Housing value crisis

[Dowding]

house prices are CRAZYYYYY the same souse that i remember selling for 30K 25 years ago recently was put on the market for 180K!!! There is NO DAMNED WAY it will ever be 'worth' that. It might sell for that but thats only because of easy loans and a "I want it no matter what we have to pay for it' attitude.

You've clearly never heard of the concept of the 'time value of money'. Enlighten yourself and look it up.

[john9001]

Originally posted by Dowding
You've clearly never heard of the concept of the 'time value of money'. Enlighten yourself and look it up.

is that what they call inflation now?

[DREDIOCK]

Originally posted by Nilsen
People in general borrow too much money for everything including homes.

You should only borrow half the purchase money or less, and be able to handle tripple the interest you signed up for when you bought. If you cant handle that then get a lesser home.

LMAO try that in Jersey and the only thing you will ever be able to afford is a cardboard box.

14 years ago I put 10% down. got in a fannie mae program for 1st time home buyers.
It was perfect timing. House prices were low. and interest rates were on the decline.
I got in at something like 6% fixed give ro take a pecent.
Have siince refinanced from the 30 year to 15 years of which I have 7 left to go.

I paid 127K for my 3 bedroom ranch.
About 15k cheaper then the other homes in my area because it needed some work of which I did most of myself.

During the recent boom I could have sold it for almost 400K.
But with the decline these homes are only going for a mere 325-350 now.

The real key is the interest. I would always advise a fixed rate mortgage.
everyone I know that got screwed. Screwed themselves with the adjustable rate.

The REAL killer in this state  is the property taxes. which keep going up and up.

[cpxxx]

It's the same here at the moment partially in response to the sub prime market getting into trouble in the US. The sub prime lenders here are foreclosing all the poor saps who went in over their heads. House prices here were crazy but that is beginning to level off. Apparently only 10% of houses for sale here are actually being sold. Part of the problem is that owners still believe they're worth the inflated prices they were getting a year ago. My wife and I were looking at house here recently, a nice four bedroom semi needing modernisation overlooking Galway bay. The vendor wants 425,000 Euro, that's 621,000 American greenbacks. He'll be lucky to get 400,000 Euro.  We wouldn't pay more than 350k.

My wife and I see this dip in the market as a golden opportunity to buy the house we want to 'live in'. Sometime early next year will be the moment. We'll keep the one we have now and probably rent it to some Polish migrants  or someone who had their house repossessed  There would be no point in trying to sell it now anyway. That will cover the mortgage and generate a little income. My wife already has another house which she rents as well. So between us we will own three houses, two of which will be offsetting the mortgage on the third. We both see it as a long term investment. As the saying goes; 'Every cloud has a silver lining' or should that be gold. Our mortgage advisor was practically rubbing his hands together in glee. He already owns several houses and sees his chance to grab a few more.  

Sometimes I think these recessions are managed:noid so that people with cash can buy low only to sell high later.