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Thursday, June 16, 2005

The rich sell houses, the poor go homeless

Need a house? Hope you don’t live near the new housing boom. Trading stocks, gold coins, or other investments, have been common over the years, but now it’s real estate, in particular, real big houses.
Time magazine came out with a special on the new trend, “Home $weet Home,” June 13, 2005. The cover offered plenty of kickers: “Will your house make you rich?”, “Super-Hot markets,” “Is it time to buy-or sell?”
Apparently the trend is to buy small medium or low-income houses on big lots, tear them down and build large two story five or more room mansions that will sell for close to a million dollars. Unlike other types of investing, this is driving many middle-class and working-class families out of the housing market. Middle to low income people who already own homes may make hundreds of thousands of dollars on their humble homes. Yet where do they live when they move out? According to Time, many of these people simply rent. In the long run, that leaves people with no retirement plan, as rent may easily eat up a social security paycheck.
Apparently there is quick money to be made “flipping homes over,” according to Time. House prices just keep going up. But if no one lives in them, will the market bottom out? Let’s hope so. People need homes for a place to live and the security of having someplace where they can’t be evicted. Those trying to make a quick buck are just being vultures that have inflated the market and profited off the losses of other people. They are low rent scum-bags who deserve to loose their shirts, and if the experts are right and the bubble burst, we could see the kinds of losses that took place in the stock market crash of 1929.

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