Posts: 2254
Joined: 4/3/2004 From: Louisville, Ky Status: offline
This makes a lot of sense.
quote:
I have a-lot of time and if you have read any of these other notes you know that I watch a-lot of network news. I see everyday people crying about falling home prices. After years of baby boomers getting rich off of housing appreciation they are finally paying the piper (or plumber if you will). I hate that some people are in a bad situation but this is the best thing to possibly ever happen to our generation. Years after rampant speculation and wild inflation in housing prices made it impossible for average workers and city-dwellers to purchase a home it is finally becoming possible and even a smart decision. Most of my generation are about to make the leap (in the next few years) into the housing market. This falling, crashing exploding market is a BIG win for us. Housing is for living in, it is a long term investment. A house is not for you to speculate on a house is for living in. Turning everything into an investment vehicle and inflating the prices of basic necessities is the road to continuous bubble economics. Now you see politicians jumping on board to help these buyers out. This is fundamental, you see politicians serve those who elect them. That is the old, the wealthy and the well connected... basically the people who vote early and often. That is NOT people in their 20's (the costs of caring about the process but not voting finally come back again to haunt us) OUR interests are not served by a housing bailout, if you believe in free markets then you must already realize the housing bailout is a very bad idea, especially for young people. Just think, we get to pay the cost of a bailout (through our taxes) and we are the ones being handicapped in the housing market!
-USAF Stf Srg BRD
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Don''''t be too proud of this technological terror you''''ve constructed. The ability to destroy a planet is insignificant next to the power of Big Oil.
I sure as **** can't afford a house in a nice area, and I have a decent job. I might be able to get into a 2 bedroom condo if prices come down a little bit more.
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Pitchforks and torches are the answers to all of our nation's problems. KOBE4MVP
I sure as **** can't afford a house in a nice area, and I have a decent job. I might be able to get into a 2 bedroom condo if prices come down a little bit more.
how much is mom charging for the basement right now?
Posts: 4072
Joined: 10/5/2005 From: st clair shores MI Status: offline
no it doesn't really make sense
it might for the younger generation, but you will realize it will hurt you too.
i am 36, on my 2nd house, i made a lot on the first and put it down on this one (i stepped down in value....moved from cali to mi , for a low house payment and get back home)
i have "lost" about $30 grand in equity, sure it's on paper, and i don't plan on selling BUT....i would be in a situation to buy another on a canal and rent this one out if the equity were there. unless you have 20% down, you pay mortgage insurance on a home. (penalty for not having 20% down)
now how does this all come into play ? house values stimulate the economy, a stimulated economy makes the bosses money, and employees get their good raises every year.
** here's where the younger gen is affected......
housing slump means less money spent ( no bonuses to waste on big tv's , or refi's w/ cash out to buy a boat) less money spent = layoffs, and small or no raises. after there is no raise the next step is a 2-tier pay system (all new hirees after the new contract will make 20% or more lower than the existing employees just like gm just did)
this whole thing is a reverse snowball effect, big 3 workers making $15 instead of $30 no longer buy new cars every 2 years, big 3 makes less money, has to lower more pay/cut more workers, even less pay to spend on new cars etc. etc.
need proof ? for over 70 years big 3 workers made a great living...only until about 3-4 years ago did the bottom fall out and now all of a sudden , a 25 year old father of 2 and husband who grew up a son of a ford line worker who had a summer cabin, vacations every year, nice house etc. is working 2 jobs and still not living the same life his dad had the opportunity to give him
and his son... will have even less of a future....
thats why it doesn't make sense..... we sell real estate to anybody w/ cash... thats what drives up a market , too many people seeking the american dream
you want ocean front property.. buy it in the US anyone can buy it
you want in mexico ? sorry if your not a citizen, you can't buy... you have to lease it for 99 years then it belongs to the government
who's fault is it ??? not sure.. partially the banks for pushing people into mortgages they simply could not afford
but if you make $50k ... you have no business trying to buy a $250k home w/ 3% down
so they are to blame too.
unfortunately, we will all pay for it one way or another
** i am not an auto worker, i worked construction my whole life, currently a city employee, but when i did private work, when chrysler got their big profit sharing checks... that summer would boom in construction. and create a positive snowball effect for the entire community
but... if you rent... you NEED TO BUY A F'IN HOUSE RIGHT NOW , you will not see in your lifetime prices like these, i guarantee that.
you can mange it too, might not think you can...but you can. the money over your rent you pay...you'll get that back and then some every year on your taxes. it is cheaper to own than rent.
but thats my opinion
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'93 calypso notch 6th stang and counting
nitrous oxide is proof there is a GOD and he wants us to be happy
Printable Version
house price issues. - 
and sad 
at the same time.
