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For one thing it's mainly regional, not general. And second the numbers of homes is much smaller in each market. In 2008 it involved every community in the US, and almost all middle class/income folks. Today there's a lot of cash deals going on. In CA my daughter had a hard time buying a house with a conventional loan, because they'd be overbid right away with cash buyers. It's happening in Phoenix and Tucson too from what I'm told.
It may be regional, but it is LOTS of regions nonetheless.
I have been watching quite a few regions for the last 5 year. The price gains in many areas I have been watching are pretty shocking.....prices doubling in some areas.
I have been in Spokane, Wa for almost 2 years. I know for a FACT that the same type homes that WERE selling for 30k - 40K when I first moved here...are now selling in the 75k -90k range.
I guess that is the easiest way to think about the explosion of the last financial bubble. That way we have a boogeyman that is easy to hate and many do not have to reflect on the STOOOOPID mistakes THEY made.
Not so simple. It's the combined fault of individuals, lenders and the regulators. But the lenders got their bail not so much the individuals.
It may be regional, but it is LOTS of regions nonetheless.
I have been watching quite a few regions for the last 5 year. The price gains in many areas I have been watching are pretty shocking.....prices doubling in some areas.
I have been in Spokane, Wa for almost 2 years. I know for a FACT that the same type homes that WERE selling for 30k - 40K when I first moved here...are now selling in the 75k -90k range.
That's an unsustainable bubble that will burst, and when it does a lot of people will get burned.
Fear not, the government will bail out the banks, again.
If the single family neighborhood homeowners own the land their on which their homes are built - and they usually do - how do you get more homes in the neighborhoods? There is no more land on which to build...
Go to San Jose and see for yourself how they do it.
The finite supply of land has not stopped them from getting more homes in the neighborhoods.
I did the same a few years ago, in fact I own 4 homes.. None of them are investments, every one of them are liabilities. I might have equity in them, which makes the equity an investment, but the house itself hold expenses every year.
Income tax liabilities doesnt make property liabilities disappear..
Sounds like you are part of the "affordable housing" problem.
It's an investment. You are being told that any asset which has expenses related it cannot be an investment, but a liability, which would mean that things like 401K are not investments because there are expenses associated to it. It's just word games, and personal opinions, that's all. Buying real estate is an investment. Period. For many people it is the only way of saving money, because they may not be putting any money in the bank, or 401K, but they accumulate equity on their home. If some people choose to call real estate something other than an investment, then that's fine, but it is what it is. The topic here is whether or not the rise in real estate price is good or bad.
On average, a $100K home, has a $1K a month mortgage payment, and a 30 year loan..
That means people will pay $360,000 for a $100K house, (yes taxes and insurance included)..
If you think you're going to regain $360K from that home when you sell it then its an investment, and that doesnt count maintenance costs either.
On average, a $100K home, has a $1K a month mortgage payment, and a 30 year loan..
That means people will pay $360,000 for a $100K house, (yes taxes and insurance included)..
If you think you're going to regain $360K from that home when you sell it then its an investment..
Good luck with that.
Try renting a $100K house for 30 years, of course you're not going to regain one dollar of what you have paid. Now tell me renting was a better deal than buying.
On average, a $100K home, has a $1K a month mortgage payment, and a 30 year loan..
That means people will pay $360,000 for a $100K house, (yes taxes and insurance included)..
If you think you're going to regain $360K from that home when you sell it then its an investment, and that doesnt count maintenance costs either.
Good luck with that.
How many houses have you kept 30 years?
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