Open Thread
Need a Hand?
Your Next Project Starts with BrownstonerMost Recent Articles
Need a Hand?
Your Next Project Starts with Brownstoner
ENY, mortgages are non-recourse loans in US (not so in Canada Etson in case you’re pondering it) so folks who walk away wont owe the residual balance as bank gave loan on premise of the house and downpaymt being the collateral for the loan.
I’m actually not as concerned about the credit hit as this terrible econ is a good blanket excuse for why they could pay, etc. still an exposure/risk but believe it’s less risky if doing this in normal times
I think it’s no more of a headache than most other things. Just buy within your means and have reasonable expectations about it’s growth in value.
By Butterfly on October 22, 2010 4:41 PM
homeownership sounds like a MAJOR headache
*rob*
**
It’s called being a grownup.
By blowfish on October 22, 2010 4:38 PM
ishtar, economists predict that homes will not be a person’s personal primary growth stock like they once were, or a growth stock at all, for at least 20 years
Anybody who thinks they know the future for 20, 10, or even 5 years is fooling themselves…seriously delusional. Inflation will be back in 12 months and home prices will begin rising.
ishtar, a home should never be considered an investment, imo. Other than a small investment property in Harlem and a cabin in the Catskills, we didn’t buy property until we were over forty. Cuz I didn’t want to be over-invested in any particular asset class so didn’t buy until I had other assets. As people have found out, RE is an illiquid asset that, to even Allen Greenspan’s surprise, can go down in price.
This is the thinking that is partly responsible for this mess.
The guvment should phase out tax support for this madness, another cause. When you give tax breaks like that, bound to distort rational investing decisions.
By ishtar on October 22, 2010 4:40 PM
*ignoring ENY*
**
Yeah, that was a good job.
There was a great story in the NY Times a week ago or so about a guy who had fallen behind on his mortgage and his house was in foreclosure. So what did he do? He borrowed money from his family, not to catch up on his mortgage, but to buy another, cheaper house also in foreclosure elsewhere. The whole scheme fell apart, however, when the foreclosure on the house he was going to buy was cancelled: http://bk.ly/uR7
homeownership sounds like a MAJOR headache
*rob*
*ignoring ENY*