Why A Real Estate Crash Won't Make Homes Affordable... For You
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- čas přidán 28. 02. 2024
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There is one big problem holding most young people back financially
If you don’t already own a home, you probably can’t afford one… and you probably can’t even afford to rent one either. If your dream is a housing crash that will level the financial playing field… then I am sorry to tell you, but that’s probably only going to make things worse… According to the real estate data firm ATTOM homes are now unaffordable for median Americans in ninety nine percent [99%] of counties they analyzed, the remaining one percent [1%] were not affordable, there just wasn’t enough data to use in their report. With statistics like these the only hope that a lot of Americans have is a market correction that will bring prices back down.
High prices aren’t good for many people, buyers can’t afford a home, renters are stuck in a market where more than ever they need roommates to afford rent and even though two thirds of Americans own their own home, high prices aren’t that great for them either. If you are one of the lucky people that own a home and you sell it for a record price, you still need to buy another home which is just going to cost you a record price leaving you no better off overall.
While you own your home you are going to pay higher property taxes and if you do sell your home to buy a new one you might have to pay capital gains. Most homes in America are now selling over the IRS’s section 121 exemption of two hundred and fifty thousand dollars [$250,000] in profit since you purchased the home. So if your home is worth a lot more than you bought it for AND you don’t want to live on the street once you sell it, the only person you have really made money for is Uncle Sam.
The only people who are really winning are those that own multiple properties in addition to their primary residence. If prices are too damn high, then the best thing you could hope for is a market crash, right? … Wrong. I am once again here to crush your dreams and tell you that a housing crash would probably only make it harder for you to buy a home for three simple reasons…
So it’s time to learn How Money Works to find out why a real estate crash probably won’t get you any closer to owning a home.
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This is the problem. The Banks are in line with the Libertarian billionaire cash big corporate real estate buyers that are not only American but also foreign money especially Chinese millionaire and billionaire money that are buying up all the affordable housing and land. They are making a renter's nation for US and for US farmers on food prices. You are pointing out who controls our money systems. This is about an oligarch economic controlling society like Max Headroom life. All you are doing is frightening and discouraging to buy now at very high commercial prices to drain America into servitude. The dollar is paper and ink. The money market systems are thin air. The value is controlled by the very rich people from the Libertarian DAVOS billionaire society (Putin is one of these billionaires) and they are wanting to be kings, emperors, and god deities. And you are helping them to win control over our lives.
Please do a video on Georgism and how it could fix a the problems with housing, poverty, and inequality!
I can't hear what you're saying because of the god awful music competing. If you want a music video, then make a music video. If you want to teach something, then leave the damn music out!
I created a Brilliant account finally with your link. So thank you but also you are welcome.
@@tylerwalton7659 Thank you, but also it's genuinely an awesome product. Have fun learning!
Older millenial here; born in 83.
Bought a house in 2012 for $109k and as a result my taxes are only $1,500 a year and can only increase 3% each year.
Refinanced to a 2.75% rate.
It’s currently worth $350k and if I bought it today the taxes would be $6,000 a year and my interest rate would be more than double.
Also graduated without student loans when scholarships were still good and credit hour costs weren’t obscene. Got my masters degree for like $10k in tuition.
My joke is that I was the last X-Wing out of the Death Star.
I am the same age now that you were in 2012. It feels impossible to reach the goal of owning a home now.
@@BassPlayer9000 Yeah it’s freakin terrible. I thought graduating in 2008 was bad because there were no jobs but now everyone has jobs but no one can afford anything.
Despite what the video says I still think we need a crash. Recessions are a normal part of the credit cycle when you borrow like we do; it’s the correction that wipes out malinvestment and significantly cuts back asset prices. Sure, not everyone will be in a position to take advantage at the bottom of the crash but as things recover there is a Goldilocks zone where many many people can get on the train (before the next crash).
Having a recession every 6-7 years allowed people to “get on the train” as the recovery started. When you avoid a recession through monetary manipulation it not only makes the train speed away faster from those that aren’t already on it but we don’t allow for a reset to benefit the younger generations.
It’s been 16 years since we’ve had a real correction… almost an entire generation. If you’re between 25-35 or if you happened to fall off the train for whatever reason (health, unemployment) you have effectively been left behind.
Having a recession every 6-7 years keeps thing from getting out of hand. It also allows people to get on the train at regular life intervals and even if you miss it or aren’t well positioned (I.e. half way through a cycle) the next train is right around the corner.
