Monday, July 30, 2012
RENT! Don't buy a Pulte house
"Look at the stock chart for Pulte Homes (PHM) and it resembles my flight path just before I crashed a twin engine Cessna into the Australian Alps (my engine failed).
According to a survey by Zillow.com, a real estate appraisal website, 5 million homeowners plan to sell on any improvement in prices. Add 4 million existing homes now on the market, 1 million new homes flogged by companies like Lennar (LEN) and Pulte Homes, and 1 million bank owned properties. Another 8 million mortgage owners are late on their payments and are on the verge of foreclosure, bringing the total overhang to 19 million homes.
I sold everything in 2005 when my research threw up these numbers, and have been happily renting ever since. And, if the toilet blocks up, I just call the landlord."
Yep. "no brainer"--RENT!
Don't buy a house from Pulte Homes.