US bubble set to burst - [physicists predict burst of housing bubble in 22 states]

PhysicsWeb ^ | June 7, 2005 | Belle Dumé

[LizardQueen]

What I do is keep track of the "for sale by owner" ads in the paper. People who are trying to sell in a flat or down market will often try to sell it themselves to avoid paying the hefty realtor fee so they don't take such a bath on the selling price.

The FSBO ads have been steadily increasing here in Vermont over the past few months.

LQ

[Woodman]

9+ Acres Land For Sale in Staten Island, New York


Item ID#: 338074 Seller Area: NY Views: 69
Seller ID#: 104452 Gold advertiser Item Location: -- Expires: 24 days
Price: $17200000 Available To: --


9 Acres+ Of Vacant Land Delivered With All Govt Approvals To Buil 86 Detached 2 Family Homes In Private Community With Easy Access To Trans/Shop/School. Hot Area...Hot Market..Can't Miss Opportunity For Strong Builder/Developer.

[superiorslots]

Quote: HUH? First of all, an interest only loan is a sucker's play unless the property is an investment property that services the debt plus significant principal write down AND the rate is thirty year fixed. Anyone who signs a mortgage obligation with zero interest under any other terms is a fool...and we know what happens to a fool and his money.



30+ % of all loans taken out today are interest only with IO some placed on the L&R coast in the 60% range. Also most IO loans are not being taken out for 30 years but 3-5-8 year spans.

[pesto]

Laramie has the University of Wyoming, so people are always moving in and out..the rest of Wyoming is losing population, there aren't enough jobs..

[wtc911]

I've got three interest only loans on three different rental properties. The rates average 6.25%, fixed for thirty years. The rent roll is twice the payments so every month I write down the principal, which decreases the subsequent month's payment. By the time the traditional mortgage kicks in 70% of the principal will be gone and the remaining 30% will still be at 6.25%. At that point there will be no real incentive to pay down the principal and the overage will become revenue and I won't care if SS goes away.

As I said, any other use or form of interest only is a sucker's play.

[ASOC]

Alaska - prices are driven (in part) by the fact that the Gov't owns most of the land around here. That said, a 35+ yo 12x50 tralier on a rental lot can go for $40K or more.....insane is right.