Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Fri Jun 30, 2006 1:07 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
I've noticed a trend for this year. Homeowners who put their house up for sale but CANNOT sell their house. Basically they overprice their house. After a month passes and no fool rushes in to buy, the homeowner is forced to reduce the price.....about $20,000. The pattern repeats for 3 months. After reducing the price 3 times and still unable to find a buyer, the homeowner gives up and decides to just pull the house off the market.
On the other hand there are those who put the "for sale" sign up for only 1 month just to "feel" the market. Real estate agents HATE these people. It's a waste of their time but not that I feel sorry for an overpaid real estate agent.
Personally I think when everything is all said and done, there will be a 30% drop in prices from peak to valley. So far there has been a 10% drop (at least in my neighborhood) so there's still much more to go. IMHO
But of course a real estate agent still needs to make a sell. Sometimes they'll tell you some fairy tale fantasy that the market can ONLY drop by 2%. Woe to the fool who rushes in today and buys because he thinks this is the bottom.
Interest-only loans have been all the rage in the United States in recent years, amounting to up to 20% of all originations and up to 50% in some of the hottest U.S. cities. Mr. Tal said the last time they were so popular in the United States was in 1929.
DANGER Will Robinson! DANGER! _________________ Angry yet?
Interest-only loans have been all the rage in the United States in recent years, amounting to up to 20% of all originations and up to 50% in some of the hottest U.S. cities. Mr. Tal said the last time they were so popular in the United States was in 1929.
WARNING Will Robinson! WARNING!
Wow, who would do that. Interest only for 10 years, then you have 100% prinicple to pay off plus the interest on it. Someones making free money for just tieing up some money for 10 years. Longer pay off periods. Lets just stay in debt till our grand children are old. Yikes, the folly of some pple.
Posted: Fri Jun 30, 2006 2:05 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
Fergus wrote:
Wow, who would do that. Interest only for 10 years, then you have 100% prinicple to pay off plus the interest on it. Someones making free money for just tieing up some money for 10 years. Longer pay off periods. Lets just stay in debt till our grand children are old. Yikes, the folly of some pple.
It's great in a bottomless market. After all, you're just capturing increased equity (+20% per annum in some markets) and then you flip. Rinse. Repeat. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Fri Jun 30, 2006 6:46 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
emersonbiggins wrote:
...
Heh, true. When is a liar not a liar?
In all fairness I have no grudge against people who have a career which naturally requires them to lie....a little (basically all sales jobs).
Aside from a market that's oversaturated with houses with "for sale" signs there's also a ridiculous number of real estate agents. Apparently everybody including their in-laws heard that there was "good $$$" to be made by being a real estate agent. That's true ONLY if you can make the sell. It's a weird business where 10% of the people who get into it will eat 90% of the pie. What's left of the pie crust gets divided amongst all the hopeful losers. Actually that sounds like how most businesses operate.
With all the competition now there are a small number of real estate agents that will work off a 1% commission. However there are still a bunch of greedy agents who expect 3%. The greedy agents absolutely loathe these "discount" guys. Lets do the math. $600,000 home X 3% = $18,000. Sell 1 house per month and you'll make $216,000 per year. Remember homes used to sell in 1 week when the market was hot. Now you know why California has so many real estate agents.
Posted: Tue Jul 04, 2006 12:37 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
I am in RE the 1% discount guys are not cheaper in fact they are more expensive because they don't live off the 1% they live off the KICKBACKS they receive via funneling you into their mortgage co, their title co, their survey co, their inspection co, their home owners ins co. etc etc etc. Usually via "affiliated business arrangments".
Basically they bait and switch you with the 1% commission carrot and then rape you on the back end of the transaction. It's gullible consumers that buy into "one stop shopping" and "low commisions" that get screwed.
...Beware of new "business models" especially in RE, lots of cheaters and bs artists out there.
Posted: Tue Jul 04, 2006 1:28 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
NTBKtrader wrote:
I am in RE the 1% discount guys are not cheaper in fact they are more expensive because they don't live off the 1% they live off the KICKBACKS they receive via funneling you into their mortgage co, their title co, their survey co, their inspection co, their home owners ins co. etc etc etc. Usually via "affiliated business arrangments".
