The housing is "deliberately" made expensive for serfs.
Well, yes, of course.
Especially by subsidizing mortgages, because most people cannot see that increasing the amount of money available for a house will drive up the price of the house, negating the subsidy.
But what can really be done? I wrote a little book, I ran a website. This is small compared to "pussy power".
It's not PC to say, but I think the biggest single factor in overpriced housing is a wife's demand for a house no matter what the cost. No house, no nookie.
And the whole establishment knows this and uses it against the public for profit. Things will change when women change, which is probably never.
It's not PC to say, but I think the biggest single factor in overpriced housing is a wife's demand for a house no matter what the cost. No house, no nookie.
This is undoubtedly a major factor.
It’s a battle that the husband eventually loses...
It's not PC to say, but I think the biggest single factor in overpriced housing is a wife's demand for a house no matter what the cost. No house, no nookie.
This is undoubtedly a major factor.
It’s a battle that the husband eventually loses...
Yes, this is why a great kitchen can sell a house, and none of us men will ever be allowed to have a urinal in the bathroom.
The only thing attractive about (non commercial) real estate is that you can use credit to control an asset which may appreciate a little capital while providing some income (after taxes, hassles, repairs, disasters, tenants not paying, etc.)
Overall it’s not very good as investments go, but better than car collecting.
Before I do math, just consider the inherent risks of a 1. House 2. Stock mutual fund A mutual fund is immune from fires, earthquakes, hurricanes, floods, lightning, termites, dry rot, falling trees, clandestine meth labs, etc. A single stock in the fund could go to zero value and it affects the fund 1% or less.
I can use an example. We had a summer house in Martha’s Vineyard which was built in 1964, with land=$30,000 Property taxes were high, in 1976 $12,000/year. They have risen since then of course. Today Zillow thinks it’s worth $1.6 million. If you invested $30,000 in 1964 in the S&P 500=$6.5-$7 million today. If you had invested $12,000/year since 1964=$11 million today. “But, you’re not counting the rent you can collect.” I don’t count that because if you rent it out, you’re not enjoying your summer house are you?
Over very long periods of time, there just aren't any good investments.
Over very long periods, real estate rises just a smidge over the rate of inflation. Stocks over very long periods return about 1% over the inflation rate.
We've been in a period of about 45 years of ever decreasing interest rates. This has boosted the values of both these asset classes.
During this time corporate tax rates have plummeted, giving an extra boost to stocks.
Now it is possible that interest rates could continue to go down (in other parts of the world there are negative interest rates) and it is possible for corporate income tax rates to go down more, or even to go negative.
I would add to what Patrick said, if you can afford to buy a house, and it didn't turn into a bidding war, and you can swing the payments Then buy it, any bubble pressures not with standing.
Today is different than the double ought bubble, not because Housing only goes up and never comes back down. Because we know that's hogwash . The issue is, government, bank shadow investors, all colluding to hide foreclosed inventory, sell it to Rental Investors, or just outright destroy them to keep them from affecting the Real Estate market. There are greater challenges for waiting out the bubble to return to expected normal values. .Too much artificial manipulation.
@Farmer2021 The Bay Area may be the extreme case. The risk and tax expense and regulations still make it unattractive to me. My friend owns a building in Fremont. It's on top of the Fremont Someday it's toast. His tenants won't pay him but the government prevents him from evicting anyone. Since he complained to me about still owing property tax my net worth has increased a shitload with less risk.
Is your land income all based off renting shelter? If any of it derives from more stable forms of income like farming, and you can physically protect it if you have to, then you should be fine. But if it's all dependent on people renting it at the current prices, you might want to diversify out of fiat paper, or enjoy the ride while you still can.
If you aren't aware of how our financial system works, haven't read Griffin, and see no problems with giving things to people who haven't put in the labor to earn them, or collecting interest on paper created out of thin air, then your fall will be HARD. But take hope! There is still time for the open-minded to learn and protect themselves, but it's now or never.
But you should probably just dismiss me as the doomer conspiracy theorist that I am. I'm sure you saw covid coming, with mask mandates, and GMH's(genetically modified humans). I'm sure you knew 1/4 of the workforce would go on permanent unemployment, and at least as many business's would shutter. And I'm sure you can tell me why this is all a natural part of healthy, vibrant economies, and how prices will never go down again.
Over very long periods of time, there just aren't any good investments.
I pulled a 10x with Binance coin.
I am in enormous paper profits on BTC, ADA, LTC, ETH etc. Depends on your long term definition.....pulling those gains within 1-2 years is amazing. Mind blowing amazing.
@Clambo, This looks like extreme case as some houses in bay area on other end were extremely profitable.
This is so silly.
My partner and I were amazed when I a 1972-built 1350 sq ft 4/2 home on 6k sq ft lot around the corner from us on a busy road in the wrong school district in East SJ was listed for 850K , then removed from listings in less than a week.
We both knew the bullsh*t: it was already sold as a pocket listing before it was listed at an artificially low price to entice more FOMO buyers to engage with the ®ealtors.
