Luxury home mortgages are more troubled than subprime ones?

L

latinotrader

After a brief look into magazine ads
I concluded that luxury homes are even more unsellable than those with subprime mortgages

Luxury developments were made for a market that just never really wasn't there.
And there was way more speculation with luxury homes.

Besides the double standard:
When poor borrowers default they are irresponsible
When rich borrowers default they are businessmen wisely getting out of bad investments.
 
My wife's ex-boss bought for $1.1M. Price went up to about $1.2M, neighbor can't sell at $500k. Virtually identical house.

Edit: And...ummm...can't afford the mortgage no mo cause binnes ain't been so good.
 
Quote from Debaser82:

Many people in fancy houses eat cerial for dinner.
More...

So true. There is a whole country famous for that. Scotland. :)

A relation of mine holed up in a enormous castle in northern Scotland, heated only one room and mostly ate oatmeal.

My dad keeps a little apartment at the beach and spends his time racing yachts, snow-boarding, cycling and eating at nice restaraunts.

I fall somewhere in between the nut in the castle and my dad. :D
 
There are two real estate markets that are above average in price volatility. One is the high end market, the other is overflow markets from urban centers, the "boonies". It all just goes to demonstrate that people whether poor or rich don't understand the business cycle...
 
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