On Monday October 3, 2011, Louis Cammarosano, General Manager of HomeGain, was a guest on the Real Estate Radio show on The Big Talker 1580 AM, hosted by Ryan Sloper.
Listen to the show.
Part 1 (15:16)
Ryan notes that mortgage rates remained at historic low last week. Louis notes that low interest rates help the housing market somewhat even if they are not helping the general economy. Louis notes that with a long term low interest loan the cost of home ownership can be lower than renting. Purchasing a home may make sense even if home prices decline if the purchaser locks in a loan interest rate as inflation will increase in the future as will rents. Ryan and Louis discuss real estate investment opportunities in areas where home values are severly depressed where homes can be bought and rented out for positive case flow. Louis notes the reluctance and rationale of banks to make loans and to foreclose on homes. Louis notes that banks are in effect wards of the state. Louis notes that low interest rates cause people to invest in overpriced stocks.Louis notes the the government is inefficient in allocating capital to banks and private entities and questions whether they should do so.