News US media doesn't want you to see: US properties plunge into negative equity

[water]

US properties plunge into negative equity


More American homeowners are mired in negative equity than at any time since the Great Depression of the Thirties, a signal that the housing crisis has spread to the wealthier middle classes who, until now, were considered immune to the worst rigours of the economic downturn.

Close to 9 million Americans, or 10.3 per cent of homeowners in the US, now owe more on their mortgages than their house is worth, according to the latest figures from Moody's, the ratings agency, as inventories of unsold homes continue to pile up in an already over-supplied market.



http://www.guardian.co.uk/business/2008/feb/24/useconomy.property



Thanks to xxdroxx

 

[bigirl]

Last night I was just having a conversation with a friend who was telling me that buying a house was the worst thing he ever did. The income from the tenants puts him in that fucked up 100k plus tax bracket and he is like WTF everyone always talked about all the tax advantages of owning a house but he ain't seeing any. He is worse off than he has ever been.

 

[divine]

The Great Depression Part II

 

[Spectrum]

I used to build homes. My uncle still does home and building renovation and restoration. I called back to the U.S. and talked to him..and dude was like "E...you wouldn't believe how fucked up it is here right now"... apparently even all the negative news I read online doesn't fully encapsulate how bad is really is on the ground. But several years ago, you could see the bubble getting close to poppin... but this is historic... the bubble, with pressure on the dollar, with everything else is really causing some problems..

 

[Esther]

I love UK media, they always tell the real stories. If your looking for the truth, go to BBC.com.

 

[BDR]

Of course there is negative equity on new homes. That is the bestest liability you have for the first 10 yrs of ownership. After that is when the home starts building equity because you spend that first 10 yrs paying the interest on the loan, now the quagmier is ninjas getting foreclosed on with less than 5 yrs in

 

[gonzo8402]

The Great Depression Part II

what you talking about, man?

Bush said in his news conference on Thursday we're not in a recession, so we're definitely not going into depression, we're in a "slow-down".

 

[TENT]

he needs a better accountant!
quick!

if he has a lot of repairs and the rent does NOT make him profit. and the property is depreciating... and he uses his vehicle to travel.. i mean come on.

Last night I was just having a conversation with a friend who was telling me that buying a house was the worst thing he ever did. The income from the tenants puts him in that fucked up 100k plus tax bracket and he is like WTF everyone always talked about all the tax advantages of owning a house but he ain't seeing any. He is worse off than he has ever been.

 

[mk23666]

Didn't the Great Depression include the fall of the housing market through too much enthusiastic speculation?

 

[BDR]

Didn't the Great Depression include the fall of the housing market through too much entusiastic speculation?

Correct illuminated one

 

[water]

what you talking about, man?

Bush said in his news conference on Thursday we're not in a recession, so we're definitely not going into depression, we're in a "slow-down".

In the meantime they are using all the available the life jackets on the Titanic.........

 

[bigirl]

he needs a better accountant!
quick!

if he has a lot of repairs and the rent does NOT make him profit. and the property is depreciating... and he uses his vehicle to travel.. i mean come on.

It has nothing to do with that. We are talking Brooklyn here. Brownstone. Too much fuck.

 

[360KNOWLEDGE]

You can also look at this as an opportunity and start putting your funds together to buy (protect your dollars by buying gold, etc first) after the Fed finally collapses the economy and starts another big banker consolidation phase. That strategy has been working since 1929 and this is how the Rockefellers and other crooked bankers buy shit up. Why pay top dollar for it, when you can get it for pennies.

 

[Multi - Personality]

Might be a dumb question.

So with all of this happening...should i still look for my first home?

 

[NnubianN]

I love UK media, they always tell the real stories. If your looking for the truth, go to BBC.com.

You are dead on. I watch BBC News on PBS every night and read their online site. It's not the only source I rely on but I give them credit for being relatively dependable

 

[Dr. Truth]

Are yall really this dense? Of course there is negative equity. In case you haven't noticed housing prices have fallen EVERYWHERE and when you buy a new home you always are paying the Interest only the first few years. Of Course you're going to be paying more than what your house is worth lol. This shit happens when you own a house. No wonder niggas have fucked up credit. They only buy shit when it's good and when shit gets bad the rush and sell of shit and panic. This is the time to buy, because it can only go up eventually. Damn you niggas need to go to college and take some business and economic classes.

