Q. Will Obama use national bankruptcy to deprive citizens of their property ownership rights if they managed to avoid going on welfare, while people on welfare will just keep living normally?
People on welfare don't own property, owning real estate disqualifies you for welfare.
Will Obama use even his own failure as a president to hurt the citizens who worked hard and managed to own a home, while those who failed will not be affected?
People on welfare don't own property, owning real estate disqualifies you for welfare.
Will Obama use even his own failure as a president to hurt the citizens who worked hard and managed to own a home, while those who failed will not be affected?
A. The US owned assets are worth 100s times more than what we owe.
Why real estate prices go up so much?
Q. Why real estate prices go up so much? Is it safe to assume that in 20-30 years a house will be almost impossible for middle class to buy, since inflation and salaries grow about 3%, while houes prices grow much more. Will the growth stop when the USA population stops growing? I mean, house prices grow because more people need land, which has constant area, and therefore it grows with population growth?
A. Your extrapolating the past 20 years with the next 20 years.
The lender's have stopped making stupid loans.
The prices of homes are coming down to meet the buyer's budgets.
The past 2 years was all about easy money and speculation
No one thought of their home as a place to live, but a ticket to big bucks.
Now that the market has removed the ATM machine people will go back to viewing their homes as a place to live, not make big bucks.
The lender's have stopped making stupid loans.
The prices of homes are coming down to meet the buyer's budgets.
The past 2 years was all about easy money and speculation
No one thought of their home as a place to live, but a ticket to big bucks.
Now that the market has removed the ATM machine people will go back to viewing their homes as a place to live, not make big bucks.
How foreign can invest in USA real estate?
Q. I'm not from USA,I would like to invest real estate but I heard that just resident and american citizen can buy properties.Thereby what can I do? are there laws to foreign investors in real estate? also buy land and build deparment buidlings
A. You can buy investment properties in the USA with a loan even if you are not a citizen or have a green card. To get a loan, you will have to show the income from your home country to support the payments, and you will need at least a 30% down payment - but don't give up.
Buying is the easy part. It is selling later that may be an issue. When a foreign national sells a property in the USA, 30% (I think that's the number) of the sales price must be held by the title company to insure any taxes (capital gains) are paid to the IRS.
Buying is the easy part. It is selling later that may be an issue. When a foreign national sells a property in the USA, 30% (I think that's the number) of the sales price must be held by the title company to insure any taxes (capital gains) are paid to the IRS.
What is the best way to avoid getting caught in an upside-down mortgage?
Q. I want to live in Detroit where the real estate is cheap and work for a New York company to support myself. However, I was warned about upside-down the mortgages.What is the best way to avoid getting caught in an upside-down mortgage?
A. Learn to do math. It IS that simple. People, not their mortgages; got upside down by buying property that was over-valued and by not KNOWING how property is valued and what makes prices go up and come down.
There are ONLY 2 reasons property values go up or down. The first is the "time value of money". Over time inflation causes the purchasing power of the dollar to go down and this is the main reason that a house built in 1930s now costs ten times more then what it did new. The house has not "grown" the value of the dollar has gone down. This is the exact same logic behind people investing in gold or silver.
The second reason properties go up OR DOWN in value is DEMAND. Demand is caused by more people wanting or needing the same property. If you have 100 houses on the market and 500 buyers wanting them then bidding wars start and prices go up. 100 houses and 10 buyers then prices go down.
What happened in the real estate bubble is that too many people were watching tv shows like "Flip This House", "Flip That House", "The Real Estate Pros", etc and decided to buy a house for "investment" and this created a huge spike in demand for houses and prices went thr the roof causeing people to overpay. Other people were using thier homes as ATMs and every tme the value went up, they refied and spent the money to pay down their credit cards. When there was no "greater fool" coming to buy the flips or willing to pay more then the house was worth the bubble burst and prices started falling.
Look around you in Detroit. Yes, property is cheap because of what? More houses then buyers. Look at the population of Detroit, growing or getting smaller? Jobs being created or taken away? See ANYTHING that will make Detroit grow in population or jobs in the next 10 years????? So in Detroit IF the population KEEPS falling ad jobs KEEP getting out sourced or reduced and the Auto Workers losing jobs, benefits, and reduced salaries, who exactly is going to create the "demand" that will be needed to have more buyers then you do houses?
Houses may SEEM "cheap" right now but if the population and jobs keep declining then the value of the property MUST keep declining. Another factor you need to consider is taxs. If the city and county DEPEND on property tax to keep paying for city services and the income to the city keeps getting smaller then they WILL raise property tax, sales tax, income tax to balance thier budgets. Increased taxs add to the cost of owning there and will further reduce the "value" of the property.
There SHOULD only be 2 reasons to buy property. One- you can own for less then the cost of rentiing. Or #2- you can rent out the property for more then the cost of owning AFTER ALL costs to include management, Principal, interest, taxs, insurance, maintancee, and repairs. AND you see something that tells you the property will atlest hold it's value over the rental period.
