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unemployment is declining,
Real estate purchasing unemployment is still declining. Because there's 3 HB1 Visas for every for every American looking for work.
$ going up so gold down, anyone know howto short gold? Or am i late to the party?
$ going up so gold down, anyone know howto short gold? Or am i late to the party?
If gold doesn't hold 1060 level ...
Downside worst case is 680
The advice and information people received here on the housing market was worth exactly what they PAID for it!
ANYONE making a huge financial decision of buying a house based on information they read on an anonymous Internet forum deserves exactly what they got!
Can you point us to a place where we could have gotten better advice by paying for it? I doubt it.
"PATNET scores number one on Google for one topic and one topic only:
CANNIBAL ANARCHY!"
Goes to show that a topic as poignant and relevant as CANNIBAL ANARCHY is just not discussed enough on the internet. People just can't face that face is on the menu.
The advice and information people received here on the housing market was worth exactly what they PAID for it!
ANYONE making a huge financial decision of buying a house based on information they read on an anonymous Internet forum deserves exactly what they got!
Can you point us to a place where we could have gotten better advice by paying for it? I doubt it.
If you paid for advice, you would end up with the same advice that Patnet has for free.
The best advice you can ever have is.......If you need a home, can pay for a home, then get the damn home.
(Housing is the cost of shelter to your own capacity to own the debt.)
Now that all the Crap &*^% Loans are gone, it's all about capacity now. That's how it should be, poor cash flow Americans should never be allowed access to non capacity debt or unique structured debt to buy a home, it's a disease and that is how we should always look at it
Millions and millions of Americans buy homes a year regardless of what the cycle is, where the inventory levels are because they can own the capacity of the debt shelter cost.
Millions and millions of Americans rent because they can't buy.
If you have looked at people's finances like I have for 20 years, you should see the Gap between natural lifetime renters vs home owners,
Those who bought with capacity
Owners
- Incomes are higher
- liquid assets are higher
- More educated
- Debt low and cash flow very positive
Renters ( Not putting in this group wealthy people who rent)
4 groups
1. Natural young renters who are working through the process of life and in time when they get to the home buyer age of 28-37, they biy
2. Forever renters because they can't ever own a home without a 2nd income factor. Their single income factor just doesn't allow them the process time frame to buy a home where they desire to live
3. People who have be foreclosed on part of a short sale. Some will be boomerang buyers but some will never be able to own a home because they
needed a 80/20 100% stated income
4. Those who even with dual incomes, even with some liquid assets, just live in Area where it's too expensive to buy a home that meets their family lifestyle
For the most part college educated Americans or those with good trade school skills who make money when they get to that home buyer age group of 28-37 tend to buy
Years 2020-2024 are the real cruical years for housing, because this cycle wasn't going to have the capacity to own the debt of housing in a strong way
For pete sake, 2014/2015 adjusted to population are the 2 worst years ever recorded in American history with the data line and this is with 3.5%-4.5% and 5 months plus inventory in both years.
I mean come on, even if you're the most Radical housing bull ever paid by people to spin this is a daunting data line
But come years 2020-2024... then you massive supply college educated dual income Americans who are married already and should be having kids, those are the real crucial years to see if the demand curve can grow
Plus by that time you shouldn't have to much debt leverage left from the housing bubble years.
Until then, it's a very slow and steady demand curve market place. However, be mindful, for the past 34 years in America each housing cycle has 2% plus lower Mortgage rates for that to happen in the next cycle, you need 1.25% - 2.25% 30 year rates... Not saying that can't happen with the 34 year trend, but that is the X variable factor going into the next decade
Sorry to hear you had a crappy holiday.
You're always going to get an overly bearish opinion here. Take it with a grain of salt.
(FYI - /Housing+-+I+was+wrong%2C+and+I+am+sorry.)
That said, I don't think anyone (or very few) saw what rents were going to do. Frankly, I'm surprised they can get so much. You can't get blood out of a stone.
My guess (and its just that) is many in the middle class are using their credit cards to supplement their wages, which haven't gone up in real terms in something like 15 years.
I don't presume to know your situation, but if the rents too high - perhaps moving is an option?
