American Thinker: The Home Equity Partnership: "The problem with the real-estate market is that it forces ordinary people to use far too much leverage. Americans are mostly pretty conservative about their finances. But for many Americans the only way that they can afford a home is by accepting a very risky proposition, borrowing 80 percent or more of the purchase price of their home."
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And the writer of that blog thinks conservatives should make themselves into reformers of this situation. A provocative article.
2 comments:
The details have already been worked out - it's called a "second".
You buy equity back from your second "equity partner" by purchasing your second "equity partner's" interest over the course of 10-15-20 years. Your partner gets your equity if you fail to continue purchasing their interest.
Of course the author did not solve the 80% leveraging problem at all. The only to do that is to put a halt to government-subsidized 80% loans.
On the other hand, given the tremendous risk of investing in HOA-governed property, one should put as little at risk as possible.
Treat HOA property as rental property since you only live there at the whim of the Board despite the misleading term of "ownership". Don't put a dime more into it than you can afford to lose.
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