| With home sales slowing down and condo
| |
| | The 1st time buyer will normally start
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| prices slipping sellers all across the
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| | with a one or small two bedroom house or
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| country seem unable to get their asking
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| | condo with the hope that price rises will
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| price.
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| | allow then to "Move Up" to a bigger 3
|
| Christopher Mayer, a Columbia University
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| | bedroom home in a better area within a
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| economics professor said recently "If
| |
| | short period of time, say one to two
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| you're expecting a short-term gain, you
| |
| | years. Slower price rises or higher
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| should be looking elsewhere," he had
| |
| | interest rates will put the loan
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| argued for many years that land shortages
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| | repayments on a new larger home out of
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| and rising populations would translate
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| | the reach of the buyer and this leads to
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| into ever-rising prices in the
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| | the whole market getting weaker.
|
| "superstar" cities like New York and San
| |
| | The Europeans have an interesting system
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| Francisco and LA.
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| | in place, credit scores have no bearing
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| With many of the real estate bulls now
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| | on the way they calculate your ability to
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| waving the caution flag we have clearly
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| | repay the loan. Under the banking and
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| reached the time for a re-think on this
| |
| | home loan laws you most provide proof of
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| subject. Before we start going down the
| |
| | income, once this is done they will offer
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| "Doom and Gloom" road it should be
| |
| | you the chance to finance up to 4 times
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| understood that owning your own home is
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| | your income. Most programs will finance
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| still the corner stone of the "American
| |
| | up to 90% of the loan to value of the
|
| Dream" and it will always be that way.
| |
| | property this system seems to ensure a
|
| What does it take to fuel that dream,
| |
| | steady supply of 1st time buyers along
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| home prices are normally driven by 3
| |
| | with regular increases in house prices
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| things. The first is low interest rates,
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| | with affordable loans.
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| the second is the willingness of home
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| | LA and New York are the so called "Super
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| buyers to pay for their idea of the
| |
| | Star" markets and not really reflective
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| American Dream and lastly the ability to
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| | of the whole county, so your strategy
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| attract 1st time buyers to the market.
| |
| | will largely depend on where you live.
|
| Let us take a look at Los Angeles as a
| |
| | Local markets are affected by many forces
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| market place for home buyers, the average
| |
| | like jobs, the new house market and
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| home sells for 10 times the average
| |
| | inflation to name but a few. Homeowners
|
| salary. Whatever way you look at it this
| |
| | who hold on to their homes for a number
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| is unsustainable, no matter how creative
| |
| | of years and pay down their debt do far
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| the banks and lenders become with their
| |
| | better than those who refinance every two
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| new programs. As it becomes more
| |
| | years taking out the equity they have
|
| difficult for the 1st time buyer to enter
| |
| | built up, this really is the Number One
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| the market it starts to affect "Move Up"
| |
| | Cardinal Sin for homeowners.
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| market.
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| |
|
