Is it just me or was it only a couple years ago when people were wringing their hands over the fact that home prices were so high in many parts of the country that huge numbers of people couldn't afford homes???
Certainly no homeowner likes to find out that the value of their largest asset is declining, but let's face it. In many markets things got really out of hand. Prices went up too far, too fast and a correction was inevitable.
I'm not going to lose any sleep over the fact that someone's southern California house in now only worth $700k when two years ago it was worth $900k. Boo-hoo I just lost $200k. The fact is they bought in 2002 for $400k and rode a nice wave of appreciation. It's not my fault they took out a new mortgage every year, pocketed $500k TAX FREE and now have a $900k mortgage on a $700k house and can't afford the payments and can't refi. **** 'em.
The fact is that prices need to drop even further many markets. When that happens, more people will be able to buy a home. Who are these people? They are ones who haven't been able to afford a home because they couldn't afford the payments on a 30-year, fixed rate mortage on a $900k house. They are ones who thought it was stupid and irresponsible to take out a $900k mortgage with a 1-year, 3.75% teaster-rate, pay-option, negative amortizing mortgage when your household income was only $100,000. They are ones with enough sense not to buy a $900k house that they couldn't afford by convincing themselves that the appreciation would bail them out. I can't afford a $900k house now, but I REALLY won't be able to afford it next year when it will be worth $1.2 million. Better buy now. Idiots.
Yes. It sucks if you bought at the top. There's risk in life though. You took the risk. Deal with it. Am I the only one who thinks that it's not the goverments place to guarantee the profitability of one's investment in the home??? If people want guaranteed investments they should buy Treasuries or open FDIC insured accounts. If you want to roll the dice on leveraged real esate, do so at your own risk.
End of rant. I feel better now.
Bernard
Certainly no homeowner likes to find out that the value of their largest asset is declining, but let's face it. In many markets things got really out of hand. Prices went up too far, too fast and a correction was inevitable.
I'm not going to lose any sleep over the fact that someone's southern California house in now only worth $700k when two years ago it was worth $900k. Boo-hoo I just lost $200k. The fact is they bought in 2002 for $400k and rode a nice wave of appreciation. It's not my fault they took out a new mortgage every year, pocketed $500k TAX FREE and now have a $900k mortgage on a $700k house and can't afford the payments and can't refi. **** 'em.
The fact is that prices need to drop even further many markets. When that happens, more people will be able to buy a home. Who are these people? They are ones who haven't been able to afford a home because they couldn't afford the payments on a 30-year, fixed rate mortage on a $900k house. They are ones who thought it was stupid and irresponsible to take out a $900k mortgage with a 1-year, 3.75% teaster-rate, pay-option, negative amortizing mortgage when your household income was only $100,000. They are ones with enough sense not to buy a $900k house that they couldn't afford by convincing themselves that the appreciation would bail them out. I can't afford a $900k house now, but I REALLY won't be able to afford it next year when it will be worth $1.2 million. Better buy now. Idiots.
Yes. It sucks if you bought at the top. There's risk in life though. You took the risk. Deal with it. Am I the only one who thinks that it's not the goverments place to guarantee the profitability of one's investment in the home??? If people want guaranteed investments they should buy Treasuries or open FDIC insured accounts. If you want to roll the dice on leveraged real esate, do so at your own risk.
End of rant. I feel better now.
Bernard