 

[Multi - Personality]

Are yall really this dense? Of course there is negative equity. In case you haven't noticed housing prices have fallen EVERYWHERE and when you buy a new home you always are paying the Interest only the first few years. Of Course you're going to be paying more than what your house is worth lol. This shit happens when you own a house. No wonder niggas have fucked up credit. They only buy shit when it's good and when shit gets bad the rush and sell of shit and panic. This is the time to buy, because it can only go up eventually. Damn you niggas need to go to college and take some business and economic classes.

thanks

 

[water]

Are yall really this dense? Of course there is negative equity. In case you haven't noticed housing prices have fallen EVERYWHERE and when you buy a new home you always are paying the Interest only the first few years. Of Course you're going to be paying more than what your house is worth lol. This shit happens when you own a house. No wonder niggas have fucked up credit. They only buy shit when it's good and when shit gets bad the rush and sell of shit and panic. This is the time to buy, because it can only go up eventually. Damn you niggas need to go to college and take some business and economic classes.

Could you please re-read the article paying special attention to the use of the phrase "negative equity"?

 

[Dr. Truth]

Could you please re-read the article paying special attention to the use of the phrase "negative equity"?

Could you please talk to people who actually own property, thanks.

 

[kool_keef]

what you talking about, man?

Bush said in his news conference on Thursday we're not in a recession, so we're definitely not going into depression, we're in a "slow-down".

Bush also said that we were gonna catch Bin-Ladin, Iraq had WMD's, FEMA did a great job handling Katrina, oh yeah, he also said you should try bungee-jumping without the cord.

 

[Suicide]

It has nothing to do with that. We are talking Brooklyn here. Brownstone. Too much fuck.

I don't care where you live......As long as you have a mortgage and pay property taxes you are guaranteed a great return.

My parents at one time had: an apartment building and a townhouse in New Jersey(we sold the NJ properties 2 yrs ago), a two family in the the Bronx, a home in Florida and 2 homes in the West Indies and I have a crib in Long Island. I was taught to NEVER pay off a mortgage and that as long as you have the aforementioned two, you reap the tax benefits.

 

[water]

Could you please talk to people who actually own property, thanks.

So are you saying what we are seeing is normal?

 

[Dr. Truth]

So are you saying what we are seeing is normal?

"Normal?" I'd say yes it is normal. This shit happened in he 80s also. It happens from time to time. Property goes up and goes down. Its' like the stock market. You can't expect the shit to always be how it was. It will go back up.

 

[BDR]

I don't care where you live......As long as you have a mortgage and pay property taxes you are guaranteed a great return.

My parents at one time had: an apartment building and a townhouse in New Jersey(we sold the NJ properties 2 yrs ago), a two family in the the Bronx, a home in Florida and 2 homes in the West Indies and I have a crib in Long Island. I was taught to NEVER pay off a mortgage and that as long as you have the aforementioned two, you reap the tax benefits.

Thank you, further proof that bi-fag in here yappin just to yap and don't know shit up in here making up stories.

 

[Dr. Truth]

Last night I was just having a conversation with a friend who was telling me that buying a house was the worst thing he ever did. The income from the tenants puts him in that fucked up 100k plus tax bracket and he is like WTF everyone always talked about all the tax advantages of owning a house but he ain't seeing any. He is worse off than he has ever been.

Your friend is a retard.

 

[Suicide]

US properties plunge into negative equity


More American homeowners are mired in negative equity than at any time since the Great Depression of the Thirties, a signal that the housing crisis has spread to the wealthier middle classes who, until now, were considered immune to the worst rigours of the economic downturn.

Close to 9 million Americans, or 10.3 per cent of homeowners in the US, now owe more on their mortgages than their house is worth, according to the latest figures from Moody's, the ratings agency, as inventories of unsold homes continue to pile up in an already over-supplied market.



http://www.guardian.co.uk/business/2008/feb/24/useconomy.property



Thanks to xxdroxx

I am a licensed real estate agent and a property owner so I must advise you that the real estate market is for long term investors only. No need to panic...The market will pick up so get this garbage of the board.

 

[DaAssWatcher]

Bush also said that we were gonna catch Bin-Ladin, Iraq had WMD's, FEMA did a great job handling Katrina, oh yeah, he also said you should try bungee-jumping without the cord.

When a reporter asked him about gas prices hitting $4 a gallon.That motherfukka Bush tried to accuse him of making that shit up.

Bush has no clue on how to handle tha economy and motherfuckaz are considering Mccain as a presidential candidate and he admitted he didn't know shit about tha economy.

