« previous   next »

One man's mortgage debt is an entire neighborhood's equity


By golfplan18   Follow   Tue, 22 Jan 2013, 11:14pm PST   345 views   1 comment
Watch (0)   Share   Quote   Permalink   Like (2)   Dislike  

http://ochousingnews.com/news/one-mans-mortgage-debt-is-an-entire-neighborhoods-equity?source=Patrick.net

Residential real estate is generally valued by comparable neighborhood sales. When a property sells for a new high price, it doesn’t just affect the value of that property, it impacts the value on all similar properties within a mile of the new sale. During the housing bubble, neighbors cheered each new higher comp because it added to their (illusory) net worth. With unrestricted access to equity with no-doc loans and 100% LTV HELOCs, everyone near a new high comp was basically given free money. The late arrivals all eagerly waited a greater fool to come along and buy at an...

Comment 1-1 of 1     Last »

PockyClipsNow   Wed, 23 Jan 2013, 10:11am PST   Share   Quote   Permalink   Like   Dislike     Comment 1

The home equity wealth was no illusion unless my bank statements are fake. All u had to do was click the sell button and rent.

golfplan18 is moderator of this thread.

Email

Username

Watch comments by email

home   top   share   link sharer   users   register   best of   about   questions or suggestions? write p@patrick.net