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Economics 101 and healthy common sense. If I can get 5% safe and risk free return keeping my money in savings account and CD why would I play Slumlord and deal with falling housing prices and rents due to deflation and economic slowdown? You do understand that in order to slow down this inflation the FED needs to meaningfully rase interest rates? Not just symbolically.
Common sense 101: "If" you can get 5% safe and risk-free return keeping your money in savings account and CD, then the most likely scenario is the inflation is at 10% or higher. Otherwise why would banks offer you a 5% return?
Let's just look at today's market. The Fed has not yet raise the interest rate but the market has already reacted. The 30 yr fixed mortgage is now over 4%. Inflationary rent increase is now over 3.5%.
Imagine what will happen if inflation is over 10%. Rent increases will continue to go higher. Renters will have no choice but to pay higher rent, or face with the choice of "down-sizing" from Class A property to Class B, from renting SFH to apartment then onto mobile homes, etc.
As a "slumlord", I am protected from inflation. My mortgage payment is fixed so I am not affected by the rising interest rate, yet my rental income will continue to increase year after year. Contrary to what you believe, my property value will continue to appreciate as well. Why do you think the Institutional investors such as Blackrock committed $60B to get into real estate "build-to-rent" market? They look at various investment options and decided the rental real estate is really attractive (return-on-investment) especially with the inflationary pressure.
Inflation hurts most to those with fixed income and those in the lower socio-economic-scale. While you celebrate a high interest rate will hurt the "flippers", it will hurt more people that you should care about instead.
The FED just needs to keep raising rates and all Real Estate Speculators will run for exits. Who wants to speculate with housing and play Slumlords and Landlords when you can get safe return in your Bank? King Dollar will CRUSH housing speculators and free up inventory. Strong US Dollar and higher interest rates will deflate rental prices, housing prices, educational cost, healthcare cost......will deflate “everything bubble”.
Again you do not know what you are talking about. Years age when interest rates were at a record high, investors bought rental homes, and lots of them.
Common sense 101: "If" you can get 5% safe and risk-free return keeping your money in savings account and CD, then the most likely scenario is the inflation is at 10% or higher. Otherwise why would banks offer you a 5% return?
Let's just look at today's market. The Fed has not yet raise the interest rate but the market has already reacted. The 30 yr fixed mortgage is now over 4%. Inflationary rent increase is now over 3.5%.
Imagine what will happen if inflation is over 10%. Rent increases will continue to go higher. Renters will have no choice but to pay higher rent, or face with the choice of "down-sizing" from Class A property to Class B, from renting SFH to apartment then onto mobile homes, etc.
As a "slumlord", I am protected from inflation. My mortgage payment is fixed so I am not affected by the rising interest rate, yet my rental income will continue to increase year after year. Contrary to what you believe, my property value will continue to appreciate as well. Why do you think the Institutional investors such as Blackrock committed $60B to get into real estate "build-to-rent" market? They look at various investment options and decided the rental real estate is really attractive (return-on-investment) especially with the inflationary pressure.
Inflation hurts most to those with fixed income and those in the lower socio-economic-scale. While you celebrate a high interest rate will hurt the "flippers", it will hurt more people that you should care about instead.
The FED needs to CRUSH and financially destroy people like you so that you NEVER again think about playing a SLUMLORD or LANDLORD. How can FED do this? By constantly raising interest rates and allowing deflation and economic depression to bankrupt you. When our US Dollar is strong rents will be cut in half together with real estate values. Everyone will want our US Dollar and no one will care speculating with real estate. Lets just hope this time the FED is ready to pay the PIPER.
I think you can move along people. At this point we're either being trolled or dealing with someone who's irrational and delusional. Regardless of whichever it is, the argument isn't winnable so you're wasting your time.
I think you can move along people. At this point we're either being trolled or dealing with someone who's irrational and delusional. Regardless of whichever it is, the argument isn't winnable so you're wasting your time.
I think most of us are still reading this thread, because we are waiting for the ultimate train wreck that is inevitable to happen sooner or later. I agree that this thread is being "trolled".
i think you can move along people. At this point we're either being trolled or dealing with someone who's irrational and delusional. Regardless of whichever it is, the argument isn't winnable so you're wasting your time.
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