There will not be a (large) crash. There is so much money waiting on the sidelines to invest, and it will snap up any decline in real estate prices. It’s just not going to happen. The 2008 crash was a product of widespread fraud and structural flaws in the mortgage market. Not a reflexive pull back from high prices.
@zoraster3749 we do need a crash. Yes, it won't make the houses cheaper, but it will hurt the rich and may make some of them jump out of windows again, and that's a win. The poor are in such a state that a recession won't do damage to them, because they're already in poverty and paycheck to paycheck. But to be honest, we need revolution, not recession.
My 22 year old cant even afford a SINGLE WIDE MOBILE HOME........SSSSHHHIIIITTTT
I don't care anymore. I wanted a house for so long, gave in and ended up buying a tiny plot of land outside of the city and a trailer for a fraction of the cost to rent last year. Don't own a house and may never, but it doesn't even matter because I'm set and all your fear propaganda and depressing videos about this don't faze me now.
The dream!
Well he is right. Most people will never own a house.
How exactly is this propaganda if he was in the right??😅
Owning a trailer is fine; doesn’t have to be a house
Propaganda is supposed to make you feel comfortable. This is cold hard reality
My plan was to live in a van down by the river... but have you seen the prices of vans lately?!
Because they know people are buying them as an alternative to housing so they're jacking the prices up. No matter which avenue you try to take just to have a roof over your head, there's going to be a scalper in the waiting.
I'm saying
My 2023 Promaster 3500 Ext was 57k ODT.
😂
How about live in another country? Developing, but still not expensive, good weather, not so expensive medical care, not so high property prices?
HOMEOWNERS ARE THE NEW NOBILITY CLASS.
Once you own 3 properties, you can have people refer to you as LORD.
Haha this is great.
If that happens, just call me Lord Farquaad.
LAND LORD, LORD OF THE LAND.
Never ended lol.
My current goal is to become a landlord, and have some serfs beneath me.
landlords add nothing to society
@@thesquirrel082190they literally add living space for those that do not want or are unable to own a home. Please try to not be stupid on the internet
Least depressing "How Money Works" Video 😭😭😭😭
Average capitalism moment
At least if you know that the train is coming, there's a possibility that you can crawl off of the tracks
gosh this comment deserves more lols
@@elosacle yea off the tracks and onto the fire, we made our own hell.
"How money works" really means "Why you're screwed"
My parents: Just buy a house
Me: How the fuck do you expect me to buy one?
"Well, last time I checked (1982), you could buy a house with a jar of pennies."
"Ok, could you help me home hunting? These are my figures"
Let them realize on their own
Parents are fckng delusional.
Maybe they don’t follow real estate numbers. I do, so I know exactly why my son isn’t buying one right now, and he shouldn’t be. Waaaay overpriced. Maybe they need to see real estate listings and what a payment would be.
@@katydid2877 I've directly shown my parents house prices and their counter-argument was that salaries have universally increased 10x since 1982.
None as blind as those that don't want to see.
A real estate crash would mean a loss in confidence in it as an investment vehicle, meaning investments might go into things like R&D, new businesses, startups, etc. In the short term a housing market crash would cause a lot of property owners to lose their bets, but in the long term it would stop being a drain on societies wealth.
Its also about perspective, there are things i COULD be doing to save more BUT im early enough in my career to know that the payout for those sacrifices is a drop in the bucket compared to how much ill be able to save by getting promoted (up for one in a couple weeks) and job hopping.
If youve already budgeted for $5 coffee twice a week every week it doesn’t make that much sense to cut it and be less happy for 12 months to save $520 if you’re going to be given $15000 at the end of that year either way.
Deprivation is not a healthy mindset so it doesn’t make sense for people who don’t know WHEN theyd be able to afford a house to live with their belts as tight as possible until they can - a matket crash would be a green flag to people like me however to tighten in anticipation of that opportunity, a de-abstracting of numbers. You see the same advice given a lot in weight loss and exercise circles, people aren't built to pursue vague "improvement", they need goals and those goals need to seem obtainable and not 10+ years away.
What we need is a good, hard recession and the job losses that come with it. Not only will homeowners be foreclosured on but this time, unlike 2008, so will commercial buildings.
Greed is a sin for a reason. Many will pay their wages of sin to karma.
People HAVE to live somewhere. Its investment value can only diminish with strict government regulation to discourage its use as an investment. Housing will always go up in price, if demand is never met with supply thank to the issues pointed out in the video. Eventually, big boys will own most of the land and homes and the monopoly will start printing money. That's the endgame...
