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FIND YOUR DREAM HOME OR APARTMENT
must-see on msn
It's great the economy is percolating if not perking, though not great for those in debt misery.
There are all kinds of economic predictions, and favorables & dissents about almost everything
that's called "political economics" across the Atlantic pond. I'll further confuse the cash nissue
by boringly postulating, because I'm a milquetoast boar if not boorish. The likes/dislikes tell me so.
Because I can't stop with brief lines--I write for me not ye mutha- likers/dis-likers. Of course I care
about evaluations, though my candid reaction is t.s. IAsk your gandpa privately what t.s. stands for Hint: It has something to do with Putinism. And if Shakespeare had posted
in his thoroughly modern 17th (whatever) century, would he be renowned? No, because
his ratings would be low, and altruistic commercial sponsors rare. Because who understands
sonnets, and especially John Milton's stuff. Not me, but if vous do, then great. I do not have
the intelligence to understand most poetry, allegories and symbols.
My poetry is delightful, if accompanied with glass of water in drought. Take Roger
Bacon, ditto. There is little better than a BLT and lime-aid, and we have Bacon to thank if
not Lettuce, Tomato, and Mayo on White. Tomato sandwiches without lettuce and bacon,
but on white enriched with high calorie and fat mayo do make me feel satiated but guilty for violating
the protocols, tenets, customs, folkways and mores of the prevailing mainstream Sandwich Culture.
On sandwich I shall never experience is banana peanut butter, though if this diabetic 2er
is starving, then bring it on. If your buyer is buying your '98 Civic in cash, then don't, because
Ben Franklins and Andy Jacksons could be laser printed.
I just read an e-book on amazon that gives info about buying a house. Like how to know what you can afford, not what the mortgage brokers will approve you for. It's called "Stuff I told my kids about..buying your first house". No fluff. I liked it because it had info to help you when dealing with real estate people. Might be worth a look.
The rest of the 99 percenters have to suffer like always.
You are a complete ****!!! Less than 1% of homes are purchased with cash!!! You need to
get a real job!!!
We're talking about a LOT of cash... You're probly good if you're ready to show where it all came from....
What about alternative places to put that cash that'll pay a better return than the house's appreciation? ... and the benefit of the tax break on the little bit of interest that the current low rats allow?
And the lines about 'no escrow' and '0 monthly payments' are misleading - even if there's no mortgage, the homeowner still has to pay property insurance and taxes, which can be as much as 40-50% of the the mortgage-holder's house payment. Assuming property taxes of $8,000 a year and taxes of 4,000 a year, it's still going to cost $1,000 a month to live in the house BEFORE utilities and other expenses...!
I always said and believe, "Cash is KING" Save and pay for whatever you want in cash and what you do not have you do not need, except cash. If I can do it you can do it. I am not rich but saved, saved, and saved. Then bought and paid for it. IN CASH.
It seems that most lower end homes sold here recently are to investors/people coming from other countries. They have the cash and know that if even prices remain flat for the next 10 years, They can still make a pretty good return on their investment by collecting rent. What I struggle with is that they are driving the prices up and hurting the ability for 1st time home buyers.
Now, we bought a $50k home in Sacramento, Ca. with cash by cashing in our IRA's and my wife's severance "bonus" when her company was sold. The only reason we were able to get this home was because the Fed/lender(fannymae/freddymac) that foreclosed on it required that owner-occupied had first rights. The 5 other offers were investors who had multiple properties when title searches were done. All of those 5 offers ranged from $8k to $30k more than what we paid. This place was a fixer with no kitchen(everything was stripped). Many of these offers were trying to use other family members to purchase. Btw, all of them were Asian or Russian/Ukrainian descent and from what agents have told me, it's all foreign money.
So, basically, we were at the right place and the right time. Too bad my kids will probably never get a chance like this.
Nothing is going to be done about foreign money flooding the market until the government and the banks are able to dump all of the underwater homes/foreclosures. By then, if ever, it will be too late.
A great deal of the cash purchases are coming from investors, or parents that have cashed in their investments to help the kids.
NAR (National Association of Realtors) recently released a statement saying a lot of the investment money is coming from China. There is no doubt in my mind (Realtor for 28 years) that foreign investors are taking advantage of a market where the possibility of getting higher rents is real. More renters, fewer owner occupants makes an increasing rental market. The unsettling part of that is in a few years, 20% and higher numbers in your neighborhood will be owned by people and companies out of our country. We, as a country are loosing control of the land in our country. Most malls and office buildings are not US owned either. We have to be cautious and see what can be done to fix that. This is frightening.
The problems are involved and go back to the easy money of the mid 2000's and the real estate crash, then the entire economy (part of the crash). I am not an economist, but a Realtor pounding the streets to find houses for my buyers. I see clearly the Dodd Frank Act was an over reaction and a reaction of our legislators thinking that fraud and poor investments on behalf of the lending institutions were the responsibility of the Federal Government and ultimately the US people. The Dodd Frank Act which is designed to tighten the lending rules perhaps had good intentions. But better intentions should have been what you tell your kids - you spend unwisely, I will not help - it is your problem. Rather now the regulations of that act are strangling the lending institutions as well as those who want to sell property with an "owner carry" loan. Yes, they are controlling your money as well!!
The theory that home buyers should have a great job of over a year, great credit and tons of cash is good in theory, but makes it impossible for the self employed and others to even think of buying - which makes renters out of a lot of us. If the building industry is getting better, it is for the few with a lot of money, those that have moved up in the house value chain or multi family housing. Example - John and Jane sell a house to an investor for $120,000, with multiple offers and an original asking price of $100,000 They move to a house listed at $200,000 where they compete on several properties and end up paying $230,000 for a property listed at $200,000. Those owners, Dave and Suzie move to one at $350,000 and on up the chain. The buyer occupant is priced out on the lower end which means fewer young people with families are able to buy. This opens up the market to those who have cash and ultimately foreign investors. If it were not for foreign investors, the market would do what it did in the past - values would go down with fewer qualified buyers.
Think seriously - we need to fix this in a real way. Tightening the lending regulations and making it harder for you and your kids to buy a house was not even putting a finger in the dyke, it was pushing it down. Repeal of the Dodd-Frank Act could help.