Comments on: Housing crash: Is it time to buy low? http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/ Fri, 05 Dec 2014 11:27:18 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: PCScipio http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5424 Thu, 02 Jun 2011 00:35:07 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5424 The DC bubble burst can’t come too soon. I really want to move back.

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By: effacebook http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5423 Thu, 02 Jun 2011 00:13:59 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5423 I also have two houses. When the banks offered to refinance, I went “hey, free money!” So for my rental, hey, got all money I’ve invested in out, free house. Now with the crash, I can’t walk away without owing big to the gummint, can’t refinance to a lower interest rate because of increased equity requirements, Chase unilaterally cut my equityline on my residence and keep after me for a streamline of the 1st… and when I try to do that, they demand I pay down the equityline, and there’s no way to know if they even have the original paperwork (if I could prove they didn’t, they couldn’t make me pay). So screw ‘em all, I’ll just sit here for years in my ‘80s conspicuous consumption house, and blame the banks for trying to screw me and normalize my rate of return to a rental. No one really wants to help the middle class, republicans want to squeeze them out by giving all the money to the rich, lefties want to get rid of the tax advantages of homeownership. Teabaggers are even more stupid. So support Obama, he at least tries to be fair and rational, and we need nationalized health insurance for old sick people like me when we can’t work anymore and are too young for social security and transfer benefits don’t even cover utilities, taxes, repairs and insurance on a big old house. Yes, we should raise taxes for schools, too.

If I had any actual money, I’d be buying too. But not all the condo’s and crap advertised on tv, only sfr’s in decent areas. I could cash in some stocks, and will probably kick myself in a few years that I didn’t, just as I kicked myself when prices went up too fast before, wish I had just bitten the bullet and bought a couple early in the runup, though conservatism there seems smart at this point of retrospect. But over time, relatively conservative, moderately leveraged real estate is the second best investment, even though most people underestimate managerial costs. Stocks aren’t, because they conveniently ignore all the writeoffs (read: bankruptcy) over time, and the available leverage is pretty scary. What’s the best investment? A well run business, but trying to figure out what those are eventually normalizes to stock returns unless you are very directly involved. Most businesses fail, nearly everyone cannot evaluate risk rationally.

Yes, the gummint is making real estate ownership more difficult, especially if they really make passive owners do 1099’s (now there’s something worth writing an article about), strict underwriting and appraisal are necessary evils, going overboard just now. But encouraging homeownership through government programs is still a Good Thing.

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By: D0ugR1ch http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5420 Wed, 01 Jun 2011 21:08:32 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5420 To all the renters: Do you really think the landlord isn’t passing along tax increases, property upkeep, repairs, insurance, etc., on to you? Sure, you may have more free time because you don’t have to do those things yourself, but you are paying for it – one way or another…

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By: bobbobwhite http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5415 Wed, 01 Jun 2011 18:13:47 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5415 Bubbles don’t end until everyone is hurt, even in DC and Seattle(and even in Marin County CA).

Just wait a bit longer.

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By: drizzt134 http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5414 Wed, 01 Jun 2011 16:32:30 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5414 There is still plenty of room for prices to fall. Right now it’s 50% off prices that were 200% up from what they are supposed to be. Wait and the prices will come down even more. Much more… Bubble had to burst at some point, and seems like it is happening now. Even the government subsidies can’t help this bubble at this point.

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By: MrPisces http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5413 Wed, 01 Jun 2011 16:17:32 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5413 Dear Linda,

I think there is a new story emerging which I believe might make for a new and potentially insightful article.

We understand the housing prices in most places are continuing to fall and may continue to do so well in the future. We are also aware of the tightening credit and income standards by banks for new mortgages. Its clear how both of these conditions are feeding on each other.

One thing that is being missed is how banks have limits on how small of a mortgage they are willing to offer because of how little they can make upfront and over the life of the loan. The funny thing is that more people would qualify for a loan based on their more stringent standards AND at the same time reduce the number of homes for sale in inventory. Right now I see a lot of home in my area that require an INVESTOR who can buy a house for cash.

I think there is a story in this. Please pass my tip along to someone who might investigate this further :-)

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By: SanPa http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5409 Wed, 01 Jun 2011 15:21:46 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5409 Catching a falling knife can hurt. With another recession in its early throws and the commodity / derivatives bubble to pop, it would be better to rethink a house purchase after the winter holidays. Ho. Ho.

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By: DanG http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5408 Wed, 01 Jun 2011 15:10:47 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5408 Don’t get cocky about your DC bubble. As soon as Congress starts hacking chunks out of the federal budget, DC will feel the pain everyone else is feeling.

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By: Ray_d http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5405 Wed, 01 Jun 2011 14:00:58 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5405 Home ownership is problematic.

Apart from the Mortgage interest, the taxes when buying, the taxes while in it, the taxes when you sell, the maintenance, the thousands of dollars of tools and services that are part of home ownership one has no guarantee of Capital Gain.

Apart from that, the capital, interest and taxes, were they to have been invested, may very well have given one a head start to a cosy retirement.

Home ownership may very well be the most heavy indirectly taxed part of our lives.

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By: weaxxx http://blogs.reuters.com/reuters-wealth/2011/05/31/housing-crash-is-it-time-to-buy-low/comment-page-1/#comment-5404 Wed, 01 Jun 2011 13:55:00 +0000 http://blogs.reuters.com/reuters-wealth/?p=14545#comment-5404 Many of us with funds to easily purchase a home are avoiding it for a very simple reason. Local municipalities are strapped for cash and are reassessing properties and taxing home owners exorbitantly. In NY G0v Cuomo has proposed a 2% annual cap on property taxes which is still higher than annual CD & bond rates. Owning a home is the same thing as paying rent directly to the government. At the same time govt services are facing significant cuts. Foreclosure issues are only the tip of the iceberg re home ownership problems in USA.

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