Friday news was released about pop star Justin Bieber and his new home purchase woes. Wanting to purchase a new home – Bieber has a little real estate finagling to do. Bieber’s new home appraisal according to TMZ is lower than the selling price,
First time home buyers often have trouble learning the ins and outs of home buying. When trying to obtain a $10,000,000 house the purchasing can be tricky. Justin’s manager wants Justin to talk down a seller in price, just so he can get a mortgage. Forcing the seller to take the loss, even though Justin can afford and wants to pay the difference cashout.
We can think of several reasons that Justin should not listen to the financial advisor. The reasons might not make sense in a dollars sort of way, but are considerations everyone should keep in mind. In this day and age, why would anyone want a mortgage where you pay an additional $1,000,000 or more for your home over the life of the mortgage? Just pay the extra now, to live in a dream home. Why give the bank the money, when they have proved they commit fraud. Wouldn’t $1,000,000 be better spent on a great charity or family member?
Reason one, is ethics. Today the banks are raping people’s financial futures by not working with them for refinancing or short selling in a decent amount of time. Banks further have been proved by all 50 states to have committed fraud (that is why there are settlements to the state.) Some banks may not deserve a bad rap- but why would you use a bank, when it has been proven that they committed fraud and helped crash our economy. Why support that if you can afford cash. Justin, take a stand and help this country don’t mortgage through the banks. Use the Bieber Bank. This is the equivalent to not wearing fur, going green or using alternative energy.
Reason two is the “Beliebers,” the fans. About 1 in 4 of “beliebers” have either been evicted or know someone that has been evicted from their homes by the banks. The government ends up with the home and the down payment is lost forever. Watch the movie “Bailout” that will give you inside scoop into the housing collapse and its effect on many of your fans.
Reason three is the housing market is still not stable. Overpayments help to bring up the value of the real estate market. Skip the lavish and buy homes for others. Buy 5- 10 smaller homes in California or 100 average homes in other parts of the country.
Dad might say it differently,”Never go into debt, trust your gut instinct and live as best you can within your means.” Dad might also say conversely, “You only live once – enjoy it, and do good for others.” The housing market might recover in 15 years, but money will probably be lost on this one, but eventually California real estaet recovers – there is only so much land available.
Listen, Justin can buy whatever he wants cash out and then refinance part of it… still living with a mortgage and being enslaved for 30 years, supporting the thugs that have pillaged most of America. Go for it.