Why buy a home to lose money on it the next day? 19 million homes vacant.

[jficquette]

Quote from wilburbear:

http://www.bloomberg.com/apps/news?pid=20601087&sid=ap.iU9iqfn20&refer=home

Through in normal 30 year mortgage rates of 8%-10% which are sure to return at some point over the next few years and you have another 30% to cut off.

You buy houses for cash when rates are high and you sell them when rates are low.

John

 

[Rtrader2525]

Quote from Anaconda:

Costs of being landlord have went up a lot also.

Absolutely good point Anaconda.

 

[marketsurfer]

Quote from Lucrum:

Or you could just move in a vacant house for free and hope no one notices. "They" can't keep an eye on all 19 million vacancies can they?

squatters been doing this for years. i know a guy who lived in a mansion for 2 years paid the utilities only.....even held events there....

nothing new.





http://www.squatspace.com/handbook/index.php

 

[Mvic]

Quote from flipflopper:

Because the gap between mortgage and rent are getting too close to resist.

Here is the logic.

I live in Bay Area CA. I was paying 2K a month for a 2 bed 1 bath 900 sqft apartment.

In November you could smell the panic so I put a lowball bid on a 3200 sqft home with pool hot tub on 20K sqft lot. This home sold in Jan 2007 for $1.2 mill. I picked it up for about 650K. Now my "rent/mortgage" is fixed at $2700 for life.

You see I don't give a shit if they tell me my home is worth $5 tomorrow... I won't sell and I'll never be hostage to renting again.

Does that make sense?

Also debt to income ratios in the bay area are below long term sustainable levels and people are starting to buy again.

There is something not right about this, bay area, are you sure?

 

[Clubber Lang]

Quote from flipflopper:

In November you could smell the panic so I put a lowball bid on a 3200 sqft home with pool hot tub on 20K sqft lot. This home sold in Jan 2007 for $1.2 mill. I picked it up for about 650K. Now my "rent/mortgage" is fixed at $2700 for life.

The seller took a 45% loss in less than 2 years in San Francisco?

The desert homes of Las Vegas haven't fallen that fast.

What's the deal?

 

[Clubber Lang]

Quote from Mvic:

There is something not right about this, bay area, are you sure?

Looks like you beat me to it.

Something is wrong with those numbers.

 

[Clubber Lang]

Quote from marketsurfer:

squatters been doing this for years. i know a guy who lived in a mansion for 2 years paid the utilities only.....even held events there....

Vic Neiderhoffer?

LOL.

 

[flipflopper]

Quote from Mvic:

There is something not right about this, bay area, are you sure?

Hmmmm.... yeah.... I'm pretty sure.

 

[stock_trad3r]

yea but in most areas home values are actually rising and or flat because of scarcity of land and urban migration. Densely populated areas such as the Bay Area, Manhattan, Aspen, have not been hit by the housing crunch because there is huge demand and a shortage of room.

 

[flipflopper]

Quote from Clubber Lang:

The seller took a 45% loss in less than 2 years in San Francisco?

The desert homes of Las Vegas haven't fallen that fast.

What's the deal?

The mortgages were owned by a bk'd mortgage company and group of investors on the east coast bought up their entire portfolio of several hundred homes. This home had a first for 950K and a second for 225K.

I came in with no broker offered REO broker an extra half point to rep me. Also got 25K back to remove contigencies.

That's the deal. Believe it or not.