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devoish (98.78)

Who's Going to Buy My House... part 3

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June 05, 2009 – Comments (7)

One of my first posts on this website asked the question; Who's going to buy my house?

Basically if my income hadn't gone up in ten years, and all I saw in the real world were closing engineering and manufacturing jobs, replaced by new target and walmart jobs, I was wondering who would buy my house. Especially at double the price I had paid for it. Actually I was more wondering who was buying all these expensive houses around me. At the time I had no idea that ninja loans existed and if you had told me, I would not have believed it. At least not right away.

In the responses TMFBent gave me my first clue about what was coming. It was not until I found Calculated Risk that I really began to understand.

Having run out of qualified homebuyers, rather than stop building, a way was found to create more home debtors. What this meant was selling to unqualified buyers. Once the unqualified buyers ran out, well, you all know what happened.

In the desperate search for the recovery of some lost cash, the prices of homes have been falling. The question now is how far will they fall. Apparently even with the support of 90% Government money, investors still do not see value in these structures.

So what are those three bedroom, walk in closet, finely appointed, marbled bath and counter, condos worth today? In the NY City suburb of Crown Heights?

Less than you might think.

 

7 Comments – Post Your Own

#1) On June 05, 2009 at 4:14 PM, jstegma (30.01) wrote:

That link is a fascinating story. 

If you didn't believe that ninja loans existed, would you have believe that the government would pay for homeless people to live in luxury apartments in New York City?  And we seem to be having a hard time balancing the budget for some reason.

 

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#2) On June 05, 2009 at 4:27 PM, devoish (98.78) wrote:

jstegma,

Thank you.

They're not "luxury" (Something expensive or hard to obtain.) if anyone can have them.

And for the record, The Department of Homeless Services costs each New Yorker $22./year and non New Yorker Americans $1.60/year each, and serves 34,000 people, .004 of NY City's population.

A lot of people complain about the high cost of Government services on this board, but I think the high cost of banking is costing you more.

Anyway, I am glad you enjoyed the article.

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#3) On June 05, 2009 at 4:41 PM, guiron (21.21) wrote:

If you didn't believe that ninja loans existed, would you have believe that the government would pay for homeless people to live in luxury apartments in New York City?

Whether there is any truth to that, that's not why we're in the current situation. Blaming poor people and social welfare programs for an economic crash brought on by massive fraud and malfeasance by financial con artists is absurd.

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#4) On June 05, 2009 at 4:57 PM, ralphmachio (24.40) wrote:

And some of them work for the government.  Which is why we must decrease the government. Dirty.

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#5) On June 05, 2009 at 5:01 PM, FleaBagger (31.07) wrote:

They're not "luxury" (Something expensive or hard to obtain.) if anyone can have them.

You have to quit your job and lose your own apartment first. That has to be pretty hard if you've worked hard to get your position and you're attached to it.

Also, if every other American and I are paying $1.60 to help these people get apartments that are nicer than anything I can afford, I'd say that's pretty extravagant and a burden on the whole country! If you want to defend that, I'll disagree with you. If you lead a charge to end bank subsidies, I'll vote for that.

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#6) On June 05, 2009 at 5:10 PM, FleaBagger (31.07) wrote:

I wouldn't worry too much about housing or anything else: soon, Obama is going to give us all green jobs in the wind energy and solar power industries, and we'll all have decent incomes, a good social safety net, and plenty of clean energy to use to air condition the planet and thwart global warming. War, disease, poverty, and every kind of unhappiness will be the stuff of history classes - or would be, if history were taught, which it won't be, because it's such a downer, and we'll all be too busy having fun and enjoying Obama Nirvana!

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#7) On June 05, 2009 at 5:48 PM, devoish (98.78) wrote:

You have to quit your job

Quit? People that have been laid off you perceive as quit?

And frankly the post was about the value of real estate, not a political statement. If the "incompetent government" can get luxury condos for what they paid to get fleabag motel rooms consider it a success of the Capitalist dream as the rising tide lifts all boats.

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