Sep 27th, 2006
by IrvineRenter
The following are links to the analysis posts of Irvine Renter:
3-2-2010 -- Interest-Only Loans Join Option ARMs in Dustbin of Financial History -- The ongoing credit crunch witnesses the elimination of another dubious loan program.
3-1-2010 -- The Bernanke Put: The Implied Protection of Mortgage Interest Rates -- How will the Federal Reserve manage the increase in mortgage interest rates?
2-22-2010 -- Principal Forbearance in Loan Modifications Dupe Homedebtors with False Relief -- Many embrace principal forebearance, but they give up any potential for appreciation as a result.
2-17-2010 -- Use FHA Financing: Loan Assumption is the Appreciation of the Twenty-Teens -- Obtaining financing equity through assumable mortgages is the way to benefit from home ownership in the next decade.
1-26-2010 -- Urgency Versus Reality: realtors Win, Buyers Lose -- a look at the pathology of the realtor mindset of creating urgency at buyer's expense.
1-18-2010 -- A Theory of House Prices and Housing Markets -- A foundational teaching on housing.
1-13-2010 -- Money Rentership: Housing and the New American Dream -- a realistic look at how debt has slowly eroded the meaning of ownership.
Cost of Ownership Series
10-30-2009 -- Ownership Cost: Taxes and Opportunity Costs
10-29-2009 -- Ownership Cost: Homeowners Associations
10-28-2009 -- Ownership Cost: Property Taxes and Mello Roos
10-27-2009 -- Ownership Cost: Interest Rates and Downpayment Requirements
10-26-2009 -- Ownership Cost: Income, Payments and House Prices
10-7-2009 -- Time to Payoff -- Building on Accelerated Amortization, this posts details how to use this new investment metric.
10-5-2009 -- Accelerated Amortization -- Paying off a loan quicker is the key to an early retirement.
8-20-2009 -- IHB Investor Reports -- A detailed review of the information in our proprietary investor report.
8-18-2009 -- IHB Property Valuation Reports -- A detailed review of the information in our proprietary owner-occupant report.
8-12-2009 -- Climate Value -- Does good weather make property more valuable? Everyone wants to live here, right?
7-20-2009 -- Rental Parity and Beyond -- A conceptual review of the concept of rental parity and how it can be applied to real estate market pricing.
7-13-2009 -- 1997 -- A careful look at the conditions at the bottom of the last real estate market with comparison to today.
6-1-2009 -- How Much Cash Do You Really Need to Buy a House? -- A review of the cash demands homebuyers face.
5-4-2009 -- Negotiating for Real Estate -- An overview of the negotiation process for residential real estate.
4-27-2009 -- California Personal Finance: Ponzi Style -- The methods of personal finance developed during the housing bubble created an unsustainable lifestyle.
1-5-2009 -- Debt-To-Income Ratios: The Forgotten Variable -- The impact of debt-to-income ratios on house prices and the housing market.ability.
8-11-2008 -- Timing Does Matter -- An analysis dispelling the myths about timing the residential real estate market.
3-31-2008 -- Investment Value of Residential Real Estate -- An economic analysis of the true investment value of residential real estate.
3-13-2008 -- Floplords -- A discussion of the phenomenon of accidental landlords.
3-10-2008 -- Mortgage Equity Withdrawal -- An overview of the role mortgage equity withdrawal played in the recovery following the 2001 recession.
2-28-2008 -- Affordability -- A review of the concept of affordability and what it means for the housing market.
2-4-2008 -- What is Equity? -- Looking at the components of homeowner equity and the factors that impact it.
1-28-2008 -- Speculation or Investment -- Comparing the motivations and activities of two distinct classes of purchasers of real estate. Knowing the difference between speculation and investment can make the difference between making and losing money.
1-14-2008 -- Rent Versus Own -- A detailed look at the cost of ownership and the various reasons to rent or own a particular property.
2007-05-14 -- The Anatomy of a Credit Bubble -- A detailed, mathematical analysis of the impact changing lending standards had on home prices. This is fundamental to understanding of the mechanics of the real estate bubble.
2007-05-07 -- Your Buyer’s Loan Terms -- The precursor to The Anatomy of a Credit Bubble. It discusses house prices from the perspective of the future buyer of your home. It demonstrates the impact changes in loan terms will have on future buyers and how this will impact the amount your future buyer can bid for your home.
