File THIS under W, for WTF?????

[Bill_the_Pony]

For Whate'er The Fruck you see and just go.... :dunno:

So without further ado. :)


Here is a Real Estate Listing from Long Island. (http://www.realtor.com/FindHome/HomeListing.asp?snum=2&frm=bymlsid&pgnum=1&mls=xmls&js=off&fid=so&vtsort=&ss_aywr=&locallnk=&poe=realtor&ct=&zp=&primaryZp=&nearbyZp=&mnprice=0&mxprice=99999999&mnbed=0&mnbath=0&typ=1&typ=2&typ=4&mnsqft=0&exft=0&exft=0&exft=0&exft=0&lid=1787878&sid=0648E06E7111C&snumxlid=1055436238&lnksrc=00003)

Now, $379,000 is pretty low for California and many places, perhaps even New York, but for this trash heap?

Someone please attempt to enlighten. :romy:

Actually, no. :)

[Space Tycoon]

For Whate'er The Fruck you see and just go.... :dunno:

So without further ado. :)


Here is a Real Estate Listing from Long Island. (http://www.realtor.com/FindHome/HomeListing.asp?snum=2&frm=bymlsid&pgnum=1&mls=xmls&js=off&fid=so&vtsort=&ss_aywr=&locallnk=&poe=realtor&ct=&zp=&primaryZp=&nearbyZp=&mnprice=0&mxprice=99999999&mnbed=0&mnbath=0&typ=1&typ=2&typ=4&mnsqft=0&exft=0&exft=0&exft=0&exft=0&lid=1787878&sid=0648E06E7111C&snumxlid=1055436238&lnksrc=00003)

Now, $379,000 is pretty low for California and many places, perhaps even New York, but for this trash heap?

Someone please attempt to enlighten. :romy:

Actually, no. :)


C'mon, it's a handyman's dream. :smirks:

You know what they say about a fool and his money...



.

[Bill_the_Pony]

http://myspace-089.vo.llnwd.net/00558/98/01/558241089_l.jpg


:dunno:

[Kaeos]

Sad but true man. Real Estate on Long Island is in high demand as people are "exiting" Manhattan. I've seen worse

[Lavoruis]

Yeah, realestate it outrageous.
I just waiting for the bubble to burst
and all these people highing prices
it mainly comes down I can afford it no matter what credit card or bank account says. hence high prices .
Nothing will stop me from fulling my dream, of forecloser and bankruptcy:lol:

[Sgt. Awesome]

A house in Vancouver is half a million. And that's for a 4 bedroom bungalo.

[Bill_the_Pony]

Kite Flying is a deadly pasttime in Pakistan! :eek:

http://www.msnbc.msn.com/id/11766288/

Can't you do ANYthing there without being in danger of getting killed? :dunno:

[sickness]

Yeah, realestate it outrageous.
I just waiting for the bubble to burst
and all these people highing prices
it mainly comes down I can afford it no matter what credit card or bank account says. hence high prices .
Nothing will stop me from fulling my dream, of forecloser and bankruptcy:lol:

Here in the Bay Area, we thought 2000 would be the year for our housing bubble to burst. We're still waiting.

[Kaeos]

Yeah, realestate it outrageous.
I just waiting for the bubble to burst

Nothing will stop me from fulling my dream, of forecloser and bankruptcy:lol:

That's true. There's a whole range of products designed to lessen the blow to the monthly pocket book. Most lenders (including me) offer regular 30 year fixed rate mortgages with the option to pay interest only. No requirement to pay principal at all. I don't like selling them but they are in demand. You also get less strict approval criteria and lower rate by chosing to have an adjustable rate after a set # of years.

Some banks (not mine) go so far as to set up mortgages where you start with an initial rate of 1 or 2% again with interest only payments. After the first or second month the interest rate becomes adjustable as much as 5% every six months. It ends up getting people into much more expensive homes than they can really handle. That's why I am seeing so many refinances right now. The rates suck, but people are refi'ing to get a stable rate, even if it's higher.

we thought 2000 would be the year for our housing bubble to burst. We're still waiting.

I've been in mortgage banking for 8 years. There is no bubble. There have been threats about the "bubble bursting" for as long as I've been in the business. Yes, home prices have gone up and property values have soared over the last decade.

Why? Becuase of Suburban sprawl. In the last 10 to 15 years the move to exit urban city life has exploded. That has caused the areas surrounding major cities soar in value. (like that piece of crap house in Long Island we were talking about) The inner city makeup of most major metro areas (NY, Miami, Atlanta, Dallas, Detriot, Seatle, San Fran, among others) tended to decline - at first.

So now you have more and more expensive suburbs developing all over the country driving values up. But after a certain point, that trends dies down as people start realizing a 2 hour commute to work just isn't worth it. So those same major city areas go back and revitalize the city properties and you have the advent of the upscale condo in downtown. These of course are the hot new thing to have so those values soar.

