11–20 of 178 posts
I'm all for it. If this edges out the razor thin margins that Redfin et. al. were making on the US housing market, let's go. As a first time homebuyer who would like to purchase a place to live, a few points of interest are not going to dissuade my decision. But I have a strong feeling that the REIT market will pop like the bubble that it is once the financials start looking unfavorable.
I'm all for it. If this edges out the razor thin margins that Redfin et. al. were making on the US housing market, let's go. As a first time homebuyer who would like to purchase a place to live, a few points of interest are not going to dissuade my decision. But I have a strong feeling that the REIT market will pop like the bubble that it is once the financials start looking unfavorable.
> a few points of interest are not going to dissuade my decision Perhaps not, but if you run the math you'll see a "few points" very quickly means you'll have to buy much less house than you may have desired.
With $600/month in taxes/insurance, the "don't spend more than 40% of your income on housing" rule means the necessary income to comfortably afford that property increases from $65k to $93k. That'll create some waves in the market.
I'm all for it. If this edges out the razor thin margins that Redfin et. al. were making on the US housing market, let's go. As a first time homebuyer who would like to purchase a place to live, a few points of interest are not going to dissuade my decision. But I have a strong feeling that the REIT market will pop like the bubble that it is once the financials start looking unfavorable.
Imagine believing that Redfin has any influence on the U.S. homes market. The U.S. home market is worth ~50 trillion dollars. There are > 1.3 million homes for sale at this moment.
I'm all for it. If this edges out the razor thin margins that Redfin et. al. were making on the US housing market, let's go. As a first time homebuyer who would like to purchase a place to live, a few points of interest are not going to dissuade my decision. But I have a strong feeling that the REIT market will pop like the bubble that it is once the financials start looking unfavorable.
Why root for the downfall of Redfin and the like? They were finally a lower cost alternative to the stranglehold that RE agents have had on sellers for decades. Why should it cost 6% to sell a house?
I'm wondering if Stamp Duty is just a UK thing. Here we pay a tax to the government when you buy that is based on the value of the house you are buying.
Up to £250,000 Zero
The next £675,000 (the portion from £250,001 to £925,000) -5%
The next £575,000 (the portion from £925,001 to £1.5 million) -10%
The remaining amount (the portion above £1.5 million) - 12%
The tax goes up even higher if you are buying a second home.
Pretty crazy correction if you run the math on mortgage payments. I bought a place 1 year ago with a 2.75% rate. Say you're somewhere outside a major metro buying a $500k house. With a $100k down payment, a 2.75% rate equates to $1,633/month. A 6.5% rate equates to $2,500/month. With $600/month in taxes/insurance, the "don't spend more than 40% of your income on housing" rule means the necessary income to comfortably…
For a US$1M house, which is the going rate near my area, the jump from 6% to 7% is $5000/month apr interest to $5834/month apr (not including fees, taxes, and insurance).
So to go back to the monthly of $5000 (which is out of my budget), a US$1M house would need to fall to $857,153. That is NOT happening around here.
I have no idea who is buying houses at these prices, if it's not BlackRock-type firms (corrected company name, thank you). I can't fathom how new homeowners are fairing in this market.