Sure enough, weeks later Zillow said it sold for 1.02 M. That establishes the new tax bill. The effective rate in our neighborhood is about 1.2% for such an assessment, with all manner of various and sundry junk fee assessments added. That comes to about $1200 per month.
According to Zillow, this sh*tshack will be expected to collect $3500 per month for rent. If you say so, homie. I am skeptical. It's a 49 year old house, in "average" repair state for the 49-yr old neighborhood. I should know: I live in the same floorplan of same tract, around the corner (ie, not on the main road).
I dunno Who The F*ck these morons are. Certainly not savvy investors. If they paid all cash (doubtful); zero maintenance and repairs (more doubtful); forego earthquake insurance (oh yeah, I live there, I know: it's a drained wetlands. Can you say, soil liquefaction zone? (check the geologic maps, indeed we are on that type of geology)); if they pay for no flood insurance (it's less than 100 ft from a flood control levee, and on the flood maps); and no property management fees; if they pay the same homeowner rate (ie, not landlord rate) for fire insurance; if they keep the place rented every month, every year, and never miss a payment from a tenant,..... if they do all those penny-wise stuff, they'll net just a bit over 1% per year on their $1 M cash deal.
This is not a savvy investment. It's a stupid investment. In fact it's not even an investment. It's just stupid. At least, if a Hipster investor pissed away his $1 M on crypto or GME, there's no expenses.
If they borrowed to buy it to live in it, then they are paying one hell of an "ownership premium" for the privilege of ownership.
Of a 49-year old sh*t shack. On liquefaction geology. In a flood zone. On a busy road. In the wrong school district of the wrong side of town.
I think that anyone who can clearly see what lies in the future essentially tires of his (or should I say "their") role as "Cassandra du jour."
Let's remember - no one believed Cassandra (which was part of her curse), and when Troy was sacked she was taken as a war bride for the victorious Mycenaeans. IOW, it brought her nothing but frustration and ultimately rape at the hands of the very danger she warned against.
They are locals. Assimilated into the local culture. They are Americans. One of them is my partner, whose ancestors came to the US before even some of mine from Europe and Quebec.
There's also generations of Latinos like that too. Just as American as any whites. Maybe I am related to some of those, too. Local kids, all races. All Americans.
So many recent immigrants you refer to bring their values here, view our country through the lens of where they came from, and project those values onto the US (not just coveting land, but also the racist notion that locals are all whites).
White farmers are much smarter as they are offloading their uneconomical assets to Sikhs.
White everything seems smarter. Have never seen a stupid white lives matter protest where the top guys get rich collecting from dumb white people chanting "white lives matter".
They also showed extreme stupidity causing two world wars and killing millions of their own people.
True, that was dumb....no reason for germans to kill americans, or americans to kill japanese etc. World wars are unnecessary all together. Just invest in drones and high tech killing machines to eliminate Muslim terrorists in the middle east and illegals at the border.
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If it's cheaper to rent, then rent.
If it's cheaper to buy, then buy.
There are variables you have to guess at (like how long you'll be there, interest rates, etc) but you can pretty much do your projections here:
https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
I haven't heard of these. Care to elaborate a bit on them, and what returns + capital requirements are like?
aside - that's some nice passive income. good job.
Well, yes, of course.
Especially by subsidizing mortgages, because most people cannot see that increasing the amount of money available for a house will drive up the price of the house, negating the subsidy.
But what can really be done? I wrote a little book, I ran a website. This is small compared to "pussy power".
It's not PC to say, but I think the biggest single factor in overpriced housing is a wife's demand for a house no matter what the cost. No house, no nookie.
And the whole establishment knows this and uses it against the public for profit. Things will change when women change, which is probably never.
This is undoubtedly a major factor.
It’s a battle that the husband eventually loses...
Yes, this is why a great kitchen can sell a house, and none of us men will ever be allowed to have a urinal in the bathroom.
Overall it’s not very good as investments go, but better than car collecting.
Before I do math, just consider the inherent risks of a 1. House 2. Stock mutual fund
A mutual fund is immune from fires, earthquakes, hurricanes, floods, lightning, termites, dry rot, falling trees, clandestine meth labs, etc.
A single stock in the fund could go to zero value and it affects the fund 1% or less.
I can use an example.
We had a summer house in Martha’s Vineyard which was built in 1964, with land=$30,000
Property taxes were high, in 1976 $12,000/year. They have risen since then of course.
Today Zillow thinks it’s worth $1.6 million.
If you invested $30,000 in 1964 in the S&P 500=$6.5-$7 million today.
If you had invested $12,000/year since 1964=$11 million today.
“But, you’re not counting the rent you can collect.”
I don’t count that because if you rent it out, you’re not enjoying your summer house are you?
Over very long periods, real estate rises just a smidge over the rate of inflation. Stocks over very long periods return about 1% over the inflation rate.
We've been in a period of about 45 years of ever decreasing interest rates. This has boosted the values of both these asset classes.
During this time corporate tax rates have plummeted, giving an extra boost to stocks.
Now it is possible that interest rates could continue to go down (in other parts of the world there are negative interest rates) and it is possible for corporate income tax rates to go down more, or even to go negative.
It's not even the same market dynamics anymore.
