First-Time Buyers – No Chance Buyers?
Housing Market Decline Impacts First-time Buyers
America’s shifting housing market is having a ripple effect on buyers of different income levels and causing some mortgage companies to close. We asked Mark Zandi, Chief Economist, Moody’s Economy.com about the effect that this downturn is having on individual groups of people, starting with first-time buyers.
MARK ZANDI, Chief Economist, Moody’s Economy.com: Well, first-time buyers are in big trouble. And many of those buyers are subprime or alternative day buyers, and they just can’t get credit. The mortgage credit spigot is closed for them, so for first-time buyers, this is a very difficult market.
Across the country, mortgage foreclosures are skyrocketing, home prices are dropping, “For Sale” signs are becoming part of the landscape, and construction is slowing down, as the nation’s housing slump becomes a stubborn fact of life.
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Give up on USA and invest overseas! AVERAGE starting prices for property:
Baltic States £8,190 France £16,890 Bulgaria £24,890 Portugal £27,300 Greece £30,400 Spain £38,100 Italy £38,600 Dubai £41,700 Cyprus £47,600 Canary Islands £54,000 Crete £62,500 Balearics £86,280 Caribbean £92,220 UK £151,000
It is cheaper for 1st timers to have a mortgage on an overseas property and rent an abode in the US at the same time. I live in Wisconsin and most retirees I have as friends have another house in a southern state where it is warm. In our case we have paid for a house so we can afford to buy elsewhere, but a young family needs to pool it’s resources ..
It’s a nice article and good for knowledge.
“Across the country, mortgage foreclosures are skyrocketing, home prices are dropping, “For Sale” signs are becoming part of the landscape, and construction is slowing down, as the nation’s housing slump becomes a stubborn fact of life.”
Difficult, yes — impossible, no.
Once you’ve purchased a home, the first thing that you should do is use equity acceleration to payoff your mortgage as quickly as possible.
More and more folks are using a Home Equity Line of Credit (HELOC) or a business-line-of-credit (BLOC) or personal-line-of-credit (PLOC) as an interest cancellation account to accelerate their home equity and payoff their home *years* sooner than listed on their mortgage amortization schedule.
Unfortunately, today’s Real Estate market means that folks can no longer count on appreciation to build home equity. Those who realize that they need to pay down their current mortgage debt are looking for alternate ways to aggressively (yet safely) build equity.
And they’ve discovered a perfect online system to do that; they can focus on their wealth accumulation goals while accelerating their equity simply by using a Home Equity Line of Credit to ‘power’ the Money Merge Account™ financial solutions program.
A typical 30 year loan (of whatever type) can be paid down in 1/3 to 1/2 the time — it’s a great way to save *huge* amounts of income by eliminating a mortgage amortization front-end interest load. (On a million-plus dollar home, I’ve personally seen where the Money Merge Account™ program will save the homeowner $750,000 in interest charges!)
And the best thing – homeowners don’t have to refinance their existing mortgage or, in most cases, make any adjustments to their lifestyle.
It is unfortunate that most of us were never taught to follow three essential principles: (1) Avoid paying interest, whenever possible, (2) Use other people’s money, whenever possible and (3) Find and use a financial system that will guide you, especially if you have the tendency to go off-track. The Money Merge Account™ software and the program’s counselors use these principles to keep each homeowner focused on their wealth accumulation goals.
I’d be happy to provide further details…
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