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MisterP

(23,730 posts)
55. like everything else the housing market's been "financialized": suburbs aren't built for housing for
Mon Feb 9, 2015, 03:08 PM
Feb 2015

the 90% (well, 60%), for the GI and the blue collars and the immigrants (if they're white enough), they're built as investments for the 10%, for the upper middle class that could remora onto the fact that everything was in Wall Street's hands now: housing and everything else bubbleized

go on Zillow and you can generally easily tell which burb was built before 1980 and after 1990: the ones after are all for sale because they're still 50-33% foreclosed

they even look different--they've gone from "Edward Scissorhands" to "The Sopranos" or these creepy Fauxtalian rabbit hutches with no lawn or even sidewalk; the average walkscore went from 45% to 28% (I make spreadsheets in my spare time: don't you judge me!!!): everything everyone complained about the suburbs 50s and 60s--that they were segregated, car-dependent, identical and full of people with identical lifestyles and class composition--multiplied and hypertrophied beyond recognition

to build wealth for the lender from the thousands of almost pure interest payments. Sunlei Feb 2015 #1
As to opposed to enriching your landlord? Adrahil Feb 2015 #9
mortgages are front loaded for interest. the majority of the first many years are interest payments. Sunlei Feb 2015 #13
Yes.. I agree. Adrahil Feb 2015 #18
very similar to what I did. pay very heavy towards the equity. Sunlei Feb 2015 #22
Yeah, we did that too, and now own the house outright in retirement. It Nay Feb 2015 #32
Exactly. Adrahil Feb 2015 #85
Renting is not throwing money away tabbycat31 Feb 2015 #63
There is a way to really cut the interest you pay, on a conventional loan. dixiegrrrrl Feb 2015 #41
did that but put no money down at all. Lenders handed out mortgages like candy & I took advantage! Sunlei Feb 2015 #54
Save, put down a big down payment, and pay on the principal every month. MADem Feb 2015 #52
If you get a 30 year mortgage mythology Feb 2015 #58
My adorable mom told me the secret was "Buy low, sell high." merrily Feb 2015 #2
We got very lucky...sort of... Phentex Feb 2015 #20
I'm glad you got a good deal. The neighborhood would have changed either way, so it's good merrily Feb 2015 #23
lol Lurker Deluxe Feb 2015 #3
"Interest only" loans do have a purpose.... Adrahil Feb 2015 #10
It prevented them from pulling any equity out of the house? FBaggins Feb 2015 #4
They would have had no equity with that price drop even if they had put 20% down. Gormy Cuss Feb 2015 #24
Yeah....I don't think 10% is enough down for most people.... pipoman Feb 2015 #5
The actual value of the "start home" is irrerlevant... Adrahil Feb 2015 #11
I've been in LA, It doesn't cost $500k to live within 30 miles pipoman Feb 2015 #34
I don't disagree that some feel that way... Adrahil Feb 2015 #46
I've spent a lot of time in N. San Diego County, my son lived there 5 years pipoman Feb 2015 #48
California is tough. Adrahil Feb 2015 #70
Maybe if you mean "city" as the greater LA area. jeff47 Feb 2015 #82
Perfect call. n/t FSogol Feb 2015 #16
It was a little crude..see 34 above. .nt pipoman Feb 2015 #39
Shelter is another thing that is a basic human right and should not be libtodeath Feb 2015 #6
Maybe yeoman6987 Feb 2015 #8
They fail to mention the money pit that a house is tabbycat31 Feb 2015 #7
Speaking as both a homeowner and a landlord whatthehey Feb 2015 #12
It's peace of mind to me tabbycat31 Feb 2015 #17
Consider a nice travel trailer and 'live' where ever you choose to park. Sunlei Feb 2015 #28
Do you have experience with that? WorseBeforeBetter Feb 2015 #35
I wouldn't sell a home that is paid for. Rent it for retirement or general income. Sunlei Feb 2015 #42
My mothers' next-door-neighbors sold their home... WorseBeforeBetter Feb 2015 #49
The money your parents spend on their home falls into 2 categories pipoman Feb 2015 #44
I agree Johonny Feb 2015 #21
Maybe a condo? pangaia Feb 2015 #57
So far, I've made $20k in the last two years on my house. jeff47 Feb 2015 #88
You could sell that house and make 20K Johonny Feb 2015 #97
