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It's all about the stuff we can't talk about! World has gone nuts!!!
Interesting article from CNBC on residential home prices
- Thread starter GON
- Start date
Stair chairs help with a lot of that or they convert a downstairs room into a bedroom. Baby boomers do not want to move into an assisted living facility. It's incredibly depressing for them, being surrounded by the dead and dying all day every day. Never mind that they saw what their parents went through.
My Aunt (RIP 3 years ago) had a stair-chair in her installed in their 1940's 2-story.
My father (RIP 1 yr this month) still used stairs but it was a short climb.
My step-father (RIP 1 yr this month) was in a facility for 4 years because my mother could not care for him due to his size. The assisted living center was prison and it sucked the life out of him.
Not mentioned but many boomers are finding they need a boommate to age in place.
As they themselves can’t afford to stay at their residence
So besides death and drudgery boomers are finding they need to rent rooms or gain roommates
As they themselves can’t afford to stay at their residence
So besides death and drudgery boomers are finding they need to rent rooms or gain roommates
Yeah, but you know?
In mankind's history, life has never been more easy. Never, ever more easy than it is now.
For people that say they cant afford something, look at all the "fluff" luxury's in their lives that people didnt have or buy into 50 years ago.
You want to afford a home? Do what people did back then.
Make your own dinners, buy a cheap car, dont PAY to watch TV, make your own coffee, own a cheap phone and phone plan.
Skip all kinds of fast foods and places to eat, again, make your own meals. No going out to bars, no Starbucks.
Forget boats, jet skis, planes and vacations other than a tent of motel in the woods. Forget buying furniture except for the most basic needs.
Put a down payment down on a 3 br 1+ bth home and pay for it, as you pay for it and as you see what else you can afford, AFTER the home is the time to buy that stuff.
Someone else posted in here and is 100% correct. 6% interest rates are cheap. Anything from 6 to 10% is reasonable.
Most of all if you can't do it where you currently live, that move to another state. Easy stuff man.
While there is nothing wrong with being thrifty-your plan is too "simplistic". With the escalation of real estate prices-you could quit eating and drinking altogether and live in a cave and it's still going to take substantial time to save a down payment (more than 20%) to make a home payment affordable-in any place that's desirable.
The poster on here who keeps posting real estate threads on here is a good example. He is basically chasing escalating prices in desirable ares.
I bought my house 12 years ago when I relocated and retired. It was $200,000.00 Now it's well over a half-million. Explain how that escalation would make it "easier" on a new buyer.
It's like saying an oil stash will let you retire early.......
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Only works if you plan to stay in exactly the same place for a long time. Then yes, it doesn't matter, get your mortgage, lock in your payment move along.
What happens if you loose your job? This is what happened in 2008 - people bought houses - contrary to the narrative most people in normal cities simply bought normal houses on fixed loans, but when the economy dumped lots of people were shafted, and many still haven't recovered.
How does one get shafted?
Economies go up and down, sideways and every which way. We are all free individuals to pick and chose our housing and jobs there is no such thing as guaranteed housing and work, except maybe prison.
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In 2008 no person could get a mortgage, no matter income or stability. If by some miracle you could, your house would never appraise, no matter what the number. No mortgage, no appraisal, meant no one could sell a house at any price.
In the meantime, BlackRock borrowed billions from the fed at 0% and bought everything they could, which is why they are now the largest landlord in the country.
Not to mention those that lived in their houses without making payments for years for free, because the banks didn't want to take the foreclosure write down on their books. It prolonged the bust. Those that paid their mortgages got no such benefit.
Your comment assumes a free market economy, not crony capitalism.
This is completely incorrect
They were more than happy to give loans if they weren’t in active bankruptcy
How many people out of work wanted another loan?
Housing prices plunge in 77% of U.S. metro areas: ‘The turn has finally happened’ – Fortune
"This is the beginning of a trend that should send prices down between 8% and 10% by next August," says the American Enterprise Institute's Housing Center director Ed Pinto.
fortune.com
What do you know, the start of large price decreases on high end homes in most Metro areas.
