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That was pretty standard leading up to the Great Recession. It was the new economy, you see, and fundamentals like valuing property based on rental market value
by UncleEntity 4y ago
That was pretty standard leading up to the Great Recession. It was the new economy, you see, and fundamentals like valuing property based on rental market values was the old economy because property values never go down.
My sister was renting out her house for less than the mortgage for a few years waiting for the price to rise enough to not lose money selling it and she bought well before the real estate boom.
- WalterBright 4y ago> the old economy because property values never go down that conventional wisdom never existed
- UncleEntity 4y agoThe “experts” were literally telling people that on a regular basis. The “fundamentals changed” so it was ok to sell a person making 35k a half a million house because they could always sell it (at a profit) before the interest rates increased on the loan. Or it was ok to use your house as an atm machine by pulling all the equity out to buy whatever you wanted. Can’t make this stuff up…