01-18-2009, 06:36 PM
Carol has made some clear and excellent points.
Kathy, I don't see the difference is between what John Rabi apparently told you and what you wish he told you. You really have to come to peace with what is happening right now. We've ALL been hammered on the past few years.
Also, my comment was that rents go up when values go up, I didn't mention mortgages. It is a basic fundamental of business. Whether the landlord has a mortgage or not, when the property is worth more, he would desire more return on that asset. Maybe I should give an example: landlord buys a property for $100k, rents it out for $900. The identical house next door sells for $200k 3 years later, gets rented out for $1800. The first landlord would likely try to raise to something near $1800 (market rent) or sell at $200k (market value). Nothing to do with the mortgage. Same principle if the value goes down. Mortgage is irrelevant.
ALSO, I would like to know where one could get the idea that as a group, owners take better care of their properties than landlords. Typically, the rental properties that are trashed are done so by the tenants, NOT the fault of the landlord. If the tenant is civilized, usually the property stays pretty nice. Furthermore, due to the hordes of former renters who rushed out to buy houses, there are all kinds of 'homeowners' who have no idea how or perhaps resources available to maintain their properties. This is evidenced in the condition of nearly ALL foreclosures. Throws off that generalization, huh?
Buying real estate is a big deal, and it can be risky. The world has not conspired to single anyone out.
Buying within ones means would indicate that one had already accounted for the possibility that their life situation may have some ups and downs.
There are a great number of folks out there who have paid cash for their properties, or who are in properties that they have financed within their means, and they are getting dragged down by others in the market who are failing in their obligations. Perhaps they should be the ones complaining, huh?
Kathy, I don't see the difference is between what John Rabi apparently told you and what you wish he told you. You really have to come to peace with what is happening right now. We've ALL been hammered on the past few years.
Also, my comment was that rents go up when values go up, I didn't mention mortgages. It is a basic fundamental of business. Whether the landlord has a mortgage or not, when the property is worth more, he would desire more return on that asset. Maybe I should give an example: landlord buys a property for $100k, rents it out for $900. The identical house next door sells for $200k 3 years later, gets rented out for $1800. The first landlord would likely try to raise to something near $1800 (market rent) or sell at $200k (market value). Nothing to do with the mortgage. Same principle if the value goes down. Mortgage is irrelevant.
ALSO, I would like to know where one could get the idea that as a group, owners take better care of their properties than landlords. Typically, the rental properties that are trashed are done so by the tenants, NOT the fault of the landlord. If the tenant is civilized, usually the property stays pretty nice. Furthermore, due to the hordes of former renters who rushed out to buy houses, there are all kinds of 'homeowners' who have no idea how or perhaps resources available to maintain their properties. This is evidenced in the condition of nearly ALL foreclosures. Throws off that generalization, huh?
Buying real estate is a big deal, and it can be risky. The world has not conspired to single anyone out.
Buying within ones means would indicate that one had already accounted for the possibility that their life situation may have some ups and downs.
There are a great number of folks out there who have paid cash for their properties, or who are in properties that they have financed within their means, and they are getting dragged down by others in the market who are failing in their obligations. Perhaps they should be the ones complaining, huh?