You guys realize inflation hurts billionaires and helps regular people, right?
The average American is a net debtor. Billionaires are generally speaking large net creditors. Inflation decreases the real value of debt, which is why you see rich people constantly railing against inflation - it decreases their hold over you.
i live in a rural area, not a city/urban area, i read a lot of the comments here, a lot do apply to urban areas. some to rural areas. i am 48, bought my 1st house in 2004, paid $89k for it, it went up in value, refinanced it for the equity, its worth is now today, $125k. I did make improvements to my home to increase its value, new siding over the years, new energy-efficient windows, and a few other things. homes for sale in my area range from $30k to over $300k, obviously the ones for $30k need some work, but put the time into it, and turn that $30k home into a $70k home. many people do it, house flipping. Average rent in my area for a HOME (not apartment) is $1,100 (roughly, and round to nearest $100). I did my research before moving here, saw that, saw that buying a home was way cheaper than renting. when i bought my house, my mortgage was about $550, of course, it went up when i refinanced it and took out equity. I didn't have good credit at the time, still was able to do it. lots of programs out there now for first time home owners and low income people to buy homes. I know an 19 year old that just bought a house that also had a trailer on it, he rents out the house to pay for his mortgage and lives in the trailer. i tell people, get a job, stick to it, after a year, apply for a home loan, buy a cheap fixer upper. way cheaper than renting. make improvements, sell it and move up to a nicer home. its possible, is it for everyone? course not. have to be willing to do a lot of work yourself, not everyone is knowledgeable in home repairs, or willing to do them themselves. but it is possible, and lots of programs out there to help people do it.
Well the analogy was Louis VIX head's rolling. Why is that a mystery to you? It's completely obvious.Umm, wat?
This has nothing to do with JFK.
Not a fuckin thing.
Not even sure what point you are making.
It is absolutely bonkers. In my area, house prices have gone up by 20%+ and there are bidding wars. Houses are rarely hitting the market and are under contract before getting listed.
It's like that here too. Houses are pretty much contingent on the same day they're listed, and they're going for well over asking price. The worst thing is that people are submitting offers to waive the home inspection (as a method to sweeten the deal due to the insane number of offers), but Alabama is a caveat emptor (buyer beware) state. I would never buy a home around here without an inspection. A friend's parents-in-law bought a home where the owners moved a couch over top of a soft spot on the floor so the inspector wouldn't find it.
Was going to replace the 1 x 4 cedar planking on my deck. Holy crap! Prices just went through the roof. I'm just going to replace the pieces where there a actual holes and are weak at this point.The price of lumber right now, holy crap, really hoping that changes for the better this summer. Doing a real number on new home construction.
That sounds like an extremely bad idea, haha.
People are waiving inspections as part of their offers. I would never do this but it's happening.
The market does seem a bit manic, that is even happening in my area; bumble, PA. I live in a town with like 50k household income. Stuff is going for over asking here, even in a relatively depressed area. I'm hoping to be able to move sometime in the next few years once we have >1 child. Might just wait till the next downward turn. We've been saving a lot so that my wife can quit working and put down a large DP to keep our monthly expenses low. I don't really want a 600k mortgage on my proverbial books.
Manic is probably underselling it around here in Austin. Realtors are talking about dozens of offers on any given property. When we bought in Dec 2019 it wasn't anywhere close to this insane. This can't last though.
Sure it can, it’s been that way for many years here. Maybe they’ll alleviate it by actually building out though. Never been to Austin but I imagine there’s room.
I don't know how it is where you are but in Toronto there has been lots of foreign money (investors and some people actually living there) coming in buying up houses and multiple condo units. It was crazy back in 2017, new buyer rules were introduced to curb that and it maybe helped a little bit, but prices are still higher than in 2017.I really can't fathom how home prices can increase much from where they are just because I don't know who could afford to buy them.
The pandemic is very much distorting this market. Several years worth of relocations are piling into the SFH markets across the country all at once. Sure a number of places will remain competitive but demand will eventually drop off and supply catch up.
I’m in NYC but it depends a lot here on what you’re talking about. Foreign buyers are less of an issue because so much of the housing stock is co-ops, which you can’t really buy without living in. It’s a thing at the high end but that doesn’t comprise that much of the housing in the city. I think the story here is the same as much of the rest of the big cities. A ton of money and jobs flowed in here which attracted a lot of new, high income people. We didn’t build housing in response so the rich people bought up the middle class housing, and so on and so forth.I don't know how it is where you are but in Toronto there has been lots of foreign money (investors and some people actually living there) coming in buying up houses and multiple condo units. It was crazy back in 2017, new buyer rules were introduced to curb that and it maybe helped a little bit, but prices are still higher than in 2017.
Wages absolutely did not keep pace with the price of housing in Toronto in the last ~10 yrs or so.
Younger people are having to move way outside the city to actually afford a house.
Manic is probably underselling it around here in Austin. Realtors are talking about dozens of offers on any given property. When we bought in Dec 2019 it wasn't anywhere close to this insane. This can't last though.
From what I’ve read the whole ‘foreign buyer parking money’ is an issue but it’s not as big an issue as people think. I also think the recent ban on anonymous shell companies is going to put a big dent in the ‘luxury real estate to launder money’ business.
The first sentence is the stupidest thing I've read in quite a while. Even assuming someone who just got a raise to $15/hr had managed to save up enough for the 20% down, they still couldn't qualify for a mortgage on a home at the national median home price of $320k.And once $15 min wage kicks in it will go up even more. The billionaires will never do anything to lose their money. Its just the way the world works.
Even if that's true the number of people who live in Midtown is small as it's not a residential area so I'm not convinced it means much to the city's market. Of course it always depends on how you define Midtown, but it's mostly a business district.I think it's a genuine issue in parts of Manhattan (midtown, Central Park South, etc) but certainly not citywide by any means. Foreign buyers looking to stash cash are not climbing over each other to buy condos in Canarsie.
It would be nice if the servants didn't keep doing it to themselves, as eski has been trying to point out here.
THANK GOD!
Those poor billionaires were just hurting too much from this mean old economy.
No seriously I think they want us all to be indentured servants for as long as we live. And thats fine except sooner or later the servants are gonna revolt and start lopping off heads ala Louis the sixteenth.
I was talking about total capital expense, not remaining balance. Poor word choice on my part.Not quite. Extra mortgage payments go directly against the principal, thus reducing the amount of interest paid in the long term.
If you sell your house for twice what you paid for it, that means that (assuming you hadn't already spent that equity), you will have a substantially large down payment to put towards your next house. Yes, you'll have to pay more, but chances are you're buying up anyway.We have a paid off house and a paid for small business including the brick building in a small WI town. My goal is to sell when the values are inflated, but it will be a couple of years before we retire. So not now.
The downside is thinking "oh cool I can sell my house for twice what I paid for it!" but when you buy again you'll also take it in the shorts when you go to buy to replace.