Posted on 12/31/2022 8:42:14 AM PST by patriot torch
dice
“the woefully incompetent Federal Reserve”
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Its not incompetent, it faithfully serves the interests of the financial elites quite well.
What is your DOM abbreviation? Days on Market?
Used cars are starting to crash. Loans are also going south on them.
The only thing propping them up is lack of new cars keeping demand higher than it should be in the used market.
1. I don’t borrow money to invest.
2. A home is a very illIquid asset.
3. A home has a negative cash flow — which means it functions more like a LIABILITY than an ASSET.
4. There’s no diversification in a home. As one astute real estate developer client once told me: “If you want to be a real estate investor, you’re better off investing in a REIT.”
Loan rates are going way up. Pretty much double.
That’s why people are complaining
I would delete this post before you are accused of insider trading.
100%. This is who gets burned the most (ibuyers) as they will all dump at once according to this video. About 6 months ago (longer?) an analyst took zillow to task as the inventory of their SFR homes was on the books for considerably more than they were worth so zillow decided to sell. I have no idea if they followed through or not but if they did, good on them. The one I hope to see suck wind is blackrock
Exactly. Yeah, in mid to late 2020, I was spoiled by 3 days to a contract. Now, it's 30...but it could be far worse (... and probably will be).
“the larger homes will no longer go up in value but will be seen as a liability.”
Yup—this happened several hundred years ago in a place called “Europe”.
The homes were called “castles”.
Their owners became “house poor”.
;-)
Housing is a bubble…. Prices are still stuck at 3% interest rates while interest rates are now 7-8%…
Prices have no place to go but down..: it won’t happen overnight, but it’s going to happen
“Personally, I think the residential real estate market became completely unhinged once homes started to be seen as means of wealth accumulation instead of what they are: HOMES.”
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I’ve never purchased a home for any other reason than being a convenient and comfortable place to live. I honestly didn’t buy with appreciation in mind figuring that personal enjoyment would be the ROI. That said, location was always a very important factor that I was willing to pay for because it affects the livability of the home and therefore its value. Purchasing a home as a speculative investment never made much sense to me, especially since the long term growth rate in the value of the home isn’t as great as most people think it is because there are a lot of “carrying costs” associated with home ownership. Far better to invest money in more profitable assets IMO.
But the government did have to pay you some semblance of realistic value, right? Or no?
“Why would somebody watch a video that does not, in the original post, indicated source data or essence of asserted opinion”?
Because they’re not as smart as you are.
That's the point at which you happen to have no further liquid funds to invest - i.e., you're all tapped out!
That's when you should go "all in!"
Regards,
We expected to see more homes for sale as the mortgage rates rise — foreclosures, etc. Every day there are fewer on the market.
Tell that to the millions of (formerly) debt-free German homeowners who were told, in the late 1940s, that - voilà - they suddenly had a 20,000 Deutsche Mark mortgage on their houses, payable to the government!
If cash can be seized, real property and chattel can be seized, too!
Regards,
Our area is holding up pretty well within the $300,000 range which is where our neighborhood falls. We are trying to rush our rehab to get it on the market by February. We already have our rural property bought and paid for. I think the more expensive homes will get hit the hardest.
Four more "rules:"
1. "This time is different!" is always wrong.
2. When your taxi-driver or cleaning lady start giving you stock market tips - liquidate your holdings!
3. "In the long run, we are all dead." - attributed to John Maynard Keynes.
4. "Don't invest in airlines or financial institutions." - attributed to Alexander Busek.
Regards,
“Prices are coming down because interest rates are going up; “
We keep hoping to see that, and have had our eye on a couple pieces of property for several months. They haven’t come down even one cent. We figure the homes are owned outright, the sellers aren’t in desperate situations, and can afford to wait however long they have to.
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