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Mohammad Farooque

 
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  • Fed Saying It May Remove 'Training Wheels' Is No Reason To Panic [View article]
    Considering the current state of US and EU economies, I do not foresee a possibility of raising interest rate will be taken seriously. The "training wheels (as you mentioned)" of markets will in my opinion stay on for some time. If I have some extra cash (which I don't) right now I will wait until market fall further and then same Ben will come out and let us know that the stimulus will stay on. Same old play only the players changed. STIMULS is like an addiction which is stronger than any other addiction and lowering stimulus will only lead to severe withdrawals.
    Jun 23 08:33 PM | Likes Like |Link to Comment
  • Silver Bay Realty Trust - A Business Model Doomed To Fail [View article]
    Recently I decided to sell my home to one of these "Residential REIT" since they were paying cash, did not need building inspection. They wanted to close ASAP. Our plan was to sell the house and rent something for time being and then buy another house closer to my job. To my surprise "while there were hundreds of houses available few months ago to rent now there were only few and I believe those houses were owned by those Reits" I could not rent since all of them required no pet, I have 120 lbs American BULL dog and a cat. I quickly realized that what mistake I was going to make and got out of the idea of selling my house to anybody. I believe getting these REITs in single family homes business will be a game changer. Since this will raise prices of single family homes there will be even fewer people who will be able to buy and will have to rent (on top of more strict conditions to get mortgage).

    A humane government should have never allowed these REITs to venture into single family homes, since this will ultimately raise the prices of home and make them out of reach of significant percentage of people. I perceive in near future there will be areas and areas owned in cities by these REITs and they will control renter market.

    Thanks to my BULL DOG I am glad I did not sell the house to these REITs. Instead I got Shares of SBY from distribution from TWO.

    It is a pity that these REITs are getting cheap loans (0-0.25% APR) to buy these houses with so called "Cash" while ordinary homebuyers have to pay a much higher percentage on top of those "Closing costs".
    Apr 28 08:33 PM | 1 Like Like |Link to Comment
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