2007-03-01 -- Financially Conservative Home Financing -- A review of available financing terms and a discussion of why the new "innovations" in home financing are disasters in the making.
Read the rest of this entry »
The following are links to the analysis posts and assorted essays of Larry Roberts (Irvine Renter):
3-2-2010 -- Interest-Only Loans Join Option ARMs in Dustbin of Financial History -- The ongoing credit crunch witnesses the elimination of another dubious loan program.
3-1-2010 -- The Bernanke Put: The Implied Protection of Mortgage Interest Rates -- How will the Federal Reserve manage the increase in mortgage interest rates?
2-25-2010 -- Feelings and Attitudes Toward Debt Transform in Housing Bubble Aftermath -- A post guaranteed to change your attitude toward debt.
2-22-2010 -- Principal Forbearance in Loan Modifications Dupe Homedebtors with False Relief -- Many embrace principal forebearance, but they give up any potential for appreciation as a result.
2-17-2010 -- Use FHA Financing: Loan Assumption is the Appreciation of the Twenty-Teens -- Obtaining financing equity through assumable mortgages is the way to benefit from home ownership in the next decade.
Foreclosure Series:
1-22-2010 -- Foreclosure 101: Mechanics of a Trustee Sale
1-21-2010 -- Foreclosure 101: Non-Judicial Foreclosure
1-20-2010 -- Foreclosure 101: Vesting Title
1-13-2010 -- Money Rentership: Housing and the New American Dream -- a realistic look at how debt has slowly eroded the meaning of ownership.
1-12-2010 -- Lenders Are More Culpable than Borrowers -- Apportioning blame among the various guilty parties in the housing bubble.
1-6-2010 -- HELOC Abuse Grading System -- a detailed look at the variety of harmful borrower behaviors.
10-19-2009 -- Rent? or Own? Fall 2009 -- A look at the state of the rent versus own decision in late 2009.
10-7-2009 -- Time to Payoff -- Building on Accelerated Amortization, this posts details how to use this new investment metric.
10-5-2009 -- Accelerated Amortization -- Paying off a loan quicker is the key to an early retirement.
9-16-2009 -- Cure Rates -- The rates at which people "cure" their ailing loans has declined to very low levels. People are walking away.
8-24-2009 -- How Do You Feel About HELOC Abuse? -- After reading several hundred stories of people borrowing and spending several hundred thousand dollars, you get numb to the abuse.
7-20-2009 -- Rental Parity and Beyond -- A conceptual review of the concept of rental parity and how it can be applied to real estate market pricing.
5-11-2009 -- Temporary Affordability and the Third Foreclosure Wave -- An analysis of the problem adjustable rate mortgage create for the future of the housing market.
4-27-2009 -- California Personal Finance: Ponzi Style -- The methods of personal finance developed during the housing bubble created an unsustainable lifestyle.
1-5-2009 -- Debt-To-Income Ratios: The Forgotten Variable -- The impact of debt-to-income ratios on house prices and the housing market.
12-8-2008 -- 4.5% Mortgage Interest Rates? -- What would happen if mortgage interest rates were dropped to 4.5%.
11-12-2008 -- The ARM Problem -- Adjustable rate mortgages scheduled to reset from 2009-2011 are the next wave of foreclosures that will flatten the real estate market.
8-18-2008 -- Affordability Mortgage Products Make Prices Unaffordable -- A frank discussion on the problems caused by lender's solutions to the problem of affordability.
8-11-2008 -- Timing Does Matter -- An analysis dispelling the myths about timing the residential real estate market.
3-12-2008 -- Mortgages as Options -- A look at how borrowers and speculators gamed the system using mortgages as option contracts.
3-10-2008 -- Mortgage Equity Withdrawal -- An overview of the role mortgage equity withdrawal played in the recovery following the 2001 recession.
2-28-2008 -- Affordability -- A review of the concept of affordability and what it means for the housing market.
2-25-2008 -- The Credit Crunch -- A discussion of the causes and implications of the credit crunch.
2-4-2008 -- What is Equity? -- Looking at the components of homeowner equity and the factors that impact it.
