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Saving 99% of your post tax income is a poor personal finance decision? I don’t get it.
You didn't answer the question. Are you the guy who announced that only a few hundred people out of the 4-5 million in the MSA Phoenix Metro work outside? I could go find the posts but easier if you confirm.
I'm just trying to get a proper gauge on whether I should accept whatever you type here as fact, was that you or not?
You didn't answer the question. Are you the guy who announced that only a few hundred people out of the 4-5 million in the MSA Phoenix Metro work outside? I could go find the posts but easier if you confirm.
I'm just trying to get a proper gauge on whether I should accept whatever you type here as fact, was that you or not?
I remember one time I was driving through Phoenix in the middle of the summer and everyone was working outside, even people who worked in offices. The food was decomposing in the street since the weather was nice and cool enough. Who needs ac or refrigeration when it’s 120 our right?
According to the Federal Reserve Board's 2016 Survey of Consumer Finances. median net worth of homeowners is $231.4K and median net worth of renters is $5.2K.
Looks like homeowners are really taking off financially..last I looked, the ratio was more like 35:1
It is now the FED's responsibility to PREVENT real estate from crashing. Their life depends upon it. The US has allowed the Federal Reserve to play socialist command economy game with asset prices and real estate got elevated despite the economy going into zombie mode. But demand for overpriced real estate is slowing down now. The Fed has dumped tons of money which has helped Wall Street banks, but without loans growth it does little but make banks richer without doing much for anyone else. With rates so low, any increase in defaults will hit rates like a ton of bricks. Home loans today are so bad that banks are smart enough to dump them all on the taxpayer through Fannie and Freddie because the rates don't come close to the long term risks of default.
I think loan growth is the biggest indicator to watch for a down cycle because its a longstanding weak point in our whole economy and isn't improving. Sadly, rises in housing costs is only making borrowing and buying a house that more unattractive and higher rental rates is making it more unaffordable for people to save to buy a house. It's a inefficient self feeding loop that will end up hurting taxpayers who have to bail out another housing collapse along with the businesses built around buying properties and jacking up rental rates on people to cover their purchases. When this ends watch out below. Homeowners phony paper net worth will vanish again just like it did back in 2007. The Federal Reserve has spent all its monetary powers trying to enrich itself with Washington and has little left to tackle next downturn.
US desperately needs to go thru Deflation and Depression. America needs lower housing prices so that our citizens can afford to buy them. We also need to destroy all bad debt that we carry and pop all bubbles (healthcare, education, housing and etc.) in order to have real economic growth again. Better to go through bad times to get good times than live in a slowly sinking ship (zombie economy) for decades.
The mistaken idea that owning a home makes people wealthy was a big factor in the financial crisis.
There are cases where owning a home does make people wealthy, in times and places where real estate prices are rising fast. Also, paying a mortgage forces people to build equity, instead of spending their whole paycheck.
However, it is usually reverse causality, as others already said. Renters are often younger and/or too poor to buy a house.
How did all those government experts not know about reverse causality?
Owning a home is one way to save for retirement, but not the best way for everyone. There is a lot of work and expense involved.
All that time spent mowing the lawn every weekend in the summer could be spent earning money, or doing something you like.
If you are good at saving money, then you don't need to own a house to force you to not spend your whole paycheck.
Before 2008 we heard politicians, including the president, glorifying home ownership and saying it was the American dream, the path to becoming middle class.
We also heard a lot of experts saying that real estate prices always go up, never down.
So much for the opinions of politicians and experts.
Saving 99% of your post tax income is a poor personal finance decision? I don’t get it.
No. Whining about not being able to afford a house at age 25 in one of the most expensive metro areas on earth while insisting there's no other viable alternative is. It's also annoying and entitled.
I remember one time I was driving through Phoenix in the middle of the summer and everyone was working outside, even people who worked in offices. The food was decomposing in the street since the weather was nice and cool enough. Who needs ac or refrigeration when it’s 120 our right?
You're doing everything you can to avoid answering the question.
Again, I'm trying to establish if you are the poster who was so eager to rationalize faulty logic that a hilarious attempt was made at claiming only a few hundred people work outside in Phoenix, thus validating the nonsensical fears about dying from exposure if moved from the SF Bay Area to another city.
Was that you?
btw = I lived in Phoenix for 20 years and never saw 120, it's been that temperature but it's quite rare and a newsworthy event. Yet another example of the lies you tell yourself.
What’s the difference between an alligator and a crocodile? One will see you later and the other will see you in a while.
i thought the crocodile lives a life in da-nile
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