Property Values?

Back in the 50’s Dick Lane used to host Championship Wrestling
on KTLA Channel Five every Wednesday night. Argentina Rocca,
Baron Michel Leone, Mr. Moto, Fred Blassie and Gorgeous George
were among the highlighters. Felix Chevrolet on Figueroa was
the key sponsor for the Olympic Auditorium events….and Dick Lane
used to bang on the fenders of every car and scream: “Any car,
any color….$999.99, no money down with 24 months to pay!” Well,
one night we vividly remember….Mr. Lane banged on the fender of
an old Chevrolet and the fender – fell off.

So, why tell this story? Well, home sales in Orange County are
really in the dumpster. Falling faster than a sky jumper on meth..
those free days of no interest, no money down, interest only for
three years are over. The consequences are sure to be many. Those
free spending days of real estate turnover and rising property
values of 500 percent or more….may have finally seen the sunset.
But is there any reason for alarm really? Nah, mom and dad probably
have seen their property values skyrocket over the last 10 years…
and they can probably move safely into their new Senior Assisted
Living quarters….any time they want….as soon as they do that
“Reverse Mortgage” thing…..and sign over all their worldly goods
and such to their most favorite children. Sub prime, low interest
only loans have come back to bite lots of speculators and unqualified
home buyers right where it hurts.

The Bankruptcy rate is now approaching astronomical….and not just
here in the heartland of capitalism Orange County, California…..but
all over America. The Industrial banking interests are all there,
ready, willing and able to collect lots of property at fire sale rates
while those that are actually looking for a good deal…..are held out.
OK…such is life. Not everyone can win American Idol or Dancing with
the Stars…now, can they?

So, what about interest rates? It’s odd that Fixed rate loans start
around 5.24 percent and APR’s about 5.84 percent. Remember those days
when the interest rate was 2.2 percent? What that means is that your
house payment would be half of what it is now. What will happen when
or if Hillary gets in and the interest rates goes back to the bad of
days of the mid-80’s when double digit interest rates….followed very
quickly after initial APR’s of 8.8 or 9.2 percent. They skyrocketed
rapidly to 13.6 percent and of course Home Owner Association fees and
taxes followed the crowd.

Our suggestion….better buy now, using both elbows…..better get
that All American Dream home….cause things ain’t going to get a
whole lot better soon. “$999999.99…any home, any color….with
30 years to pay! Now back to Championship Wrestling!” Or you can
just rent for seven years – make that ten!

About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.