This is all so interesting!
BUt I have to add, what about Credit Card interest rates. They are going up and there is nothing you can do about that.
No one seems to be talking about how interest rates are slowly creeping up. Have you noticed I did and promptly paid my card's balance.
People who are already over extended with their homes, cars etc will be affected if they have CC debt and that starts to go up. Greenspan might say he isnt going to raise rates this year anymore., but who the heck is to say?? I mean they say alot of things and then its like Oh guess what we need to. So then you add that to the already increase in your minimum payment. Now add the cost of gasoline and all these people driving around in big Hummers and SUV'S. And now Winter is on its way how much is it going to cost to keep warm this winter?
If you start adding all that up I mean and you are already stretched out as much as you can well it takes just a bit to tip you over.
And paying rent I dont see it as paying someone elses mortgage. The only way that would be possible is if I lived on the street and then paid a homeowner money every month just for fun. If I pay rent I get something in return A PLACE TO LIVE, where its clean and beautiful and where I can have my family over and call home. I dont have to worry about painting or the roof linking or worrying about the boiler and paying high heating costs or anything.
Rents have gone down so much in our area that Im living in a beautiful apartment that 4 years ago was double the price! I love it! Since everyone and their mother is buying a home the apartments are staying behind. There is no way 4 or 5 years ago Id be living in this apartment. I lived in a studio then and now I live in a two bedroom and guess what? I only pay 200 more than I used to pay for the studio a month! And I got a backyard:)
In the meantime we save our money and look slowly as to where we want to live and see what happens. IM not going to pay these outrageous amounts to greedy bastards who are taking advantage of people. Everyone is walking around with this new wave of thinking that everyone has to own a home NOW!!!!!!!
Jesus, I mean people are buying whatever they can. I mean the disgusting dungeon l homes Ive seen on the market for more than half a million, its disgusting! and or these homes with one bedroom and one bath! I mean thats an apartment!! Yet people are out there buying up like maniacs hoping they can make double in the next two or three years.
Its just not possible nothing lasts this long and everything comes to an end. We read the NY Times and watch the news and people although some scared to out right say it have been hinting about somthing happening yet people dont care. Experts are perplexed as to how this has lasted so long. Ever heard of the bigger they are the harder they fall? The bigger the bubble the harder it will pop!
Yet just this week a coworker told me she took a 401-k loan, took her IRA and he did the same and they took cash advances from their CC to pay 15% down on a 750,000 home???
I said 'WHAT?' and she said 'yeah in a couple of years we will sell it for a million and we will make a profit.
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Then this other lady was telling me how her mother purchased a home years ago for 75K now its worth $350,000. its in I really bad neighborhood of Brooklyn, well its gotten better over the years still I wouldnt live in it. 'Isnt it great?' she said. I said yeah great so she sells it and if she wants to live in a better part of Brooklyn she has to buy a $750- $800,000 home. What good is it?
If your home is worth so much now, guess what? so is the one next to you and if you want to move up then be prepared to fork almost everything over to be able to afford it! and if you are done with your mortgage well be prepared to start paying up for another 30 years and also hope you have a salary to go with that kind of mortgage.
Anyway, thats just my rant for the night sorry if I rambled on to much.
