
Registered: ‎09-14-2007
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Re: A different take on the housing downturn

It's funny how everyone has turned to the housing market as the reason for a recession. Are we forgetting that trillion dollar war we're fighting in Iraq? That's why the government can't really even step in to do much. They are busy cuttting thier own budgets to stay afloat. The housing market downturn is not as responsible for our current economic situation as this endless war is! We can't spend over 500 billion dollars on a war and expect to have a healthy economy, that money has to come from somewhere- legit or not.
Valued Member
Posts: 48
Registered: ‎09-05-2007
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Re: A different take on the housing downturn



futurebyer wrote:
When you live in the S.F. Bay Area and a housing averages $650k a year who the heck has $130k to put down... surprising how judgemental people can be.
But I guess its easy to judge when you only paid $230k for your home!



If the person paying the 650k would think about they too could move and pay the 230k for their house.Everything is realitive the person buying the cheaper house is probably getting paid a hellava lot less than the person in the SF bay area.
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Posts: 852
Registered: ‎09-18-2007
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Re: A different take on the housing downturn

Having grown up in the bay area, and living houses that my parents paid 22 thousand for that are now worth 1.5 million (not they made any money on it), you end up with a certain mentality that real estate is always going to go up....that and the over all price of what 20% down would be, and it almost becomes a necessity to be able to use some type of creative financing.  Face it, most times in the last 30 years your house, in the Bay Area and most of California are going to be increased in value.
 
That said, what peeves me is the whole concept that the banks are not helping people out.  I keep hearing about people who are trying to get thru to their banks before it becomes critical, and the banks are blowing them off until they are already in default.  Makes no sense to me...don't you think it would be to the banks benefit to refinance instead of foreclosure?

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