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Are you suggesting transferring housing as an asset to your heirs? The big problem occurs when there are multiple heirs.
The actual number of heirs who inherit something meaningful, in terms of a "lump sum" is pretty low. Less than 5% of Americans will inherit one million dollars over the course of a lifetime. Meaning 95% will inherit less (and I am guessing for the great majority the number is zero dollars).
This is because most of the giving is done prior to death.
I'd say there's frequent participation in gifting, whether on the books or otherwise, during the life of the eldest generation in the top 10% in a given area.
The imagine what tends to come to mind is "inheriting a house, after someone dies". It is instead multi-faceted, and more broken up over time:
- Picking up the check for tuition, or an apartment in college
- Down payment assistance, or
- Living rent-free in one of several properties they own (good to reside during the first few years of a marriage, instead of losing a marital home you were gifted into your own name)
There are people I went to school with, 30+ years old now, who still don't own anything in their names. Not even vehicles. They live "independently" from their parents, but the parents' or grandparents' names are on their home and autos.
People think 2000-2006 or 2010-now is how housing markets are "supposed" to work and the 2009 prices were a bargain. In reality the 2009 prices were historically normal and real estate has mostly been overpriced since 2000.
It's really sad that we've lost sight of this. Your primary residence should be seen as a cost to be minimized, so the old way was better in that respect.
Developers are a huge factor in the price increase. The owners behind the developers ready to cash in benefit from the developers price model. My primary residence value is 4x what I paid about 20 years ago. That is a classic example. Many of my neighbors have done the same and it’s very common across the city.
my buddy had an auto repair shop in brooklyn ... his shop was in the middle of where they were building the barclays center ...they paid him a few million to get out .
People think 2000-2006 or 2010-now is how housing markets are "supposed" to work and the 2009 prices were a bargain. In reality the 2009 prices were historically normal and real estate has mostly been overpriced since 2000.
It's really sad that we've lost sight of this. Your primary residence should be seen as a cost to be minimized, so the old way was better in that respect.
This is correct. There was no Real Estate Crash back in 2007. Prices just deflated and came back to normal. Today we are experiencing the biggest Real Estate bubble in the history the world. We supposed to experience Deflation and Bear Market in Real Estate and everything else since 2001. What happened to this 2001-2019 Bear Market? The FED sabotaged it, by borrowing (stealing?) trillions of dollars from the future to spend today, as a way to mitigate the Bear Market and avoid Deflation and Depression.
So the Bear Market 2001-2019 was contravened by the FED and the Central Banks. Now what? That is a great question, the ultimate question. Because the Bear Market did not reduce our debt to 130% or so of GDP, we did not do the Ground Work we were supposed to do. We took on more debt instead of eliminating debt for a fresh start.The question is: can we grow our way out of a mountain of debt? This will be a Herculean task, a job for Atlas. I don’t believe the Fed will be successful. This is an impossible task to accomplish and all this Fed manipulation will eventually explode in their faces.
But remember; If it explodes in their faces, it explodes in your faces also. Let’s see how many of you will still be Fed-lovers when this happens. A lot of pain is coming if CHAOS wins. There is a noble side to resisting CHAOS -- and probably an UNWISE SIDE also.
Yeah sorry but lol @ a house being 3x your income average. That would be like $100-150K houses in tons of markets and that ain’t happening. Especially not when first time home buyers only need to put down 3% and there’s a ton of generational wealth.
Some people need to climb out of their bubble because it’s killing their understanding of the local housing market. The Vegas forum has this issue, people whining that the average wage earner can’t afford a house therefore it’s overpriced. Maybe if it was somewhere in the Midwest, ok, but take a world class city with world class dining and entertainment and great weather, next to a state with horribly overpriced real estate, and it doesn’t matter at all what the average wage is there, has nothing to do with housing prices especially at the high end. Two of my relatives have retirement money from a more expensive state, a pension from there too, another friend bought a million dollar house and works remotely / online business, I also don’t care or rely on the local economy, and plenty of retirees think houses are cheap just like I do because they are cheap by any West Coast standard.
