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TIME TO GET OUT! Real Estate No Longer Profitable
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- čas přidán 14. 08. 2024
- Real estate investing is no longer near as profitable in this housing market today, as it once was, leading many investors to bail and sell their properties. But this can have some unintended consequences on the broader housing market.
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Investors, at least corporate investors need to be locked out of the housing market.
Great idea.
Something should “happen” to every home they buy that makes it financially devastating. There needs to be a war on ever flipper and every investor.
Yep, we need such controls to keep a healthy ecosystem
Single family homes can only be owned by citizens, and you can own *one* single family home.
Agreed.
I can remember when people purchased a home to live in, not to flip by greedy investors 😠
We're you born in the 1700,s. I'm 57 and I don't remember any such thing
Oh? What about people like me who buy an old outdated house NOBODY wants to buy thats been on the market for years and been vacant for a decade or more, and spend 6 months after work and on weekends fixing it up and renting it out in a town that has zero rentals? There is a huge demand for rentals in my town even though there are houses that have been on the market for over a year that need work. "Investors" like me are the reason houses are becoming available to renters. Some you people are ignorant how things work.
@@redrustyhill2 they're lazy. If I'm putting blood and sweat into something I'm wanting some money. They all went to benefit from the risk you take.
We got rid of all the antitrust laws and deregulated everything!
I guess laws are there for a reason. Laws are good? Who knew?
The only thing investors do for my neighborhood is buy up the affordable houses and flip them into unaffordable McMansions or short term rentals. I say good riddance.
For profit
Not just your neighborhood, every neighborhood.
Yep same here, "luxury" just literally means anything at this point. The bar is very low. Now a days it means you have a counter top? A window? Lol.
@@the_derpler People who were raised by children of the Great Depression parents - like me - were routinely taught to buy the crappiest house in the nicest place they could afford.
30 years later I'm still in my tiny CA Central Coast cottage - two blocks from the water - and I've never spent a day of my life trying to keep up with the Joneses - much less the Kardashians.
@@chriscoughlin9289my grandfather is 90 and has lived his whole life like that. And has always bought broken vehicles and fixed and used them
Homes should be homes, not an investment or ‘stock.’
Air will have its own ticker on Robinhood soon.
Can't a residential property be both a "home" to the renter and an "investment" to the owner?
I'll admit that real estate investing has gotten out of hand and institutional investors need to be reined in a bit but let's not oversteer on the definition of a home.
Agree strongly !
As a former landlord I am speculating that several factors are involved; higher insurance rates, higher property taxes, government regulations such as rent control, moratoriums on rent collection, tenant friendly laws, increasing repair costs, etc. My margin was slim with no repairs. Throw all this other stuff in, tough to make any profit. Surprised there are any mom & pop landlords anymore.
On top of that young people aren't having/raising future tax payers.
They were called "mom and pop" because they were an older retired couple who paid CASH or inherited and had no MORTGAGE. That is what mom and pop actually IS-not 20-40 something's trying to turn a profit on a mortgaged property-that does NOT work. So I guess everybody is having to learn that all of the videos, books, seminars and lectures were just from joe shmo trying to earn a fast BUCK, and NOT an actual seasoned real estate professional. Offer your rentals to your renters. They NEED their own home. 😢
@@jamesdelap4085 My nephew just came to the US as a nurse and got a green card when he arrived. People are coming in to compensate for birth rate I believe.
@jamesdelap4085 Gee, wonder why?
The Elite want it all and their getting it all.
They use to have more trade schools for students not interested in college. Some of it even started in high school.
Woodshop and Autoshop were electives you could take in H.S. 25 years ago. They stopped offering those classes in the late 90's. I work for a utility co. and I've been pushing for a program to have local H.S. to come to our base a couple times a week and learn piping and take the test to enter our company. I'll be retiring soon, what better way to leave knowing that you trained a young person to take your position.
@@tinahudgens3155 😁😁😁😁😁 I pay and show the Kids how to Fix my house..
Another issue to bring up, the cost of repairing a home has skyrocketed. Back in 2012, we got an estimate to replace all the windows in our house. 4400 bucks. We just had all the windows replaced (the doors will be done at the end of the month): Over 21,000 dollars in 2023. If even a regular homeowner (not an investor) fixes up his / her house for resale, all those repairs will factor into the sales price.