Markets don't go up evenly. jeff47 Feb 2015 #98
Yes, I prefer not to have to deal with that stuff. alarimer Feb 2015 #27
Five Figures a YEAR? Adrahil Feb 2015 #47
I don't care that I have nothing to show for rent tabbycat31 Feb 2015 #64
Hey, it's your money... flush it down the crapper if you wanna.... Adrahil Feb 2015 #65
Thanks for proving my example tabbycat31 Feb 2015 #71
Who said you are second class citizens? Adrahil Feb 2015 #72
We'll agree to disagree. tabbycat31 Feb 2015 #75
Cheers! Adrahil Feb 2015 #79
Renting is great PasadenaTrudy Feb 2015 #94
Thank you. "They fail to mention the money pit that a house is" raccoon Feb 2015 #60
It was in the 40s through the 80s treestar Feb 2015 #14
I think it really depends on how you buy the house bhikkhu Feb 2015 #15
Agreed tammywammy Feb 2015 #19
The strategic reason to buy property with interest-only loans is that you don't tie up your cash Gormy Cuss Feb 2015 #26
I suppose if you have cash to invest elsewhere, buying or renting is neutral bhikkhu Feb 2015 #43
That's the approach we took - TBF Feb 2015 #61
That loan product was designed for people with money to invest elsewhere. Gormy Cuss Feb 2015 #83
I believe it is a still a pretty good way rock Feb 2015 #25
I agree! Red State Rebel Feb 2015 #30
no it is not. The best way guillaumeb Feb 2015 #29
It is still the best way, they are not making any more land. Well they are but not on that large of ChosenUnWisely Feb 2015 #31
Little boxes on the hillside, little boxes made of ticky tacky... WorseBeforeBetter Feb 2015 #33
like everything else the housing market's been "financialized": suburbs aren't built for housing for MisterP Feb 2015 #55
The point of a house is shelter; a roof over your head. lumberjack_jeff Feb 2015 #36
Homes are a place to live edhopper Feb 2015 #37
Here's a "starter" type home in my town.... PasadenaTrudy Feb 2015 #38
Holy shit. And I thought Northern Virginia was bad. WorseBeforeBetter Feb 2015 #50
SoCal is prime PasadenaTrudy Feb 2015 #67
LOL Well I moved to Raleigh... WorseBeforeBetter Feb 2015 #73
Wow! PasadenaTrudy Feb 2015 #78
Aaaah, wonderful town. (n/t) WorseBeforeBetter Feb 2015 #86
A "starter" type home for 3 quarters of a million dollars Art_from_Ark Feb 2015 #95
Renting has been great for my brother... PasadenaTrudy Feb 2015 #40
Renting is great in cities with rent control, I guess. MADem Feb 2015 #53
They've been there PasadenaTrudy Feb 2015 #66
If they're at that kind of place in their lives where they can manage to do that without issue, then MADem Feb 2015 #68
We are a Childfree family PasadenaTrudy Feb 2015 #77
Stocks are the best way to build wealth Augustus Feb 2015 #45
It is the only hedge on inflation most people need... pipoman Feb 2015 #59
I agree... a house is not the BEST way to build wealth... Adrahil Feb 2015 #80
Yes and no FBaggins Feb 2015 #99
There really are so many factors that can weigh heavily for, or against, buying a home Lex Feb 2015 #51
This message was self-deleted by its author olddots Feb 2015 #56
It never was the best way to build wealth NT fxstc Feb 2015 #62
starter home = $490K, wow..... steve2470 Feb 2015 #69
It was in Los Angeles - that probably was about as cheap as you'd find Matariki Feb 2015 #93
A home is not an investment, it's a constant cost. dilby Feb 2015 #74
If you're renting, you can;t even break even, of course. Adrahil Feb 2015 #81
That is very true, but you are not responsible for maintenance. dilby Feb 2015 #84
Well, you still PAY for maintenance, make no mistake. Adrahil Feb 2015 #87
I got screwed. It was the worst financial decision I ever made. iscooterliberally Feb 2015 #76
Thank you for sharing your experience. This is a keeper: raccoon Feb 2015 #100
Too many factors and variables madville Feb 2015 #89
Probably is at least an effective defense against poverty in old age...If you can pay it off TheKentuckian Feb 2015 #90
It all depends on the circumstances. We encouraged our daughter and son-in-law to buy pnwmom Feb 2015 #91
How is home owership supposed to make up for "dwindling pensions and stagnant wages" Matariki Feb 2015 #92
I bought a lancer78 Feb 2015 #96
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