Btw gold is approaching $1050,
A break of 1060. downside is as low as 680.
about you are paying FOUR FUCKING THOUSAND in rent these days?
Jason, in the end you have to take responsibility for your actions. I'm sure both sides of the argument was presented on Patnet, and you decided to go with the bears. You could have purchased a home in 2010, 2011, 2012, 2013, 2014 and 2015, but did not. If you can afford $4,000 per month in rent, you can afford $4,000 per month in a mortgage.
I would say....stop crying over spilt milk and buy a home right now. The shortage of homes is very severe, unemployment is declining, the economy is slowly but surely picking up steam. This spring we will see the beginnings of one of the greatest real estate bull markets ever seen by living Americans.
You could really benefit from learning about minimalism. One of the most important factors is that you always live within your means. For instance my wife and I recently decided to move out of a house and save $700 by moving to an apartment. We'll miss the extra bathroom, but the additional money we'll have to put into long term investments, and take more vacations will be well worth it! On the other hand if we owned the place we live in, we'd be stuck with our mortgage payment till someone bailed us out by buying our house.
In reality.....Your mortgage would be what you are paying in rent right now. You would also have a lot of equity.
Hope you learn from your mistakes.
The answers to the multiple questions in the OP depend on what JasonM have done with the money he didn't have to plop down as a downpayment.ja says
I have been doing pretty good by not buying a house and investing all on SP500, what it's historically better
Tell me, how would I extract said "equity"? And how would said "equity" be affected by say, an economic crash? And If I lost my job, would this equity enable me to continue paying my mortgage?
In vast majority of cases, investing downpayment in stock market will seriously under-perform buying a house with 20% down due to leverage issues and rent increases. It is literally an unforced error in terms of tennis and may result in serious long term regrets.
With real estate, you pay property taxes annually AND capital gains at sale. There are also maintenance costs, not only roof patching or window caulking, but also leaves don't rake themselves. Maintenance for the SPY ETF is a fraction of a fraction of 1%.
Strategist saysI cannot stress enough....buying your own home is the best investment you can ever make.
That's where you're wrong. Buying your home gives you SHELTER first, that's the MOST important piece. You have control over your shelter versus your landlord. Any investment growth is icing on the cake.
Not a great deal in parts of the country where long term appreciation is very low.
Strategist saysNot a great deal in parts of the country where long term appreciation is very low.
So what happens in those areas (like here by me)?
If you have enough equity, you could extract it with an equity line, or by selling the home. I would not recommend either.
In the event of an economic crash you are likely to lose your equity until the market comes back.
If you lost your job, an equity line would enable you to pay your mortgage. How would you pay your rent if you lost your job?
In the event of an economic crash, can you guarantee your landlord will continue to pay HIS mortgage? What if he gets foreclosed and the sheriff shows up to kick you out? What do you have as saved equity in that situation?
errc saysMy how quickly people forget.
When you say “our system”, do you mean Free Market Capitalist system? Or American Lemon Socialism?
Why you angry bro?
Didn't Bernie give you the free house he promised?
Bernie didn’t promise me a free house.
Rent: A
Mortgage interest + property tax + HOA + maintenance - (tax deductions): B
If B < A, then buy
I haven’t forgotten the housing crash from ten years ago.
If I lose my job, I move to a smaller place. Since I'm just renting it's an easy, and immediate solution.
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Being a renter back with the extended family is fan-fucking-tastic, isn’t it Patnet! All that housing shit you gave them years ago gets shoved back in your face in spades:
- Hey Jason, still renting huh, hows that waiting for the bottom working out for ya?
- Hey remember 5 years ago when you told me to sell and rent, waiting for the crash – LOL – gawd what a fucking disaster of advice that was. Say where you living these days?
- Hey still waiting on that “tidal wave†of inventory to crash prices – LOL – keep waaaaaating!!!
- Hey your wife was telling Kate in very hushed tones about you are paying FOUR FUCKING THOUSAND in rent these days? Couldn’t you have bought a few years ago for under 3K a month? Didnt you brag about how you were saving all that cash by renting? But if you could have bought for 3K and now rent for 4K how are you still winning? Oh well, keep renting, im sure it will work out for you...
ANOTHER PATNET VICTORY!!!
#Housing