|
yeah I think people have to realize that in the major markets a lot of property was purchased by speculators who bought with ARM's.
Well here is the situation.
You buy a house in LA for $600k and you were paying $2400 for mortgage and renting it out for $2600 a month. well all is fine.
However interst has gone up and so has the ARM...well guess what now the payment is $3200 and the rent is still $2600...how long can you do this until you go broke.
This ain't happening in Nebraska but in places like San Diego, LA, New York City, Miami...
Also remeber this the people in these city's have a very low temperment to losing money and remeber they are gonna want to get out of the houses and quickly however so will a lot of other people. However the average person still can't afford a mortgage.
So don't base everything by living in Ohio and looking around and seeing what is happening there.
|