pochovilla

Homebuilders Buying Land Again [Housing Tracker]

Judy: I am compelled to comment on the San Antonio Builders Association article with the link to the article. I would like to see the ASSumptions used to make the analysis. They must be using REAL ESTATE SALES math. Try for yourself using $750 per month rent and a 100K home fixed 30 yr at 5.75% zero down zero closing and add taxes and insurance. Just about a wash in an optimistic scenario. Ignore the delta cost for water sewerage trash and maintenance costs of apartment compared to home ownership. The number can be significant in this comparison. The problem is most renters struggle with the moving cost and one month rent as a security deposit. Let's say that's $1000.00-$1600.00. That doesn't go a long way at closing.
Does anyone think a $100K home will be $190K in four years? except the San Antonio Builders Association. Check the reader (local) comments.

Homebuilder Performance and Revenue Matrix

Gravity still exists. It's the hot air in the paper paper balloons that's has limited supply in spite of Congressional efforts. I think the high rise condo's in Miami would make wonderful housing for the homeless if only the FED can arrange the financing and we just ignore the maintenance costs for awhile. Keep this stuff off the books and just use emergency appropriations bills. 1000 peso notes would be used as collateral.