01-26-2011, 03:46 AM
Inflation - It may be the only way out as inflation makes it easier to pay off old loan balances with cheaper money
I read really early on in the bail out proposals that homes that had the loans written down - should be bulldozed to reduce inventory - kind of like the dairy farmers dumping milk to keep prices up....
Either way --- I think the best plan for real estate has always been to live in them, I treat them as consumambles rather than investments.
As to Hawaii - it seems the upper end of the economy will be ok - those seem to be the Hawaii buyers - folks with extra cash for a second home will be looking for bargains as they retire - there are some really good values coming up for sale -
remember the late 80's with 17% home loan rates - that was inflation
http://finance.yahoo.com/news/Financial-...1.html?x=0 related read
"The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans."
I read really early on in the bail out proposals that homes that had the loans written down - should be bulldozed to reduce inventory - kind of like the dairy farmers dumping milk to keep prices up....
Either way --- I think the best plan for real estate has always been to live in them, I treat them as consumambles rather than investments.
As to Hawaii - it seems the upper end of the economy will be ok - those seem to be the Hawaii buyers - folks with extra cash for a second home will be looking for bargains as they retire - there are some really good values coming up for sale -
remember the late 80's with 17% home loan rates - that was inflation
http://finance.yahoo.com/news/Financial-...1.html?x=0 related read
"The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans."