July 30, 2006

HP'ers: Add your caption to this picture

44 comments:

Anonymous said...

"I still can't see the peak!"

Metroplexual said...

Sysyphus and his helpers.

Anonymous said...

the realtor leading her unknowing over-leveraged clients to the edge of the cliff

aaaaaaaaahhhhhhhhhhhhwwwwwwwwwwwwweeeeeeeeeeeeeee!!!!!!!!!!!!

Anonymous said...

why did we pay $800,000 for this shack?

Anonymous said...

I've seen the promised land. I may not get there with you. But I want you to know tonight, that we, as a people will get to the promised land.

Anonymous said...

Only 1 in 4 Americans can carry their mortgage. The rest are financially crushed by their own homes.

Anonymous said...

Damn the adjustable rate mortgage on this house seems to be getting heavier and heavier.

Are we being led uphill or something?

Anonymous said...

there's gotta be a bubble somewhere that I can move my phoenix based shack to to recoup!

boomer/bubblesitter said...

What did the Realtor (man), the Lender (pink dress), and the Appraisor (man) say to the home owner at the top of the rocky cliff?

"We will close on Monday and then we are outta here...Don't worry about anything."

Anonymous said...

"You'll just refinance when it gets too heavy or we reach the top - whatever comes first."

Anonymous said...

Boy, you've got to carry that weight..carry that weight, a long time.

Anonymous said...

Its the new Ark of The Covent The key to untold riches in the RE promise land.

Anonymous said...

Being lead down the Primrose Path !

Anonymous said...

A Floating a Housing Loan with Strings attached.

Bob said...

We can do this! Suzanne researched it!

Chris G said...

Rotate the picture 90 degrees clockwise....there, that's about right.

Patch Tuesday said...

That's the picture off the cover of David Lereah's new book "How to keep your house and avoid foreclosure."

devestment said...

You haul Sixteen Tons, whadaya get?
Another older and deeper in debt
Saint Peter don't you call me cause I can't go
I owe my soul to the company store

devestment said...

I wish I could move my house some place closer to work.

Anonymous said...

Soon we will have to cut our ties to this loser investment and let it go. Problem is by the time that happens there will be 1.5 million people doing the same thing. And with those houses go our economy. Bye. Bye.

infidel said...

Sorry but I don't see the peak or the bottom, things are looking pretty flat in most markets these days.

Seriously though, and Keith should know now living in Europe, Even NY City and SF are cheap by international standards.

In 1987 I looked at a fixer in Traban, Germany on the Moselle river built in 1600, half timber, empty, abandoned since WWI, price? One million marks plus it would require one million marks to renovate. Homes in the area generally sold for 300, 000 marks and up. During the two years I lived there the exchange rate fluctuated considerably from over 3 marks to the dollar to 1.35 marks to the dollar. Of course in marks the home prices didn't change but in dollars they did.

Point? Homes have been extremely expensive in dollars in Europe for fifty years. Prices in the local currency don't change much. Europeans with their strong Euro can buy our $400,000 homes that look like picking up property in some third world country to them. A few years ago the reverse, you could buy a small cottage in Brittany for $60,000 now costs you $120,000.

Welcome back the 70s! Inflation and stagnation maybe but home prices will continue to climb and be paid off in fiat dollars again. Do you think the minimum wage wasn't raised to reflect the plan by our government to increase the inflation rate? And don't you think a two dollar raise at the bottom won't lead to at least that all the way up?

Anonymous said...

yeah but are there flippers in Europe;)

Anonymous said...

"She's no real estate professional! She's a witch!! Throw it and we'll burn her!!"

Anonymous said...

The lady at the top is the owner and the other three are her co-signers.......

Anonymous said...

Why would any European with a decent job would want to live and buy a house in NY or SF?

I could see a Florida vacation home but with air fairs rising makes there are many more attractive places for Euro vacation homes and they don't need to worry about thier family getting shot by some American gang bangers.

Anonymous said...

This looks like a good spot, the view is much better, buyers should be lining up in no time...trust me.

Anonymous said...