@@xyz987123abcThe problem is that even if that were to happen, the Feds would just bail out all the big guys again, likely making things worse.
It's called cash
The sad truth is that housing is continually under-supplied, so prices will only drop due to a lack of demand. Housing prices will only decrease when you are less able to buy one, at which point someone with a lot more money with you will get to take advantage of the deal.
if something is undersuplied.. its price goes up not down... if price will be too high, people will pay rent and there will be still buyers to make money on them, easy, and its not coincidence that building a house in capital city in my country takes 10 years because of all of the regulations ... prices will go down only because of the demographics, housing prices will go down as soon as generation of babyboomers die or leave to retirement houses and sell their houses to underpopulated generation bellow ...
Yes but what's more is that the dollar is depreciating really fast and the market is quickly accounting for it. Homeowners need an incentive to sell and if there are high interest rates, high crime, high regulation, sky high insurance premiums then nobody will sell or even build.
@@jonyD143 Selling and building are inverse actions. If people are unwilling to sell, that will reduce supply and drive prices up, which in turn makes building more profitable.
Adding in 8 million "refugees" and "migrants" into the country in the past 3 years certainly hasn't helped this equation.
@@xkidmidnightxthose 8 million were never going to affect the equation of buying a house when they're mostly capped at low skill labor that results in little capital to buy one.
As someone who bought 2 years ago, I'd advise people to take that warning about elites being the only property owners to heart - don't keep renting forever. The only 2 ways I'm seeing young people buy a home is 1) massive inheritance or 2) getting married/not having kids and saving. I took option 2 and saved for 9 years. If you don't have rich family, start on route 2 now and buy when you reach 20%. If you're watching videos like this, you're smart, and you can do it if you play the long game.
Great insight and congratulations on your home. It's a shame it takes so much focus and sacrifice though.
So if you're single you're SOL
Wish I could wait longer on the kids thing but with the future of womens healthcare on the line I’m having a kid now so I can get some semblance of quality healthcare before abortion becomes fully illegal
Yeah, my husband and I are working towards saving 20% (we're actually getting fairly close given the kind of house and land we plan on buying). We're just in the process of trying to get a remote job for my husband before we go house hunting since his current job is location-based.
That's really sad if you think about it - humanity is going to rapidly die out. It's not like 2 adults having only 1 child, it's like 3 out of 4 adult pairs barely keep up with expenses and 4th is trying to slowly save up for a house, and hopefully at the time they get a house they still would want a child...
The best method I can think of would be to reduce the amount of residential property a corporation can own which would increase supply without raising prices significantly.
Or Georgism! Look it up. If you tax the land residential property sits on at 100% of its rental value, it will not make sense for corporations to invest in property!
Well short term yes ~long term that would just increase the price of rent & divert building to apartments instead of homes (bc corps greedy & will find a way to justify their losses). The 2nd half of the equation is forced market adjusting; giving regular people access to loans & funding construction companies to make buildings en masse. This would increase the amount of trades people & their wages (and learning opportunities), which would help those people/families get housing via straight up cash, and for others the Gov could divert record Corp and rich individual profits to low interest or 0 interest loans, funding for low income households, and mortgage buyouts for low/middle class people who bought pre forced market rate adjustment.
Realistically the route of the issue is the constant diversion of money away from middle & lower classes via taxes and abysmal wages compared to the cost of living. The corporations at large are basically all in one giant bubble where they've learned how to suppress labor value & competition in their favor.
That and how to get people to pay to own nothing for "services" that do little or objectively make our lives worse collectively.
At this point, there is no incentive for most corporations to build unless it's for things like AirBNB bc their capital values are sooo high. Investing in apts or housing isn't NOT profitable, but it has the potential to inadvertently be used for non-commercial purposes (ie normal people having stable housing where they live/work) and therefore lower property values and market rent rate. Unless it's government funded or funded by wealthy individuals for their own purposes, building just doesn't happen anymore. That's why we're in a crisis of low-inventory in the first place where there seems to be no end in sight. The gov at this point HAS to step in and regulate things. It's too far gone to correct itself.
Corporations only own a tiny minority of residential properties. Something akin to 3%. Blaming corpos will get you nowhere.
@@LoganChristiansoneveryone knows that number is bullsh** buddy. They currently control the market and are the single reason the prices remain high.
@@duancoviero9759 "Everyone knows that number is bullshit" Cool conspiracy theory, bro, go tell someone who gives a shit.