At some point there has to be a break and the "bubble must burst" right?

Well, no actually. 20 years ago the average home price on the east coast was $80,000 to $150,000 on the high end. Those great new suburban homes on the culdesac cost about $150K when they first sprung up. On the west coast that number 20 years ago was already creeping toward $200K. Areas like Pheonix, Denver and such took longer to catch up.

20 years ago was also when you started to see the explosion of rediculously high priced mansions in places like California and Florida. Water front estates going for $500K to $1,000,000. As time has gone on both of those value sets have increased. Now the new home in the suburbs is worth $250K to $500 and the mansion on the beach is $6,000,000 to $8,000,000.

The home price for average Joe or Jane (you and me) will continue to increase over the next 10 years but at a much slower rate than before. That due mostly to public awareness of the home buying market. If you watch or listen to any of the major networks on a regular basis, they love to spout out how home sales have increased or decreased month over month.

People fear that over night home prices will tumble and their $350,000 house will now only be worth $100,000. I'll give you this - some major cities will see it happen. But not at the catastrophic levels that have been forewarned. But what does that really mean? What is the impact of that? Well. It means people will be living in thier houses for a lot longer, paying down their mortgages.

Banks will likely start re-defining how they lend mortgages and likely begin to finance people well beyond the home value. They will have to in order to stay in business.

Nowadays most people know going in they can borrow between 80% and 100% of the cost of the home. Eventually they will have to start borrowing 125% to 150% of the home's value.

Plain English? - Okay. 20 years from now your kid is married and ready to buy a house. The sale price of the house will probably be let's say $300,000. That's how much the guy who owns it now has on his mortgage. But the home is only worth $250,000. So your kid knows they will probably have to go into the sale with $20K to $30K of their own money and the bank will (likely) be lending 110%.

Sound familiar? This is where the auto industry is now. Home owners will be "upside down" on what they owe for their house, just like the car they have that's only worth $8,000 and they owe $12,000 on it.

Bottom line is that the big bubble is a myth. The home market will simply adapt and adjust just like the auto industry. We will just go deeper into debt individually much more than just the massive credit card debt we live off of now. And we will all be deficit spending just like good old Uncle Sam.

That concludes your mortgage minute for today kiddies. Thanks for your time and attention and let me know if i can refer you to a good mortgage broker.:smirks:

[Intelligent_Design]

Bottom line is that the big bubble is a myth. The home market will simply adapt and adjust just like the auto industry. We will just go deeper into debt individually much more than just the massive credit card debt we live off of now. And we will all be deficit spending just like good old Uncle Sam.





Wow, finally Cinescape has an expert on something besides alcohol and pron !!! :)

As far as bubbles go they appear to me that they are brought about by consumer confidence wether the market demands it or not. There was no reason for the internet Bubble because internet usage has skyrocketed every year. But since people believed a bubble was bursting, it did. I think the housing market will decline greatly over the next ten years. Your assessment didn't include outside factors like Tax hikes, Energy cost hikes, interest rate hikes, Stringent Bankruptcy laws, Declining dollar values, and Job losses. All of these factors will doom the housing market in the years to come..IMO

[neglet]

That's true. There's a whole range of products designed to lessen the blow to the monthly pocket book. Most lenders (including me) offer regular 30 year fixed rate mortgages with the option to pay interest only. No requirement to pay principal at all. I don't like selling them but they are in demand. You also get less strict approval criteria and lower rate by chosing to have an adjustable rate after a set # of years.

Some banks (not mine) go so far as to set up mortgages where you start with an initial rate of 1 or 2% again with interest only payments. After the first or second month the interest rate becomes adjustable as much as 5% every six months. It ends up getting people into much more expensive homes than they can really handle.

What's really sad about this trend is that people have so much money wrapped up in their mortgage payment, they can't afford to invest in important things, like retirement, or their own school district. In my area, there has been an explosion of new housing, mostly in the $350-400K+ range. I hear stories of people who buy these homes, then have to use sheets for draperies because they don't have extra money for furnishing the place.

A neighboring school district just turned down a bond issue, even though they've added population and they're a well-off area. My guess is that all these people buying the $400K homes are nervous about paying an extra $50 a month so that they don't have overcrowded schools with crap facilities. My own school district has a bond issue up this May; they added over 450 new students to the district last year, and another 450 this year. (Our neighborhood elementary put up a portable this year.) They're asking for money to build another middle school, and to upgrade their technical education program. My fear is that all these overextended homeowners will vote to turn it down, and my son will end up crushed to death the in halls of his middle school. (He's smaller than average for his age.)

Me, I drive by these shiny new homes and briefly think it might be nice to have something so new, with a little more land ... but in the end my 30-year-old house has enough room, we upgraded the bathrooms last year, and we aren't paying so much mortgage we can't afford to save for retirement. I'm just as glad I don't have to heat cathedral ceilings this year anyway!