Jim, do you realize
your real estate source is supporting my argument? Homes sales are up because of the interest rates. The national median price of a home is up because those with jobs can afford more home than they could when the rates were high. I can't see what is so difficult to understand about that. I'll give you an example.. A $100k home loan at 8.5% is $768.91 a month, at 5.5% the same loan is $567.79 a month. So if you could afford $768.91 then the $100k you could afford at 8.5% now becomes a loan in the amount of $135,421.78 that you could afford at 5.5%. Alot of people have sold thier old homes and bought a nicer one, get it?
That is the reason the national median home price is up.
Quote Jim- "This year, inflation may creep up and increase the mortagage interest rates a bit but to claim that the rates are low because no one can afford a home and then see home sales climbing beyond any previous numbers is to ignore reality, something you are free to do on your own, but don't try to sell it here."
I never said people who couldn't afford homes were buying homes, that doesn't make sense, none. What I said was.. People with jobs are buying houses they weren't able to afford, previously.. because of the rates.
The economy is slowly recovering, something else I already stated. Rates will follow, said that too.
I don't know where you get that I personally am starving or anything of that nature. I never said I was losing money on my 'investment' rental house, its actually doing quite well.. in rent and value (as is the house I live in). I don't know where you got that from.
What I did say is that I have most of my money in a real estate property. What just went south up is my pension and health benefits. I am only accruing half towards retirement what I was a year ago. My deductibles, for health insurance, have doubled and some of the benefits were reduced. The insurance company is blaming the economy and our pension and health fund isn't the only one, there are many folks in America going through this... Just because it isn't happening to you doesn't mean it isn't happening. Hopefully as the economy turns around the pension and health bendfits will become what they were. Other than that, I'm doing better than ever.. even refinanced my house and am currently paying an obsenely low mortgage payment. All because I have a good job and good credit, in these hard times(that are beginning to get better). It does concern me when people are out of work, not only because I hate to hear about people losing their homes but also because ultimately, it could affect mine and yours and everyone elses.
Now, I am done with this because I can't see that this is going anywhere.. I did pick up something on the tax discussion, thanks. I think this just goes to prove that 2 people can be given the same facts and interpret them 2 completely different ways.. and that I'm right and you are wrong
Seriously, I think you either assume too much or don't grasp all that you read before coming to a conclusion or possibly... I just don't get my message across clearly, perhaps.
Check out this link-
http://www.suntimes.com/output/busin...in-rate28.html Be sure to read the very last Q&A. Looks like I'm right again...
BTW, I figured you would like this post and that, along with trying to wake this place up, is why I started it.
Quote Jim- "I won't keep this exchange going very much longer as I have little time to spend here and this just eats it up."
Who are you kidding??
