Friday, February 17, 2006

Reinforcement for my No-Condo-Buying

Here's a lovely site which details yet an entirely different set of reasons why I'm not gonna buy a condo in Riverside, ever.

Interest-only subprime adjustable-rate mortgage? Wow, I can afford a $500,000 house! Yeah sure... for two years until the mortgage adjusts and my payments more than double...

Yeah, that's really friggin' bright. And something like 10 million people have loans like that running right now. Beyond insane. In 2007-2008, the number of home loan defaults is going to be terrifying. Which means the housing market will go crashy.

And then maybe I'll buy a house. At a ridiculously-reduced fire sale price. Of course the interest rates will be more like 15%, so maybe not.

I found out recently that houses in my ZIP code average well over $900,000 in price. Well, I'm not surprised since the next block south is all $4 mil plus mansions. But even the little 1,100 square foot houses on the block behind my apartment building are $930K, $960K, even $1.2 mil or so. Ridiculous. I wish I'd been able to afford to buy a house there when I moved to LA and they were still going for $350K, because I'd sell the damn thing now and have a half-mil in the bank, tax-free. That would change things some, huh? :)


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