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View Full Version : Housing Woes Bring New Cry: Let Market Fall



Got Goldies
09-06-2010, 02:39 PM
The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.

Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.

As the economy again sputters and potential buyers flee July housing sales sank 26 percent from July 2009 there is a growing sense of exhaustion with government intervention. Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.

http://www.nytimes.com/2010/09/06/business/economy/06housing.html?_r=1&ref=business

Down 26% from July 2009? The only way demand will pick up if they let the bottom drop out.

Saylor
09-06-2010, 03:07 PM
http://www.nytimes.com/2010/09/06/business/economy/06housing.html?_r=1&ref=business

Down 26% from July 2009? The only way demand will pick up if they let the bottom drop out.

And everybody has know this from the beginning.

But...maybe they were/are just trying to make it a softer crash.

Got Goldies
09-06-2010, 03:14 PM
Vegas had a hard landing crash, but its was my destiny to buy in low.


Hardly anyone was interested is this mainstream foreclosure video.

http://www.youtube.com/watch?v=OBNLjQDYcv0
$93,000 for an 1800 sq feet home?

Jessica got 25K for a gigantic place.

II DALTON II
09-06-2010, 03:42 PM
Vegas had a hard landing crash, but its was my destiny to buy in low.


Hardly anyone was interested is this mainstream foreclosure video.

http://www.youtube.com/watch?v=OBNLjQDYcv0
$93,000 for an 1800 sq feet home?

Jessica got 25K for a gigantic place.

Vegas sounds like a great place to retire to or buy that first home. I'm still waiting for the huge drop in my neck of the woods but the longer it takes the better as it gives me much more time to save.

Got Goldies
09-06-2010, 03:47 PM
Vegas sounds like a great place to retire to or buy that first home. I'm still waiting for the huge drop in my neck of the woods but the longer it takes the better as it gives me much more time to save.

You would want to buy where you know there is support lines. There is a 15 year support line at $110,000. And this chart is old. We're down to 80K.

http://i288.photobucket.com/albums/ll195/luckylegs10/Vegaschart.png

Its not going to get any cheaper than this. People who have owned on the coastal states can retire at an early age just by selling their bubble coastal home and moving to where they can buy 5 houses for their one old home. Vegas is the wild west.

II DALTON II
09-06-2010, 04:04 PM
Do any dealers accept international bids? Might look into putting a 50% down payment on one or 2 and then rent them out. Sell maybe when their value returns to what it should be? I know people who would love to go to Vegas for holidays so I would have customers that could possibly cover 4 months of the year. Charge them say $400 a week? Return on those 4 months alone could reach $6400 per home. Wouldn't profit for a while but after a few years who knows?

fledgling
09-06-2010, 04:12 PM
I heard there are a lot of Chinese with cash offers in Vegas.

Got Goldies
09-06-2010, 04:18 PM
I heard there are a lot of Chinese with cash offers in Vegas.

China will never take over Las Vegas. This I can assure you on. Nothing but Spring Mountain is China town here (about 1 mile long). And even that is small by comparison.

Vegas wash out has occurred and now its time to run out of houses.

II DALTON II
09-06-2010, 04:30 PM
What is the average rent in $ per month for an average 3 bedroom home?

Got Goldies
09-06-2010, 04:38 PM
What is the average rent in $ per month for an average 3 bedroom home?

I don't know. But even during the bubble it was around $1500.

You could get a mortgage in 1998 for $1100 a month. Say 2500 sq feet.


I bought a fairly new one, 1700 sq feet house, for 80K including a first time home buyer rebate.

But if you are going to use it as a vacation home? The closer to MGM the better. Like up on Tropicana on the west side. And this new area which has exploded in growth, Silverado Springs? Maybe its Silverado Ranch.

II DALTON II
09-06-2010, 04:45 PM
I don't know. But even during the bubble it was around $1500.

You could get a mortgage in 1998 for $1100 a month. Say 2500 sq feet.


I bought a fairly new one, 1700 sq feet house, for 80K including a first time home buyer rebate.

But if you are going to use it as a vacation home? The closer to MGM the better. Like up on Tropicana on the west side. And this new area which has exploded in growth, Silverado Springs?

Not necessarily as strictly a holiday home, just toying with ideas. Cheers for the info though.

I find it amazing to see the price difference in comparison to property over here in the UK. The basic $25K home in that video would sell for about 160K ($246K) over here. Just goes to show how much of a correction there will be over here I suppose. Can't wait :D.

Got Goldies
09-06-2010, 04:56 PM
Not necessarily as strictly a holiday home, just toying with ideas. Cheers for the info though.

I find it amazing to see the price difference in comparison to property over here in the UK. The basic $25K home in that video would sell for about 160K ($246K) over here. Just goes to show how much of a correction there will be over here I suppose. Can't wait :D.

I would be on the boat applying for a citizenship so could retire like a king in Las Vegas if I owned property in UK. Who the heck wants to work? I don't. I haven't worked in 16 months. I'm living off my Silver income.

nuts4gold
09-06-2010, 05:18 PM
And everybody has know this from the beginning.

But...maybe they were/are just trying to make it a softer crash.

It was (or will be) a massive loss for the poor taxpayer who will be paying the price for the gooberments intervention into housing. I hope we learned a very expensive lesson here but I think not...

II DALTON II
09-06-2010, 05:19 PM
I would be on the boat applying for a citizenship so could retire like a king in Las Vegas if I owned property in UK. Who the heck wants to work? I don't. I haven't worked in 16 months. I'm living off my Silver income.

People still believe their financial advisors and the "experts" on TV and think their property will just continue to rise in value no matter what. Others simply develop an emotional attachment to their homes and so shun all logic. Either way a lot of folks over here are gonna get screwed. At least my generation will be able to afford to move out of their parents homes in the near future though.

Got Goldies
09-06-2010, 06:00 PM
People still believe their financial advisors and the "experts" on TV and think their property will just continue to rise in value no matter what. Others simply develop an emotional attachment to their homes and so shun all logic. Either way a lot of folks over here are gonna get screwed. At least my generation will be able to afford to move out of their parents homes in the near future though.

My sister is 40 and she bought in late 2008, against my advice, for 400K, her and her hubby told me they would wait for the bottom to drop out then buy; which was told to me in 2006. They got ant's in their pants when it wasn't happening and bought back too early. Now they are 200G in the hole. Many houses on her block are going for 220G. I have calculated when my sister will own her home. Age 70. I think I will be dead by that time.