Housing Rolling Along 2
- Thread starter Covertibility
- Start date
Jay, you're kind of missing my point. In a world where folks are merely "trading up" to those million dollar homes, in a world where people have inherited wealth, in a world where people have stock portfolio's and savings, the income vs. home price equation is meaningless.
Rather than a housing "bubble", IMO the REAL risk is a housing Brazil. IOW's wage earners are going to be increasingly priced out of everything while a bourgeois class of equity holders rule the market. You either have a half mil to spend or you can go back to the other side of the tracks and live in Shantytown with the Mexican's.
Rather than a housing "bubble", IMO the REAL risk is a housing Brazil. IOW's wage earners are going to be increasingly priced out of everything while a bourgeois class of equity holders rule the market. You either have a half mil to spend or you can go back to the other side of the tracks and live in Shantytown with the Mexican's.
What's a single person to buy? What's a first time buyer going to buy?
The biggest problem with your example is the ARM. What are they going to do when it adjusts? Just keep refinancing over and over, assuming you even can? What happens if rates rise significantly in the future (no one knows 5 or 10 years out what might happen. A dollar crash for example, rates sky rocket no matter what the FED does). Just because rates have been low for awhile does not mean they will remain low.
People who HAVE to use ARM's, CAN'T AFFORD THE HOUSE. They get sucked in only to get screwed later. This allowed the prices to climb so high in the first place.
If you can't afford the mortgage on a 30 yr, then guess what, you can't afford it period. It blows my mind that people don't think this through. There are so many people starting to lose their homes because of this. There are still valid reasons to use an ARM, but if its the ONLY way you can get into the house, you are just asking for disaster.
The popularity of ARM's has not changed a very fundamental ratio of what is affordable, except for the short term. This argument reminds me of the sky high tech prices in 1999. People claimed its a new paradigm. Different this time.
So, I guess prices are not out of line, if, and only if, you must rely on ARM's
OK
First of all:
Rates are at about the 50 year average....not abnormally low....
Refinancing from ARM to fixed rate is up as reported today...
Young people who cannot afford home in California will move to where they can afford home....simple as that....been happening for over 150 years.....
And, please quit using Southern California as proxy for the national housing situation, for God's sake.....you talk about dumb and dumber....
SteveD
Rates are at about the 50 year average....not abnormally low....
Refinancing from ARM to fixed rate is up as reported today...
Young people who cannot afford home in California will move to where they can afford home....simple as that....been happening for over 150 years.....
And, please quit using Southern California as proxy for the national housing situation, for God's sake.....you talk about dumb and dumber....
SteveD
oh yeah, Delray is sweet as long as you don't mind living with communist - ever go to the beach - just check out the signs at the beach entrances - no ball playing, cats, dogs, frisbee, parties, hell, you can't even fly kites - i'm suprised they let you walk on the sand...oh yeah dealray the place to be...oh don't be harassing the marine animals...
Sec. 101.18. HUNTING OR MOLESTING OF WILDLIFE. Ha! Ha! - what people are humping the humpin craps?
Sec. 101.19. FIRES. - would want to burn down the sand
Sec. 101.27. ANIMAL REGULATIONS. - DAmn Can't even bring you own dog Ha! Ha!
(A) No person shall herd, graze or permit to run at large within any park any cattle, horse, mule, donkey, goat, swine, sheep or other animal, or any poultry or other fowl.
(B) No person shall bring into, have or keep in any park, recreation or municipal beach site, any cat, dog or other animal without a specific permit from the Parks and Recreation Department. However, any cat, dog or other animal shall be allowed on the sidewalk and grassy area of the municipal beach between the eastern curb of State Road A1A and western base of the dune for the entire length of the municipal beach and shall be on a leash. For purposes of this Section, the western base of the dune encompasses all vegetative growth that is found on the dune. All animal owners shall be responsible for the cleanup and disposal of their animal waste in this area.
Sec. 101.29. UNDRESSING ON BEACH; INDECENT APPAREL. - Dudes don't wear you panities...
(A) No person shall dress or undress on the beach except in taking off or putting on dressing robes and shoes.
(B) No person shall be dressed in such a manner as to lasciviously expose the sexual organs.
Sec. 101.32. ASSEMBLIES. - No Parties
No person shall use any portion of any park, recreation or municipal beach site for the purpose of assembling, where over twenty-five (25) persons are involved.
Sec. 101.33. PLAYING BALL; USING GYMNASTIC EQUIPMENT. - No Frisbe, Footbal, nothing Ha! Ha!
(A) No person or group of persons shall engage in ball playing of any kind except in areas provided therefor.
(B) No person shall use or bring upon the beach for use any platform, trapeze bars or similar articles for gymnastic exhibition or use.
Sec. 101.34. SURFING, SCUBA DIVING AND JET SKIS.
(A) No parasailing or kiteboarding/kitesurfing shall be permitted within three hundred (300) feet of any municipal beach site within the limits of the City. No surfing, windsurfing or kite-flying shall be permitted except in areas designated by the City Manager. It shall be the duty of the chief lifeguard to see that proper markers are maintained to indicate the location of any area to be designated. No person shall use any object at any time on the beach or in the Atlantic Ocean in a manner that constitutes ahazard to any other person.
1. An exception to the prohibitions in Section (A) is a life-or-death emergency which may require a kiteboarder/kitesurfer to traverse on or within three hundred (300) feet of any municipal beach site.
(B) Scuba diving and jet skis are prohibited from all areas of the municipal beach.
