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“A $3 million house that would have rented for $5,000 a year ago will likely rent for around $4,000 a month today. W
BayArea saysFront page headline of the San Mateo Daily Journal this morning:
“Housing Market is Faltering”
Hahahah. What? Instead of selling their crappy shacks on a full acre lot for $3 million, they will only be able to sell them for $2.5 million then?
Not sure about Canada, but I heard last week on radio "marketwrap with moe", the FED interest rate is still below inflation that means borrowers are still getting subsidy.
Blue saysNot sure about Canada, but I heard last week on radio "marketwrap with moe", the FED interest rate is still below inflation that means borrowers are still getting subsidy.
Nobody can get a loan from the Fed though. Mortgage rates are always higher than inflation.
Do you mean, the middle man get the cut.
How the fuck would $5K rent on $3M house pencil out?
tatupu70 saysBanks don't borrow from the Fed either.
Thats funny. Because for years they have been so undercapitalized that is all they've been doing. Borrowing from the Fed used to be a last resort. Not anymore.
MbS saysHow the fuck would $5K rent on $3M house pencil out?
Thank you for asking the obvious question!
The answer is easy: $5K x 12 months = $60K
$60K / $3M = 2%
No landlord can cover a mortgage at such an abysmal return, not even considering property taxes, insurance, repairs etc.
Thats funny. Because for years they have been so undercapitalized that is all they've been doing. Borrowing from the Fed used to be a last resort. Not anymore.
Right. They have been borrowing from the Fed forever, the discount window is always open, and they have been borrowing the shit out of the Fed since 2008.
mell says
Right. They have been borrowing from the Fed forever, the discount window is always open, and they have been borrowing the shit out of the Fed since 2008.
Great--maybe you can show me this borrowing?
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