North Chandler feels as if it is becoming an extension of Fiesta District/West Mesa (Scottsdale: mortgage, credit)

[FirebirdCamaro1220]

Originally Posted by Valley Native

Cheap isn't exactly good. Have you seen the parts of the country where real estate is dirt cheap? They're located in economically depressed cities & towns where poverty & unemployment rates are high, and growth rates are in the negative. No thanks! At the same time, being overpriced like San Francisco isn't good either. There has to be a happy medium where housing prices can be reasonable (not cheap), while real estate values appreciate at a decent rate so that existing/established homeowners have the opportunity to make substantial profits should they decide to sell. Also, an economy based heavily on real estate & construction isn't exactly stable. Remember the big economic downturn of 2008? The Phoenix market was very heavily affected.

Why does real estate have to appreciate in value? It seems to be the only price that people want to rise, which goes against common sense of everyone wanting falling prices.

Appreciating prices doesn't create any real wealth for anyone. It screws buyers by making it that much harder, and screws sellers in the big picture, because it is a zero sum game for them unless they downsize or move somewhere else.

And eventually, you get million dollar shacks, where a house that was purchased by an electrician or mechanic today will only be able to be purchased by a trust fund baby or some investment firm in 3 generations.....

[asufan]

Originally Posted by FirebirdCamaro1220

Why does real estate have to appreciate in value? It seems to be the only price that people want to rise, which goes against common sense of everyone wanting falling prices.

Appreciating prices doesn't create any real wealth for anyone. It screws buyers by making it that much harder, and screws sellers in the big picture, because it is a zero sum game for them unless they downsize or move somewhere else.

And eventually, you get million dollar shacks, where a house that was purchased by an electrician or mechanic today will only be able to be purchased by a trust fund baby or some investment firm in 3 generations.....

It's certainly not a zero sum game if you're a landlord with multiple properties it also helps people get on the property ladder, to get better properties and build wealth as they go, because real estate is typically leveraged anyway.

[wase4711]

Originally Posted by FirebirdCamaro1220

Why does real estate have to appreciate in value? It seems to be the only price that people want to rise, which goes against common sense of everyone wanting falling prices.

Appreciating prices doesn't create any real wealth for anyone. It screws buyers by making it that much harder, and screws sellers in the big picture, because it is a zero sum game for them unless they downsize or move somewhere else.

And eventually, you get million dollar shacks, where a house that was purchased by an electrician or mechanic today will only be able to be purchased by a trust fund baby or some investment firm in 3 generations.....

the American economy, and for the most part, the American culture has always been based on increasing profits, and margins; the only way to increase profit in real estate is to "buy low and sell high"/hope that the worth of your property goes up from where you bought it..

Other goods and services often have the ability to reduce overhead, costs,sourcing costs and other things that will increase the "profit margin", but in real estate, which has always been one the biggest industries in the USA, the most accepted way to increase profits has always been to buy low, and sell high, just like the mentality in the stock market

[Colt AZ]

Originally Posted by FirebirdCamaro1220

Why does real estate have to appreciate in value? It seems to be the only price that people want to rise, which goes against common sense of everyone wanting falling prices.

Appreciating prices doesn't create any real wealth for anyone. It screws buyers by making it that much harder, and screws sellers in the big picture, because it is a zero sum game for them unless they downsize or move somewhere else.

And eventually, you get million dollar shacks, where a house that was purchased by an electrician or mechanic today will only be able to be purchased by a trust fund baby or some investment firm in 3 generations.....

Originally Posted by asufan

It's certainly not a zero sum game if you're a landlord with multiple properties it also helps people get on the property ladder, to get better properties and build wealth as they go, because real estate is typically leveraged anyway.

Originally Posted by wase4711

the American economy, and for the most part, the American culture has always been based on increasing profits, and margins; the only way to increase profit in real estate is to "buy low and sell high"/hope that the worth of your property goes up from where you bought it..

