Inside the US Mortgage Meltdown

[bizaro86]

QUOTE (JohnS @ Apr 14 2010, 08:16 PM)
I certainly don't feel that way. With all the help he's given to people on this site over the years, I'd definitely mention his name to others as someone they should consider, even though we've never met or even talked.




I feel exactly the same way about Brett, and would refer him business, especially someone looking for a suited house type investment, which he seems very knowledgeable about.



I also happen to feel the same way about those who think discipline is for other people's children. A personal example. Maybe, if your kid is kicking my airplane seat for the entire 10 hour flight, all night, you could ask him to stop, instead of laughing about it. Maybe, if you felt like it.

Michael

 

[housingrental]

If I was a 40 year old mother I`d still use Brett as a realtor.
QUOTE (sstokes @ Apr 14 2010, 08:04 PM) Actually.....after that tirade, I`d be reluctant to refer any client to him, with our without kids! I`d be surprised if I`m the only one who feels that way.

 

[RedlineBrett]

QUOTE (housingrental @ Apr 15 2010, 08:43 AM) If I was a 40 year old mother I`d still use Brett as a realtor.

Thanks for the kind words guys. I knew I was going to set someone off with that post. Just had a bad week last week that`s all! For those that I may have offended if it make any difference I am a father too, albeit for only 3 weeks now. But I have lots of niece and nephews.

 

[Thomas Beyer]

QUOTE (luckyluciano @ Apr 14 2010, 05:20 AM) I think 10% down would be like a recking ball to our economy. ..
hardly ...

QUOTE (luckyluciano @ Apr 14 2010, 05:20 AM) .. It`s very difficult to save 10% while paying rent at the same time, ..
no it is not .. one only has to save more ..

QUOTE (luckyluciano @ Apr 14 2010, 05:20 AM) ..5% is very reasonable to get into home ownership ...
I think it is too low .. if you can`t save $40,000 for a $400,000 home then don`t buy a home yet .. save a while longer .. then buy !

 

[bizaro86]

QUOTE (housingrental @ Apr 14 2010, 09:58 AM) There is a big issue relating to all of this being ignored:

Equality of opportunity


Higher down payment requirements create a barrier to entry to home ownership.

Re Thomas`s post on "perhaps from parents or savings more !!" Re parents - this is an issue - Read Brett`s post above on his start. Having well financed family willing to loan you money shouldn`t be the determining factor for someone with good income and credit. The wealth multiplier impact this has is significant

This is a great point. I bought my first principal residence in Edmonton in 2006, and I borrowed the downpayment from my supportive and financially secure parents. They`re not rich, but they could afford to lend me the money. Anyway, buying RE in Edmonton in 2006 was a significant wealth multiplier, and allowed my wife and I to get a toehold on the property ladder. When we moved to Calgary in 2008 we had enough equity to be way ahead of most people our age.

Now, why should someone who doesn`t have supportive parents be denied that opportunity? I`m not a big fan of the government providing for equal outcomes (where everyone ends up with the same income due to social programs) but I don`t see a reason why everyone shouldn`t have at least a similar opportunity to better themselves. It`s not like hard work wouldn`t still be required.

Michael

 

[RedlineBrett]

QUOTE (bizaro86 @ Apr 16 2010, 09:57 AM)
I'm not a big fan of the government providing for equal outcomes (where everyone ends up with the same income due to social programs) but I don't see a reason why everyone shouldn't have at least a similar opportunity to better themselves. It's not like hard work wouldn't still be required.



Michael




The rich would definitely get richer if we moved to 10%/down. Landlords would make more $ and it would take a lot more resources to be able to buy property. I didn't need to borrow from my parents as I would have qualified on income - I just didn't want to pay CMHC. If it was 10$ down I would have had to wait longer... and back then every month mattered in the market.

 

[Thomas Beyer]

QUOTE (RedlineBrett @ Apr 16 2010, 09:03 AM)
The rich would definitely get richer if we moved to 10%/down. ..


oh please !



It would actually introduce some prudent saving habits !



One of the main reasons the US had an unsustainable housing boom was the government mandated demand to increase home ownership .. from the high 50's% to high 60'% / low 70% .. with a boom that now came crashing down .. to a more normal level !

 

[RedlineBrett]

QUOTE (ThomasBeyer @ Apr 16 2010, 10:48 AM)
oh please !



It would actually introduce some prudent saving habits !



One of the main reasons the US had an unsustainable housing boom was the government mandated demand to increase home ownership .. from the high 50's% to high 60'% / low 70% .. with a boom that now came crashing down .. to a more normal level !




Well would you deny it? Anyone sitting on a lot of income property would stand to gain tremendously if additional barriers to entry are put in front of first time homebuyers. If you make it harder to acquire assets then those that have assets win!



Paying off mortgage principle is another means of 'forced savings' for people... rather than losing it all to a landlord every month.

 

[Thomas Beyer]

QUOTE (RedlineBrett @ Apr 16 2010, 10:29 AM)
..



Paying off mortgage principle is another means of 'forced savings' for people... rather than losing it all to a landlord every month.


Sure .. but do 35 year mortgages do that ?



With only 5% down you rent from the bank !

Also: renting allows you to save as you pay FAR LESS per month in a 3BR apartment than owing a 3BR (or 4BR) house !!



Thus: too many folks have too large a house with too little in equity/cash in it asking for a free (equity) ride .. and if one of the two loses their job or interest rates rise slightly or taxes/costs go up they're "hopped". What I advocate is less risk and more cash/savings .. or a small house first .. then a bigger one ..

 

[Smitty]

Count me as one that supports 5% down. Having a principal residence is one of the best - and last - tax free savings vehicles one has the opportunity to enjoy.
That alone sways the argument for me.

The Bank has plenty of recourse, metrics, and regulations to employ at their disposal to determine someone`s ability to pay. Thomas`s argument could easily be flipped to the banks point of view: if you don`t like the prospective buyer shopping for a mortgage, don`t lend to them. Simple!

Smitty