Re: How do people afford houses in places like NY, Cali, and other expensive areas?
yeah its oretty ridiculous, There are many "real estate tycoons" who were flipping homes using interest only mortgages, who just had not factored the market going south due to the subprime default rates, prices outpacing earnings majorly, excess short term supply and dip in short term demand.
we had a discussion about interest only ARMs etc on gS less than 2 yrs ago and that was the risk I had noted then based on what could go wrong.