PODCAST: Sam Mishra on the current state of the Real-Estate related crises.
In this speech now available as a podcast, Franteractive President Sam Mishra discusses why we succumb to social pressures, why there is nothing like job security any more to keep paying for the mortgages, and why Americans will do well not to "buy" homes this spring-"selling" season. Listen >>
(9/22/2008) Coughing up the cash for the 700 billion dollar U.S. bailout of troubled financial institutions
Socializing the proposed seven hundred billion dollar bailout is not a good idea. If Lehman went bankrupt, it is the fault of the management --- for it made fat brokerage fees while selling bonds derived from pooled mortgages, and its bankers got thousands of dollars each in cash bonus. Same with Bear Stearns and Merrill Lynch. Executives and bankers from these and other financial institutions involved with Mortgage backed securities should be bearing the bulk of these bailouts in taxes, and not the rank and file American. The proposed bailout will drain at least $10,000 from each American household. This is nothing but a value drain to the tune of 800 billion dollars (including the $85 billion for the AIG bailout), so who should cough up how much cash should be a matter of vigorous debate. Read more …
(8/14/2008) If you want to minimize your losses in the declining real-estate markets, putting in 20% down gives in a better deal than putting in only 10% down.
Using 6th grade math, the author convincingly proves that putting in 20% down while buying real-estate in today's declining markets is good insurance against massive losses down the line, should the buyer have to sell for a loss. Read more …
(9/18/2007) Going for fixed rate mortgages, with 20% down, is the financially savvy way to buy your dream home in the aftermath of current sub-prime carnages and rising foreclosures / short-sales.
With subprime mortgage meltdowns rocking the Feds to lower interest rates today by a whopping fifty basis points, whether to buy, sell, or hold is on the mind on every real-estate investor / speculator. . . When flipping was in vogue, taking adjustable rate mortgages with teaser rates made immense practical sense. You wanted to buy low, flip high, and leverage extremely by going for low teaser rates for the first couple of years, assuming you could successfully flip within that time-frame. But, is taking adjustable rate mortgages for a house you want to own over the long haul a good financial idea? Read more …
(4/12/2007) Home sales plummet 21% in Santa Clara County, real-estate agents lose quarter of a billion dollars in commissions this past year; How, When, and Where you should buy that SFO Bay Area dream home this spring-selling season . . .
... Or you should wait a while before you buy a home quickly in the SFO Bay Area this spring-selling season, may be? One in five real estate agents lost business because of plumetting sales in Santa Clara county. ... In other words, $ 240,690,933.88 / $50,000 = 4813 real-estate agents went out of business in the last 12 months in Santa Clara County. If we assume that the agents who went out of business were earning 6 figure of $100,000, then also we come up with a number of 4813 divided by 2 or at least 2400 agents who are hurting because they did not earn any commissions last year! Read more …
(3/15/2007) California foreclosures are up 300% ... Is the SFO Bay Area housing-market primed / sub-primed for a meltdown?
California foreclosures are up 300% year over year for January 2007. Recently, RealtyTrack data showed that with 142, 429 foreclosures in 2006, California suffered a year over year increase of 131% compared to the number of foreclosures in 2005... Read more …
(3/7/2007) Demand for housing to fall 40% this spring-selling season, should you be worried?
The Wall-Street Journal Online reported today that 16% of all mortgages issued last year belong to the Alt-A category. Alt-A category falls in the gray area between prime and sub-prime mortgages. Considering that sub-prime mortgages contributed to 24% of all mortgages last year, the total of Alt-A and sub-prime mortgages added up to 14% + 24% = 40% of all mortgages issued last year. Read more …
(2/8/2007) Here comes the Spring-Selling Season… Should you buy that dream first home in 2007?
People don't like to move in winter. But spring is a different matter. Change is in the air. People change apartments, and the more fortunate amongst us buy our first dream home. Should you buy that home this spring? Or should you wait? Read more …
(2/5/2007)Number of vacant U.S. homes for sale reach four decade highs
In the final quarter of 2006, about 2.1 million vacant U.S. homes went on sale, as per the census bureau. The census bureau has tracked the number of vacant U.S. homes for the last four decades, and U.S. home owner vacancy rates have never been higher: the rate currently stands at about 2.7% (+- 0.1%) , as per the bureau. Read more ...
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