Other goods and services often have the ability to reduce overhead, costs,sourcing costs and other things that will increase the "profit margin", but in real estate, which has always been one the biggest industries in the USA, the most accepted way to increase profits has always been to buy low, and sell high, just like the mentality in the stock market

Firebird, you seem to believe that people are "unfortunate" if they have somehow been thrust into a capitalistic society. People in capitalism do what they can to be good stewards of their finances, which they have come into by way of their work. Buying and selling is very much a part of that dynamic.

You may be searching for a different society.

Perhaps communism may fit the bill (?) as everyone needs to become exactly the same - financially (etc). That's why there are those here in America who push to take from the wealthy and divide that wealth amongst all of the people. Then supposedly they will ALL be equally rich - or equally poor?

Perhaps I've been too simplistic, and overstated something, so please correct me if I have.

[FirebirdCamaro1220]

Originally Posted by Colt Cassidy

Firebird, you seem to believe that people are "unfortunate" if they have somehow been thrust into a capitalistic society. People in capitalism do what they can to be good stewards of their finances, which they have come into by way of their work. Buying and selling is very much a part of that dynamic.

You may be searching for a different society.

Perhaps communism may fit the bill (?) as everyone needs to become exactly the same - financially (etc). That's why there are those here in America who push to take from the wealthy and divide that wealth amongst all of the people. Then supposedly they will ALL be equally rich - or equally poor?

Perhaps I've been too simplistic, and overstated something, so please correct me if I have.

I'm​ not a communist. But have you noticed that the "starter home" is dead now? My parents were able to buy a starter home for $50k back in 1980, when they were younger than I am now. Now, the cheapest houses in my neighborhood are over $200k. So much for getting on the property ladder when just a down payment is almost a years salary.....

[FirebirdCamaro1220]

Originally Posted by wase4711

the American economy, and for the most part, the American culture has always been based on increasing profits, and margins; the only way to increase profit in real estate is to "buy low and sell high"/hope that the worth of your property goes up from where you bought it..

Other goods and services often have the ability to reduce overhead, costs,sourcing costs and other things that will increase the "profit margin", but in real estate, which has always been one the biggest industries in the USA, the most accepted way to increase profits has always been to buy low, and sell high, just like the mentality in the stock market

Are you happy when the cost of gas goes up? Or how about milk or beef? I mean, people love to have to fork out more $ every year for the same stuff, right?

[asufan]

Originally Posted by FirebirdCamaro1220

I'm​ not a communist. But have you noticed that the "starter home" is dead now? My parents were able to buy a starter home for $50k back in 1980, when they were younger than I am now. Now, the cheapest houses in my neighborhood are over $200k. So much for getting on the property ladder when just a down payment is almost a years salary.....

$200K is starter level. If one puts 3.5% down, that's only $7,000, hardly a years salary. Through years of amortization and appreciation, they would possibly have enough equity for 20% down on their second purchase, thus the property ladder.

[FirebirdCamaro1220]

Originally Posted by asufan

$200K is starter level. If one puts 3.5% down, that's only $7,000, hardly a years salary. Through years of amortization and appreciation, they would possibly have enough equity for 20% down on their second purchase, thus the property ladder.

I don't want PMI if I ever buy, and that requires 20% down.

And since I make $52k/year, that is over one years salary take home, since I lose 24% of my gross to taxes and benefits, so I take home $39,500/year

[asufan]

Originally Posted by FirebirdCamaro1220

I don't want PMI if I ever buy, and that requires 20% down.

And since I make $52k/year, that is over one years salary take home, since I lose 24% of my gross to taxes and benefits, so I take home $39,500/year

Then I guess stay off the property ladder and continue renting if you've decided the risk/reward is not worth it. Coming up with $40,000 may be tough when you're renting not so much if you've owned a home in a good market for 5 years or more.

[FirebirdCamaro1220]

Originally Posted by asufan

Then I guess stay off the property ladder and continue renting if you've decided the risk/reward is not worth it. Coming up with $40,000 may be tough when you're renting not so much if you've owned a home in a good market for 5 years or more.

PMI is burning money