Interest-only loans won’t inflate a new housing bubble if they remain relegated to the fringes where few borrowers use them.
Every loan product has its place, even the toxic loans of the housing bubble: Option ARMs, interest-only, reverse mortgages, adjustable rates, high LTV, subprime…. – Interest-only mortgages return
Assets the provide periodic cash payments provide the greatest utility to those who want to live a carefree life.
Peace of mind is an underrated and undervalued emotional state. Most people choose lives of speculation, competition, and make believe, erroneously believing if they arrive at some … – Unencumbered cashflow is best measure of real wealth
The collapse of the Chinese stock market may precipitate a repatriation of capital back to China triggering a selloff in California real estate.
The Chinese government and central bankers operate a Ponzi scheme to accelerate economic development to help China catch up to the rest of the world…. – Will the Chinese stock market collapse impact US real estate?
If mortgage rates rise as expected, home sales will fall as a direct consequence of crumbling affordability.
Sometimes predictions are so basic, so simple that dressing them up with detailed analysis is unnecessary. Predicting falling sales in the second half of 2015 is one of those… – Home sales will sputter in the second half of 2015
Some people would buy the discounted house and joke about the foolish superstition of the other buyers. Some would not buy due to the spiritual taint.
In May of 2008 five bodies were discovered in a house in San Clemente. Fingerprint experts were required to identify the bodies as they were in… – Would you buy a house where a murder took place?
Speculation is fraught with risk whereas cashflow investment is stable and predictable.
Most people purchase real estate in California because they believe they will get rich, not rich through periodic rental payments, but rich through rapid and neverending appreciation. During the housing… – In housing, is it better to invest in cashflow or speculate on appreciation?
When those without training, knowledge, or experience succeed wildly and want to teach others, it’s a sign of a financial mania.
People make profitable investments every day. Sometimes good fortune is the result of careful analysis and a disciplined approach; sometimes good fortune is a… – Success of novices is sign of a housing bubble