posted on Dec, 3 2009 @ 01:30 AM
I’m the guy that’s buying there house or some ones just like them. It’s a good time to buy if you have the opportunity and the ability to ride
out the down turn in the real estate market. I buy at a discount and rent out the properties for the cash flow, forget about the appreciation for now
it isn’t coming any time soon.
The only problem I see in your theory is that what most renters don’t realize is that it is actually in most cases cheaper to buy a home. When I
rent a property I make sure the rent covers all the expenses plus profit. That’s mortgage, insurance, taxes, etc.
So what I’m saying is your friends may be able to spend money irresponsibly now while there living in a home and not paying there bills. But when
they re-enter the renters world they will have less money available for discretionary spending and if they think they can get away with not paying
there rent, there buts will be out on the street in 60 days. Not a year like the banks takes to foreclose on a property. Trust me a good land lord
will put you out on the street in the rain on Christmas morning if you don’t pay your rent.
And as far as credit goes, forget it, there not going to get a credit card or car loan for the next ten years. And with no house there are no assets
to secure a loan to try and repair there credit.
So the way I see it, all the folks loosing there homes are going to be struggling to stay afloat. And with bad credit they will not be the kind of
consumers that will be driving a healthy economy. In fact they will more than likely be a drain no the economy. Because my hard earned tax dollars
will be used to subsidize them, in staid of being able to reinvest that money, grow my business and create jobs.