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Will real estate ever be normal again?

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Re: Will real estate ever be normal again?

#351

Post by TheGigaChad »

mgh2 wrote: post #302
uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

There seems to be a possible, overlooked cause & effect in the current landscape: If FIRE followers scale the strategy of investing and renting multiple homes, are they not limiting housing supply for other potential homeowners or exacerbating homelessness? It is not just that houses are not being built, but that a shortage of supply is caused by the FIRE generation: buying houses as investments rather places to live…

I see the problem being people like you.

Re: Will real estate ever be normal again?

#352

Post by dzonga »

ab_testing wrote: post #145
uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

Canada already did #2. Average home prices in almost all metro areas are around 10x yearly income. There is no blood on the streets and it is still considered a destination country.

it's human nature and backed by human history. blood on the streets will come, maybe tomorrow, 10 years from now or 50 years from now. in the face of inequality, it's either war or fascism. no two ways about it.

Re: Will real estate ever be normal again?

#353

Post by TheGigaChad »

klipt wrote: post #205
shephardjhon wrote: post #146

I am surprized no one me tioned we could just limit home ownership to 2-3 for individuals and lets say 20 or so for a company. The actual limits can be decided based on discussion and metrics but just having a limit, any limit could stop companies or rich assholes from buying real estate as "assets" as opposed to a place where people live. Also a limit on just holding property that is meant to be rented out. Either u…

> lets say 20 or so for a company Wouldn't rich people just create multiple companies each holding 20 properties?

Leftists are not very smart.

Re: Will real estate ever be normal again?

#354

Post by anonymoushn »

lmm wrote: post #342
option_greek wrote: post #314

Earlier quoted context omitted.

> leech the society for the rest of their lives Would these houses even be built if someone is not paying for them. They are not leeching but investing. May be we could call it leeching when they form a cartel and start raising rent prices in unison (which only biggies like black rock can do).

They invest in housing specifically because there's a bunch of tax avoidance loopholes for small-time landlords. There's nothing wrong with honest investing, but tax breaks are for leeches.

This is why I make sure to turn over my portfolio every year, to avoid favorable tax treatment.

Re: Will real estate ever be normal again?

#355

Post by t-writescode »

quaesitor wrote: post #247
t-writescode wrote: post #170

Earlier quoted context omitted.

I live in Seattle. I have an engineer’s salary. I cannot presently afford a condo, let alone a house. By the time I have enough for the down payment, I will again not be able to afford a home.

Nice excuse. Only works if you want to make 20% down instead of 3%[0] [0] https://www.knowyouroptions.com/buy-overview/affordable-mort...

Well, I tried to put 5% down; but, then I realized how much higher above asking things were selling for; and how people skip out on things like inspections. But I still want inspections, so I ask for them. This puts me down on the list of desireable buyers.

I went into a place that was selling for around 300k. I was going to offer as much as 325. I was also willing to go 5k above what the place would appraise for. This matters because you can't get a loan for above a place is worth.

The place sold for nearly 375k.

If it appraised for 325, the buyer is on the hook for an *additional* 50k that they have to pay in cash at time of signing.

You can't just not have lots of spare money in this market.

Re: Will real estate ever be normal again?

#356

Post by cbozeman »

bogota wrote: post #215
drdec wrote: post #173

Earlier quoted context omitted.

Inflation can be good for young people. If you really think there will be significant inflation, go buy a house, borrow more than you are comfortable with it necessary. Inflation will make the debt easier to deal with in time.

This is wildly irresponsible and terrible advice

It's exceptionally good advice.

Jerome Powell has already made it clear through his actions that everything is now 'Too Big To Fail'. Capital is at an all-time low in terms of actual real cost to the borrower.

You'd be an idiot not to borrow right now. If we keep seeing dramatic inflation, there will be some increase in wages, and it'll be enough to offset whatever interest rate you get, unless you're just an utterly unqualified borrower.

There's a reason /r/wallstreetbets exploded in popularity right around the time COVID-19 hit and money was being printed nonstop and assets were dramatically increasing in value... the hoi polloi know the playbook that the wealthy elite have been using, and now they're using it too.

Re: Will real estate ever be normal again?

#357

Post by refurb »

jurassic wrote: post #336
xur17 wrote: post #232

Earlier quoted context omitted.

But it doesn't remove that financial burden entirely (or even close to entirely). You're still paying: * opportunity cost * property taxes * interest

You're paying many of these things in a rental as well. But at the end of 30 years the landlord keeps the asset.

I was living in a place in SF that would have cost me 3x to purchase versus my rent. I could take the leftover and invest in other assets. I'm actually ahead of where I would be had I owned since condos have dropped in SF with Covid.

Re: Will real estate ever be normal again?

#358

Post by humaniania »

uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

"The end result will likely be unrest and blood in the streets."

"We enter a new era of cyberfeudalism, which probably involves some blood in the streets."

What hyperbolic nonsense. New account with the hot takes.

Re: Will real estate ever be normal again?

#360

Post by jbigelow76 »

uejfiweun wrote: post #45

The Fed at this point controls the whole economy and they have two options: 1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets. 2. Do nothing, keep printing. Inflation picks up massively. The economy keeps humming along but young people, including myself, are permanently pr…

1. Raise interest rates and stop printing. Crazy inflation stops, but asset prices crash and we enter a major recession or depression. The end result will likely be unrest and blood in the streets.

There's zero historical indication that this would happen based on interest rates from the past. In '74 the interest rate was 12%, in '81 it was 19.8%, in 1990 it was 9%. Even going as high as 6% nobody is getting out their seats. If you want to incite violence you need to race bait and then dress it up as "economic anxiety".

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