The Real Real Estate Crises

As a real estate agent, I am suppose to sound optimistic about what is going on in the real estate industry. However, the reality is that I don't think things will get better until late 2010 or 2011. Also, I think that what is going on is more than just real estate problem. It is only the beginning. Our economy is going through structural changes.

Here are some things I think contribute to what is going on:
1. the oil consumption : we now have billions of new people who can buy cars, washers, dryers and therefore, need energy: India, China, Latin America, Africa....where having a clothes washer was a luxury it is pretty much becoming a common item, as a car, motor bike.

2. US and world real estate prices exploded. I think this is primarily due to an increase of credit (credit card, mortgages) being more easily available.

Now, I don't think it is because people are getting richer. Yes, people may getting paid more (eg. India, China, Mexico for example). I think it is because the big banks are making credit more available.
And, the forthcoming, credit crises as the mortgage crisis today.

That's globally. Locally,
In San Francisco, who really can afford to make a mortgage payment of $800,000 without a minimum of 2 salaries?
How many service jobs pay well enough to pay a $4,000 mortgage? Plus property taxes, etc.

Add a car payment of at least $400 per month.

Again, what's the problem credit. We are no longer willing to safe to buy something. We want it now using credit. I recently was talking to friend who has stopped making his mortgage payments, and bought 3 LCD TVS....He spent $7,500 on 3 othem and bought them on credit.

I asked why not just 1, or save up to buy them. His response that he wants TODAY, will enjoy them TODAY, and if he goes bankrupt tomorrow at least he enjoyed already.
wow.

The Hypocrisy of Money & Immigration

WE WANT YOUR MONEY BUT GET OUT OF OUR COUNTRY:
I am in San Francisco, and the last few weeks there has been a lot talk about ICE(immigration police) rounding up undocumented people in the surrounding cities: Redwood City, Pittsburg, San Pablo, Richmond, San Francisco.

ICE it is only those who have deportation or criminal records, but the fact is there a families, children, long time residents (nondocumented) who being deported and whose families are being destroy.

The Church is silent and so are the financial institutions: Banks, Mortgage companies, etc.
And here is the hypocrisy of Money!

As a loan agent I see all the advertisement by Banks, Car Dealerships targeting the illegal person: Credit cards, mortgage loans, loans of any type with a Tax Payer Id (ie. No Social Security Number).

So the message is clear: Get out of our country if you are illegal, but we want your money. Open up bank accounts, credit cards, get home loans, refinance.

Since persception is reality, and since we are babies of the media/advertise age, these financial institution should do more to bring public awareness of how valuable this target group is for them and for all of us.