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re: Housing prices are alarming

Posted on 6/10/19 at 9:41 am to
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167885 posts
Posted on 6/10/19 at 9:41 am to
quote:

This has been ongoing since the 60s or 70s IIRC.


The gaps has never been as big as it is now
Posted by EarlyCuyler3
Appalachia
Member since Nov 2017
27290 posts
Posted on 6/10/19 at 9:43 am to
Its exponential so it increases over time until theres a major correction. Like war/revolution.
This post was edited on 6/10/19 at 9:44 am
Posted by Areddishfish
The Wild West
Member since Oct 2015
6285 posts
Posted on 6/10/19 at 9:45 am to
quote:

You can but frankly with interest rates as low as they are paying cash for a house would be foolish. You should be able to earn more than 4% on your money annualized over 30 years by investing.



While that may be true depending on investment strategy, if you were to lose your job and source of income, you still owe money on the house (see housing crisis 2007-2008). If you have a paid off house, that frees up $1,000+ each month that you could pour into investing. I don't know about you, but I don't want to pay 1.5x or more my house's worth by having it the full life of a loan.
This post was edited on 6/10/19 at 9:46 am
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
425837 posts
Posted on 6/10/19 at 9:45 am to
I live not far from St Louis

and I'll get with you. I need to get an electrician in first and then evaluate based off what he says
Posted by Spasweezy
Unfortunately, Louisiana
Member since Jan 2014
6646 posts
Posted on 6/10/19 at 9:47 am to
I don’t necessarily feel super smart until I read a post by someone as dumb as you. Thanks for the Monday boost.
Posted by Kujo
225-911-5736
Member since Dec 2015
6015 posts
Posted on 6/10/19 at 9:53 am to
quote:


You're forced to either rent or throw out all dignity and buy a tiny house.


best post in this thread and 10+ downvotes?

spot on. when everyone can "afford" a house or a college degree, demand for houses and colleges goes up, and price goes up.

Posted by KiwiHead
Auckland, NZ
Member since Jul 2014
28083 posts
Posted on 6/10/19 at 9:59 am to
quote:

What exactly do you think a mortgage is..


Well the term comes from the Latin term mortuus which means death.

Mortgage is an old French term that means "Death Pledge"

You're basically pledging your financial life to that pledge/contract
This post was edited on 6/10/19 at 9:59 am
Posted by Kujo
225-911-5736
Member since Dec 2015
6015 posts
Posted on 6/10/19 at 10:13 am to
quote:

but too many people want it now because their friends have the big McMansion and they have to keep up.


Guy I know was lower middle income his whole life. Got a big payday, enough for him to retire at a minimum of 5k/month guaranteed income the rest of his life if he didn't spend it and just invested in income properties.

He opted to buy two expensive vehicles, a 10 year old mcmansion in a flood zone with 100k in upgrades that increased the value of the house by maybe 15k. He plans to start looking for work next summer after he graduates.
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
263293 posts
Posted on 6/10/19 at 10:24 am to
quote:

And the low home prices were offset by outrageous interest rates. I think my parents bought my childhood home for something like 45k but interest rates were around 18%.


Correct

Housing prices increased exponentially with cheap credit. But mortgages in the late 70s and early 80s were outrageous based on interest rates.

Cheap credit correlates to rising home prices
This post was edited on 6/10/19 at 11:06 am
Posted by ItNeverRains
37069
Member since Oct 2007
25926 posts
Posted on 6/10/19 at 10:59 am to
Buy a piece of land and a prefab kit.
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
75376 posts
Posted on 6/10/19 at 11:14 am to
Instant gratification has been in place for years now. Nothing new.
Posted by Dead Man Walking
Member since Mar 2019
963 posts
Posted on 6/10/19 at 11:18 am to
quote:

I live not far from St Louis
Good to see young professionals moving back to that area.
Posted by EarlyCuyler3
Appalachia
Member since Nov 2017
27290 posts
Posted on 6/10/19 at 11:18 am to
quote:

more so millennial cohorts,


"The sins of the father..."

Posted by VinegarStrokes
Georgia
Member since Oct 2015
13383 posts
Posted on 6/10/19 at 11:20 am to
quote:

ou people are such simpletons, incapable of grasping the slightest bit of nuance


I'm a simpleton who can afford to upgrade my home every few years
Posted by Man4others
Member since Aug 2017
2073 posts
Posted on 6/10/19 at 11:22 am to
My parents mortgage in 1984 was 13%. Today you can get a mortgage at 4%. People are soft today
Posted by RogerTheShrubber
Juneau, AK
Member since Jan 2009
263293 posts
Posted on 6/10/19 at 11:23 am to
quote:

The real problem is the instant gratification society we live in today. A majority of people are no longer willing to wait or put the time/effort into growing wealth.


I built my first house. It took years to finally finish but I paid as I went, outside of a loan for some guys to help frame it and side it. It wasn't huge or gaudy, but it was mine.

It took a helluva ot of evenings and weekends but it paid off when I sold it 11 years later.
Posted by FlagLake
"Da Ship"
Member since Feb 2006
2352 posts
Posted on 6/10/19 at 7:13 pm to
quote:

If there are people willing to pay it, then they are not too high. If people wont pay it, they're too high.


I could never get my students to understand this back when I taught Civics/Free Enterprise. I told them they never bought anything they thought was too expensive or they would not have bought it in the first place. They would just look at me like a deer in the headlights. Lol.
Posted by mattgr1983
Austin, Tx
Member since Oct 2012
2434 posts
Posted on 6/10/19 at 8:24 pm to
quote:

Austin resident here. Where are these unicorn 300k houses you speak of?



All over the suburbs. Get up near Round Rock, or down past Slaughter and it gets reasonable. Want to live near the city, you gotta pay. I spent 650 on a condo, but I'm an OT baller.
Posted by Chucktown_Badger
The banks of the Ashley River
Member since May 2013
31468 posts
Posted on 6/10/19 at 9:38 pm to
quote:

I spent 650 on a condo, but I'm an OT baller.


What area of town?
Posted by dnm3305
Member since Feb 2009
13664 posts
Posted on 6/10/19 at 10:09 pm to
quote:

Getting a mortgage and buying a house may be the single best financial decision I have ever made.


Of course it is, as long as you can afford it.
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