Not at all. The onus should be on the bank/lending institution that equates that value with the product, as they make the profit off the loan.

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Which is not the same as making the profit on the property. If that is what people want to do, not assume the risk but simply pay for use of a property, we have a term for it. Renters.

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2008 535, 6 MT, M Sport, Premium, Space Grey
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So what are you advocating? If you aren't buying property for profit then rent?

No, if you don't want to own a property, with the corresponding potential upsides and downsides, then you should rent.

I guess that is one way of looking at it, can't say I agree...at all.

Are you saying they shouldn't ???

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People pay for what they do, and still more for what they have allowed themselves to become. And they pay for it very simply; by the lives they lead.
James A. Baldwin

No, do you honestly believe the average home buyer studied the principals of the market in which they bought their home from a investment standpoint, or were they more concerned with schools, neighbors and relative travel to work/shopping? Seems there is some assumption that everyone was in home buying for the money.

I consider myself as average and i suppose
my circle of friends could be considered average
as well and everyone i have ever talked to about buying
a home did their homework. Weather it was
an investment or not.

Even a lot in California can be very expensive so
the complete package has to be reviewed and considered carefully.

Yes there where a lot of folks out this way who bought for
all the wrong reasons and didn't do their homework.
Or they Knew what they were doing and hoped to beat the system.
Would i call them average? I couldn't say.

Exactly. So the blanket "unless you're buying for profit, rent" statement makes very little sense to the average person. I'm kind of curious of the notion that the two individuals posting saying in the lines of "it is an investment" are both from California

Considering the costs of homes, the land, the building materials, the labor, the permitting, THE INVESTMENT, everyone should have a basic understanding that owning a home comes with a very important fiscal responsibility.

A home is the most expensive thing most people will buy during their lifetime and most people take near 30 years to pay it off.

Anyone who bought a home and did not take a couple of hours to study the market in their area is an absolute moron and doesn't deserve to be a homeowner.

Cause regardless if you are buying as in investment or not, it still is an investment. And I understand your point Wagner, some people buy to have a place they call HOME, or cause they don't want to rent, etc. But the reason for someone wanting to buy a home DOES NOT alleviate the responsibility they have in first doing their research.

Comparatives of other houses sold in the area, being familiar with the market, understanding rates, taxes, cost of maintenance, etc.

It is MOOT why they bought a house, it is only important that they did buy it. Do they know if there home has warranties? A leaky roof? Neighbors that don't take care of their property? Is a highway being redirected through their front lawn? Does the city say they can't build a second floor addition because of height restrictions and setbacks?

Again, banks are merely the lenders who operate in a fashion that try's to minimize their risk. After all, a 5%-6% return is certainly not a financial windfall.

If you buy a house and you overpay, it's not the banks fault. They do not SET the price and they do no ACCEPT the price. They simply decide if they are going to give you financing. And if they don't, you can always try their competitor.

Blaming the bank for a decrease in value in the home market is ludicrous. If you own, you have a responsibility to your investment, regardless if you think it is or is not an investment.. It is equity, is has value, hence it is subject to peaks and valleys, just like stocks, bonds and everything else under the sun.

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"When two people agree on everything, one of them is not necessary" - Arliss