Infidel, exellent observation! Wish you share your experience more. What's the difference in mortgage process between US and Germany?

panicearly said...

it takes two couples, all four working to afford a house?

Anonymous said...

I knew we shoulda' turned left at albuquerque

Pharoh said...

Reminds me of the slaves that built the pyramids carrying a stone up the slope.

Pyramid scheme...

Anonymous said...

Pull, bitch.

tomcarbon said...

I second bob's quote:

"We can do this! Suzanne researched it"

borkafatty said...

Follow me Sheeple to the land of Opportunity, Equity, Low Rates, Good Fortune ....& Foreclosure

infidel said...

Anonymous, the German market is quite different from any in Europe. I know that reforms are taking place, maybe not all for the good, so I can't really say what the process is today. Back in the mid-80s though you found a house via a for sale sign or a posting in the window of a lawyer. The process was simple, you put down the required down payment (I think it was 20%), lawyer drew up documents, local bank gave money, done. Minimal fees and income to debt wasn't really part of the issue. They felt that if you put the money down then you decided if you could afford it or not. If you chose to pay 45% of your income for a house that was your call, not the bank. I guess because people historically didn't sell and move like we do default was a lower risk and because you put a large enough of a down, same thing.

Also you couldn't extract equity like here unless you sold the house. I think that the modern banking system and equity extraction and an American style real estate sytem is taking hold because of the EU integration and cross border lending.

Also out of curiosity I went online to see what homes were selling like where I use to live in Germany and prices were amazingly affordable compared to France, England, Italy, Spain, Netherlands, etc. Of course costs in Frankfurt or Berlin etc were still high and the area I lived was farm country (or pig country as the non-local germans called the area). The major employer was a US military base that shut down around 1992 and is now used as a cargo airport and discount airline airport (such as Ryan air) so the economy took a major dump without all the American's to rent and buy in the local shops. Now they just have farming and wine and tourism.

Some homes were as cheap as EU39,000! They are getting prices like that in Romania! Of course the nicer places were more like EU185-200,000 so expensive but compared to the larger economic centers and other European locations considered cheap. In fact these are prices you'd find in East German territory where the economy is also in a major slump. You'd find similar situations in the USA where there are not a lot of high paying jobs nearby.

Oh and when we lived there interest rates were 3% for 50 years, no property tax for the first 15 years to encourage home ownership and to allow people to try and pay down their notes. Of course most of our friends had no mortgages there as they lived in inherited houses. Several owned three homes, one inherited from each parent and then the one they built after the war plus their vineyards. You had to be multi-faceted in your earnings. They rented out property, sold small amounts of wine and apple juice from their vineyards, operated a business like Airconditioning and heating or a resturant or such so had multiple income streams with amazed us.

There seemed to be a population drain among the young who would migrate to the cities and after the base shut down a lot of immigrants from the east moved in as the vacant homes became subsidized housing for the government, sort of like Section 8.

I understand real estate prices have been flat for 20 years like Japan so I imagine that is one reason they now home prices don't seem as lofty in the rural areas but are still high in urban areas. Maybe a model of our future? Once the high costs were exported to the rural areas the whole market stagnated and since Germans don't move and sell like we did (same in Japan) the prices didn't collapse but just stagnated.

Now that their economy is starting to rev up not sure if they will join the rest of the european bubble. I guess sort of like what is happening now in the parts of the US that didn't experience the bubble run up of other parts the past five years, maybe one last death throe before the market stagnates? Or maybe we'll end up like the Weimer Republic with hyperinflation and wheel barrels of fiat money.

Osman said...

You've got some interesting thoughts there Infidel. I checked your profile but doesn't appear you have your own blog. Maybe it's time?

Anonymous said...

lets sell now that way the house still has a lot of room to go up in value.

Frocco said...

There is still a hot market out there somewhere!! There has to be!! My realtor told me so, she will lead the way!!

Andy said...

"We should have waited til after the house was in place to install the granite counter tops."

Anonymous said...

Looks like they roped themselves together to keep the sensible ones from leaving.

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Anonymous said...

"Just a little further i can almost see the top of the markrt!"

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