Because their home is "worth" so much more than they paid for it?
Or are some of 'em not only talking that way, but acting that way too - by spending some of their new-found "wealth"?
And do they have any idea what's underway?
July 01, 2006
Do you have friends or family running around telling people how rich they are?
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12 comments:
Gonna tap another 50K in my paper equity and buy PMs...gotta get while it is still over valued...
Terms: fixed 10 years 7.125% IO
Hell gold will be $2500/oz by then if not more -
GOOOOOOOOOOOOOOOOOOOOOOOOOO!!! housing bubble!!!
This is fascinating, but...
I really can't see how this is going to make us any real money.
See you on the veranda!
Richard Quick, Esq.
Founder
National Association for the Advancement of Wealthy People
I have a father in law who has taken out equity twice on his little shack in Northern San Deigo. The big plan is to remodel and add 2000sf to it and cash out and move out of California. But the money just keeps being spent on other stuff( new truck, trailer,hunting trips and nascar school). Now he's buried in more debt and still hasn't started building. I tried to warn him but he is living in another world.
Bling Bling!
David
Bubble Meter Blog
where i live i see more people talking about how expansive things are as opposed to how much wealth one has
A buddy of mine in carlsbad, ca refied his home and bought two brand new carsa 350z convert and a mustang cobra a year ago. He said prices never go down. He then traded the new 350z to get a brand new vette. Very upside down...now he will prolly be upside down on his house too.
great to hear, I live in San Diego and will need a new car in about 2 more years. Should be some really nice ones being dumped as San Diegans try to keep a roof over their heads.
I spent several this weekend hours flying around Huntsville, Al and lower middle Tenn. What I was doing, besides just cooling off in the cooler air, was looking at the houses people live in. The more recently built houses are all bigger. Some much more so. Do these people have more kids than they used to have? Why is the house so big? The energy to heat / cool these larger houses is getting more scarce and expensive.
I think there will be a shift to what houses used to be, dwellings to live in and raise a family. The smaller houses which are less expensive may actually appreciate in value due to increased demand. The large mansions owned by the greater fools, who needs them?
How long will this madness last?
MSM is getting the drift: http://tinyurl.com/hq8ac
I like that song by Webb Wilder "how long can she last going that fast". There is an analogy.
I agree on the move to smaller houses. I build houses and you get customers who all want the big fancey kitchens, but they can't cook and have a freezer in the garage filled with frozen meals. The cost of ownership (ie property taxs, heating and cooling and maintence) in that order really catches them off guard.
I have a brother in law who refied in 2004, took out 80k to expand the house. 2006 and still no epxansion. Meanwhile his princess wife is chipping away at the cash. New car, Disney cruise, $2000 Kirby vacuum cleaner, pedicures, skin bleaching, brazilian but hair waxing, tuition for fake online degree, shopping sprees, mini ipods, etc. His new payment is the same as my payment. Except my house is 2 times bigger and newer. Funny how he tried to convince me to do a refi. Misery loves company. Wy do people think of a cash out refi as free money? DOnt they realize they are paying it back in the form of a new loan with higher interest rate? I told him good luck with that butt hair wax you will be paying back on that 30 year plan.
Friends in Seattle Bought just last year (close to the top) took equity out for fancy new car and other baubles. Husband total RE cheerleader, thinks/thought the Seattle economy best in the nation! (he watches too much local news).
Tried to refi when rates went up a few months back. Could not.
Husband lost job. Deep in debt now. Wife is thinking maybe they can sell before it goes into foreclosure.
Husband still in denial about everything.
Yes I think we know how this will end.
And yes they brought it on themselves. Just 2 more people in a long line of idiots.
See it everyday in san diego! Look at me, Look at me!
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