The California Housing Market (AKA "Please Let
Me Vent")
Author: Rebecca C.
After a few years of traveling with friends through different
California cities and their neighborhoods, watching the housing
market intensely, I've noticed the phenomenon that is the real
estate boom and subsequent crash. What I don't understand is
WHY?
Why would adults sign a mortgage contract they don't
comprehend? Why would adults move into a 3,000+ square foot
mansion? Unless you're a Hollywood celebrity or a business wiz
with 15 kids I see no use for them. Why would a person go out
and buy a big, expensive gas guzzling SUV after moving into
their newly purchased overpriced home? Not to mention the jet
skis, boats and, with almost certainty, expensive jewelry and
couture? C'mon people. I have many, many more "why's" but let's
keep my head from imploding.
Why would a person sign an interest only loan on a mansion that
is way, WAY out of their league? Greed, plain and simple.
Everyone dreams of the big mansion with the fancy cars and the
Louis Vuitton bags. If you can afford it, and not many can on
the salaries their making, good for you. The cities we went
driving through were very small communities. I'd say between
20,000 to 50,000+ populations. Guess what? You aren't going to
find Trump-like businesses there. It's going to be Feed &
Tractor Supply stores, Wal-Mart and bottling companies. Why
would you need a mansion in a small town anyway? What you also
didn't realize is that mansion you just bought, well, it needs
to be heated in the winter and air conditioned in the summer. To
heat or air condition a home that size takes a lot and I mean A
LOT of energy. We all know a lot of energy equals a lot of
money. So, how are you going to pay for your utilities?
And now you bought an oversized SUV. Gas prices have always
been high and for a long time. So, don't tell me you didn't know
or the prices just went up. Puh-leeze!
So, you have your mansion, SUV, maybe a BMW or Mercedes, and
possibly a boat or jet skis but what you don't have are curtains
for your 30 windows around your house. You know who you are… the
ones who put up your kids' NASCAR or Disney bed sheets as window
covers. Cute.
And after all this your mortgage just went through the first
change and your $1,100 monthly payment just shot up to $3,500.
Wait! Several more months go by and it shoots up again, but this
time to $7,200. Why? BECAUSE YOU DIDN'T READ THE FINE PRINT!
Everyone and their grandmother knows you don't sign unless
you've read the small print and understand it. You wanted the
whole package to boost your ego, show all your friends and
family, only now you're crying because you can't pay your
mortgage and your garage or front door is getting plastered with
notices.
More people invest time and effort into picking out running
shoes. It's a house people! If you're buying something this big
and important aren't you going to make sure you know what you're
getting into? Nobody does research anymore. Their logic is "if
something goes wrong the government will bail me out". That's
what their supposed to do, right? Well, I guess you are
partially correct in that ridiculous theory because the housing
market is such a mess that it needs help from someone. And guess
who has to pay in the end? Me and my taxes.
And all because of greedy stupid people.
About The Author: Real Estate Investing Tips:
http://www.CraneInvestmentsOnl