21k for windows.. I'd be learning window installs
Window installation is very profitable. $21k is cheap; Jane probably owns a small house. I got a quote from Renewal by Anderson for around $70k for a 3-bedroom house back in 2014. Said no of course. Can’t imagine what it would cost today.
@@mroberts566 Wow that's expensive. Our home is 1440 sq ft.
I’ve been considering an apprenticeship type side gig in the HVAC industry simply for no other reason then having the skill to do my own replacement and repairs. Lucky for me I was in the construction industry remodeling homes, so most* of what I need to fix or improve I can do myself.
Oh wow where did you go for that? I replaced a window for $300. It was a huge wide window. I went through a mom and pop window repair shop. They put in new glass for my windows though and it wasn’t a complete new window. Maybe for those that need new windows, look into replacing the glass only. Seems to be only a fraction of the cost
The thing is a lot of landlords... don't want to be landlords. It's a massive PITA to be a landlord, but bond yields were paying crap. Artificially low rates have consequences one of which was the redirecting hundreds of billions (or trillions) of dollars into real estate- money that would have ordinarily been invested in the bond markets instead. End the FED.
+1
Very true. The 5% interest is close to what I end up with from a rental minus repairs, property taxes, property insurance, and any other issues. Also, I am in Florida where hurricane threats remain a constant stress factor... especially now due to extreme temperatures of nearby Gulf waters and the atmosphere, itself. I don't think it's been less than 90-degrees any day since late June.
End the fed?
Lol.
Zero chance
@@siouxrose7766 Im over here in Louisiana and I can promise you we haven't been out of the 90s in months 😳
this is a good point and argument for coming home price drops, mom and pop are now looking at 5% on short term yield treasury bonds, highest in almost 20 years, much more attractive than trying to exploit young people for rent leeching. As a wise person once said, "you can keep raising rent, but eventually, you'll run out of other peoples real created value"
The construction trades are dying because there is no money in it anymore. The average person can’t pay for quality. Most people get by with temporary fixes and bandaids. The quality of materials and workmanship in even a modest home of 100 years ago exceeds the mansions of today. Look at the cost of a slate roof or copper piping. The affordable homes of even the baby boomer generation had hardwood flooring and trim. Today we get “luxury VINYL tile.” All of the suppliers are unable to keep delivery schedules which impedes construction. If I can’t get parts, and the parts I can get are bad quality which means I risk having to redo the job even if I do it correctly because of inferior materials, and the customer can’t pay for me to deal with the logistical headache or expense of getting good quality why would I want to do it at all? The margin has been eaten up by endless regulation and skilled worker’s wages have been compressed. I can’t compete with someone who doesn’t follow the rules and remits all of their untaxed cash earnings to another country
We don't need more apartments. We need small, affordable homes people can buy without slavery for 30 yrs paying on a fat mortgage.
You are correct! 😊
On MSNBC they were telling people not to borrow from the bank, instead borrow from your home. They were encouraging people to use their primary home like an ATM machine. 🤣🤣
Whatever Main Stream Media tells you to do something, don’t do it.
I think this is a good thing personally. Housing has gotten ridiculously expensive and nobody who doesn’t already own a home have no chance to afford one.
Totally agree on apprenticeships into the skilled trades. I had a time machine I'd go back to prehisoric times, join the MARINES and get trained in a skilled trade like welding or heavy machinery mechanic. Then get out and get into the Union gig, get advantageous home financing, job preferences, and VA. Way smarter and more certain than the path I took to multiple post graduate degrees, multiple state licenses and little to show after 35 years as a so called professional. Education is vastly over rated. Take the sure thing folks.
Elevator technician, high demand and pays big bucks.
The military is a great deal if you’re starting out and do it right for sure. Though I’d say do a technical IT related field over a trade, get a security clearance, and leverage that into a Federal job later so you can get dual pensions or count the time you were in the military if you don’t retire from it
After the Marine Corps I attended San Jose State as a political science/ history major… 2 years later I was accepted as Electrician apprentice. 7 years later and I’ve never looked back. I make more than 99% of my buddies with degrees. I have no student loan debt, great medical and retirement
Education is NOT 'vastly overrated' unless you were under the misguided impression that it's synonymous with job training.
I've had one of those good union jobs for more than 30 years - and paid off two houses over the course of that time.
That doesn't mean I equate my life's path with that of my Harvard undergrad, Rhodes Scholar, Princeton Doctorate niece.
