Unaffordable Housing..

Wow, this is scary! According to a "Guardian Unlimited" report mortgage figures for first-time buyers, payments (interest only too) are taking a bigger portion of their salaries. And in fact hit a all time record recently.

And interest rates are rising and many did not or could not apt for a fixed-rate deal. The proportion of income used to pay mortgage interest rose to a record 17.8% over 15.8% the year before.

Here is the scary part: Almost one in five (19%) of all first-time mortgages taken out in November of 2006 were interest-only with no repayment vehicle specified. Personally, I didn't know that there was such an option. Last month the Financial Services Authority warned that thousands of borrowers opting for this type of home loan had little or no idea how to repay it! But, no matter, still the number of first-time buyers are increasing about 5% from last October.

Last week the rate went up and a number of lenders withdrew some or all fixed-rate deals. Wow! this is unbelievable..a 2 year fixed rate? Here what I'm talking about. For example. Portman building society was offering a two-year fixed rate at 4.83%. It now has two-year fixed-rate deals at between 5.34% and 5.99%

I'm not surprised with at all with the prices of homes skyrocketing as they are that financing has to get very creative so young first timers who have no down payment or not enough income can try to buy a house..they they opt to only pay the interest. Amazing! I guess they hope the market will move fast and the value of their house will make up the difference in a few years? Is that how that works? Or do they end up doing as so many do and we really don't hear about...for close. The title companies and financial companies fees get paid up front.. so it's money in the pocket for them no matter how many times that house and property rolls over..to new buyers.

It's the sign of the time when there are not enough good paying jobs to match the ever growing expenses of building and housing. Gee, I wonder if our president is aware of this.

Just how far will the government let everything slide in the favor of business and the hell with the average working American citizen..yes a legal citizen I'm talking about. First the jobs get shipped over seas for cheap labor. Or plants are out sources totally. The illegals slip into this country everyday intentionally unnoticed for businesses to get cheap labor. But, what about the average Joe who has to work about three jobs just to try to make ends meet. Instead of one good job he has to work about three thanks to our government allowing tax breaks and every other break for every size business. It was like pulling teeth to get the minimum wage increased and then Bush may veto if there are not enough votes in the house and senate.

Just how far and how long will the politicians let big business get away with ripping off the American people. And don't speak for me Mr. bush by saying "The American people want this or that.." Please! Because I really do believe the Bush's daddy and sonny, don't care what the American people want.

It's quite amazing the unaccounted and blatant thieving that goes on without any concern about integrity or honor. Oh trust me there is no such thing as integrity or honor (maybe in Japan or at Toyota in Japan still) in big business. It's whatever it takes to "show" a profit for the share holders. And it all goes unchecked. There are no checks and balances in place to keep business on the up and up.. Isn't a roll that government bureaus could be playing into. I bet the better business bureau is the least funded bureau in D. C.. If there is still one on a federal level..probably on in each state now... if they still exist at all.

Consumers and investors beware.. you are on your own..