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For this reason, I went all in and bought as much as I could afford, borrowed and financed between 2009-2013.
Onvacation says
Bitcoiner says
When you spell it all out it becomes clear why inflation is considered your friend if you are a homeowner.
Or a sociopath that likes war and hates people.
Bitcoiner says
Onvacation says
Bitcoiner says
When you spell it all out it becomes clear why inflation is considered your friend if you are a homeowner.
Or a sociopath that likes war and hates people.
But he's right.
Inflation is an attack on both the middle and lower class. The way inflation works is that it makes you a slave to the banking system, it's also used to pay for war as a hidden tax, and it's used to make savings as difficult as possible.
Debt isn't wealth, but that's what our Keynesian system makes you think.
Eman says
For this reason, I went all in and bought as much as I could afford, borrowed and financed between 2009-2013.
Smart choice and a product of your age...opportunity + preparedness. And there is always at least just a bit of luck involved.
Bitcoiner says
Can you point to moment in time where house prices dipped during inflation?
This is the downfall of being a landlord rather than letting the property management company handle it. We’ve been getting record rents on our apartments while a handle units, that I still manage, the tenants are still paying way below market rents. They’ve been with me for too long to raise rent too much on them.
With inflation, income and rents go up.
Don’t see inflation as good or bad. It’s part of our system. The RE owners got a lot richer in the past few years
Never. I said, with inflation income and rents rise.
If we lose the middle class there is no one to protect the wealthy from the poor that have nothing to lose.
It wouldn’t make sense to pay off my primary with a rate of 2.75%. If the money would sit in my bank account to pay off the house I would rather buy another house on debt. You are rewarded for accumulating housing debt. There is bad debt like credit card debt (unless you pay it off right away) and then there is good debt (housing).
Of course, inflation is outpacing income. You are making my point. You need to own assets otherwise you lose. Someone who rents out houses gets a tailwind on the appreciation of the asset plus ever increasing rents.
Your income is increasing but it doesn’t keep pace with inflation. You lose.
For my 3 SFRs inflation sucks. First, I had to raise rents more than normal and I hate that. But also my insurance, property taxes and maintenance costs are way up as well. I don't think I covered it with the rent increase. Giant pain in the ass is what it is.
Yikes. Good to know.
AZ (phoenix) has been good for my rentals. My PM says judges are sometimes ruling in favor of renters……they have no idea how bad other places like CA are for landlords.
Are you talking a $2-4k increase in expenses a year or something?
Yeah, fuck those poor people. They should have bought at the bottom.
I might be ok letting these places collect rent and do maintenance, but I wouldn't trust them to handle applications.
Inventory continues to decline. Now negative YoY.
Rubicon says
Inventory continues to decline. Now negative YoY.
I have yet to hear an explanation for why I have been able to rent hundreds of dollars under market, and move countless times in Southern California that lines up with there being a shortage of housing.
Or explain all the rentals that have sat all summer in Yuma, and owners having to drop rents below what they got from previous tenants.
The simplest explanation for the lack of listings is the rise of interest rates, and people who bought at the top being unable to sell without losing money. As I've mentioned here I know of two owners in Yuma who opted to rent after initially trying to sell, likely because they would lose money.
If more people sell you think inventory rises, which is actually not correct. A seller is usually a buyer. You sell one +1 and you buy another -1 = 0. Your net inventory doesn’t increase.
Inventory rises when you add more supply to the market (building new construction).
You moving countless times has absolutely nothing to do with explaining an overage or shortage of homes.
Your net inventory doesn’t increase.
Inventory rises when you add more supply to the market (building new construction).
Rubicon says
If more people sell you think inventory rises, which is actually not correct. A seller is usually a buyer. You sell one +1 and you buy another -1 = 0. Your net inventory doesn’t increase.
Inventory rises when you add more supply to the market (building new construction).
That's overly simplistic. You may be aware some people own more than one property. On the construction front it's the same story as everything else, inflation, and STILL interest rates.
It is correct though. There are layers to it. I'm dealing with it now. We lost a generation of what would be quality tradesmen during the housing bust. Framers, concrete, HVAC, plumbing, etc. It's takes 1 month to get bids from builders on our house. We're not in a rush, but no one has any contractors they can rely on. If they do they're constantly booked.
WookieMan says
It is correct though. There are layers to it. I'm dealing with it now. We lost a generation of what would be quality tradesmen during the housing bust. Framers, concrete, HVAC, plumbing, etc. It's takes 1 month to get bids from builders on our house. We're not in a rush, but no one has any contractors they can rely on. If they do they're constantly booked.
Which is why it's going to cost WAY more than you originally anticipated... You forgot to mention that.
If more people sell you think inventory rises, which is actually not correct. A seller is usually a buyer. You sell one +1 and you buy another -1 = 0. Your net inventory doesn’t increase.
Inventory rises when you add more supply to the market (building new construction).
Where do you live? Texas it's easy to get bids generally.
Which is why it's going to cost WAY more than you originally anticipated... You forgot to mention that.
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https://finance.yahoo.com/news/pimco-kiesel-called-housing-top-160339396.html?source=patrick.net
Bond manager Mark Kiesel sold his California home in 2006, when he presciently predicted the housing bubble would pop. He bought again in 2012, after U.S. prices fell more than 30% and found a floor.
Now, after a record surge in prices, Kiesel says the time to sell is once again at hand.