bostonbubble.com

melonrightcoast · Joined: 22 Feb 2009 Posts: 236 Location: metrowest

Well, as we all know, "Good" is very relative Smile

. Still VERY annoying that you still have people and news stories (even the NYtimes) regurgitating the "Renting is a waste of money." mantra ... and without a rebuttal or info on if she was saving money by renting, etc.

http://www.nytimes.com/2009/07/11/business/11housing.html?hp
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melonrightcoast ... are you?

admin · Posted: Mon Jul 13, 2009 2:02 pm GMT Post subject:

That's the first I've heard of this (though it doesn't surprise me in the slightest):

WestCoastXPlant · Guest

Ooooookkk...good risk...lemme try to summarize the folks in the article

1. A dentist who just finished dental school
2. A real estate investor

Sorry, two years of steady income isn't that crazy of a thing to ask, is it? They make a point about entrepreneurs being used to risks, but I don't blame the bank for not wanting the downside of that risk. The dude is a real estate investor but has no steady income and only 30K in downpayment -- no sir, I wouldn't make that loan either.

As to the dentist, just cause she was able to pay for dental school doesn't mean she's any good at that art...I remember the kids coming out of college to a big tech company, living with two roommates and buying that "investment" condo after saving for 6 months...guess what happens after the first round of layoffs -- new kids and oldest (highest paid) folk are first to go...sad but true.

I'll believe this article when I see someone with 10-15% down and steady income/good credit rejected. That would be the time when 20% down is back and prices will be far far down....

As to the buyer credit, if they're really trying to help the coastal markets, the income limit is complete BS IMO...I just don't understand who can qualify for it and buy in the more expensive areas (excluding cases of large downpayment through gift/inheritance)

admin · Posted: Mon Jul 13, 2009 4:19 pm GMT Post subject:

Here's another thought... if lending truly has become over conservative and "good" risks are being unnecessarily turned down, why don't the people complaining about it lend the money out themselves? Surely this signals a great investment opportunity if the market is setting the price for borrowing unnaturally high. Why don't they plow their freed up down payment and retirement savings into mortgage backed securities? How many of the politicians who still push for looser lending (Frank, et al) would put their own retirement savings into non-government guaranteed mortgage backed securities?

- admin

balor123 · Joined: 08 Mar 2008 Posts: 1204

If they want to help the coasts, then they should further restrict borrowing. These communities have milked the federal government for too long. These incentives don't increase affordability. They just enrich those who already own property and make those who don't have to do even more crazy things to avoid getting priced out. They should lower the limits on higher cost of living parts of the country to force those communities to focus on affordability, which helps make America more competitive.