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The Housing Cartel
istory has taught us that who bought too late in the game.
cartels do not work when
they try to manipulate a If property owners could just
commodity or product to extreme keep swapping houses amongst
values. There has been many themselves and pocket the profits
examples of syndicated all would be well. But... there
maneuvering and one that springs is a very big 'But'... there is a
to mind out of many is the silver significant proportion of the
debacle in the eighties. The population that does not own
influential Bunker-Hunt family property and they are on the
tried to corner the market for outside looking in...The trouble
silver with disastrous results. is, they cannot afford to get
into the housing markets...the is
In today's world there has grown no room at the inn(to get in).
a very large and very Therefore they have to rent.
unsuspecting cartel.
Who is it you may ask? The first sign of trouble begins
Well, it may be you,... yes, you, when rental values start to fall
the person that is reading this because renters just cannot
article. afford large increases in rent.
This has begun in many coastal
Do you own your own home? You do! towns and it will not be long
Why then, you may be part of a before the decline in rents are
world cartel that has unwittingly transported to big cities.
manipulated the price of private
property beyond the extreme at Because the stock market did not
this moment in time. The evidence produced good returns since March
is all to clear and unfortunately 2000 until the end of October
the results may be disastrous for 2002, and interest rates were
many families caught in the net, low, many people invested in buy
to rent. The barber and the taxi hikes. At least two more are
driver stopped tipping shares and expected. Economies around the
started to invest in rental world are rising and the economy
properties. This has fueled an in America is still growing at a
increase in prices that cannot be fair clip! It may be short lived,
maintained and the speculators but it will show good growth over
who bought on large mortgages the next six months. Even though
will collapse just like those who the government figures may not
margined dot coms. tell the true picture, company
earning do show strong growth and
The second sign of pending will continue strong throughout
disaster is first time buyers who 2006.
did manage to get a low priced
mortgage have stretched The stock market has boiled
themselves to breaking point. upwards in double quick time
Many others have 125% mortgages since December 05, to over Dow
and extended credit card debt. 11,000 and the S &P is at record
Home property taxes are on the levels. At the same time, house
increase due to higher property prices are beginning to falter.
values. When house prices start The smart people who earn money
their decline negative equity in the stock market don't look at
will mean many bank repossessions Dow Jones index as a guide. They
flooding the market. More supply just know to buy low and when
... less demand = lower prices. sell high... When to hold and
when to fold.
And thirdly, to cap it all,
interest rates are still on the As interest rates rise in the USA
way up. Rates have risen in the people who own homes with large
UK and Australia and in the US mortgages will begin to feel the
there have been fourteen rate pain. The rush to the exit may be
bad news for any banks whose your home and forget about the
customers are mortgaged to the prices.
hilt (big debts are never a good
idea). Of course, I could be wrong and
the housing market may continue
Cartels always come to an end to go up for many more years.
eventually (come to think of it, This article is written just to
nothing lasts forever in the point out the possible dangers
physical world). The high priced that may lie ahead for the people
housing cartels fate is blowing who speculate in house prices and
on the winds of an economic as the saying goes ... Forewarned
housing boom that has been is forearmed. Since most people
orchestrated to give artificial do not move house too regularly
signals of prosperity fueled (or and everyone need a place to
should it be fooled) by more live, the housing cartel will
debt... so we have a cartel continue to be the best
brought down by bigger investment for the private
manipulations of economic person....So, the bottom line is
statistics... good game...good don't get into too much debt with
game. If you can catch a falling your mortgage and pay it off just
star, before it falls and put it as soon as possible. Your home
in your pocket, you may be one of will always be your castle and it
the few home owners that will be should not be used for
ahead in this housing cartels speculations. After all is said
game. But then again, if you own and done, all financial
your home with little or no debt transactions carry risks........
and are not thinking of moving, Let the buyer Be-Aware!
it does not matter. Just enjoy
About the Author:
Michael Levy is the author six books. Michael's poetry and essays now grace many web sites, journals and magazines throughout the world. His web site is ranked number one when "Inspirational books" are search words on Google's search engine. Michael's new book "The Joys of Live Alchemy" is now available at all bookstore. http://www.pointoflife.com
Source: www.isnare.com
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