I don't want to live in a world where doing those things for their own sake - without any guarantees - is just something to be sneered at.
30 percent of the country is already well down that path.
I agree. I have only a few friends that make more money than I do as an elevator guy. Union skilled trades still have pensions
Unfortunately in today's world you have to look at the quality of new homes i have a girlfriend who is a home inspector and its not good and many new homes are just not built that well with shoty workmanship to poor quality materials and next these investors who exactly are they going to sell these homes too especially since home values are dropping and high interest loans it's not looking good their profit margin is going to be low if at all and some might take a loss to cut their expenses the smart real estate investors saw this coming awhile ago and got out and you look at home's on the market and been for a year or better and no sale this will become the norm before the bottom falls out and when foreclosure's pick up steam its going to get bad
I can look while HOAs going up and something looks off. In little time,the houses look a bit ratty faster than you would expect. They're ugly houses too with tiny lots. Sure not built with rough hewn timbers and 2x8s like my 37. Updated as needed.
@@JNoMooreNumbers my girlfriend went to one home for an inspection and she's does things like flush toilets this house the toilet got hot they had crossed water lines so that home .... failed
@@JNoMooreNumbers Sounds like a DR Horton community. Cookie cutter houses on tiny lots.
@@DIVISIONINCISION It's schizo, old homes next to McMansions and large to 11 acre lots. HOAs near the college pretty much with the apartments.
I’m a mechanical engineer and been working in downtown LA building new mixed used commercial and resident high rises the last 15 years. Construction and jobs still exists. My company trains apprentices and pays them while they work. They won’t need to payback schooling if they stay in the trade for 10 years. Good incentive. There is less interest for sure in the labor market yet pay is really good. As for ownership and renting, these “luxury” condos and rents are just to high to live in.
hey Michael you really hit the NAIL on the head with this video. I have been in construction all my life and have done very well. I live a comfortable retirement and debt free. great job
Yeah. But many men complain that the job can completely wreck your physical body if you're at the level of those doing the hard work. It takes its toll. At least football pros get paid handsomely.
@@kathrynj.hernandez8425 Correct 55 should be Full Pension.
Don't forget one of the most important effects when investors need to sell they find a price that gets them out. If they happen to be next door to your highly priced home that means your neighborhood comps will drop sharply. So all the people holding onto a 3% mortgage my suddenly find investors in their area are eating out the equity they thought they had by slashing the price to stop the bleeding
I think the ones selling here in the US are homes that aren't insurable any longer, so check before buying. Also, I read that any one home is allowed 3 claims total and then insurance can be cancelled for no reason.
Or we just want to a GTFO. Whoooo hooooo!
Homes are not uninsurable, people are. You don't have to have any claims to be dropped by an insurance company.
Right! There are all kinds of scams out there right now. The mentality out there right now is 'well they scammed me, Im going to scam the next person'. Buyers beware!
What really screws people over in Queensland, Australia is that homes have been far over-priced for over a decade and people finance with variable rate mortgages.
I used to live in Brisbane and it is far better to rent and put your investment monies into other areas.
The should have fixed rates like we have in America. Variable rates are terrible for the buyer.😢
It's not cool being a carpenter, plumber or electrician? We're all working full time making $50-$100 per hour, enjoy coding for $30hr and your $100k student loan, Ha!
I make as much as trades working in my own office in the A/C, using my brain not my body. Medical field, two degrees, two licenses. Can't beat it.
There is a labor shortage because there are too many people making a living off doing unproductive things . Back in our parents and grand parents day most people were working actual , physically productive jobs , too many people making a living off of some old money and that's not productive.
Very true...not to mention all the fraud and "legal fraud". ie.. overpaid municipal workers and lawyers
@@sl123slHealthcare is way to much money too…
@@dennistyler9852maybe for all the CEO’s/cfos everyone else could use a pay bump
No. The term "labor shortage" was invented by employers to justify keeping their wages low and shift the blame to nonemployers who don't want to work for ridiculously low pay.
They're always inventing new words to vilify the workers. Just in the past couple of years they've invented at least several new terms that do just that.
New roof for a 1200 sq ft house in 2019 was 14k. Today 28k!!!! Unbelievable! How are people affording this?..
