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Covered foreigners too-they are 6.3% of the market and dropped 17% last year
Are you saying, investors are holding money in a bag which has a hole in it?
Won't be First Time Home Buyers....
Was the topic of the very first smualgld.com post in april 2013
"What’s the difference between a high school graduate and a college graduate? About $50,000 in debt."
I usually start off with a quote- that one was my own
http://www.bloomberg.com/infographics/2013-12-20/blackstones-big-bet-on-rental-homes.html
Wow, people are accepting 3.8% on garbage (the F tranche). I'm assuming they found some nice Muppets for this one.
It's official: CalPERS loses $500 million on New York apartment deal
Yes, I've mentioned Stuyvesant Town before -- one of greatest examples of a business walking away as a good business decision, but if you're an individual home owner and do this, somehow it becomes a moral issue to some people:
http://www.bloomberg.com/infographics/2013-12-20/blackstones-big-bet-on-rental-homes.html
Wow, people are accepting 3.8% on garbage (the F tranche). I'm assuming they found some nice Muppets for this one.
still better than the bank :-(
APOCALYPSEFUCKisShostikovitch says
Gay Chindian billionaires will end up at house auctions in free fire fights with gay platinum-shitting quadrillionaires from outer space and anyone not in this market today will be eaten alive by the GP-SQ pupas that they barph up to reproduce.
both of them?
still better than the bank :-(
Yes, but at what risk? You can't analyze interest rate in a bubble. You have to compare it to the risk-free rate and other available investments.
It's stupid to take this rental home security in the F tranche, when there are other options that likely have lower risk and other options that better compensate you for the actual risk you're taking.
It's stupid to take this rental home security in the F tranche, when there are other options that likely have lower risk and other options that better compensate you for the actual risk you're taking.
Yep when rates are artificially low people make bad decisions
http://smaulgld.com/the-dark-side-of-artificially-low-interest-rates/
still talking housing recovery
http://www.fool.com/investing/general/2014/03/20/3-strong-performers-to-profit-from-the-housing-rec.aspx
WSJ beating the recovery drum. They all speak of the recovery as an existing preordained event that will continue http://online.wsj.com/news/articles/SB10001424052702303802104579451020638237550?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303802104579451020638237550.html
I've seen people say its because journalists are homeowners, the media owners like GE have a vested interest , etc. Any ideas?
I've mentioned this before -- GE no longer owns any piece of NBC:
I've seen people say its because journalists are homeowners, the media owners like GE have a vested interest , etc. Any ideas?
The paid media no longer does real investigative journalism. Only the alternative media examines the way things are-and that gets labelled as "conspiracy theorizing"
The paid media no longer does real investigative journalism.
Agree, there was a point when the media used to analyze things for the truth. Now it's he said/she said, and they report them at face value, even though the reports are full of shit. No critical analysis by these guys whatsoever. Cable news is such a cesspool and has dragged everything else down with it.
No critical analysis by these guys whatsoever.
name calling, hyperbole, distraction- and now we break for an important story about Justin Beavers' DUI
Won't be First Time Home Buyers....
Was the topic of the very first smualgld.com post in april 2013
good headline:
"What’s the difference between a high school graduate and a college graduate? About $50,000 in debt."
College grads make more money. That is good debt.
Won't be First Time Home Buyers....
Was the topic of the very first smualgld.com post in april 2013
good headline:
"What’s the difference between a high school graduate and a college graduate? About $50,000 in debt."
College grads make more money. That is good debt.
Well that depends a lot on what major and field you are talking about doesn't it?
If a degree costs $100,000 but the graduate can only hope to earn and extra $5000k/yr is that worth it? Especially when the wages lost during the college years and interest on the loans are factored in?
Or worse what happens when the graduate finds their employment prospects are no better than someone with a high school degree? Lots of debt to pay off and it just grows in deferment.
College grads make more money. That is good debt.
Well that depends a lot on what major and field you are talking about doesn't it?
If a degree costs $100,000 but the graduate can only hope to earn and extra $5000k/yr is that worth it? Especially when the wages lost during the college years and interest on the loans are factored in?
Or worse what happens when the graduate finds their employment prospects are no better than someone with a high school degree? Lots of debt to pay off and it just grows in deferment.
I was going to post that, but that sums it up pretty well....
I agree, in a way, with both of you. If you are gonna take on heavy debt for an education that just pays a little bit more, what use is it?
I have noticed, people with higher education make better financial decisions. It's not always what you make, but how much you keep. That has value too.
You have not heard adjustable rate mortgages (including interest only) are coming back in full force, but this time the banks are saying they are lending carefully. This genious thinking will definitely expand the buyer pool...............
If the state were to seize the means of production on behalf of the workers, purging bourgeois saboteurs and wreckers, while exterminating the kulaks, we could collectivize both agriculture and industry. This would generate the necessary wealth for first-time home buyers to plunge in to the market.
Duh!
I'm not sure how it fits with the qualified mortgage standards and all that.
Waste of time trying to figure out how it fits with the qualified mortgage standards..................if you believe in mortgage standards then I have an island to sell you.
Won't be First Time Home Buyers....