Ok I was worried you were going to tell me something new to be afraid of, I'm glad I'm already aware of all the other things that suck about trying to get a house.
Same here I thought there would be something different or new
The problem is purely artificial. We have the tech to solve the supply issue in one or two years basically. The reason why the market won't do it is because the housing market is a speculative Ponzi. Having enough supply would be a big problem. So the problem is really just the result of greed and some mismanagement.
I was fortunate to buy my house back in 2009 for $126,000 during the heart of the 2008 housing market crash. That on (at the time) a $32,000 salary. Despite having a low annual salary, having a stable job and purchasing a house in a rural area helped getting the mortgage loan.
I don't see the conditions that led up to the last housing market crash happening anytime soon.
This is more like the 1970s, when high interest rates and inflation in other areas put long term downwards pressure on housing prices until these pressures went away.
Most people your age back then would have turned their nose up. They want to live in a new modern home downtown. You won
The last "market correction" that lowered the price of housing was immediately followed by an unprecedented buyout of now cheap housing by corporations. Those same companies are still in power today, and have infinitely more capital than 99% of people will be, ESPECIALLY after a housing crash. The only solution is to go after the cause of the problem, which is the companies buying out obscene amounts of housing as investments instead of homes.
lol exactly. It is literally cooperate greed ruining housing.
Now show what percentage of residential properties are in those corporations' portfolios (and compare it to the current supply in the country). Even if they emptied out their portfolios of all residential properties, it still would not increase supply enough to answer the demand.
stop manufacturing facts. This "unprecedented" buyout doesn't even register on the scale of overall homeownership. Per the Congressional Research Service, institutional ownership of rental properties in 2022 was 1.2% and rental units was 4.3%. Meaningless when we're between 3.8 and 5.5 million houses behind what we should have been building to keep up with demand (also from the CRS)
Isn’t this the disproven “blame Wall Street” narrative? Housing is a supply and demand problem. He says it himself - America is building less homes today than it was when it had 50% the people.
Don’t you think if there were 2x the homes, it would be cheaper to buy one? China overbuilt homes and now they’re dirt cheap.
Don’t be fooled by media trying to make you angry at scapegoats. Anti-building regulation designed to inflate existing home values is the issue.
Stop spreading these myths. It’s not corporations or PE driving up home prices. There’s so much evidence against that it, this channel even has an episode on it.
The silent and baby boomer generations have voted for 60 years for any measure that reduces housing supply and housing density in basically every corner of the western world. We have a supply problem 60 years in the making, not some evil cabal of corporations.
I’m a new dad, I moved closer to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year.
this is all new to me, where do I find a fiduciary, can you recommend any?
just search Monica Mary Strigle. Pretty simple with sophisticated looks but has empathy for her clients and takes you on if are ready to explore the business model she presents.
One thing often not addressed is urbanization and the change of needs around it. Previous generations had jobs spread out all over the world. Companies created job opportunities in smaller towns and didn't need to rely on international airports. Nowadays, you have to choose between
1. An affordable home far away from any good jobs
2. A relatively affordable home in the outskirts of a big city with hours spent on commute each Day
3. An insanely priced home with a good commute.
Price to income ratios are bad as it is, but they average across the above categories. If you look at price in a locality with income of jobs available within half hour commutes, the number will look way worse.
working from home becoming more considered is a hopeful change for less central living.
Finfluencers after holding a for sale sign in front of a burning house 🕺💃🕺💃
I think the thing about this that disgusts me the most is that, when someone cannot get a proper home, they build their own ramshackle abode. The state then comes it, deems their ramshackle abode "unsafe" as per regulations, and bulldozes it, rendering them completely homeless once again.
Any society that cannot build adequate housing is doomed to fail, or to fall into some kind of revolution.
Imagine a rule, enshrined into the constitution, that the average house price in a given are must not exceed the Median Income x 5. Or a similar limit. Obviously a lot of caveats, but it's starting from a place much better than what we have now.
A lot of people have not in my backyard mentality. They don't want a lot of hoovervilles around their area. They want to maintain property values and assemblation within the suburbs or wherever they're living so that those affordable homes would not fly. I would not want to live in California or place. It just has junkies in homeless. People just hanging out everywhere that can be moved to an urban area. That's a sanctuary for all those things.
Gonna be a lot of problems there. If I can't sell an average house for more than 5x median income while it costs 6x median income to build, I simply won't build anything, and then it'll be like in USSR, where beef got mandated to cost 2 roubles per kilo and no higher, and soon, there was no beef on the shelves.