1-7-2008 -- The Fallacy of Financial Innovation -- Shattering the myth of "financial innovation" and reinforcing the use of 30-year, fixed-rate, conventionally amortizing mortgages.
2007-05-14 -- The Anatomy of a Credit Bubble -- A detailed, mathematical analysis of the impact changing lending standards had on home prices. This is fundamental to understanding of the mechanics of the real estate bubble.
2007-05-07 -- Your Buyer’s Loan Terms -- The precursor to The Anatomy of a Credit Bubble. It discusses house prices from the perspective of the future buyer of your home. It demonstrates the impact changes in loan terms will have on future buyers and how this will impact the amount your future buyer can bid for your home.
2007-04-23 -- It’s not the Borrowers; It’s the Loans. -- The "subprime containment" meme has been used to quell the fears of investors since the collapse of subprime lending in early 2007. This post examines the spurious nature of the subprime containment idea and explores the implications of the larger problem being hidden from the general public.
2007-04-08 -- Southern California’s Cultural Pathology -- An exploration of the unique cultural beliefs which made the housing bubble take hold in Southern California. This is a critical post to understanding why the bubble was so pronounced here while in other areas of the country it was not as extreme.
2007-03-05 -- How Sub-Prime Lending Created the Housing Bubble -- A simple thought experiment to show how a loosening of lending standards helped create a commodities market mentality and inflated the housing bubble.
2007-03-01 -- Financially Conservative Home Financing -- A review of available financing terms and a discussion of why the new "innovations" in home financing are disasters in the making.
Read the rest of this entry »
The following are links to the analysis posts and assorted essays of Larry Roberts (Irvine Renter):
2-17-2010 -- Use FHA Financing: Loan Assumption is the Appreciation of the Twenty-Teens -- Obtaining financing equity through assumable mortgages is the way to benefit from home ownership in the next decade.
1-26-2010 -- Urgency Versus Reality: realtors Win, Buyers Lose -- a look at the pathology of the realtor mindset of creating urgency at buyer's expense.
Foreclosure Series:
1-22-2010 -- Foreclosure 101: Mechanics of a Trustee Sale
1-21-2010 -- Foreclosure 101: Non-Judicial Foreclosure
1-20-2010 -- Foreclosure 101: Vesting Title
1-18-2010 -- A Theory of House Prices and Housing Markets -- A foundational teaching on housing.
1-13-2010 -- Money Rentership: Housing and the New American Dream -- a realistic look at how debt has slowly eroded the meaning of ownership.
1-6-2010 -- HELOC Abuse Grading System -- a detailed look at the variety of harmful borrower behaviors.
Cost of Ownership Series
10-30-2009 -- Ownership Cost: Taxes and Opportunity Costs
10-29-2009 -- Ownership Cost: Homeowners Associations
10-28-2009 -- Ownership Cost: Property Taxes and Mello Roos
10-27-2009 -- Ownership Cost: Interest Rates and Downpayment Requirements
10-26-2009 -- Ownership Cost: Income, Payments and House Prices
10-13-2009 -- Alternate Market Price Measurements -- Post looks at price measurements other than the median.
10-12-2009 -- Median as Market Price Measurement -- Post examines the good and bad qualities of using the median.
10-7-2009 -- Time to Payoff -- Building on Accelerated Amortization, this posts details how to use this new investment metric.
10-5-2009 -- Accelerated Amortization -- Paying off a loan quicker is the key to an early retirement.
9-16-2009 -- Cure Rates -- The rates at which people "cure" their ailing loans has declined to very low levels. People are walking away.
9-14-2009 -- Real Estate, Cashflow Investment and Retirement -- Real estate can and should be a part of your retirement plan, but don't bank on appreciation. Cashflow is the key.
8-20-2009 -- IHB Investor Reports -- A detailed review of the information in our proprietary investor report.
8-18-2009 -- IHB Property Valuation Reports -- A detailed review of the information in our proprietary owner-occupant report.
8-17-2009 -- Psychological Stages of a Bubble -- Understanding and recognizing the stages of a housing bubble will help you better time your home purchase.
7-20-2009 -- Rental Parity and Beyond -- A conceptual review of the concept of rental parity and how it can be applied to real estate market pricing.
7-13-2009 -- 1997 -- A careful look at the conditions at the bottom of the last real estate market with comparison to today.
