Solar Leasing Companies Will Feel Upcoming Housing Crash More Than The Banks
It seems just a few short years ago, construction was at an almost alarming rate of growth. People were buying their second home with minimal documentation, taking Helots out for vacations and frivolous purchases and it seems many have not learned. This wasn't just a few short years ago anymore, it was 2003-2006. You remember don't you?Ted "The Wolf" Strzelecki
Everyone you knew was becoming a realtor and making more than they deserved to make. Worse, they honestly believed and suggested to people this was normal and this would carry on. Of course, it didn't. Only been a decade and it is already going on here in the northeast. The difference this time? The crash may not be as bad (key word is may) for the banks anyway. The banks now have devices and standard operating guidelines in place to further protect the FHA loans, and the banks themselves, but not the people. So what will be the next huge bubble? Solar leases.
For those of us that owned property in the 2000's we remember people literally walking away from their homes and the amount of short sales skyrocketing. For those thinking this was a rare thing or one time occurrence remember both the 80's and the 90's when banks were getting "jingle mail" This was a term coined by the banks because there were so many people mailing in the keys to their houses. This tells you that approx every ten years or so the market corrects itself, as do most things. The real reason is they need to to keep pace with employment wages and inflation. Well the numbers are in for February and home sales are taking a huge dive *courtesy CNBC, especially in the northeast where it declined 17% in one month. Meanwhile the median February national average price is just a touch under the Feb of 2007 price. These are warning signs not stats.
See when the people are losing their houses, or short-selling them they will walk away from all responsibilities. If these people will not pay their mortgage they certainly will not keep their payments to keep the power on. Enter "The Solar Bubble" Taking a look at how these companies profit from you aside from the immediate rebates and incentives which a large portion get eaten up by the purchase of the panels / materials, paying the labor to install them, paying the sales and office support staff the logistics, and a huge cost of advertising and customer acquisition. What you pay per watt is their real revenues. Once people stop paying their responsibilites the solar leasing companies will crumble, and quickly. See there is no insurance for them for this, also there is no fast profit from this model either. They need to stay in business as long as possible to start realizing a profit from the customer. Unfortunately the majority of the solar leasing companies including the biggest three do not make a profit. They operate at a huge financial loss. Couple this with people beginning to stop payng their bill and this spells a financial disaster no one could recover from.
To say the housing crash will not happen is a fool's statement, it does, has, and will every decade or so. It is cyclical and history will prove it. Hell, who would have thought oil would touch 26.55 again?
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