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In United States
Registered Feb 26, 2010
vrpirata's most recent comments:
- On 14 Nov 2012
I see the same mistake over and over when looking at the trend of house prices. YOU HAVE TO TAKE INTO ACCOUNT NOT ONLY INFLATION, BUT ALSO INTEREST RATES!!!!!!!!!!!!!!!!
House Prices are totally irrelevant when >99% pay it PER MONTH, so what is relevant is the MONTHLY PAYMENT!
So say that I (like maybe most middle class in Los Angeles) can only pay $2000 per month. Assuming that today we had an interest rate at 13% (like what we had in the 80s), that means I can only by a house of $200k (20% down). However, with todays interest rates at ~3.5%, with the same payment I can by a house of $425K!!!!!!
So you see, what is sustaining the more than doubling of the house price over time is not only supply, demand, and inflation, but also the low interest rates.
All your graphs of projections are just WRONG! they should be look in the form of monthly payments... because at the end of the deal, that is what most people end up facing!!!
- On 21 Sep 2012
Here's Why There's No Housing Recovery And Prices Will Collapse,
"prices still have not fallen to anywhere near long-term historical averages"
This guy keep making the same mistake of compensating ONLY for inflation. He NEEDS to compensate also for Interest Rates!!!
Interest rates in the 80's were >12% and today 99% of the people doesn't buy cash, we buy with a mortgage, an as a result, Interest Rates play a big factor in the affordability of the house.
If you compensate Case & Shilller graph for interest rates, you will see that HOUSE PAYMENTS are much more affordable today than they have been for the last 30 YEARS.
So, before you try to critize my point, do your homework and create a graph of Mortgage payments compensated for Inflation AND Interest Rates for the last 30 years and you will see my point!!! I created this graph, I can share it (actually I did shared it like a year ago but nobody cared here).
Here I'm referring to the overall market, there are many localize markets that may still be falling.
- On 23 Jun 2011
buying a first House in these horrid economic times.,
"Buy When There's Blood In The Streets"
Now is probably when the most people is more fearfull. Probably the best time to buy then. We will know for sure when was the best time to buy when is already too late.
I welcome all the "renting is better" as I'm becoming a landlord. I'll let you rent my property, and for sure I'll do it for a profit. Today "renting is better" is yesterday "buy today because tomorrow will be more expensive" and a decade ago internet stocks. That is another “follow the herd” actitude.