For 2 yrs I have kept an eye on AZ real estate and every time a flipped home that had been beautifully done or just a great home with great care came on the market they were snatched up right away. Well that is not happening any longer which tells me the investors are gone. When the rates were low ppl could only get there hands on the ugly houses and even that was a hit or miss. Unfortunately now that houses are at all time highs as well as the interest rates those people who have sat on the sideline are buying them and give it time they will regret it cuz not only are they house poor but many may loose there jobs in the recession. Many of our real estate agents are still selling FOMO to line there pockets and to many ppl are buying with emotion not common sense. This will turn into a very ugly shit show.
I’ve been a real estate investor for the past 28 years. I would offer that it is interest rates and the way tenants act now that are keeping investors from purchasing more properties. I’m done and sold most of my properties the past two years. A small cabin on a couple hundred acres is looking real good.
❤️🌴🐈🐈🐈🌴🏴☠️
Can you elaborate on how they act now? You mean they ALWAYS pay the rent on time and RESPECT your property?
On Golden Pond for me too with young Jane.
Why would you ever need a couple hundred acres unless you want to farm? Otherwise, what is the point? You can't take it with you.
@@DIVISIONINCISION the point is privacy and solitude. You need at least that much acreage for a buffer zone. I'm only on 20 and it's not nearly enough.
@@treesnmogulsnot all tenants respect the property, we've seen it all as a landlord of a rental, you don't make much for all the costs and work. We had a tenant put wipes down toilet, $5k. $10,500 year for taxes and insurance, 10 % management fee, yard care, profits are slim, sometimes $0 or neg when AC, electrical, plumbing issues
You should stop by venice beach at night and see if it's safe. The neighborhood looks like something's not right
Quite seriously, it would be interesting to walk through areas around Compton or South central LA, low-income neighborhoods for over 90 yrs, & analyze why various properties there (SFH too) are priced at over $400K to $600 K or more. If that doesn't symbolize a huge bubble, I don't know what else does.
I hope he has a bullet proof vest if he walks through those neighborhoods
HE SAID HE WONT DO THAT. I DONT BLAME HIM
50 illegals per property pays the rent.
Makes sense to me
Believe it or not not when the real estate crash happened in 2008-2010 it had very little effect in Compton as it related to cost
I would not recommend that he do that.
Bring back the trades!!!.. you nailed it..
people feel it’s below them,entitled and lazy!!
I have met many a millionaire plumbers,landscapers, contractors over the years!!!
All these trades people drive $100K pickups by me. And no doubt the pickup is registered to the company so is a tax deduction.
I was in Adelaide back in April for vacation from the States. I stayed near the beach and homes there for sale were about $1.3m Australian dollars. Yes it was few blocks from the beach but the homes were average 4 bedroom size. Pretty expensive for AUS dollar.
you are sugarcoating the homeless problem. I live and work on the west-side of Los Angeles. There was a vagrant on vagrant murder this week on the Santa Monica boardwalk in the middle of the afternoon. Right where all the tourist are. Be very careful.
I drove by the new Samsung factory being built outside of Austin...as someone who's been in development since I was 18 in 2003... it's the most impressive project I've ever seen
Michael, helocs should only be used for emergencies. The good thing is you can write off the interest , where as you can't on a credit card, thank you pres Regan . But I'm with you unless you in a super bind and at risk of losing everything I'd say no , cut cable ,Amazon priime, net flicks etc. 1st
Or just pay off your credit card each month and live within your means. FIFY
We're cash buyers and have been looking for a home for the past two years. We finally decided to quit and invest our money in CD's and money markets currently. We refuse to purchase these overpriced homes that need totally gutted. Here in Ohio, they're asking over $300k for a home that sold two years ago for less than $200k and it needs totally gutted. I blame real estate agents for overpricing and banks, for appraising homes that are overvalued.
You are smart to follow that course of waiting; I am doing the same. As far as who is to blame, realize that everyone participated in the feeding frenzy: realtors, lenders, sellers, buyer, etc. But if you follow the money, you realize that culpability lies with the Fed, who gave out all that "free" money for so many years. When you give a sailor money and liquor and let them off the ship, you know what will happen.
@@elizabethblane201 The Federal Reserve and Central Banking should've never existed. They are what's wrong with the financial/economic system.
@@lycanwarrior2137 I don't think getting rid of the Fed is a good idea. Prior to its establishment we had many more crashes that caused people to lose homes and businesses. The Fed needs to improve, but it serves a useful purpose.