Here is Las Vegas, NV we had lots of people lining up to buy new houses for 300K to 400K and then renting them out for $1200 a month. They would LOSE money every month but IF the market was going up 20% to 30% per year; they could profit but NO MARKET EVER keeps going up OR down 20 to 30% a year. Not the stock market, and not real estate. Prices started coming down and THAT is why we are now te #1 place for foreclosures in the USA. There is no reason for somebody to keep paying $3,000 a month on a property when the income from that property is $1200 and the value is 100K to 300K less then what they owe.
Obama's bailout plan will NOT fix this. I do not care if you "restructure the loan" to make the payment $500 a month for 100 years. People are walking away from houses because they owe more then the house is worth and ask yourself,"What is the value of my creditscore?" Is it worth 50K? 200K? Would YOU damage your credit score to get out from under 200K in debt? This is NOT about "sub=prime" loans or "Adjustable rate mortgages". This is right now about prople buying based on "making more money in a couple of months then you did all of last year" and being able to blame OTHER people for their greed and now looking for an easy way out of too much debt.
Detroit IS cheap because of population and job loss; I would NEVER own property in that type of location regardless if you GAVE it to me.
Find a location where population is going UP, jobs are being CREATED, taxs are low, land is in limited supply, where prople WANT to live or atleast visit, where you have high taxs in the next state over so you benifit from both prople and jobs being driven out of the high tax rate and coming to you. THEN find properties that you can rent out for positive cashflow AND have property values driven up by growth. THAT is where you should be looking to invest and THAT is why I moved to Las Vegas 2 years ago and have waited for the bubble to burst. I am now buying property cheap here. Yesterday I looked at a 1bedroom
There are ONLY 2 reasons property values go up or down. The first is the "time value of money". Over time inflation causes the purchasing power of the dollar to go down and this is the main reason that a house built in 1930s now costs ten times more then what it did new. The house has not "grown" the value of the dollar has gone down. This is the exact same logic behind people investing in gold or silver.
The second reason properties go up OR DOWN in value is DEMAND. Demand is caused by more people wanting or needing the same property. If you have 100 houses on the market and 500 buyers wanting them then bidding wars start and prices go up. 100 houses and 10 buyers then prices go down.
What happened in the real estate bubble is that too many people were watching tv shows like "Flip This House", "Flip That House", "The Real Estate Pros", etc and decided to buy a house for "investment" and this created a huge spike in demand for houses and prices went thr the roof causeing people to overpay. Other people were using thier homes as ATMs and every tme the value went up, they refied and spent the money to pay down their credit cards. When there was no "greater fool" coming to buy the flips or willing to pay more then the house was worth the bubble burst and prices started falling.
Look around you in Detroit. Yes, property is cheap because of what? More houses then buyers. Look at the population of Detroit, growing or getting smaller? Jobs being created or taken away? See ANYTHING that will make Detroit grow in population or jobs in the next 10 years????? So in Detroit IF the population KEEPS falling ad jobs KEEP getting out sourced or reduced and the Auto Workers losing jobs, benefits, and reduced salaries, who exactly is going to create the "demand" that will be needed to have more buyers then you do houses?
Houses may SEEM "cheap" right now but if the population and jobs keep declining then the value of the property MUST keep declining. Another factor you need to consider is taxs. If the city and county DEPEND on property tax to keep paying for city services and the income to the city keeps getting smaller then they WILL raise property tax, sales tax, income tax to balance thier budgets. Increased taxs add to the cost of owning there and will further reduce the "value" of the property.
There SHOULD only be 2 reasons to buy property. One- you can own for less then the cost of rentiing. Or #2- you can rent out the property for more then the cost of owning AFTER ALL costs to include management, Principal, interest, taxs, insurance, maintancee, and repairs. AND you see something that tells you the property will atlest hold it's value over the rental period.
Here is Las Vegas, NV we had lots of people lining up to buy new houses for 300K to 400K and then renting them out for $1200 a month. They would LOSE money every month but IF the market was going up 20% to 30% per year; they could profit but NO MARKET EVER keeps going up OR down 20 to 30% a year. Not the stock market, and not real estate. Prices started coming down and THAT is why we are now te #1 place for foreclosures in the USA. There is no reason for somebody to keep paying $3,000 a month on a property when the income from that property is $1200 and the value is 100K to 300K less then what they owe.
Obama's bailout plan will NOT fix this. I do not care if you "restructure the loan" to make the payment $500 a month for 100 years. People are walking away from houses because they owe more then the house is worth and ask yourself,"What is the value of my creditscore?" Is it worth 50K? 200K? Would YOU damage your credit score to get out from under 200K in debt? This is NOT about "sub=prime" loans or "Adjustable rate mortgages". This is right now about prople buying based on "making more money in a couple of months then you did all of last year" and being able to blame OTHER people for their greed and now looking for an easy way out of too much debt.
Detroit IS cheap because of population and job loss; I would NEVER own property in that type of location regardless if you GAVE it to me.
Find a location where population is going UP, jobs are being CREATED, taxs are low, land is in limited supply, where prople WANT to live or atleast visit, where you have high taxs in the next state over so you benifit from both prople and jobs being driven out of the high tax rate and coming to you. THEN find properties that you can rent out for positive cashflow AND have property values driven up by growth. THAT is where you should be looking to invest and THAT is why I moved to Las Vegas 2 years ago and have waited for the bubble to burst. I am now buying property cheap here. Yesterday I looked at a 1bedroom
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