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tatupu70
2016 Jun 13, 10:40am
Plus the reality that affordability and NOT subprime mortgages drove the last RE crash
What reality is that?
BayArea
2016 Jun 13, 12:08pm
Plus the reality that affordability and NOT subprime mortgages drove the last RE crash.
totally speechless...
Double the listing price because dumb asses will overpay with a smile on their face.
Strategist
2016 Jun 13, 4:15pm
bond crash
Myths
pension fund crash
Rumors
equities crash
Fantasy
property tax increase
Bull
deepcgi
2016 Jun 13, 4:35pm
Answer these honestly and you'll prove my point...would the widespread availability of 40 year fixed rate loans cause upward pressure on home prices? Would the elimination of 30 year loans (in favor of 20 or 15) put downward pressure on prices?
Are you saying a shack which sells for 35,000 in Detroit is truly worth 850,000 in a scary neighborhood in LA? What if I charge 100,000 for the house in Detroit and throw in 50 round trip, first class tickets to LA and a nice Toyota Highlander on lease that waits for you at the airport?
You actually believe people could afford these homes based on cost-of-living?
When the screaming begins over private pension fund defaults, don't expect millennials to shed a single tear.
deepcgi
2016 Jun 13, 5:21pm
Hell, let's make it FOUR of those homes in Detroit. We'll build a nice walnut fence around our compound and hire a 7 foot tall Mormon security guard named Spinner to watch it for us. He can live in house number 1 with his pet monitor lizard named Paddlefoot.
Spinner's brother is into home construction contracting out west. Spinner asked him,
"Hey Spinner's Brother, tell me, "Isn't demand for 3 Bed 2 Bath homes crazy strong right now?"
"Why Yes Spinner! Demand is very high for those single family homes", he says as he gives Paddlefoot a scritch under his chin (because the adorable reptile simply loves it when you do that).
"Then why are the Builders cutting construction of those in favor of apartments and condos?" Spinner asks.
"Well brother, because we got burned last time it crashed, and we don't want it to happen again!" Paddlefoot gets a second scritch.
"Are you actually telling me that the actual home sales numbers are actually LAGGING indicators, actually?
"Yeppers!"
Strategist
2016 Jun 13, 5:29pm
Answer these honestly and you'll prove my point...would the widespread availability of 40 year fixed rate loans cause upward pressure on home prices?
Yes.
Would the elimination of 30 year loans (in favor of 20 or 15) put downward pressure on prices?
Yes.
Are you saying a shack which sells for 35,000 in Detroit is truly worth 850,000 in a scary neighborhood in LA?
Yes.
What if I charge 100,000 for the house in Detroit and throw in 50 round trip, first class tickets to LA and a nice Toyota Highlander on lease that waits for you at the airport?
No thanks.
You actually believe people could afford these homes based on cost-of-living?
Yes.
I answered honestly. What's your point?
deepcgi
2016 Jun 13, 9:43pm
If the prices stall, the market crashes. The price of the real estate must continue rising. People don't make enough to pay their mortgage without ever increasing equity, every lowering lending standards, new financial inventions, federal intervention, class action lawsuits, or theft. That is unaffordability.
There is something substantially different now than back in 2007. The inequality is no longer just between the rich and poor, but between the old and young.
The old are counting on three things to get them through their "retirement". 1) hardworking young people to keep paying for their benefits (and who will in turn NEVER have a retirement) 2) ever increasing investment returns (primarily home equity), and 3) their over-promised pension funds.
Unfortunately the young people can't AFFORD homes. That's for old people. The more gray the hair...the more of a leech they are on the young worker. "Keep breaking those rocks you young whipper-snappers....they have a new drug that will let me live to be 120 and I don't want to go back to work - let alone die and pay out inheritances!"
The cost of borrowing at a 5000 year low and a massive inequity between rich and poor and young and old.
The New Bastille Day is coming.
They say, you know, that if you squint your eyes, gray hair looks like a powdered wig.
just buy a fucking house dude.
answer me these questions and you will prove my point.
1. what is your gross monthly income?
2. what are your monthly debt obligations?
3. how much liquid assets do you have available? (savings + 70% of your 401k)
4. what is your credit score?
deepcgi
2016 Jun 14, 2:30am
1. I'm 52 years old and gain about 2 gray hairs per month.
2. I live leaner than most, if not all, of you.
3. I've continually had enough in liquid assets to put at least 25 percent down on a nice home for about 30 years.
4. 169.
(oh sorry, that last one is my IQ - not my credit score)
deepcgi
2016 Jun 14, 2:45am
Anyone want to venture a different guess as to why home builders are concentrating on apartments and condos, if the demand is genuinely as high for single family homes as you want to believe?
Y
2016 Jun 14, 4:29am
Immigration. 3rd world cretians grow up knowing nothing else other than being stacked 20 high and 10 foot square.
normal is what normal is...
Anyone want to venture a different guess as to why home builders are concentrating on apartments and condos,
1. I'm 52 years old and gain about 2 gray hairs per month.
2. I live leaner than most, if not all, of you.
3. I've continually had enough in liquid assets to put at least 25 percent down on a nice home for about 30 years.
4. 169.
so you don't have any income?
Single Family home inventory at record lows. New single family home building also low. George Soros buys gold and declares China nearing a financial breakdown. Chinese cash buyers at better than 25 percent in nearly every hot real estate market.
Plus the reality that affordability and NOT subprime mortgages drove the last RE crash. Remember the majority of foreclosures in the US post 2007 were 30 year.
Here comes a bond crash, pension fund crash, equities crash, property tax increase, and bailouts for real estate becoming a fourth priority instead of first.
#real estate