These next 2-3 years will be very interesting for people building cash and waiting for the crash
Anything that gets corporate investors out of the market is great news.
As a millennial, I just troll the realtors now and low ball them 80 to 90 percent of the listing. I'll never own a home, might as well get some giggles.
I own 7 rentals I low balled many of them 50% or more and got them. Lowballing is no joke bro you can get somewhere with that attitude im serious!
Were you lowballing during a downturn?@@brainwashingdetergent4128
Michael, you are so right about who's buying up all the properties.
I am very lucky to be a member of a sovereign nation. But everywhere outside of our land boundaries is insanely priced😞
Hey hey Miss Lisi 🤗
*I graduated from college. Got scholarship from my tribe.
New builds especially affordable housing/condo buildings would never break ground unless they know they have investor interest
I know people who's from Brazil , India and those folks, who did what was right and came to The USA , the in the front door , not back door.
My nephew who went to a Trade school , and it's a very expensive school, he never had student loans, it was paid in full.
The nephew been in business for 5 years and doing awesome.
He's a very hard worker, that's how my brother was. Work hard and don't waste time. get the job done.
The Administration in power now, WEF, AI,etc., etc....GET REAL...People in their right mind and "common sense" SEE what's happening! OMG✌
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Thank you for providing good common sensible information in a non-dramatic yet easy to understand way. I like how you walk through neighborhoods and places. I like how you focus on real estate, but also bring in other aspects of the economy. Good job!😊
I would NEVER try buying a 2nd home for income ! Besides squatters the costs are up so high that finding Renters with GOOD CREDIT are vanishing ! Real Estate sucks right now. People with good Mortgage rates are staying in their houses.
Less houses on the market keep home prices artificially high. I own my home & have been living BELOW my means for many years so there is money in the Bank / Brokerage plus the car is paid off. With these great interest rates on Bonds & CDs its a very good life.
As more investors are selling, rental inventory will be low and translate to high rental.
We're being thrown into "survival mode"...which IS "in power" planning...HELLOOO...+
You’ll own nothing and be happy -WEF 2020
The average median price is now Half a Million.
The government won’t help pay for trades school. My daughter had to pay 15k to do 6 month trade school. They covered all her college for general business degree. Sad truth is we won’t have people to fix the toilet.
Construction work destroys your body I've been a construction electrician for over 30 years at 55 I'm pretty much done to much pain 😢
Thanks for uploading brother 🙏💯 no days off and we are eating it up 💪
My husband is an Elevevator mechanic. Started very young as a helper and was taught by old school mechanics. He has retired out of the field. It was hard to get good strong workers in construction. He went from const to service and now is a BA in the office. Escalators and elevator work is dangerous work. I am scared to ride with newbies coming in.
It definitely has its "ups and downs".
I fly planes for a living and I’ve always said I’m going to die in an elevator. I stay in 15 hotels a month and in two years I’ve been stuck in two elevators that malfunctioned with me inside, not fun.
One thing's for sure is that, it does feel good to be debt free. I can pile up cash for two or three years and buy a house with cash. I'm tired of being a renter, especially in Hawaii. The "market" dictated the rise in rent, even in a 60 year old home. Not worth it.
Great video You’re spot on about the work force I lived near Venice for 16yrs The trades schools here in New England are a joke I’m a heavy truck mechanic and the kids there pumping out now nothing I work for a municipality in Ma. We can’t get anyone to apply We changed our policy to no licenses to get people and we have fortunately Still no mechanics and I’m retiring soon
Most of the mechanics I know are leaving the business. You need specialized equipment to diagnosis a vehicle these days. And the companies that make this equipment charge an annual licensing fee for the software to the tune of $1000s for each car brand. Then when you charge the customer a diagnostic fee they bitch and complain. Who needs it.
Man, houses in Orange County (garden grove and nearby) are going for $150k over listing still
Did you see GIV? Congratulations on making it top 100 subscribers!
I’m a current landlord. High interest rates don’t really impact my current cash flow.. but it does effect ability to grow.. with new property and refi’s. New investment money might go elsewhere.
A friend's rate is 7.41% with CBA - the biggest bank here in Oz; that's $1,000 per month P + I repayments. Outgoings on top, then there's tax.
Lots of fences and hedges around the property in venice beach
I’m telling you my man, Compton has been cleared up too! Come check it out!!
Hi Michael.
