After several years of traveling with friends through different California cities and surrounding areas, the housing market is intense to watch, I realized this phenomenon is a real estate boom and subsequent crash. What I do not understand why?
Why sign a mortgage contract adults do not understand? Why do people move to 3000 + square foot house? Unless you're a Hollywood celebrity or a specialist with 15 children who see no use for their company. Why would someone go out and buy a big, expensive gas guzzling SUV after moving into their new homes purchased expensive? Not to mention jet skis, boats and, almost certainly, is expensive and couture jewelry? Come on people. I have many, many other "why" but keep your head explode my suggestion.
Why sign borrowing someone just down the road from home, way out of your league? Greed, plain and simple. Everyone dreams of big houses with luxury cars and Louis Vuitton bags. If you can afford it, and not many cans of their salary for work, good for you. City were driving through the small community. I would say that between 20,000 and 50,000 + residents. Guess what? You can not find a Trump-like business there. Food stores and Tractor Supply, Wal-Mart and bottling companies will be given. Why do you need a big house in a small town anyway? What they also do not realize that you've just bought a house, well, it must be heated in winter and air conditioning in the summer. Heat the house to the appearance or size requires a lot and I mean a lot of energy. We all know that more energy equals more money. So, how do you pay for your utilities?
Now you buy a large SUV. Gas prices and consistently high for a long time. So, do not say you do not know or just a price increase. Puh-leeze!
So, you have your home, SUV, possibly a BMW or Mercedes, and maybe a boat or jet ski, but you do not have curtains for 30 windows in your home. You know who you are ... the people putting NASCAR bed for their children or Disney as window coverings. That's funny.
And then everything just went to the first mortgage modifications and the monthly payment from $ 1100000000 taken only up to $ 3500. Wait! A few months went by and hit it again, but this time at $ 7,200. Why? WHY did not read the fine print! Everyone and their grandmother will not sign unless you read the fine print and understand. You want the whole package to boost your ego, show all your friends and relatives who are grieving right now simply because they can not pay the mortgage and the garage door or covered with advertisements.
The more people who invest time and effort in choosing shoes. This is home! If you buy something big and important it is not to make sure you know what that means? Current research anyone. Their logic is "if something goes wrong the government will save me." That's what they have to do, right? Well, I guess you are partially correct in theory makes no sense, because the housing market is a disaster that needs help from someone. And guess who has to pay in the end? I and my taxes.
All because stupid people are greedy.Thanks