Text 18775, 85 rader
Skriven 2008-07-20 02:16:01 av Carol Shenkenberger (10505.fidonews)
  Kommentar till text 18773 av Dale Shipp (1:261/1466.0)
Ärende: Re: Economy changes
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 >  CS> It's compounded by people with the boom housing market mentality who
 >  CS> over-reached their finances through greed and got variable rate
 >  CS> mortgages with balloon payments.  Based on the idea their income would
 >  CS> 'go way up' instead of what they could actually afford.
 > 
 > I believe that it was not that they expected their income to rise, but
 > that they expected the rates to stay abnormally low -- combined with the

That too.  Me, we kept it in mind that my income would hopefully pace
inflation but did not bank on my making advancement.  I bought as an E6 and
am an E8 now.  (I use the 'E's when talking to non-Navy, easier on you folks).

 > expectation of continued steep inflation in house prices that implied
 > they could sell out for a tidy profit in a few years.  As we know, both
 > of those expections failed to be met, in a big way.  It may also be the
 > case that they simply paid no attention to the clauses on re-adjustment
 > of interest in the coming years.  The same bubble and burst mentality
 > has been witnessed many times before -- from the Dutch Tulip market boom
 > in the 17th century to the dot.com boom in the last century.


Yes, and the stock market of the 20's as well.

 >  CS> I am ever so glad we bought at 83,500$ when the realtor was pushing
 >  CS> the 150,000$ houses and a flexible rate mortgage the bank said we'd top
 >  CS> end at.  13 years later I cant rent a 2 bedroom apartment for my
 >  CS> payments.  I owe about 40,000$ still and the house appreciated to
 >  CS> 149,000$ (which isnt spectacular but is not bad when you adjust for
 > 
 > In this area one would be lucky to find a 2 bedroom condo priced as low
 > as $150,000.

True but you live in a much more expensive area than I do.  Houses here
generally (except the really fancy ones) pace the economics of the military
so prevalent here.  150,000$ is a reasonable median price for the average
middle income areas.  Now the fancy places on larger lots with 4 bedrooms
etc?  Yes, looking at 300,000$ and upwards even here.

We are one of the few areas left where houses are still appreciating at a
slow but steady level.  A bit higher than inflation rates but not terribly
much more.  Houses still selling at a reasonable rate too due to military
moving in and out of the area.  Correction, houses in *my* bracket still
selling well.  The 300,000$ houses are not selling at all.

My friend the realtor (who still feels awful over the renters damage but we
do not blame him, place looked *fine* from outside and he rented to a
teacher!) was over earlier today.  I guess I got on this tangent because of
the conversation with him.  Great guy.  Very upfront about things.

Upshot is we have the nicest house (minor cosmetics still to go) within 4
blocks of us.  When he sold the house across the street from us, they really
wanted our place (sorry, not for sale!  But you'll like your neighbors, the
Shenkenbergers are nice folks).  Theirs is a 3 BR 950sq feet with carport and
a shed in back.  Mine is 1250sq feet with enclosed garage that is still a
garage (not part of the 1250 sq feet here), a huge screened porch (also not
part of the 1250) and a sunroom (part of the 1250) that cant 'technically' be
called a 4th bedroom (wink wink).

Yes, we need to do some landscaping to be a true showplace but this first
year back, we had enough to do.  The destruction of the old porch enclosure
was a blessing in disguise as the new one is ever so much nicer!

He says we can not sell for the true price of the house as we are the top end
for our area and he's right.  We dont plan to sell so that doesnt bother us.

We visited the new neighbors briefly and had them in for a cold soda (taking
a break from the paneling of the back room which is almost done) and let them
oogle about <g>.  They agree we have many minor cosmetic things like the
livingroom/hall carpet and such, but they want to come back and study the
built in bar and see if they can make one (smaller as they havent as much
space).  We are happy to help and have the tools needed to cut out the frame
etc.

Ok, at 1250 I'm not hugely spacious but it's not bad.  Not bad at all.  Main
difference in my place and the others, is i have a smaller backyard as my
house goes back farther.  That I'm 3 feet or so wider from the front view
isnt obvious to the eye.  From the backyard though, you can tell I'm about 14
feet 'longer'.  This is also why we are one of the few without a backyard
shed but we are looking at a nice one.  Small footprint 10x10 with a sort of
storage attic.  We saw one at Lowes that installed is about 3,500$.  A dream
for later <G>.
            xxcarol
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