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Old 05-10-2018, 03:42 PM
 
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How is the upcoming trend of young people not having kids and living out of their cars going to effect the economy. I am reading more and more of this. All kinds of youtube channels of how to black out your car windows and where to park without getting caught etc.

I am also seeing more and more people doing "van living". i had a co-worker at a major oil company years ago who made a bunch of money and then quit to go live in a van. Minimalism and van living seems to be catching on, what will that look like for the economy?
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Old 05-10-2018, 03:43 PM
 
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Originally Posted by TaxPhd View Post
So, if a house was worth $200,000 to you, the seller was asking $175,000, and had an offer for $180,000, you wouldn't "overpay" and offer $185,000 for the house?

You are one astute buyer, that's for sure. Good for you, not letting a seller get one over on you.
Nope, i wouldnt. Because after everything was said and done ( paying property tax and other useless admin fees, Interest) it would put the amount over value of the house. If it was under table cash with title in hand, no other fees.. then might consider. But if i have to go through hoops and attorney fees.. nope. I would make a less offer, to 150k.
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Old 05-10-2018, 03:49 PM
 
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Originally Posted by hitpausebutton2 View Post
Nope, i wouldnt. Because after everything was said and done ( paying property tax and other useless admin fees, Interest) it would put the amount over value of the house. If it was under table cash with title in hand, no other fees.. then might consider. But if i have to go through hoops and attorney fees.. nope. I would make a less offer, to 150k.
Yeah, I can see how the seller would accept that, rather than the offer of $180,000 that they already have.
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Old 05-10-2018, 03:50 PM
 
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Originally Posted by TaxPhd View Post
Here is your claim:



The highlighted portion above is true. The interest paid on reserve requirements is currently 3 percentage points less than prime. Banks aren't made whole on money sitting in reserve, and current market rates of interest are necessary to compensate lenders for their loans.
I wouldn't expect banks to thrive on the interest they gain on holding excess reserves. So of course they make all sorts of conventional loans. That $100K would have otherwise been sitting in Treasuries. Short term rates today about like their interest gain.
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Old 05-10-2018, 03:54 PM
 
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Originally Posted by pittsflyer View Post
How is the upcoming trend of young people not having kids and living out of their cars going to effect the economy. I am reading more and more of this. All kinds of youtube channels of how to black out your car windows and where to park without getting caught etc.

I am also seeing more and more people doing "van living". i had a co-worker at a major oil company years ago who made a bunch of money and then quit to go live in a van. Minimalism and van living seems to be catching on, what will that look like for the economy?
yea not sure how they are doing it, i couldnt live in anything that small. However i can see why some do it and its not by choice.

Guess the PRO site is freedom to move around, no debt to worry about. Spend on what you need to survive the day. Be nice if i could do that but have room to stretch my arms or use my own toilet.
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Old 05-10-2018, 03:59 PM
 
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Originally Posted by TaxPhd View Post
Yeah, I can see how the seller would accept that, rather than the offer of $180,000 that they already have.
They can offer and accept just the same what I am willing to offer and accept. Some sellers want to get out quickly, so if they dont have any other offer and im the only one, then yea im sure they would accept it. Better then nothing at all and assuming a bank check to their pocketbook. Still the person whom has the highest bid, will end up over paying a home that is consider worth 200k, after fees would end up paying closer to 250k. IF the new owner wants to sell, and make a profit, then they would have to sell it above 275 to break even. So now you just inflated the value of the home.

Home value is 200k
Person offer 185k. Now lets pay the closing cost, HOA, interest fees. So it would put it over the 200k amount. Do nice round number 250 total after 15 years and other fees that you paid.
New buyer wants to sell, but now has to sell it above 250 to break even, but asking for 300k. So house just inflated by 100k asking price.
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Old 05-10-2018, 04:01 PM
 
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Originally Posted by hitpausebutton2 View Post
They can offer and accept just the same what I am willing to offer and accept. Some sellers want to get out quickly, so if they dont have any other offer and im the only one, then yea im sure they would accept it. Better then nothing at all and assuming a bank check to their pocketbook. Still the person whom has the highest bid, will end up over paying a home that is consider worth 200k, after fees would end up paying closer to 250k. IF the new owner wants to sell, and make a profit, then they would have to sell it above 275 to break even. So now you just inflated the value of the home.
Brilliant! It's nice to finally see that someone has it figured out.
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Old 05-10-2018, 04:04 PM
 
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Originally Posted by hitpausebutton2 View Post
yea not sure how they are doing it, i couldnt live in anything that small. However i can see why some do it and its not by choice.

Guess the PRO site is freedom to move around, no debt to worry about. Spend on what you need to survive the day. Be nice if i could do that but have room to stretch my arms or use my own toilet.
When lay offs and reorgs get too numerous and people are constantly having to sell and take major losses on real estate I would think drive this behavior. The stress of debt is pretty high.

If this trend grows I wonder what that will do to the economy.
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Old 05-10-2018, 04:12 PM
 
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Originally Posted by pittsflyer View Post
When lay offs and reorgs get too numerous and people are constantly having to sell and take major losses on real estate I would think drive this behavior. The stress of debt is pretty high.

If this trend grows I wonder what that will do to the economy.
Housing is a huge part of our economy. Much more than just the purchase price, and the mortgage. Ongoing utilities, maintenance, furnishings, remodeling, local taxes. Community building along with supports from both contributing and consuming side.

The 2008 crash demonstrated the very major economic scope and importance of housing.
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Old 05-10-2018, 04:21 PM
 
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Originally Posted by Hoonose View Post
Housing is a huge part of our economy. Much more than just the purchase price, and the mortgage. Ongoing utilities, maintenance, furnishings, remodeling, local taxes. Community building along with supports from both contributing and consuming side.

The 2008 crash demonstrated the very major economic scope and importance of housing.
Huge part, but over value part of it. Our economy shouldnt be using homes as crutch
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