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I'm completely perplexed on this issue. I see fundamentals supporting both sides of the argument, but of course now I'm in a position to buy. So it affects me quite a bit.
I see demand, overpopulation, lack of building, and an inability of the Fed to raise rates much, if at all. Especially coastal cities, which are transforming to Silicon Beach and Asian investment central.
I also see the long term water and earthquake issues, millennial lack of buying issues, and I don't even know all the issues.
Think the ol "buy for 10 years and be ok" adage still applies? No matter what I have to pay to live somewhere. I've been renting for 15 years.
I think it comes down to wanting to buy a house to live in it. SoCal would scare me as an investment because they say China and other Asian countries have huge stakes in it's property market. What happens if China or India goes into recession (which will happen sooner than later I expect. They only hold off recession currently through stimulus measures)? The property values will tank.
But if you love SoCal, and you are happy with your family, friends, job, climate there. That I feel trumps all other things.
I'm completely perplexed on this issue. I see fundamentals supporting both sides of the argument, but of course now I'm in a position to buy. So it affects me quite a bit.
I see demand, overpopulation, lack of building, and an inability of the Fed to raise rates much, if at all. Especially coastal cities, which are transforming to Silicon Beach and Asian investment central.
I also see the long term water and earthquake issues, millennial lack of buying issues, and I don't even know all the issues.
Think the ol "buy for 10 years and be ok" adage still applies? No matter what I have to pay to live somewhere. I've been renting for 15 years.
Deja vu all over again or Housing Bubble 2.0. In some parts of the country housing is more expensive then back in 2006-2007. The Fed purposely created asset bubbles again in housing and stock markets.
ZIRP created even bigger speculations then back in 2006. Mom and Pop speculators were replaced with Wall Street Hedge Funds who today own half of the homes in cities like Phoenix and Las Vegas. Entire neighborhoods are destroyed, crime is out of control in those desert cities.
Houses should be build for end users, Americans to buy and live in them. They shouldn't be build for speculators to play Slumlords and looking for yields. ZIRP and Fed policy is at fault for current housing situation. Higher interest rates would POP this bubble and deflate housing prices really quick. Would flush speculators down thru the sewage system where they really belong.
We have thrown out Americans out of their homes during 2008-2012 and allowed Speculators and Wall Street Crooks to snatch those homes and rent them out. This should be considered CRIMINAL.
Again, higher rates would cut housing prices in half, 70% in some areas of the country. One more reason why interest rates should go higher.
Yes it's to live in, not for an investment. Assuming I stay gainfully employed (in aerospace which has been tough, but I'm pulling it off!) we would not want to move for at least 15 years. Even then it would just be because the kids are gone.
De javu all over again or Housing Bubble 2.0. In some parts of the country housing is more expensive then back in 2006-2007. The Fed purposely created asset bubbles again in housing and stock markets.
Housing in So Cal is always going up. Even when it goes down it never hoes down for too long. Because demand is going to be there. You're stuck in a catch 22. Buy low? Usually because the economy is in the crapper and most CANT buy at that time. So investors or people who have money do buy.
I have gone through a few market up and downs. Let me ask you a question. What difference does it make if your house value drops? As long as you didn't get stupid borrowing for the mist part it means nothing. One of the houses we bought in 1993 lost 1/3 of its value a year or two after purchase. I didn't walk. I made the payment and lived in it. Sure things were tight. So I didn't buy a new car and we don't go on vacations. But I still needed a place to live. What difference does it make if I paid a bank or a landlord? I still had a payment.
ZIRP created even bigger speculations then back in 2006. Mom and Pop speculators were replaced with Wall Street Hedge Funds who today own half of the homes in cities like Phoenix and Las Vegas. Entire neighborhoods are destroyed, crime is out of control in those desert cities.
Ok. Same story. Lots of people bought into bs without doing anything more than signing. And you would have to be pretty stupid to think you can afford 600,000 dollar house when you're making 40k a year. You can blame the fed all you want at some point the buyer has to accept done blame. Ignorance doesn't mean you're absolved of the fault.
Houses should be build for end users, Americans to buy and live in them. They shouldn't be build for speculators to play Slumlords and looking for yields. ZIRP and Fed policy is at fault for current housing situation. Higher interest rates would POP this bubble and deflate housing prices really quick. Would flush speculators down thru the sewage system where they really belong.
Houses should be built and sold. When they get repossessed they should have a rule that American citizens get first shot for X days after that it's a free for all.
We have thrown out Americans out of their homes during 2008-2012 and allowed Speculators and Wall Street Crooks to snatch those homes and rent them out. This should be considered CRIMINAL.
Americans have also thrown themselves out by biting off more than they can chew.
Again, higher rates would cut housing prices in half, 70% in some areas of the country. One more reason why interest rates should go higher
Great. Housing prices will be cut in half. Unless you got CASH money it does nothing to help people who borrow. Becayse if prices drop that much I guarantee you there is a whole lot of people getting pink slips at work. Because as rates go up your payment ratio transfers from the principal side to interest side.
100k 30 year at 4.5% is $506 80k 30 year at 7% is 532 at 6.6% it's $510. 100k at 6.5% is 632. So the payment between same amount with 2% difference is about 130 bucks.
If 130 bucks kerosene up I from having the ability to purchase you shouldn't be buying anyway.
The interest rate would have to double to make a dent in purchasing.
Oh did I forget to mention that NAR or National Organization of Realtors should be dismantled as well. That is a criminal organization and we need to get rid of them together with Realtors as a profession. Why do we still need Realtors and pay someone a fee + percentage, someone who claims is a expert and has only two weeks training.
When interest rates go up it's all over with speculations in housing. When purchasing Real Estate the key is to capture low price, not low interest rates. It's better to pay 20% interest rate and buy a house for $140,000 then lock 3.4% interest and pay $450,000. With ZIRP the Fed has lured millions of Americans into higher mortgage debts. When this bubble POPS most of those people will be poor for the rest of their lives.
Housing market today is a SCAM. ZIRP has overvalued real estate across the country and in some areas prices need to come down 70%. ZIRP is abnormal, housing prices of today are abnormal as well.
No it's not, but our country has been criminalized so much that we have a lot of work to do to correct this. We had systems in place to protect us from these scams, for example, starting with 1933 - the Glass–Steagall Act
We are currently a FASCIST state where Government and big business are in bed together to use and abuse consumers . This needs to end.
False economy since 2001 is a scam. So called recovery since 2008 is nothing more then spending future earnings, stealing money from the future to cushion the present for a little longer. Housing market has been a total scam for the last 16 years, are you denaying that we were in a bubble in 2006? If those prices were a bubble prices then how come going back to those bubble prices this time around is called RECOVERY????? Bubble prices then, bubble prices now, nothing has changed just different actors.
Not getting a clear answer here. In 15 more years of paying rent, I'll pay $300k in rent. Maybe I'm answering my own question.
You should buy in 2009, 2010, 2011, 2012 not now. Now is not a good time to buy real estate.
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