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Started By
Message
re: Housing prices are alarming
Posted on 6/10/19 at 9:41 am to EarlyCuyler3
Posted on 6/10/19 at 9:41 am to EarlyCuyler3
quote:
This has been ongoing since the 60s or 70s IIRC.
The gaps has never been as big as it is now
1
Posted on 6/10/19 at 9:43 am to stout
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 on 6/10/19 at 9:45 am to CaptainJ47
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 on 6/10/19 at 9:45 am to stout
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
and I'll get with you. I need to get an electrician in first and then evaluate based off what he says
Posted on 6/10/19 at 9:47 am to Mud_Till_May
I don’t necessarily feel super smart until I read a post by someone as dumb as you. Thanks for the Monday boost.
Posted on 6/10/19 at 9:53 am to MojoGuyPan
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 on 6/10/19 at 9:59 am to Displaced
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 on 6/10/19 at 10:13 am to stout
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 on 6/10/19 at 10:24 am to Chucktown_Badger
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 on 6/10/19 at 10:59 am to Mud_Till_May
Buy a piece of land and a prefab kit.
Posted on 6/10/19 at 11:12 am to Mud_Till_May
Housing prices are not alarming.....people thinking they can still make ~ $50K a year and try to keep up a lifestyle of their Idol on Instagram is alarming.
Life is all about choices and sorry to say a lot of people in this country, more so millennial cohorts, are making poor decisions constantly. They choose to go spend $6,000 on laser treatment so they can be less hair rather than just using nair or waxing. They spend the $6 on a double latte every day at their favorite quaint coffee shop. Theyre also going spending $1500 for an Hermes belt, when any off the rack belt will do.
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. Owning a home is not hard, hell building a home is even easier. The problem is that no body takes the time to learn things. What happend to our grandparents in the 20s-50's that knew how to get shite done, fight 2 different wars at the same time (Europe/Pacific Theatres), come back home and build a great country?
A decent home in NOLA GMA to buy can cost anywhere b/w $250K- 400K, meaning that with 20% PMI that should be a down payment of $50K- 80K. Let's be honest a majority of people can not swing that. So youre either forced to rent or downgrade your levels of expectations.
Now, you find me a majority of people willing to downgrade from the typical 3 BD/2 BA 1500 sf of home to 2/1 700 sf tiny home and I'll have your problem solved.
TL,DR : Young people want all the rewards, none of the sacrifice to have the same lifestyle that a decade ago was viable. With everyone going to college, everyone trying to better themselves; they don't realize that the bar has been increased higher, thus creating a bottleneck
Life is all about choices and sorry to say a lot of people in this country, more so millennial cohorts, are making poor decisions constantly. They choose to go spend $6,000 on laser treatment so they can be less hair rather than just using nair or waxing. They spend the $6 on a double latte every day at their favorite quaint coffee shop. Theyre also going spending $1500 for an Hermes belt, when any off the rack belt will do.
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. Owning a home is not hard, hell building a home is even easier. The problem is that no body takes the time to learn things. What happend to our grandparents in the 20s-50's that knew how to get shite done, fight 2 different wars at the same time (Europe/Pacific Theatres), come back home and build a great country?
A decent home in NOLA GMA to buy can cost anywhere b/w $250K- 400K, meaning that with 20% PMI that should be a down payment of $50K- 80K. Let's be honest a majority of people can not swing that. So youre either forced to rent or downgrade your levels of expectations.
Now, you find me a majority of people willing to downgrade from the typical 3 BD/2 BA 1500 sf of home to 2/1 700 sf tiny home and I'll have your problem solved.
TL,DR : Young people want all the rewards, none of the sacrifice to have the same lifestyle that a decade ago was viable. With everyone going to college, everyone trying to better themselves; they don't realize that the bar has been increased higher, thus creating a bottleneck
Posted on 6/10/19 at 11:14 am to Auslander
Instant gratification has been in place for years now. Nothing new.
Posted on 6/10/19 at 11:18 am to SlowFlowPro
quote:Good to see young professionals moving back to that area.
I live not far from St Louis
Posted on 6/10/19 at 11:18 am to Auslander
quote:
more so millennial cohorts,
"The sins of the father..."
Posted on 6/10/19 at 11:20 am to GreatLakesTiger24
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 on 6/10/19 at 11:22 am to Mud_Till_May
My parents mortgage in 1984 was 13%. Today you can get a mortgage at 4%. People are soft today
Posted on 6/10/19 at 11:22 am to Paul Allen
quote:
Instant gratification has been in place for years now. Nothing new.
I didn't say it was, I'm saying that social media is the accelerant in an already raging dumpster fire that is society today. When information on any level is available almost instantaneous, it creates for a larger appetite and requiremnts to satisfy it.
There is only a finite amount of resources (unless you are part of the 1% of the 1%) and if it is spent on friviousl things, then is there really any surprise that people are getting phased out?
Basically, it's Darwinism at it's finiest: Environmental pressures (Society) is forcing an organism ( people) to decide to either be the ant or be the grasshopper....and unfortunately a lot of people are following the footsteps of the grasshopper. In case you don't know the story of the Ant and Grasshopper
Posted on 6/10/19 at 11:23 am to Auslander
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 on 6/10/19 at 7:13 pm to udtiger
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 on 6/10/19 at 8:24 pm to thegreatboudini
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.
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