4-27-2009 -- California Personal Finance: Ponzi Style -- The methods of personal finance developed during the housing bubble created an unsustainable lifestyle.
1-5-2009 -- Debt-To-Income Ratios: The Forgotten Variable -- The impact of debt-to-income ratios on house prices and the housing market.
10-6-2008 -- Fundamentals at a Market Bottom -- A review of what market conditions prevail at the bottom of the housing cycle.
8-11-2008 -- Timing Does Matter -- An analysis dispelling the myths about timing the residential real estate market.
3-31-2008 -- Investment Value of Residential Real Estate -- An economic analysis of the true investment value of residential real estate.
3-29-2008 -- Efficient Markets vs Behavioral Finance -- An overview of the two competing theories of market price movements.
3-15-2008 -- Mortgage Default Losses -- Parsing the distinction between default rates and resulting default losses on residential loans.
3-13-2008 -- Floplords -- A discussion of the phenomenon of accidental landlords.
3-10-2008 -- Mortgage Equity Withdrawal -- An overview of the role mortgage equity withdrawal played in the recovery following the 2001 recession.
3-8-2008 -- How Big Was the Bubble? -- A review of statistical measures of price to evaluate just how big the housing bubble really was.
3-4-2008 -- Systemic Risk in the Housing Market -- The second of a two-part series. This posts examines the failures of structured finance and suggests methods for addressing this failure to prevent future housing bubbles.
3-3-2008 -- Structured Finance 101 -- The first of a two-part series. This post provides an overview of what structured finance is, and how it was used to during the housing bubble.
2-28-2008 -- Affordability -- A review of the concept of affordability and what it means for the housing market.
2-25-2008 -- The Credit Crunch -- A discussion of the causes and implications of the credit crunch.
2-4-2008 -- What is Equity? -- Looking at the components of homeowner equity and the factors that impact it.
1-28-2008 -- Speculation or Investment -- Comparing the motivations and activities of two distinct classes of purchasers of real estate. Knowing the difference between speculation and investment can make the difference between making and losing money.
1-14-2008 -- Rent Versus Own -- A detailed look at the cost of ownership and the various reasons to rent or own a particular property.
12-3-2007 -- What is a Bubble? -- The concepts and beliefs that when acted upon by the general public create an asset price bubble.
2007-07-16 -- Land Value 101 -- A detailed explanation of how raw land is valued when used for residential construction.
2007-03-03 -- How Inflated are House Prices? -- A discussion of the fundamental valuation of housing prices. This post is essential reading to anyone wanting to understand how residential homes should be valued.
2007-03-01 -- Financially Conservative Home Financing -- A review of available financing terms and a discussion of why the new "innovations" in home financing are disasters in the making.
Read the rest of this entry »
Welcome to our blog from the other half of the team! I have been fascinated with the housing bubble since I smelled it coming several years ago, and I became a "bubblehead blog lurker" several months ago in earnest (I'm kind of addicted!). From a combination of good luck, perceptiveness, some minimal knowledge of economics from my recent MBA degree, and some not so good personal stuff (getting divorced), I managed to buy my first house in 1998 and sell in December 2005. So right now I am sitting on a nice, fat wad of cash stashed away in high-yielding CDs until the time is right for me to jump back into the market. So although as you will see from my upcoming posts I am decidedly a bubblehead (housing market bear), it is not due to being a "bitter renter" as many of the mudslinging RE professionals, FBs, and assorted GFs like to assume.
I currently rent in Westpark and have spent the past 4-5 months visiting dozens of open houses in Northwood and Woodbury, as well as model homes in Woodbury and Portola Springs. Look for commentary from me on these Irvine villages, as well as Northpark, Woodbridge, and maybe a few of the ridiculous high-rises on the other side of town too.
Welcome to the Irvine Housing Blog! We’ll be focusing on real estate developments in the City of Irvine. We’ve got plans to blog about a variety of topics and some posts will be more informative whereas others will be more entertaining. Inspiration for this blog has come from the Blogroll on the right. If you haven’t seen these sites yet, you’ve just GOT to check them out!
We’d love to hear your comments, tips, etc at:
zovall [at] irvinehousingblog [dot] com
irvinesinglemom [at] irvinehousingblog [dot] com
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