Quote of the Day
For every person crying that the sky is falling I know of another person (you and myself included) sitting on a pile of cash. Ask yourself how many people you know who are hoping to purchase a distressed property in the next year or two. I don’t understand why so many of you are so…
For every person crying that the sky is falling I know of another person (you and myself included) sitting on a pile of cash. Ask yourself how many people you know who are hoping to purchase a distressed property in the next year or two. I don’t understand why so many of you are so negative on NYC market when in reality I’m sure many of you also know people who have a lot of money right now they don’t know what to do with. These people = demand. Nothing is trading right now because everyone is in wait and see mode, but don’t confuse wait and see mode with the preamble to a cataclysmic decline in prices. It might not happen. I am much more bearish on the financial markets and the national real estate market than on NYC market.
— by setancre in Front Page Forum: Walk Away from Downpayment?
Yeah, I’m curious, M. Jackal, how did your portfolio do this week? I hope it’s all in cash a t-bills.
“…SnarkSlope, who I think wins the brevity prize on this site.”
What do I win? Please say “pile of cash,” come on “pile of cash!”
My quote of the day is from Ezra Pound,
“Usura slayeth the child in the womb
It stayeth the young man’s courting
It hath brought palsey to bed, lyeth
between the young bride and her bridegroom
CONTRA NATURAM
They have brought whores for Eleusis
Corpses are set to banquet
at behest of usura. ”
I agree with this post 100% . Nyc the 22 most expensive place to live on Earth. Never a bad time to buy NYC real estate.
I don’t think I’m sitting on a pile of cash with our house, and don’t think we will be until about 7-10 years from now. But yep, I decouple the national real estate market from the NYC market. Maybe you all don’t know anybody trying to sell right now outside NYC in the rest of the country.
My parents had a gorgeous lakeside condo with a private beach, in a well established, upscale historic town in the Midwest within short commuting distance to a large city for sale this Summer and not one buyer came to look at it all Summer. Not one. Even though they had listed it well under comps to sell it quickly. My cousin has had a house for sale in Austin for two years with no offers. In contrast, Brooklyn houses get people looking and they’re still selling, even if for less than ask and after several weeks. Which might scare people but it is way better than what’s happening nationally.
you better have the “pile of cash” under your mattress because if you have it invested in securities, you’re not as rich as you were two weeks ago.
If you keep your millions in a savings account, congratulations! this is your lucky year.
lechacal:
I was referring to SnarkSlope, who I think wins the brevity prize on this site.
IronBalls said:
“In the future, banks will loan only based on potential rental income, even for residential properties.”
I hope you’re not referring to single family homes in the suburbs. Otherwise, that’s crazy talk. In much of the country, there is no rental market or the rental market consists entirely of people receiving Section 8 vouchers or some kind of government assistance.
“In other words, folks would have to put down enormous cash downpayments (possibly around 60%) for prices to remain anywhere near where they are now.”
One of the reasons houses for middle class folk in New York City used to be so nice is banks ONLY gave loans with 50% down or more, that way the bank would have a much lower chance of being “under water” on the loan. Because homeowners were spending such a large amount of their own personal cash, they had a lot more to say about the houses they were buying. Prices were also much lower.
Residential real estate is the classic example of how usury results in a lack of affordability as well as the destruction of aesthetic standards. So, if we return to the days of high down payment requirements – I will be pleased.
Polemicist: Huh?