Tuesday, March 28, 2006

Equity Evaporation Phase I

The 42% of recent buyers who put no money down when buying their homes have no equity.

They wish. If they bought a used home they paid 7-11% in transaction costs. If they bought new they are facing new homes 60, 80, $120,000 cheaper. Taxes due in 2 weeks and their home is a year older. Upside down, underwater... pick your phrase. Personally I favor; Tango Uniform. [If you have to ask you don't want to know. If you already know you are laughing too hard to reply anyway.]

1 comment:

Mark said...

You're on the money Robert. In an earlier phase of my life I used a VA loan with 100% financing to buy a house in 1990. It took me decade to recover, but I learned. As will this generation of debt-freaks.

Nice blog - I'll try to look in once in a while :)

Meanwhile I need to briefly check and see how Nina is doing in her own financial "well-heeled" hubris.