Quote from QQQBALL:
ARMS loans will almost certainly rise.
investor = speculator, maybe, but why bother to argue semantics? i think buying good properties (preferably coastal) at "right prices" with FR debt is investing, pure & simple. supply is constrained, demand is steady-to-increasing and in fully developed markets (nearer the beach), new development requires razing of existing structures. in my mind, its much more speculative to owe 95% LTV on massive home with ARM. this goes back to my passive income thingy (non-work income). people will come to realize that it is safer (less speculative) to have less home and a more diversified real estate investment port - maybe thats a simple as REITs? a home is an expense, and investment property produces income. id rather have a smaller home & more passive income. BTW, im F/C on residence, but i only keep it because i want at least 1 casa in Socal, otherwise it would be sold. i also have my biz office here too. i dont think its different this time, when GIMs on coastal props were 20x-30x POTENTIAL GROSS you sell and/or exchange. when they are 8.5-12x PGI, you buy. selling house is a great tax shelter, problem is the sheeple will suck the equity out, blow the dough and end up with their homes owning them. honestly, i just talked to a buddy that has a $1M home in san juan capostrano, but he is basically living month-to-month... so many people here live in homes that they couldnt afford to buy at today's prices. homes in Socal used to be a forced-savings plan, now they are source of spending money.
