Sounds counter intuitive but true. Lower rates mean more broke dicks can qualify for more expensive houses. This keeps prices above prudent levels. That is your your monthly payment including tax and insurance should be less than 1/3 gross monthly income .
For instance, average wages are 54000 in California which gives us 4500 a month. Times 1/3 = 1530 a month for total payment. This will buy a house in California for about 275000 after a 55000 down.
Which means you can move into Compton or San Bernadino. On the wrong side of town. For 55 gs down. Assuming average wages are 54000.
I'll take 2.
Even with FHA financing the down would 13750 + 3000 closing cost.
I think prices have a loooooong way to go down, don't you?
I'll stick with mobile homes. I can buy all I want for less than 30000 and have peanuts for rent. I bought mine for 24000, including furniture, for 5000 down, no credit, nothing for expenses. $524 a month 3 years. Lot rent 160 a month. Probably do the same in Florida after the crash eases.
Mobiles can't be financed by banks. Need my credit union to fix me up. With 2 years on the job and 700 credit they beg people to borrow.
Could refi this one after I pay it off this Christmas and by another somewhere. Should be able to borrow 10000 or so for my retirement home.
Time will prove me right when I predict my generation is fucked for retirement. Need a cheap place to live? I have a mobile for you. Couple thousand down and 300 a month + lot rent.
Easy money for me nice place for broke dick senior citizens.
My landlord is 80 years old and buys and sells them year in year out. I used to sell house for others and see a pretty interesting future in doing it for my self. Time will tell.
patrick.net
For instance, average wages are 54000 in California which gives us 4500 a month. Times 1/3 = 1530 a month for total payment. This will buy a house in California for about 275000 after a 55000 down.
Which means you can move into Compton or San Bernadino. On the wrong side of town. For 55 gs down. Assuming average wages are 54000.
I'll take 2.
Even with FHA financing the down would 13750 + 3000 closing cost.
I think prices have a loooooong way to go down, don't you?
I'll stick with mobile homes. I can buy all I want for less than 30000 and have peanuts for rent. I bought mine for 24000, including furniture, for 5000 down, no credit, nothing for expenses. $524 a month 3 years. Lot rent 160 a month. Probably do the same in Florida after the crash eases.
Mobiles can't be financed by banks. Need my credit union to fix me up. With 2 years on the job and 700 credit they beg people to borrow.
Could refi this one after I pay it off this Christmas and by another somewhere. Should be able to borrow 10000 or so for my retirement home.
Time will prove me right when I predict my generation is fucked for retirement. Need a cheap place to live? I have a mobile for you. Couple thousand down and 300 a month + lot rent.
Easy money for me nice place for broke dick senior citizens.
My landlord is 80 years old and buys and sells them year in year out. I used to sell house for others and see a pretty interesting future in doing it for my self. Time will tell.
patrick.net
Realtors hunting for the few fools not yet parted with their money keep insisting that low rates are a good thing for buyers. Not true. Low interest rates make it a bad time to buy.
First of all, house prices move inversely to interest rates. If rates have nowhere to go but up, then prices have nowhere to go but down.
Secondly, anyone buying with an adjustable rate will get a nasty surprise when his rate later increases at the same time that the value of his house has fallen.
Though I suppose if you get a 30-year fixed rate loan and don’t care about resale value because you never plan to leave, then maybe it’s OK to buy and bet that inflation will wipe out most of your loan. Not many signs of inflation yet, so such a bet might not pay off.
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