Article

2009-12-28 Economy

Government-sponsored housing inflation is locking the next generation out of home ownership

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Posted by Ebbavish Theash8344 2009-12-28 02:52|| || Front Page|| [1 views ] Top

#1 O come now. We all know that ever-increasing housing prices are good for all, and that falling housing prices are the ultimate evil.

Posted by Anguper Hupomosing9418 2009-12-28 10:40|| 2009-12-28 10:40|| Front Page Top

#2 There will be deflation. It's just a matter of when, and then the next generation will be able to get into all those McDonald Mansions for a song. Remember in 1982 when interest rates went up to 21%, and the next generation was locked out of home ownership?

Posted by trailing wife 2009-12-28 12:33|| 2009-12-28 12:33|| Front Page Top

#3 The Lotps weren't locked out permanently, but the 6 years until we could buy our first home were costly in terms of lost tax deductions and the need still to be paying mortgage payments as we edge closer to the usual retirement age.

Posted by lotp 2009-12-28 14:43|| 2009-12-28 14:43|| Front Page Top

#4 Lemme get this straight, they want "affordable housing" but they want to continue policies that contribute to artificial housing inflation? Only a politician, probably a Democrat politician, could come up with such nonsense. You say the Los Angeles economy would tank? It's long overdue.

Let's do a few numbers:

20% down on the $729,750 house they mention in the article is $145,950. I don't know anybody who can come up with that kind of cash unless they're selling another house that they already own so it kinda lets first time home buyers out in the cold. Your monthly payments would be upwards of $3,000.

Wow. I remember a time when $145,950 would be more than enough to buy some prime real estate in Southern California all buy itself. Of course, those were the days before the Community Reinvestment Act. Thank you, jimmuh.

Now, if you put 10% down and get a mortgage in the 5.x% range you will be making payments over $3,800 per month. That's according to an Internet mortgage calculator. Your results may vary, but probably not much. Gosh, Bawney, that doesn't seem all that affordable to me. You have to have an income of $160,000 to qualify.

They didn't offer a 0% down type of mortgage but if they did you can just imagine the monthly payments.

You talk about housing inflation and then you have to wonder what impact it has had on the overall rate of inflation in this country. Then you wonder how much it has to do with American workers being priced out of the global labor market. Kinda like a ripple effect.

Well, when we're all living in tents making bird houses and whirligigs to sell to the Chinese for a few pennies to buy a can of beans some of us might remember the good old days.

Posted by Abu Uluque 2009-12-28 19:00|| 2009-12-28 19:00|| Front Page Top

#5 Hey, anybody remember in the first few years after WWII when the Japanese made toys out of beer cans? I do. So, after you're finished with those beans, don't throw the can away.

Posted by Abu Uluque 2009-12-28 19:05|| 2009-12-28 19:05|| Front Page Top

#6 http://en.wikipedia.org/wiki/David_Ricardo

Read Rent.

And ignore the lefties additions who infected Ricardo with Malthus.

Posted by Bright Pebbles 2009-12-28 19:58|| 2009-12-28 19:58|| Front Page Top

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