A couple of additional things are adding to Australian investors leaving the market. One is that a lot are older & after some quiet years, see now as the opportunity to exit the market while prices & demand are up. (There's a huge shortage of rentals, not helped by a million + extra people migrating in over the past & current financial year.) Probably a big disincentive to owning property are the changes to tenancy laws coming in. These make it much harder to get rid of a difficult tenant. They also give tenants rights to make changes to the property, keep pets, etc etc. Because the government isn't building much low income housing they are pushing this responsibility onto landlords.
I'm an investor with 25 years experience & well hang in there for now.
Enjoy your show!
Regards
The $2.2M house on Michael's walk is next door to what looks like a mobile home that has been added on to. No thanks!
I’ve been searching for cash flow properties and haven’t found anything ANYTHING that cash flows at 7% interest.
Glad you enjoyed your time in Venice and that they seem to really be trying to tackle the homeless situation!
He was not in the right spot. I don't see the beach. Have you ever been to LA? All the homeless are on the beach.
Yes, though not in years. He did say he went by the German in Venice's shop, which is on the boardwalk for Venice Beach, so I would imagine that would be where he would have seen some homeless there, if they were around.@@networth00
How do you borrow against your home when your credit cards are maxed out? It means your credit score has already plummeted
Have shrunk to two basic cottages in towns four hours apart so sort of a prepper strategy. Appalled at how a property manager deliberately ran one of them into the ground for the last 9yr and we're gradually bringing it back up to OK.
That is what all those folks who say it is so great, to have the market open. These corporations run the places into the ground then sale them.
Homes were not meant for that -the top of the pyramid make out like thieves and the bottom are broke
Investors are selling properties to pay down their own mortgages which they are suffering on under higher mortgage rates. We need some serious price relief, so thats a good thing.
For the same money I prefer to live in LA then Miami inferno. No Offense, that is why I just purchased a home in Newport.
I work in the construction industry. The problem with the construction industry is the average pay rate is simply too low. The older guys are retiring. These older experienced Tradesmen who actually have the skill and know how to do things and are able to teach the young guys coming up. Young guys who don't know anything because of the basic skills that was taught in junior high / high school. Woodshop metal shop AutoShop. All that isn't being done anymore. So the apprentices coming in Knows absolutely nothing, and it's entirely reliant on the older guys before them to show them and teach them. The younger guys are not attracted to this type of work because the pay rate is simply to low.
Not that the pay is "too low" these kids are too lazy to learn the skills and put in the time. They feel entitled to 100k on their first job out of highschool so they can make payments on that brand new 100k truck they also feel entitled to.
I look at the houses in my area (queens) and every month the one i am eyeing is dropping by 40k increments
Not in Astoria
@@greeceundiscovered9670 good to know ty. probably out of my price range for astoria anyways
Michael - great video as always! However, why are we calling "property investors," investors? I believe there's no such thing. Only flippers and speculators.
In those years of low interest rate, I had to buy houses in order to make some income ( retired ) to pay my monthly bills. I provided decent place of living to my tenants ( 2 bedrooms and 2 bathrooms, updated with nice furnitures for $1k a month ), I don't think I am speculating, blame the Fed
So we have to wait for like 15 years or 10 years😮
@@BoluShola-ig1lo , I think 3 years
@@judymckee5992 So you took some property off the market that a young starting family should be buying. Congratulations, you're a greedy speculator.
@@BoluShola-ig1lo Wait for the big boys to start selling off big in 2-3 years when the yield curve starts doing gymnastics due to tanking cap rates on over-levered CMBS.
Those vans are not a good thing in front of your house....you can put a positive spin on it if you like, if your house it is not a good thing......
Ironically when the general stigma is that trade work is “beneath” most people it just adds to my job security as a master electrician. Crazy how many people don’t realize that plumbers and electricians make more than most white collar jobs (minus the upper 1% of medical/tech jobs)
You can call your credit card company and ask for a lower interest rate. Chase and Barclay's gave me 3%.
IM SURE THEY CHECKED YOUR FICO
@lovly2cu725 I honestly don't know if they did. They never said, and I didn't ask. But I think they typically know your score because some of my statements have my Fico score at the bottom
Or just pay off your cc each month and don't worry about interest rate. I have no idea what my cc interest rates are because I pay multiple times every month to keep them paid off.
