Comments on: Is now a good time to buy a home? http://blownmortgage.com/2007/03/31/is-now-a-good-time-to-buy-a-home/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Mon, 09 Nov 2009 22:42:54 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Real Estate is for Suckers http://blownmortgage.com/2007/03/31/is-now-a-good-time-to-buy-a-home/comment-page-1/#comment-32 Real Estate is for Suckers Tue, 03 Apr 2007 04:20:40 +0000 http://blownmortgage.dreamhosters.com/?p=134#comment-32 Housing will fall until the SFR is a net positive cash flow investment again with 100% financing. The builders are offering blowjobs with every new home so they won't have to lower their prices but their knees will get sore and prices will fall and existing home will follow. My opinion is an owner-occ house is not an investment it is a liability. Home values should drop like cars: the older it gets the cheaper it is. What other depreciating asset appreciates 25% a year for 3 years? The rental market should control the value of a home. How much money can I make off this house if I rent it after my leverage and costs? Instead housing moves like gold. Negatively correlated with the US dollar but not as liquid. Why would I want to buy an asset that I canâ??t sell in a bad market? Burn baby burn. Housing will fall until the SFR is a net positive cash flow investment again with 100% financing.
The builders are offering blowjobs with every new home so they won’t have to lower their prices but their knees will get sore and prices will fall and existing home will follow.
My opinion is an owner-occ house is not an investment it is a liability. Home values should drop like cars: the older it gets the cheaper it is. What other depreciating asset appreciates 25% a year for 3 years? The rental market should control the value of a home. How much money can I make off this house if I rent it after my leverage and costs?
Instead housing moves like gold. Negatively correlated with the US dollar but not as liquid. Why would I want to buy an asset that I canâ??t sell in a bad market?

Burn baby burn.

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