 

[Dr. Truth]

When a reporter asked him about gas prices hitting $4 a gallon.That motherfukka Bush tried to accuse him of making that shit up.

Bush has no clue on how to handle tha economy and motherfuckaz are considering Mccain as a presidential candidate and he admitted he didn't know shit about tha economy.

 

[Suicide]

"Normal?" I'd say yes it is normal. This shit happened in he 80s also. It happens from time to time. Property goes up and goes down. Its' like the stock market. You can't expect the shit to always be how it was. It will go back up.

This is true. In the early eighties, Interest rates were through the roof!!! I heard that it was the norm for people to pay double digit interest rates on their mortgage.

 

[forcesteeler]

what you talking about, man?

Bush said in his news conference on Thursday we're not in a recession, so we're definitely not going into depression, we're in a "slow-down".

He also said there were Mass WMD's Iraq and we need to spend 30 Billion a month on this war.

 

[water]

"Normal?" I'd say yes it is normal. This shit happened in he 80s also. It happens from time to time. Property goes up and goes down. Its' like the stock market. You can't expect the shit to always be how it was. It will go back up.

Agreed that the market goes up and down.

However when we look at the combination of factors facing the US, when will it go back up???

So in essence that return period will be stretch so thin for those caught up, it would not make sense.

For the smarter ones (the minority of buyers), life goes on.........

 

[Mo-Better]

Kayanation, over on BAS I made mention of how the government is controlling the so-called free press. Anything that supports our war interest gets published. Things that are negatives like the pounding the DOLLAR is taking against the EURO gets no attention.

New home sales are down, $103.00 for a barrell of oil very little attention. We get occasional tallies on troops killed in Iraq. Also on operations that go well for our troops, but you never hear about those who are wounded, what are their totals.

Also Guardian Unlimited is probably the most dependable place to get information concerning the realities of what's going on here in the US. It's a damn shame what's happened to this country in the last 7 years.

 

[water]

Kayanation, over on BAS I made mention of how the government is controlling the so-called free press. Anything that supports our war interest gets published. Things that are negatives like the pounding the DOLLAR is taking against the EURO gets no attention.

New home sales are down, $103.00 for a barrell of oil very little attention. We get occasional tallies on troops killed in Iraq. Also on operations that go well for our troops, but you never hear about those who are wounded, what are their totals.

Also Guardian Unlimited is probably the most dependable place to get information concerning the realities of what's going on here in the US. It's a damn shame what's happened to this country in the last 7 years.

It's sad that we have to rely on UK news outlets to see what is happening in the US





Good to see brothers are up on game............

 

[smokedacane]

Kayanation, over on BAS I made mention of how the government is controlling the so-called free press. Anything that supports our war interest gets published. Things that are negatives like the pounding the DOLLAR is taking against the EURO gets no attention.

New home sales are down, $103.00 for a barrell of oil very little attention. We get occasional tallies on troops killed in Iraq. Also on operations that go well for our troops, but you never hear about those who are wounded, what are their totals.

Also Guardian Unlimited is probably the most dependable place to get information concerning the realities of what's going on here in the US. It's a damn shame what's happened to this country in the last 7 years.

You're accurate fam

I posted this vid a few days ago


How The News Works
[flash]http://youtube.com/v/0pajKfN9VP8&feature=related[/flash]

 

[kkiddmd]

Man, yall need to quite trippin. Negative equity in your home doesn’t even affect you as long as you are staying in the home. Most people who buy new cars end up with negative equity in it for at least the first 2-3 years of the loan. It only affects you if you decide to sell the home. All this means is that a lot of people who purchased homes in the last 3-5 years will have to hold onto those homes for the next 10 years or so until they pay the loan down to get back into positive equity again.

Its funny how we forget the last 5 years of the housing market was a total fluke. The market is now simply righting itself. A lot of peeps purchased/refinanced home for far more than they were actually worth, but the demand at the time caused an effect of bringing more buyers in because of lower interest rates, causing houses to now rise in prices because so many buyers were out there looking. Now that that buyers have slowed, so too has the market.

I live in Maryland and a friend of mine purchased a house in 1999 in an area called Disney Estates for $250,000. At the height of the housing boom in 2006, his house was appraised at $650,000! This means that in only 7 years, the house had more than doubled in price…but this was not true. The true worth of the house was probably somewhere between 300-350 grand. Now that the market is correcting itself, he is now stuck in the house for the next 10-15 years until he pays down the principle loan amount which he had refinanced.