....
I don't consider "affiliated business arrangments" to be dishonest so long as the price is fair. For example it's a safe bet that if your car breaks down and you call a tow truck, the driver can definitely recommend a "good mechanic". Obviously the tow truck company and the auto shop company got into bed together. So long as the auto shop fixes only what was broken with your car and doesn't try to slam you in the rear with a drive shaft there's nothing dishonest with such business practices IMHO.
Getting back to real estate a clueless client will get cheated regardless. I've lost count how many times I've heard of shady mortgage brokers who can offer "free" home refinancing. The fee gets rolled into the new loan amount and of course this fee is almost always pretty steep. How many people got suckered for that scam.
Posted: Tue Jul 04, 2006 1:45 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
Is it not wonderful that all those infomercials of get out of debt, slice & dice your own vegatables, home excercise, and plan for your retirement have never taken off? Hmm? I wonder why? It seems when it comes to advertising, some messages are more resistible than others? Go figure? Oops, sorry, Ruby Rottenkrotch cannot. She should ask a paid professional instead. Kind of like the Priest reading his interpretation of the Bible because his parishers could not? Umm, 500 years under the bridge, nothing learned? Not really, huh? _________________ The organized state is a wonderful invention whereby everyone can live at someone else's expense.
Posted: Tue Jul 04, 2006 3:24 pm Post subject: Re: SAD that the new hotness is interest-only mortgages
cube wrote:
NTBKtrader wrote:
I am in RE the 1% discount guys are not cheaper in fact they are more expensive because they don't live off the 1% they live off the KICKBACKS they receive via funneling you into their mortgage co, their title co, their survey co, their inspection co, their home owners ins co. etc etc etc. Usually via "affiliated business arrangments".
....
I don't consider "affiliated business arrangments" to be dishonest so long as the price is fair. For example it's a safe bet that if your car breaks down and you call a tow truck, the driver can definitely recommend a "good mechanic". Obviously the tow truck company and the auto shop company got into bed together. So long as the auto shop fixes only what was broken with your car and doesn't try to slam you in the rear with a drive shaft there's nothing dishonest with such business practices IMHO.
There is a lot of self-dealing, anti-trust, fraud, kickbacks and other issues with affiliated business arrangements. On PAPER they can make financial sense but in reality when put into use in the real world dishonesty and cheating almost always come into play. By nature they are more expensive; you say "if the price is right" but in my far reaching experience in RE they are ALWAYS more expensive than independent companies that you shop for a quote with. An even bigger issue is that sham title companies, mortgage fraud, ripping off unkowledgable consumers etc is always more prevalent with those that are in bed together and affiliated. Affiliated companies are out for each others best interest and are focused on getting business directed to them via that kickback. They are NOT a neutral party for the consumer because conflicts of interest have taken over.
You say that stupid consumers always get ripped off but how were these people to know that the title co and builder were in bed together and the title co wouldn't pay the bank? BTW they were in bed together but the story doesn't clearly point that out...
CALEDONIA -- 50 Caledonia homeowners might lose their homes to foreclosure after a bank says it never got paid.
http://msnbc.msn.com/id/13584407/
Joined: May 24, 2004 Posts: 3429 Location: California, USA
Posted: Thu Jul 06, 2006 5:36 am Post subject: Re: SAD that the new hotness is interest-only mortgages
Ha, Jaws beat me to it. Exactly correct, and exactly what I was thinking when I saw the topic title.
All the downside of renting, plus all the downside of owning, all wrapped up in a pile of paper that can sink your entire life like a bucket of cement on your feet. Or, a tenuous tenant by any other name.
As for all the real estate speculators who make theirs by "quick-flipping houses." They add zero value, they are pure parasites. They do nothing except cause prices in a market area to rise artificially. They do not build, they do not finance, they do not facilitate transactions, they just ride the scalar of time as if it were a vector correlated with value. I have zero sympathy for any such parasites who get wiped out in the crash.
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