Homeowners … 30% Working Paycheck to Paycheck
In a survey poll conducted by AOL and Zogby consisting of 6,672 participants, 22 percent believe they would lose their homes were they to experience an unexpected short-term job loss. Thirty percent said they were working paycheck to paycheck to cover housing costs and 30 percent said they knew someone who has gone through or is being forced to sell their home due to a foreclosure. Also, when asked if they would sell, 67 percent said they would turn to the internet first. San Diego real estate
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Dummies should have made sure they could afford houses before buying them. Lenders should have been more analytical is choosing borrowers who really had the capacity to repay loans at whatever the maximum interest rate could be after any teaser rate ended. Fools–all of the players in this drama are fools.
Cosmetic Surgeon
The perfect storm of a complete financial collapse is a couple months away. Be ready for a wild ride!
Clinical Technician
In any case it is NOT a plateau – it ‘may’ be a bottom! I am not a doom-and-gloom guy, but real estate is not the investment of the future. ONLY if you can afford a house, even with lost income for several months, and you expect to live in the same area for MANY years should you buy. And an concrete example (my experience renting): the owner bought in San Carlos (public record) in 1998 for $1.4M, sold in 2007 for $1.8M — having collected ~$400K in rents, paid $110 in selling commission, 120K in taxes, $25K in insurance, and about $50K in maint. net in (400-110-120-25-50=95K) Assuming 100% interest-only loan at 6%:interest payment: $84K/year; $672K; even at 50% tax savings (net of rent) cost= $536K (part of which will have to be paid at sale IF there is any gain) so 95K-536K net expenses $440K ; IN ESSENCE NO GAIN (if not a loss) AND that in a time when prices were RISING rapidly.
Bail Bond Provider
Compare the value of Real Estate in Palo Alto to the DotCom stocks … Real Estate will start ticking back up in the next year or 2 … Anyone think Priceline.com will ever be worth a tenth of its former high?
San Diego Vacation Coordinator