patrick.net

all renters = shadow buyers

Hell if/when mortgage rates hit 2% even some of the perma bear renters will buy if they can do a low down payment.

This is happening now a huge way at 3% rates.

I mean at some point, you can calculate that '2 years of squatting for free' will for sure allow you to 'get your down payment back' so if you put down 26k on a 750k starter home that is a 40 year old shack (CA of course!) then it will only take maybe one year of squatting to get that back in the event of a large down spike in pricing. Add in the 2nd year of free squatting that will cover any loan fees, repairs, maintance, etc.

So you put down 26k but get 50k 'free rent for 2 years' in the event of a buy/default real soon scenario. Looks pretty smart to me. Really the zero down bubble buyers are NOT STUPID i feel sorry for the paid cash/put large dp down bubble buyers (stupid!).

PockyClipsNow says

i feel sorry for the paid cash/put large dp down bubble buyers (stupid!).

Well, a speculator on my street bought her duplex for $720k in 2005. She put $360k down and financed $360k. My brother bought an identical duplex for $325k in 2009. I bought two identical ones for $330k and $360k in 2009 as well. Talking about timing.

Those identical duplexes were selling for $375k last year. They're fetching for $400-$425k this year. The realtor that helped me acquire these duplexes has been asking if I want to sell them. He has investors that want to buy.

I will sell them, but not now.