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| paula0000 |
 Posted: Wed Mar 09, 2005 2:54 am Post subject: 2nd income property on line of credit |
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Investing Manager
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| Do you think it's a good idea to put the cost of a rental income home on our line of credit? I was thinking of buying a second house to rent out- ( a low cost home) and put int entirely on my LOC, using the equity of my own home. When the rental income comes in, I would just apply it to the LOC payment. Any thoughts? |
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| wallace6 |
| Posted: Fri Mar 18, 2005 8:25 am Post subject: Rental on loc |
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Investing Sr. Associate
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| I think it depends on what the market for rentals is like in your area. I would want to make sure that there is sufficient demand for rentals before I considered this. |
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| freeye |
| Posted: Wed May 25, 2005 11:52 am Post subject: |
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Investing Manager
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housing markets like all markets can change.
this is why if it were my house i wouldn't do anything to place my primary residence at any kind of risk even though the risk seems remote today.
msnmoney.com-news article says:
federal reserve chairman alan greenspan made statements last week containing the words "lots of local bubbles" in reference to the housing market currently.
please make sure you are not in one of the "local bubbles" before taking any decision.
also at msn money - news:
national association of realtors believe 25% of recent home purchases may have been for investment purchases.
mortgage bankers association reports 60% of the dollar value of new mortgage loans were ajustable rate or interest only deals.
this may mean many of these loans are low quality. 30 year rates are really low and yet people are not taking the 30 year plans.
if i'm not mistaken ... alan greenspan contributed to the popping of the tech bubble and any new federal reserve chairman will be guided to do the same if he/she sees a bubble in housing market getting out of hand.
i wouldn't want to be buying a rental just prior to a housing bubble bursting. |
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