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April 29, 2005

Comments

I think the original advice to go ahead and buy, and the advice to not buy now are both correct and incorrect for one very simple reason, the following. In areas such as the one where I live, where housing prices are skyrocketing, investors have come in and bought up properties that are already rediculously expensive, built an even more expensive house, and sold at a low marginal profit. This however is done all across the area. What this creates is a situation where end purchasers are buying homes with drastically inflated prices with the promise of an increasing market value and low mortgage rates. This problem is further compounded by the fact that the development companies take their money and run, where as end consumers are stuck paying mortgage rates. What seperates this bubble from the one in the 80's, is that this economy has created the wonderful, artifical creation of the varbale-year ARM. This vehicle allows people to have a low rate for a few years, with the chickens coming home to roost (litterally) within a few years time of purchase price - right about the time that the housing market has cooled OR WORSE yet, reversed itself. My advise, pick your location, location, location - wisely! Don't buy in Stamford, CT though....

- Anthony R. (22, Stamford)

The title of the article is "Sophistical Arguments", so I don't think it is meant to be taken seriously.

Darn, another one of those parody posts that I didn't get!

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