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**finasteridonline** · 01-24-2006, 03:45 AM

Stable or mildly stagnant prices are not a problem to people who don't have excess amount of debt through mortage/refinancing. However, there are lots of these people and for them this is going to be ugly. Housebuilders will suffer as well. Many of these people banked on those juicy 20% value increases and are now getting far less if anything. Their loans will eat them alive, especially now that feds are raising interest rates.

Exactly.

You CANNOT expect to get rich by having the housing market continue to go up at an unhealthy rate.

We need to get back to a basic principle of housing: Buy a house you can afford, and get it paid off.

10 years ago, I bought an acreage that needed work. Bought it cheap. Put it on a 15 year mortgage. Did a LOT or work - all of which we did ourselves - and did it while living there. THAT is the way to turn a profit on housing, even in a somewhat stagnant market!

01-24-2006, 03:45 AM	#37
finasteridonline Join Date Oct 2005 Posts 542 Senior Member	Stable or mildly stagnant prices are not a problem to people who don't have excess amount of debt through mortage/refinancing. However, there are lots of these people and for them this is going to be ugly. Housebuilders will suffer as well. Many of these people banked on those juicy 20% value increases and are now getting far less if anything. Their loans will eat them alive, especially now that feds are raising interest rates. Exactly. You CANNOT expect to get rich by having the housing market continue to go up at an unhealthy rate. We need to get back to a basic principle of housing: Buy a house you can afford, and get it paid off. 10 years ago, I bought an acreage that needed work. Bought it cheap. Put it on a 15 year mortgage. Did a LOT or work - all of which we did ourselves - and did it while living there. THAT is the way to turn a profit on housing, even in a somewhat stagnant market!
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