Not Reassuring
AP Wire | 10/14/2005 | Many chasing housing deals for investment
LOS ANGELES - While many would-be homebuyers have been scared off by dire housing market predictions, Debbie Harris has taken out mortgages on five homes in the past 18 months. She's among a growing number of fledgling real estate investors around the country using equity earned in overheated housing markets to stake their claims to rental property in more affordable areas.Sorry, but this is a classic example of what is called a "bubble mentality." In essence, it says, "What has happened to every bubble in financial history will not happen this time, because this time things are different."The investors say there's no reason to fear the housing market will collapse - although each purchase increases their risks of losing money if prices do take a dive.
"My husband believes there is," said Harris, who runs two cell phone stores. "He's thinking five houses is enough. I'm thinking, no, it's not."