You would have to be the biggest fool in the world, or a mortgage fraudster doing a cash-back-at-close-inflated-appraisal scam, to buy one of these Northshore two-bedroom crap-shacks in Tempe Arizona for $600,000.
(Nice listing by the way by Keith Mishkin at Cambridge Properties. Really took your time there. Great picture! Really captures the essence of the place!)
Let's see, at 7% (jumbo), that'd be $4,000 a month. Add in $1000 more for condo fees and taxes, that's $5,000 a month. You could rent it if you're lucky for $1500.
My personal guess? Every single one of these units will be foreclosed on - either the developer goes belly up, or the fool who buys one (or bought one) will realize they're much better off just turning in the keys.
People lost their minds in Arizona and around the world these past few years. They listened to realtors who only cared about making their 6%, they didn't run the numbers, and now they got caught when the music ended.
No Housing Gambler Bailouts. Periods of wild speculation end in pain, and the government cannot and should not get in the way. It's time for the gamblers and the fools who lent them money to get slapped. Hard.