Market analysis, news and reviews of specific properties that are for sale or have sold at a loss.
Did you read the comments at the end of the article? Scan through them, and skip to the last couple of pages. It has deteriorated into some pretty crude name calling. Man, this is becoming a touchy subject.
LaMoneyGuy,I think this thing has the potential to really get ugly. The stakes are huge, even a 20% loss is a pile of money considering $500K is typical for even modest properties. How many people have $100K in the bank?
A friend of mine has an ex-boyfriend that owns three homes in Phoenix, two outright and he's under contract for #3 and it should be finished very soon. He has bought all three in the last 2-3 years.He used the pseudo equity from the first property to buy the second two. This is massive leverage and I believe that this is pretty common.To make it even more insane this early 20s guy is a student.Should we start shorting mortage banking stocks?
Wow, yea the comments at the end are very interesting. Some very emotional people on there. This is a good analysis:"Are we supposed to feel sorry for the speculators that helped drive prices to the peaks they hit? Did the speculators feel sorry for taking $50,000 or $100,000 from a new buyer when the speculator flipped the house in a few months?"
I don't feel ill will towards the speculators. They saw what they thought was an opportunity, they took a risk. Some made money, many will lose their shirts. It's capitalism.However, while I don't wish misfortune on any of them as people, some people need to lose lots of money. It's also capitalism. When severe risk taking is rewarded, or even not punished, without end or exception, markets get way, way out of order. Markets got out of order and now need to get back.
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