Seems like I remember saying that would happen…
Now in 3-5 years things might get more reasonable in the Midwest
I used to live next door to a former mob collections agent, high crime but safest apartment complex on the block.
Moron a few doors down was collecting chemicals, came home one day to a sight of the dude held upside down by his feet getting his head contacting cement.
Chemicals disappeared
Not sure if this has been discussed. There is a huge transfer of wealth coming. Front end boomers are now around 76 or so. Less than half of them have died. The big transfers are still to come. Also, the last of the boomers are in some cases still waiting for their inheritance from their 88 year old parents. The Generation X’ers are just getting to early retirement ( or they might have to go to 65 ). There is a huge amount of money that’s going to be transferred in the next 30 years. Some of it trickle down to real estate, probably to the x’ers kids.
in a nutshell: people just want to have it all and now, sort of an entitlement outlook, while not wanting to sacrifice anything in the process
My house-flipping friend had lots of cash during that time to buy foreclosures. He was shocked at how many banks refused to sell him foreclosed homes. Banks got bailed out so they didn't have to sell. Definitely cronyism.
Banks and certain “debtors” holding properties should be forced to pay property taxes, that would light a fire under their rear.
No not really if you analyze it. First let me say not sure why the ref to the 20% Im just comparing apples to apples. Either way a buyer needs a down payment and not many put down the full 20% but even if so, down payment is the down payment.
The bottom line is home prices have stabilized and even come down in price but a buyer will still pay the same monthly payment because rates are up. Its one of the other, all about the payment.
Anyone in the past who complained about home prices can now rejoice that they have stabilized and even come down quite a bit in some places.
Heck I know new homes builders even here on the east coast where prices weren't that high to begin with in Florida, I have a builder emailing me with 40 and $50,000 price reductions on homes they are clearing out. These are real reductions because we were their 7 times just a few months ago and the price truly were higher.
I hope you know I am being a bit (dont know the right word for it) explaining above. *LOL*
I dont know why you would expect me to explain why you say your house is worth $500,000 now instead of $200,000 but homes will always appreciate over time, so do salaries and choice of places to live. Im sure you didnt expect the $200,000 homes to stay at $200,000 for over a decade in your area, that is what makes homes a great investment over the long term.
If a buyer can no longer buy your house because you think its worth $500,000 they have to look elsewhere or live elsewhere, there are many homes in this country, brand new ones almost half that price.
You also have to look at the economic situation Unemployment Rate when you bought your home was almost 10%, now it is 3%
A kid stocking paper towels in Target makes $20 a hour, a kid making coffee in Starbucks $20 an hour, heck everyone making $20 an hour *LOL*
Bottom line is, price is what the public can afford, your house would not be $500,000 if no one could afford it.
Lets not forget supply shortages the super low unemployment rate, artificially low interest rates for almost 14 years added value to todays home prices, Covid ect ect made buying easy.
Now its back to reality, even when you bought your home in 2010 that was not reality. What is reality is when interest rates are 7 to 10% and unemployment skirting 5 or 6% then homes prices will be low but the payment will still be the same.
(hope this makes sense, just discussing and need to refill my coffee)
BTW, Im relocating to the coastal area of the Carolinas, building a new home, nice one too, a bit smaller, kids now gone, killer price but guess what? Im not going to get what I was for this home just a few months ago when rates were near 3%.
You would think that would be good news for the buyers, but their payment will still be the same since rates are double.
The last few years people so flush with cash people didnt even want to work, heck, many still dont, government printing money, taking out loans (national debt all time high, in the stratosphere) The craziness you may be feeling is too much interference in the markets by (not allowed to talk politics, please dont) they never get it right, capitalism works and what made this country great but there is a new mentality now of someone else is responsible for your life and happiness.
Do you really want these people in your life, is this rational? = https://www.usdebtclock.org/
Anyway, lets keep the thread going, no politics/no political parties, just facts.
Ps, I enjoy conversations like this dont misread it in a negative way. Discussion is great.
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