Every time you pay mortgage interest to your bank you are throwing money away. Your property tax is money thrown away, repairs and other small maintenance expenditures is money thrown away. A 350K house with 100K down payment at 6.5% interest loan and $500 a month property tax is $2000 thrown away every month. You only pay down about $200 into your equity. Add to that 3% interest you would earn on 100K if you deposit it in the bank, and you see that the realtors are selling you a wooden box that rots everyday for 30 years, but to trick you into buying it they call it a "home", "an american dream", a place you own. When in truth the bank owns it until you are done paying your mortgage, and after that your local government owns it through property taxes. Go ahead and buy that "home" in down sliding market knowing it will lose value. Just make your realtor rich.
More here - http://patrick.net/housing/crash3.html
Friday, September 5, 2008
How low will house prices go.
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