Buyer; “when will this property be worth what it was worth in 05’”
Jav; “when Hell freezes over?”
Buyer; “will that be in five years or less?”
Jav; “in five years this place will be worth more then what you paid for it”
Buyer; “how much more”
Jav; “well when we factor in; cost of living increases, general maintenance expenses (such as the people of Iraq …..I was going with a Ms. South Carolina gag here), depreciation, tax benefits, etc……..
Buyer; “I think I’ll rent”
Jav; “meet Erica”
So, you guys with me so far?
OK,
Lots of factors were put in place to make residential home selling profitable , it started about 12 years ago (and I won’t make it political; OK yes I will…..All were involved)
A quick recap;
Feds said “home ownership good for all” (R)
Feds make lenders “ease lending guidelines” (D)
Lenders can now “lend” to Renters (D)
Renters now “need” properties to buy (R)
Properties in hot demand so “investors” begin to sell (R)
Non Investors join in the” investing” game (R)
Renters/Non Investors begin driving market up (D, R)
Renters are “renters” and can’t pay mortgage (D)
Non Investors are not “Investors” and they don’t know how to make a buck (D, R, I)
Renters/Non Investors begin defaulting (D, R, I)
Lenders mortgaged to the nuts at 40 to 1 begin to see trouble (D, R)
Lenders start getting “creative” (D, R)
Creative goes BOOM!!!!! (D, R, I)
And here comes “TARP” (D, R, I)
Now it gets really good……….