Was the topic of the very first smualgld.com post in april 2013
good headline:
"What’s the difference between a high school graduate and a college graduate? About $50,000 in debt."
College grads make more money. That is good debt.
Depends- it may be debt you don't need to take on at all. http://smaulgld.com/is-college-worth-it/
While college grads may make more money if they are also more net indebted they are not really ahead.
@sbh
I agree with you completely. I am only explaining things and decisions from their point of view. I strongly advocate against this line of though and decisions. I'm merely explain I g what is going on inside the mind of a millennial.
They absolutely should not take the easy way and stay at home because they will never make up for the lost experience. However, they are young and don't know what they don't know.
Millennials have been told incessantly that going to college was their ticket to the future. Then they graduate without jobs or a part time job or a job that doesn't require their decree. They live at home because they can't afford to buy a home or rent. There are two main reasons for their inaction:
Cultural- it's no longer odd for a 24 year old to be living with his parent so there is no real peer pressure and given their economic circumstances staying at home is a rational move
Economic- as stated above it makes sense to stay at home but also the economic opportunities are not there today in the traditional ways for college grads.
Starting one's owns business is not how they think. They think job. The number of people working for themselves in the United States I read is at an all time low; I think low single digits. As sbh notes they need to break the mold and shake off their lethargy but with cultural forces telling them it's ok it's not their fault they are unemployed, it's the economy, the media telling them for five year things are improving (recovery!) and the availability of food stamps, they wait for the job market to improve.
You have not heard adjustable rate mortgages (including interest only) are coming back in full force, but this time the banks are saying they are lending carefully. This genious thinking will definitely expand the buyer pool...............
Clearly that is what is coming to try and boost the housing market. With rising interest rate banks will want to lend money more than when rates were low.
But I dont think it will go very far. Govt is already moving to get rid of Fannie and Freddie. And it banks can't get rid of the garbage they won't make the loans in size. They are only interested in subprime if its someone else's risk. If it stays on their balance sheet they won't do it.
"I'll take the risk if you'll take the blame"
Apropos a larger issue: how should we consider them as the future of this fucked up country? Joshia Bartlet said: the future belongs to those who show up. Too many of these appear to have checked out already.
We will have to wait and see.
My prediction is nothing will change absent a major event, a collapse or calamity. After that the young people will be the ones who set about to rearrange things for the better. They are capable, just not motivated
Typical housing recovery article
Reports that home sales down slightly from prior month but fails to mentions lowest homes sales in 19 months
http://www.nasdaq.com/article/us-existinghome-sales-fall-slightly-in-february-20140320-00649
Who will buy?
Gay Trillionaire Chinidians who shit gold and eat caviar off the asshole of their gay lover.
Higher interest rates will prompt banks to lend again perhaps creating some demand. They will make adjustable rate mortgages popular again
A lot of that was drummed into their heads by their parents. A big piece of the blame rests on the parents. Many of these kids got degrees in useless majors, and now are wondering why they can't find work.
It worked for them and there were loan guarantees and everyone was doing it
Hard for parents to admit they made a mistake so they "live with them"!
After that the young people will be the ones who set about to rearrange things for the better.
It will be in their hands.... (that's a scary thought)
I think millennials are no better or worse than any other generation. They just haven't been tested. I know that many congressional medal of honor winners were never considered leaders or heroes before they won their medal. They rose to the occasion in a crisis.
I think millennials are no better or worse than any other generation.
I don't know about that... I have 3 millennial kids and I've met a whole bunch of their friends. Over all, they seem to be generally smart and an intelligent bunch. But, as a whole, they lack any drive, ambition, have no goals, no plans, no dreams, lack personal responsibility, can't handle change, etc.
They are just happy "existing".... If we are betting the future of this country on them stepping up and taking control.... we're screwed...
Don't disagree but that is a product of their circumstances. If things change, a crisis or collapse they will have to rise to the ocassion
Debt does not equal wealth. That is where people went wrong. Debt is a tool for building wealth, not a guarantee of wealth.
Debt for business or investment CAN be a product of building wealth.
Debt for consumption is never a tool for building wealth
Foreigners bought 58% of their properties in 4 states- Florida, Arizona, Texas and California.
Blackstone bought 88% of theirs in Arizona, California and Florida
http://www.bloomberg.com/infographics/2013-12-20/blackstones-big-bet-on-rental-homes.html
I know my kids will, I don't have a lot of faith in the rest of that generation..
You kids and select others will lead, the rest will follow- no different than any other generation- their time hasn't come yet
Ha ha... very true.... many times I think the ones who didn't have kids were the "smart" ones...
Certainly is cheaper not to have kids!
Ha ha... very true.... many times I think the ones who didn't have kids were the "smart" ones...
Certainly is cheaper not to have kids!
Don't even go there.....
Kids used to be a financial asset- another set of hands to work the family farm. Today you have to invest in your kids with time, love, energy, teaching and tuition!
Here's one that blames low inventory not low demand as a reason why the housing "recovery" may not continue http://www.foxbusiness.com/personal-finance/2014/01/23/housing-biggest-obstacle-inventory/
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