I feel sorry for the locals who find the houses expensive but there’s a bigger world out there with a lot more money than they realize and the simple reality is how cheap or expensive a house is doesn’t depend on the local economy but the global economy. As long as people come from places where the market is far more expensive, than the area will be seen as cheap to enough people to lift housing prices. It’s irrelevant that $500K is a lot to an employee on the Strip. It’s entirely relevant that $500K is a bargain for anyone coming from CA right next door. Maybe it matters to young people that the local economy can’t support that house, but it sure doesn’t matter to middle aged and older people who are selling a much more expensive house and may be able to pay cash for a house in a cheaper area and may have enough passive income sources elsewhere to shrug off the local economy.
Here we go, lol. Let me tell you something you Las Vegas fella; Las Vegas Real Estate is inflated over 100%. Those ugly and poorly build cookie cutter homes should be free or they should be paying you to live in that disgusting city full of crime and vice.
The biggest scam in Las Vegas are not those Vegas Casinos but the Real Estate.
People think 2000-2006 or 2010-now is how housing markets are "supposed" to work and the 2009 prices were a bargain. In reality the 2009 prices were historically normal and real estate has mostly been overpriced since 2000.
It's really sad that we've lost sight of this. Your primary residence should be seen as a cost to be minimized, so the old way was better in that respect.
If the housing crash of 2009 ish was normal, I never want to see normal again ! It was NOT normal for millions of people to lose their homes, it was not normal for the banks to be repossessing so many homes that entire city blocks were empty, and it was not normal for so many businesses to fail that we had record closings.
Sad part is, people didn't learn anything, and we are going to see another repeat (maybe not as bad) in the future.
If the housing crash of 2009 ish was normal, I never want to see normal again ! It was NOT normal for millions of people to lose their homes, it was not normal for the banks to be repossessing so many homes that entire city blocks were empty, and it was not normal for so many businesses to fail that we had record closings.
Sad part is, people didn't learn anything, and we are going to see another repeat (maybe not as bad) in the future.
The Great Recession was different for each one of us .. for the stock market , it suffered a big drop in 2008 and by 2009 most of it was back ... for those who did not exhibit poor investor-behavior or speculate in individual companies it was -meh,,just a hell of a ride
Housing here did not fall much , we sold 2 co-ops at the height of the drop and it was only 10% below the all time high as real estate here did not fall much
Lost a job but had another one in a week ....so nothing really on that end either .
Each one of us will have a different story to tell
The root problem with these markets are debt/leverage. The whole game works on the way up but when the entire market is propagated in terms of valuation and transactions that are tied to debt there is a huge risk factor. Thus the US has to bail out banks that take on copious amount of risk in exchange for low APRs. The fundamentals of our economy haven't change they have just shifted to student loans, credit cards, auto loans, etc.. on top of the mortgage. People are taking out longer duration loans and low/subsidized rates to buy assets with huge markups and risk for devaluation.
I hate to see what all the $50k - $100k autos being bought right now do during the next recession.
If the housing crash of 2009 ish was normal, I never want to see normal again ! It was NOT normal for millions of people to lose their homes, it was not normal for the banks to be repossessing so many homes that entire city blocks were empty, and it was not normal for so many businesses to fail that we had record closings.
Sad part is, people didn't learn anything, and we are going to see another repeat (maybe not as bad) in the future.
You are confused. Housing inflation and hype wasn’t normal from 2001 until 2007 and again from 2010 until today. That is not normal. Housing prices deflating back to levels where most Americans can afford them again is normal. House is a shelter and not some kind of investment that Real Estate industry has created and hyped. Rampant speculation was one of the primary causes of the buying mania and subsequent collapse. We need to deflate housing prices back to levels where most Americans can afford to buy them again and we need to dismantle NAR (national association of realtors). As long as we have those shysters in place housing will be a mess in our country. Speculation in housing should be illegal, especially speculation in single family homes.
Potentially a factor but you'd need to know build costs per square foot to know.
Not only the size of the house but the expectations of amenities and premium locations are also factors driving up the housing prices. Again, the lower mortgage rates allow for this....when mortgage rates rise, most people will have to compromise with lesser housing.
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It was NOT normal for millions of people to lose their homes, it was not normal for the banks to be repossessing so many homes that entire city blocks were empty, and it was not normal for so many businesses to fail that we had record closings.
