What would happen if house’s dropped to the magic 3.5 times average income?

louby_lou

Chris2685 wrote: »

I remember seeing something a while ago, can't remember what show it was. A woman had a whole bunch of houses, and basically had bought them all out of the perceived equity of the other houses, and it just spiralled on and on and on until she had a whole load of houses, but didn't actually own any of them. What she actually had was a whole load of debt, built up on equity. When the market faltered, her whole empire came crashing down. Can't remember the ins and outs of it, but it was quite interesting.

It seems to me like this type of thing is what Strings is basing his buying power on, correct me if I'm wrong though.

I saw this aswell - i felt so sorry for her. She was a victim of a severe lack of pessimism alas.