@kathrynj.hernandez8425 it depends on what you're doing. I used the lower interest rate to finish renovating a rental property. Now that property gives me a 10% return and tax breaks. And the tenants paid off the debt 🙌🏿
Wages are so low for labor jobs and most require use of your own tools, vehicle and above all your body!
Yep. Its always been that way for mechanics. It takes years to buy all the tools you need and learn to skills so you are good enough to actually be making good money. Whats changed is every kid today feels entitled to get the same pay as a guy who has 20+ years experience, they need a mcmansion, and brand new vehicle.
"Wow, this is amazing, there's so few homeless here!"
California, paradise on Earth.
Yeah, right...
No, it's not. The standards are so low there, that because there aren't homeless encampments, people are celebrating. Well, the homeless simply moved somewhere else temporarily. They'll be back!
Speaking of time to build, some areas like California have so many requirements and restrictions and permitting that it takes a very long time to complete a build and it is much more expensive than other areas of the Country.
Spokane WA is that way too-we have to get a permit and inspection to put up a pergola or regrade our lawns.
California has become prohibitive on many fronts. The weather is the only good thing about the state.
@@andreaberryman5354 I have heard that Portland, OR is real bad at costs of trying to start a business. A person was complaining about if he opened his business in Portland, he'd need to spend several hundred thousand dollars just getting all the permits and fees paid. Up the coast in Seattle, the cost was fraction of that. One reason Portland is in such bad shape, among other reasons.
Commenting about a year later on the Australian property market. To put it bluntly, a disaster for everyone. Investors, renters and mortgagees alike. Not outright property owners though. What's happening is interstate migration from larger and overpriced capitals like Sydney and Melbourne, to cheaper regional lifestyle areas and pricing locals out of the market. Crisis is an understatement. Rental vacancies below 1%, established builders going into bankruptcy mainly due to fixed price contracts, not enough housing supply, not enough trade workers, increasing rents and prices, material supply constraints. Immigration adding to the prices and need for housing. A lot of economists are tipping another rate rise in August due to sticky inflation figures. One of the most expensive property markets in the world. It's definitely not going well.
I don't get it, assuming the investors bought their properties at a fixed rate when interest rates were lower, why would higher interest rates be affecting their profit?
The Venice encampments are always on the beach. They never entered the neighborhoods of Venice. They have hit the neighborhoods of Hollywood, and several cities throughout LA County and LA City.
If we see a crash, remember all the greed by home investors/ sellers...no bailouts! This is on them, not the banks.
You should walk around North of Montana in Santa Monica some nice neighborhoods
Australia isn’t fix rate mortgages so why compare to the US?
Demographic crisis!!! Beyond just the reasons you mentioned, they're simply aren't as many young people as old people. EVERYONE in EVERY JOB MARKET Will be seeing fewer job applicants and qualified job seekers.
Location location with me in Japan for 11 years. Yeah we’re gonna run out of desirable locations
They have gotten better by July I went to anna maria island in June came back and they have cleaned it up alot more for the European travel. Wait till September comes
Love it there. Good choice
Oh-you think that's it???
I love the fat interest rates being paid on cash. A beautiful thing...
They are not really fat. They are finally acceptable. The Obama drought is over.
5% is fat? Lmao
Yes, office jobs are over-rated and some folk don't fit into offices where the places can be snobbish.
Cash buyers don't care about interest rates. Cash buyers will be coming to places like Indiana (my state) where real estate is still cheap. Plus, many would be tenants are fleeing California to move to red states like Indiana.
No one wants to live in Indiana. Look at its population stagnation. Also terrible pay. Look up the stats. So called blue states are ridiculously expensive causing some migration. However, watch their rates accelerate in next year. People don’t like living in dumps
I hope investors do give up and let people who NEED to live there to work to buy homes... it's so unfair to see people who need to go into offices struggle to be able to get a house.
If it wasnt for "investors" who buy cheap houses and fix them up, there would be huge numbers of old unliveable houses that these same "poor office workers" still wouldn't buy.
