Where can i find in San Diego Home Equity Loan?
San Diego is a hot market right now with homes rising at 20%+ per
year. I can help you find properties to invest in. I also offer
$1,000 finders fee if you know anybody who buys/sells through me.
California is headed for a massive real estate crash in the next 12
months and it's inevitable.
California is at the end of its 10-12 year recurring cycle of running
up real estate values, and is now due for a correction. However this
time, there are factors in play that will act like an accelerant on
the decline in California real estate values like nobody's ever seen
before.
In a nutshell, here's Why:
Real estate values have been artificially "pumped" up by the presence
of interest rates that are at 50+ year lows.
Despite these very low interest rates, records are being set for the
number of bankruptcies filed for almost every year of the last three
years. See related article at
http://www.abiworld.org/Template.cfm?Section=Press_Releases1&CONTENTI...
Increasing foreclosures and REO's are appearing in the same states
(Texas, Arizona, Colorado, etc.) that immediately preceded our crash
the last time. Foreclosures are up 400% (over 2000) in Dallas Texas
per the article here...
http://www.zwire.com/site/news.cfm?newsid=10717727&BRD=1426&PAG=461&d...
California has a disproportionately high number of 1031 tax deferred
exchanges. Consequently, and in order to avoid paying taxes, tens of
thousands of real estate investors have allowed themselves to be
suckered into buying (i.e., increasingly leveraging into) larger
properties that are significantly overvalued.
California still has an ENORMOUS and UNRESOLVED budget crisis
California still has an ENORMOUS and UNRESOLVED energy crisis
If you think records were set for fixed rate mortgage refinancing,
you're right. But what you may not know is that the number of
homeowners who've taken out Home Equity Lines of Credit (HELOC's) on
their homes (ever notice how many "more" people are driving expensive
cars these days despite the cost of gasoline) is far more than the
number of people who have locked in low fixed rate mortgages. Keep in
mind, ALL HELOC's (and credit card debt) are adjustable! When interest
rates rise, these homeowners will get blown out of their homes, and
when that happens, their low fixed rate mortgage will disappear
(remember, fixed rate loans are not assumable!) and lenders will be
happy to lend it out again at a much higher rate. Maybe now you can
see why lenders are so happy to give you a HELOC that's far easier to
qualify for than a regular home loan. And I'll bet you didn't know
that in 2001 alone the Prime rate dropped ELEVEN times that year.
Imagine what will happen if the Prime Rate increases ELEVEN times in
any one year!
The disparity between what it costs to own versus rent the same
property has become nonsensical economically. I've heard from too many
Californians about the so-called "sunshine tax", the excess amount
people are willing to pay to live in California, and how it will
always be that way. Well guess what, they're wrong. The only people
coming into California are those coming from the south looking for a
hand out. Anybody with enough money to rent a truck and leave
California is doing exactly it and here's the PROOF!
If you go to Uhaul.com (as of mid-April 2004) and get a one-way quote
from Las Vegas, Nevada to San Diego, California for their largest
truck, it costs $200, but if you get a quote "leaving" San Diego for
Las Vegas, the amount is well over $1,500!, a more than 700% increase!
That's because so many of their trucks are leaving the state compared
to coming in, that they have to price them for what they have to pay
people to retrieve them and bring them back. I checked other cities
that I've heard Californians are moving to and the rates all reflect
the obvious, that the net migration pattern for San Diego (and likely
other parts of California) is that tons of people are leaving! With
more people (with assets) leaving the state, and more illegals
arriving, in an increasing interest rate environment, economically,
it's going to get very ugly for California!
Want to verify what I'm saying, get a quote from Uhaul.com at the link
below:
http://reservations.uhaul.com/(5roksl45lnxsxdu31gpfqa55)/moveinfo.asp...
Other interesting articles related to this topic are at:
It's about the World real estate bubble, but it applies here.
http://www.economist.com/displayStory.cfm?Story_id=1794899
Britain's housing boom threatened by record bankruptcies
http://uk.news.yahoo.com/040408/325/eqm4b.html
How healthy is the US banking system?
http://www.brookesnews.com/040504usams.html
Housing Bubble
http://www.washingtonmonthly.com/features/2004/0404.wallace-wells.html
Housing Bubble
http://www.virginiabusiness.com/magazine/yr2004/feb04/ideas.shtml
Housing Bubble
http://www.baconsrebellion.com/Issues03/11-17/Housing_bubble.htm
Problems with Fannie Mae and Freddie Mac
http://www.larouchepub.com/other/2002/2924fannie_mae.html
Housing Bubble
http://www.msnbc.msn.com/id/4724213/
Housing Bubble
http://www.greekshares.com/real_estate.asp
Watch for news reports of slowing real estate sales that should begin
in the 3rd quarter 2004 through the 1st quarter of 2005 immediately
following any increase in rates by the Federal Reserve. Two increases
by consecutive meetings of the Federal Reserve will officially launch
the begining of a real estate crash in California and more so in San
Diego, if not for the actual impact of the increase then for the
psychology of back to back increases.
Remember to ask yourself this question about those who say there's no
real estate bubble: What's their bias? The only people who are denying
the obvious are those who stand to profit from it, real estate agents,
lenders, title companies, and anybody who's so leveraged that any
small decline in property value will destroy them.