----- Original Message -----
Sent: Monday, July 08, 2002 9:31 AM
Subject: [UC] The housing bubble?
Statements were made on this newsgroup that, because of
increased property values in the neighborhood, nobody should use the excuse
that they can't afford to make expensive (HD?) improvement to their homes or
investment buildings. The reason -- anyone can now take out a home equity loan
based on higher value.
I questioned the logic in this -- pointing out
that it meant a greater debt burden and higher monthly obligations -- but the
person who made the statements originally hasn't
responded.
snip
Notwithstanding the possible long-term housing
value boom, however, the comments about debt associated with housing are
relevant. And, ultimately, the increased value of a building can be more a
burden than a benefit (e.g., higher taxes) until you sell it. Which, for many
people in our community is essentially "not in this lifetime." There are a lot
of people who bought low, either have low or no mortgages, and plan to live
where they are for the rest of their lives. Increasing monthly payments to
cov! er arbitrary frills not only makes no sense to these folks, it can be a
disaster.
