Real Estate Rollercoaster.
A friend sent this to me just now. He and I were always very skeptical of everyone shitting their pants and rushing out to spend a lot of money (they didn't have) on over-valued homes in the area over the past few years.
I just think it's ridiculous to pay $1 million for a serious fixer-upper family home in this area. And do people really have the kind of cash to be buying homes like that? I do not think they truly do. Sketchy mortgage lenders pushed through approvals on loans at adjustable rates that a significant number of people in this area (especially minorities) are now having trouble dealing with, now that rates have gone up.
To illustrate just how the US real estate market has historically been... I give you the real estate roller coaster ride.
I just think it's ridiculous to pay $1 million for a serious fixer-upper family home in this area. And do people really have the kind of cash to be buying homes like that? I do not think they truly do. Sketchy mortgage lenders pushed through approvals on loans at adjustable rates that a significant number of people in this area (especially minorities) are now having trouble dealing with, now that rates have gone up.
To illustrate just how the US real estate market has historically been... I give you the real estate roller coaster ride.
Comments
On one hand I feel bad for people that are caught in these stupid loans right now, but I also think they are partly to blame. Did you really think that buying a $800K house in Dot with no money down when your salary is $55K made any sense?
Few points though:
*If you bought smartly with attention to LOCATION, home character and LOCATION - you should still be ok.
*Real estate is still the smartest investment to make in my opinion - you just have to be smart about when and what you buy.
*The problem with this market is very similar to the dot com frenzy. Once it became 'in fashion' to become a house flipper, everyone jumped on the bandwagon and created this artificial market.
Depending on what and where you bought - this is a great time to be selling a house.
--Brevitt!
And all these foreclosures make it very enticing for investors to begin doing this.