I would never borrow money to pay for a house, and I would have it built on land I already owned.
Another article showing concern in the housing market- yet the author may have lacked critical thinking
- Thread starter GON
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Most times that's simply not possible.
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Its a nice thought, but I would never have been able to save enough money while renting to ever buy a house. If I had stayed single or not had any kids - then maybe. Either way using debt to purchase a productive long term asset like a house is OK. Using debt to buy other crap like new cars or big screen TV's I agree is stupid.
Got a half million laying around? That's the price of entry in the Western U.S. And that's a Townhome.
That's a good one Dave!
You still could not buy a lot a build for a half million dollars in the Western U.S. (In a desirable area). Presumably you are going to need to sub contract many aspects of home building. You have no idea what constructions standards are not to have houses fall down in the event of an Earthquake. The local building departments don't take building plans written on napkins.
I dunno, there's some pretty nice looking pieces of property in Utah for less than $100k. For some its desirable not be in a "desirable" area... You can buy a lot you can walk to Brian head or Giant steps ski resorts for $75k!
House plans that meet the code for your area can be bought. A stack of lumber can be made into a frame. Building a house isn't rocket science.... To do it fast and well takes years of experience, but to do it well yourself isn't impossible, just don't expect it to be fast!
If I was able to work from home anywhere, some place like that would be nice! Cedar city is close enough, and cheap flights to almost anywhere are available from Las Vegas, only 3 hours away.
Brian head isn't convenient to anything other than the ski slope. A two lane winding canyon road to get to the bottom. (Would be loads of fun in the winter time). Then 33 miles to get to a big city that has what you need...Cedar City.
https://finance.yahoo.com/news/house-flippers-triggered-us-housing-175705459.html
The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.
Dark arts notwithstanding, that’s not what really happened, though.
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
House flippers triggered the US housing market crash, not poor subprime borrowers
The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.
Dark arts notwithstanding, that’s not what really happened, though.
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
Interesting. I wonder what a rebuttal would indicate? I mean, I realize they are using data to write the paper but usually there are two sides to every argument.
Had to look it up. Mortgage Delinquency. Means late on payment.
So all classes were defaulting by an increased amount, but people paying late were grouped into the better credit category, and apparently only those with a second mortgage (second home or investor).
My contrarian opinion might be, regardless of exact cause, it would appear that people overleveraged themselves and took undue risk that they couldn't cover. But perhaps we can't just blame subprime lending. Ok. But I do recall the banks being stupid willing to loan that money out, so... I'll blame the banks regardless. Maybe the gov for driving lending rates to the floor in the first place.
Just one tiny example but a planned 120 home development right across the street from me has stopped. The land was cleared and graded, utilities were put in, streets and lighting installed and landscaping has been done. They even put in playground equipment for a small children’s park. But not one house has even been started. A chain link fence was put up about five months ago. The activity stopped about 8-9 months ago.
With the severe shortage of housing in the area one has to wonder.
With the severe shortage of housing in the area one has to wonder.
I've been telling people this for years and even though I was and continue to be in the industry my own family didn't believe me. Thankfully the industry has a better handle on it now and the market participants understand they have an interest in letting this repeat but there still are deals which sneak through (ex, Couple of military officers who financed two primary residences at the same time).https://finance.yahoo.com/news/house-flippers-triggered-us-housing-175705459.html
House flippers triggered the US housing market crash, not poor subprime borrowers
The grim tale of America’s “subprime mortgage crisis” delivers one of those stinging moral slaps that Americans seem to favor in their histories. Poor people were reckless and stupid, banks got greedy. Layer in some Wall Street dark arts, and there you have it: a global financial crisis.
Dark arts notwithstanding, that’s not what really happened, though.
Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.
If anyone has questions about it feel free to ask.
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Maybe whoever was the champion could sense the impending doom, and decided to not build? Low cost housing makes low dollars, would not turn enough profit. Or maybe it was a writeoff. Or just a bad investment.
That's the upcoming crisis, not the one from 2007.
50 miles, that isn't that far. It is if the traffic is brutal I suppose.
A lot of people moved even further away even to another state because they thought the work from home model was permanent. They are in a world of hurts.
A few people got hired under that model too. One has to think they might be the first to get the axe if things go south.
Not sure who would have thought WFH to be permanent, but there's all sorts out there, so I wouldn't be suprised.
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