Investors today close on the property and 2 months later want an equity gain , long term its not an IPO
This is all a good start. Investors getting out is good news for buyers. Home builders might be able to hire contractors too now they are not competing with big money. But prices so extreme that they still have a long long way to fall
Venice beach, CA? No homeless????? Last time we were in Venice, it was OVERRUN with homeless and urine. Our $350/night hotel had homeless people sleeping in the PAID parking lot for the hotel! 🤣🤦♀️ Glad to see this honestly 🙏🙏🙏
My line of the past 5 generations at least were construction workers. Today im a happy controls engineer instead. 😎 the problem is the backbreaking expectation in those labor fields. Give them a fucking break and let them work a reasonable pace. And the speed of which a house can be built is a single day proven by the amish. The issue is the corporations and greedy planning. My dad and grandpa literally build multiple houses on there own faster than todays timeline for a house.
You can I meant bring bottle of wine with no fee amd the sunsets r the best braodway amd ocean ave.. san vocente and cheap rent Control places 3000 for 2 bedrooms.. a bungalow is coming up for rent at my friends bungalows only 6 units cute on 19th and Montana. I think 2900 with alittle yard
Unless you have cash. There's enough cash buyers to scoop up all available inventory.
ELECTRIC LIGHT PARADE Sunday night in Venice Beach MIke Your Wife would love it.
It's hard to fill construction jobs because of stability, pay, and benefits. A lot of contractors only have a few people on full-time long term payroll. Most people are hired on a per project basis through staffing agencies. This means it's just a temporary gig with low pay and no benefits. In America your healthcare is controlled by your employer. So, those who have a choice are going to pick the employer who offers a long term job with healthcare. On top of all of that, in construction you never know if you'll have a job in 3 months or not. You may have to pack up and move to another state to find work. This makes the staffing agencies who supply construction workers the employer of last resort for many Americans.
With all these scenarios I can’t wait to see what things will look like a YEAR FROM NOW????
I believe that EVERYTHING will be changed drastically.
Keep up the great work my friend.
Blessings, Carlos ✝️🙏❤️😊🇺🇸
Buying a property today seems like a bad idea unless there are reasons that I can't come up with. The ownership to rental ratio is skewed the highest it's been ever. Meaning to say that it costs anywhere from $2000-$3000 more every month to own the exact same place that you could rent for 2,000 to $3000 less. In Seattle and Los Angeles and Miami and most other desirable parts of the country this is currently the case. In addition to this there are oft forgotten "unknowns" expenses of ownership. That can run tens of thousands of dollars and hundreds of thousands of dollars on older homes over the lifetime of your ownership. Repairs-new roof, new plumbing, new electric, new appliances, mold, termites. I've seen them all and paid for them all. These are real costs not hypothetical..This is on top of and in addition to the 2000 to $3000 more it costs today to own. Let's say you have $1 million and could afford to buy a house today with cash. That million dollars could be gaining 6% Treasury Bill return with absolutely zero risk, and no chance of losing a penny. That amounts to $60,000 per year which would more than cover a luxurious rental anywhere in the United States for the most part, with no headaches or worries. Anyway that's the route I took
Yep. We just paid $5K to have some termite damage repaired.
@@JBoy340a You got off easy. I purchased an older home in the Hollywood Hills in 1984 with "character". A week after moving in I noticed a leak in the living room and outside under the stone staircase. Fast forward the story… A construction crew jack hammered out this beautiful stone stairway in its entirety as well as half of the living room just to find the leak. The plumber's bill might have been $150 but it was $30,000 to find the leak. These are the sorts of booby-traps that would be homeowners might very well face. I think the Santas are geared towards millennial's first-time home buyers and such that do not have a lot of experience in actual ownership yet. In short, the bill for this one incident the loan was $32,000 in 1984 money. Of all the things you think you know about the go wrong there are hundred others that you don't know about that do go wrong. Some get lucky and skate by sell the house and pass it onto the next guy where he inherits the problems or you're stuck with the hot potato. For me I can afford to buy pretty much any home I want within reason with cash but for the last 15 years I said screw it, I'd rather have a stress free life and not be all caught up with this absurd notion that you're throwing money away when you're paying rent. This is American propaganda to get you to participate in the economy by buying something that you really don't need. When you rent, you're still getting value… You're getting a place to live and that's worth something. I always found that owning was way more expensive than renting and I've owned seven different properties. It takes years and years for that dynamic the flip-flop unless you happen to hit the wave as it crests but right now is definitely not that time. I think a lot of people are going to get hurt when they buy these million-dollar properties that were priced at 500,000 just three years ago… Pay 7% interest and end up with huge bills that they don't anticipate. Caveat emptor
New development hasn't happened in Pennsylvania for like 50 years😮😢😮😮