REWahoo
Give me a museum and I'll fill it. (Picasso) Give
According to columnist Scott Burns, a byproduct of the residential real estate mortgage crunch could be a national yard sale.
"Query: Where do you find the money to cover your mortgage when it resets to, say, 7 percent and a new monthly payment of $1,331? That’s another $257 a month.
Answer: You cover the increased payment by selling a car. You replace it with a less expensive car. Hopefully, a no-payment car. That can reduce monthly debt service by as much as $495.
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Will everyone do this? No way. But enough will do it to shift the supply/demand balance and make it a buyer’s market."
Cars, boats and other “stuff” eventually depreciate to zip. But houses usually appreciate. Millions of financially strained households will empty their closets and garages before they give up their houses. That’s why I think a substantial portion of the ongoing real estate story will play out in other markets. That’s where the solutions are. Those with cash get the silver lining: 2008 will be a good year for bargain-hunting."
Craigslist.org anyone?
"Query: Where do you find the money to cover your mortgage when it resets to, say, 7 percent and a new monthly payment of $1,331? That’s another $257 a month.
Answer: You cover the increased payment by selling a car. You replace it with a less expensive car. Hopefully, a no-payment car. That can reduce monthly debt service by as much as $495.
-----
Will everyone do this? No way. But enough will do it to shift the supply/demand balance and make it a buyer’s market."
Cars, boats and other “stuff” eventually depreciate to zip. But houses usually appreciate. Millions of financially strained households will empty their closets and garages before they give up their houses. That’s why I think a substantial portion of the ongoing real estate story will play out in other markets. That’s where the solutions are. Those with cash get the silver lining: 2008 will be a good year for bargain-hunting."
Craigslist.org anyone?