I would add to what Patrick said, if you can afford to buy a house, and it didn't turn into a bidding war, and you can swing the payments
Then buy it, any bubble pressures not with standing.
Today is different than the double ought bubble, not because Housing only goes up and never comes back down. Because we know that's hogwash .
The issue is, government, bank shadow investors, all colluding to hide foreclosed inventory, sell it to Rental Investors, or just outright destroy them to keep them from affecting the Real Estate market. There are greater challenges for waiting out the bubble to return to expected normal values. .Too much artificial manipulation.
The risk and tax expense and regulations still make it unattractive to me.
My friend owns a building in Fremont.
It's on top of the Fremont Someday it's toast.
His tenants won't pay him but the government prevents him from evicting anyone.
Since he complained to me about still owing property tax my net worth has increased a shitload with less risk.
If you aren't aware of how our financial system works, haven't read Griffin, and see no problems with giving things to people who haven't put in the labor to earn them, or collecting interest on paper created out of thin air, then your fall will be HARD. But take hope! There is still time for the open-minded to learn and protect themselves, but it's now or never.
But you should probably just dismiss me as the doomer conspiracy theorist that I am. I'm sure you saw covid coming, with mask mandates, and GMH's(genetically modified humans). I'm sure you knew 1/4 of the workforce would go on permanent unemployment, and at least as many business's would shutter. And I'm sure you can tell me why this is all a natural part of healthy, vibrant economies, and how prices will never go down again.
I pulled a 10x with Binance coin.
I am in enormous paper profits on BTC, ADA, LTC, ETH etc. Depends on your long term definition.....pulling those gains within 1-2 years is amazing. Mind blowing amazing.
What REITS are you investing it? I am looking to allocate some play money/high risk investments to REITS.
I have been holding ABR and APLE and added a lot to my positions during Q1 2020.
This is so silly.
My partner and I were amazed when I a 1972-built 1350 sq ft 4/2 home on 6k sq ft lot around the corner from us on a busy road in the wrong school district in East SJ was listed for 850K , then removed from listings in less than a week.
We both knew the bullsh*t: it was already sold as a pocket listing before it was listed at an artificially low price to entice more FOMO buyers to engage with the ®ealtors.
Sure enough, weeks later Zillow said it sold for 1.02 M. That establishes the new tax bill. The effective rate in our neighborhood is about 1.2% for such an assessment, with all manner of various and sundry junk fee assessments added. That comes to about $1200 per month.
According to Zillow, this sh*tshack will be expected to collect $3500 per month for rent. If you say so, homie. I am skeptical. It's a 49 year old house, in "average" repair state for the 49-yr old neighborhood. I should know: I live in the same floorplan of same tract, around the corner (ie, not on the main road).
I dunno Who The F*ck these morons are. Certainly not savvy investors. If they paid all cash (doubtful); zero maintenance and repairs (more doubtful); forego earthquake insurance (oh yeah, I live there, I know: it's a drained wetlands. Can you say, soil liquefaction zone? (check the geologic maps, indeed we are on that type of geology)); if they pay for no flood insurance (it's less than 100 ft from a flood control levee, and on the flood maps); and no property management fees; if they pay the same homeowner rate (ie, not landlord rate) for fire insurance; if they keep the place rented every month, every year, and never miss a payment from a tenant,..... if they do all those penny-wise stuff, they'll net just a bit over 1% per year on their $1 M cash deal.
This is not a savvy investment. It's a stupid investment. In fact it's not even an investment. It's just stupid. At least, if a Hipster investor pissed away his $1 M on crypto or GME, there's no expenses.
If they borrowed to buy it to live in it, then they are paying one hell of an "ownership premium" for the privilege of ownership.
Of a 49-year old sh*t shack. On liquefaction geology. In a flood zone. On a busy road. In the wrong school district of the wrong side of town.
Let's remember - no one believed Cassandra (which was part of her curse), and when Troy was sacked she was taken as a war bride for the victorious Mycenaeans. IOW, it brought her nothing but frustration and ultimately rape at the hands of the very danger she warned against.
Ahem, sir, I think you mean "locals" vs "immigrants".
It's like with the sales of SFH here in the Bay Area.
I grew up here. Not all "locals" are whites. Some of them are even ethnic Asians from long ago waves of immigration.
They are locals. Assimilated into the local culture. They are Americans. One of them is my partner, whose ancestors came to the US before even some of mine from Europe and Quebec.
There's also generations of Latinos like that too. Just as American as any whites. Maybe I am related to some of those, too. Local kids, all races. All Americans.
So many recent immigrants you refer to bring their values here, view our country through the lens of where they came from, and project those values onto the US (not just coveting land, but also the racist notion that locals are all whites).
White everything seems smarter. Have never seen a stupid white lives matter protest where the top guys get rich collecting from dumb white people chanting "white lives matter".
True, that was dumb....no reason for germans to kill americans, or americans to kill japanese etc.
World wars are unnecessary all together. Just invest in drones and high tech killing machines to eliminate Muslim terrorists in the middle east and illegals at the border.
Not going to happen until certa8n groups stop spreading division for profit and power.
shit, thanks for sharing....Interesting.