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A national housing market?


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2006 Feb 12, 10:32am   8,864 views  81 comments

by Peter P   ➕follow (2)   💰tip   ignore  

One axiom of real estate is that each market is local and unique. However, money is national or even global. Since credit has been the principle contributing factor in this bubble, we should accept the fact that all "local" housing markets will interact.

Many markets are now in decline. One very reasonable expectation is that the mortgage market will dry up because of the reflexivity between collateral value and credit. If and when this happens, the correction will come to the Bay Area, no matter how "special" and "immune" it may be.

#housing

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77   surfer-x   2006 Feb 14, 3:09pm  

Deo Vindice, may great^7 grandfather (a quaker) wrote the first treatse on the wrongs of slavery and women's rights. The bullshit 60's woman's rights feminists are an artifact of that drug hazed environment. I think the best spokesperson on woman's rights is SQT, that chick has got balls.

78   surfer-x   2006 Feb 14, 3:13pm  

even the drugs of today, are not as strong as those in the 70’s, my daughter did a research paper in college and told me her results.

Ok you boomer fuck, here's a fact for you Pot, weed, reefer, KGB, the kind, in the 60's, you remember the 60's right? You were getting fucked by strangers in the park, remember? Ok, back on track, in the 60's mary jane was ~ ( that means approximatly) 2-4% THC, (that's the active ingrediant of marijuana, otherwise known as tetrahydrocannabinol) modern pot, perhaps as a result of your influence ;) is ~ 15-25% THC.

Shit I forgot everything was better in the 60's

79   Peter P   2006 Feb 15, 8:33am  

Anyone knows if you have an ARM, but fixed for the first 10 year, what is the risk of this type of loan?

One risk is that interest rate may be higher on the 11th year. On the other hand, if you sell before then, the proceed may not cover the loan principal. It all depends on your cost basis, of course.

Also, if interest rate goes up within this 10 year period, fewer people will be able to afford your house at a given price.

There is no particular risk if you intend to pay off the mortgage by the end of the 10-year period.

And can anyone comment on the Las Vegas housing bubble? $300K for a 2000 sq ft. new home, good investment?

Hard to say. I love LV, but I am not familiar with the market. Ask ptiemann.

80   Peter P   2006 Feb 15, 8:34am  

And can anyone comment on the Las Vegas housing bubble? $300K for a 2000 sq ft. new home, good investment?

Can you obtain positive cashflow without using Option ARM?

81   Peter P   2006 Feb 15, 8:44am  

Something was wrong with the Google thread, it would not scroll down to the bottom, nor did it include the submit comment box. Is that my computer or the thread?

Hmm, strange. Try refreshing the page.

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