justjoe wrote:
If you get much of your news as I do from trolling www.news.google.com, they just posted a headline for a Fox News piece:

""President Readies Final State of the Union Address""

I've known for a long time, in fact since he took office, that Bush was a disaster, but I never thought he would actually destroy the Union.

We'll at least the S.O.B. appears ready to admit he's done it.

wibbit wrote:
taz,

dude you gotta put down the pipe and stop with the conspiracies.

Also the ability to short sell is a sign of a matured market, and it's a very useful tool. Shorters are also the ones that dig up the dirty laundries companies trying to hide, making the general public aware of the issues.

It was through short sell that public first became aware of enron and exposed them.

trp3 wrote:
and now the panic ensues.....

http://www.nytimes.com/?emc=na

wibbit wrote:

2) Taz, stop being a sensationalist. Yes it's bad right now and may push us into a recession. But the US economy will recover probably by end of year if not sooner and things will be normal again.

Also if we ever reach a doomsday scenario like you said where the us DOLLAR is no longer credible as a currency, that means the entire social and economic infrastructure has collapsed.

Your home purchase breaks even after 28.1 years.

This is based on your home's equity minus a 7.00% sales commission paid to brokers or real estate agents when you sell your home. It also assumes your home will appreciate at 0.00% per year and you have an income tax rate of 31.00%. If you cannot remain in your home for at least 28.1 years you should consider continuing to rent.

We calculated your breakeven point by examining how long it would take to create enough equity in your home to exceed the value of investing your cash on hand. We also accounted for differences in your monthly rent and house payments. If your rent payment is less than your net house payment, we add that monthly savings to your investment. If your house payment is less than your rent payment we subtract that amount from your investment. You may notice that on the schedule at the bottom of this report the investment value can be reported as negative. This happens if your house payment is significantly lower than your rent payment. It illustrates that if you continue to rent the extra cost of renting would, in effect, use up your cash on hand.

Loan Information


Your total monthly payment was calculated as $2,684.52. Your down payment was calculated as $63,469 and you had a home price of $350,000. This is for a 30 year mortgage at 6.250% in the amount of $286,531. Total closing costs for this loan are estimated at $6,530.61.

Your current monthly rent is $1,600. The expected inflation rate of 3.10% annually was used to estimate future rent and property taxes. The rate of return use for investments was 7.00% per year after taxes.


Your $2,684.52 monthly payment consists of:
Principal and interest $1,764.22
PMI $119.39
Taxes $655.08
Insurance $145.83
Association dues & maintenance $0.00


Closing costs of $6,530.61 consists of:
Amount paid of points $2,865.31
Origination fee $2,865
Other closing costs $800

JSalt wrote:
Oh come on Taz, I hardly have an asset to my name and even I know that the "assessed value" of your property is not the same thing as the most recent sale price.

You really showed your ignorance with that one.

groovejet wrote:
Taz...you're full of shit.

How the hell do you calculate paying $1,312.50 tax a month on a $350K apartment? (I have several in downtown JC that costs less than that per year!)

You wouldn't need to pay for points to qualify for a mortgage at that rate.

Realtors charge 4-5% not the 7% stated too - and you can avoid using realtors entirely if you like.

Finally - If you think that a $1600 a month rental apartment is even in the same league as a $350K condo, you're mistaken.

Empty barrels make the most noise. This guy owns nothing.

groovejet wrote:
I'm selling several 1 bed condos at the moment for $300-$350 each.

I see no sign of any downturn in this price range. Lots of first time buyers willing to put 20% down. Getting 3-4 hits a day.

"In contract" deals were up by 28% in the last quarter of 2007.

Its a simple decision - get most of your money back at tax filing time - or continue paying stupid money in rent, with no deductible.

We're in a micro climate here, next to Manhattan - so waiting for prices in JC to drop is kinda futile. However, for those people interested in moving to the burbs - the prices will get a little lower.

Personally if i am buying, will wait. Dont think the worst is over yet, in JC.

This is the hope of all bitter renters.

If this really happens we would be in a deep recession and you'd lose your job so you still wouldn't be able to buy anything.

With all due respect, by the time Taz showed up here there were about a dozen posters that had already "predicted the RE bubble burst" -- the reason being that anyone with common sense not clouded by his own property pipe dreams could see it coming.

Meanwhile Taz shows the same manner of irrational exuberance for gold that he chided others for in housing. To be sure, gold could continue to rise for some time if there are enough other people like him buying into the hype. But the current frenzy has the makings of a bubble like any other.

"Tortoise" landlords like the LeFraks, who are willing to accept lower rents to keep space filled with local companies, probably will collect about as much rent in the long run as "hare" companies that insist on collecting high rents from national chains but end up with empty storefronts about half of the time.