@@Hisu0 Yep, there's a tangle of caveats in that. T'would behoove such a system to work its way along the production pipeline to streamline material acquisition & assembly. Worst case scenario, homes are created at a small loss, for society's cost-benefit analysis renders that a housed individual will produce more over time, and thus pay taxes, then the difference of home sale had as a loss.
(Simplified for yt comment)
@@nickolasbrown3342
If houses are built at a loss which are then recuperated by rent or some other service, that means those who build houses have to benefit from that service, which means they have to be a part of the same corporation, and we all know that the larger the corporation gets, the worse it performs.
Progressive Vacancy Tax.
So in other words my generations been screwed basically.
Basically, Byzantine zoning laws, along with an unprecedented rise in population (but not birth rate), has made housing unreachable for those who do not already have it.
What's the proof for Byzantine zoning laws? I'm reading such a term for the first time.
Couple that with high interest rates discouraging greenfield development and a flourishing rental market which discourages sales of existing housing stock and you have yourself a recipe for houselessness and homelessness for generations to come.
@@therussianemiratiByzantine is a english colloquial term for backwards, archaic, regressive, etc.
Boomer: “You just have to roll up your sleeves and work.”
::Drives home to a house that cost $19k in 1983::
Lending loosened by 2012, and homes were still a great deal from 2011 to 2013. The reset helps people catch up.
literally my story. Got my first and only home in 2013 and it was like 80k less than it was on its last sale before the bottom fell out
Yep, while interest rates were bottoming and borrowing money was practically free. Now the opposite has occurred.
Yeah, I don't know what's with this video. A *market correction*, as I would not characterize it as a "crash", does help. But ultimately people need to get involved, look to support pro-housing organizations like YIMBY, to increase housing supply because NIMBYs and real estate interests have lobbied for the past 30-50 years to maintain artificial scarcity.
Yes, this video lied when it said house prices barely dropped from 2007-2008 which is true but a lie at the same time, the actual bottom was 2011 not 2008
@@sor3999YIMBY alone won't solve things. As the video points out real estate developers won't put themselves out with the risk of losing money.
The government needs to step in and Directly build more housing, an absolute ton of it.
As a farmer, i understand your issue about talking to banks about loans. Unconventional income doesn't work in their computer algorithm, and loan officers don't do much than push buttons on a computer anymore. I'm lucky enough to have some smaller banks in the area that don't have a bunch of branches, and loan officers that are willing to look at statements, plans, and talk to you, and not just fill in boxes on a screen. You may try to find smaller banks that may be more friendly to talk to. The only downside is that the rates may not be the best. And if you're in a large city, small banks may not exist anymore for all i know.
I think the biggest reason why a lot of people beg for a crash is because they were in situations like me.
I had finally hit a stable point with a good job, and if I pinched some pennies and played it smart then within a few years I could afford the down payment on a house. Then I watched as my growing savings became utterly paltry in the face of a house market that tripled in price in about a year's time or so. Now, that down payment was higher than my gross pay and it would take a decade to catch up. But hey, I could still do it, right?
Wrong. Now interest rates have tripled and a fixer upper starter home needing tens of thousands in repairs can run in the high $2k to low $3k a month range, and my wages can't support that, nor can the 3% annual raises.
We watched over the course of 2-3 years as the housing market was ripped away from us. It's no wonder people feel a crash to where we had been before is the only way they'll ever own a home.
Exactly my situation. I lived way below my means in my 20’s and saved up a lot but then I look at home prices and I’m not even close. Unless I wanted to buy some shitty home in a bad location and fix it up which is a useless investment
I live in a van down by the river. Seriously. I actually do.
Good on you! The van life is supposed to be the shit!
Nice! The new American Dream.
@@joram4115 at this rate in another 50 years the new new American dream would be owning a tent out in the woods or under the bridge, atleast thats better than living in a cardboard box in a corner of a cyperpunk city.
Woah… you can afford a van??? You must be from upper middle class. Lucky 🍀
😂😂😂 Matt Foley
We all need a home of our own, but home ownership as a commodity for investment shouldn’t exist
This system only benefits needlessly wealthy people as they wring profits out of poor people, all while being commended for it like they’re providing for their victims somehow.
They make a huge effort to distance themselves from this reality they create, but no matter how you put it if you’re getting rich off of owning more shelter than you could ever need it’s not coming from disposable income and optional luxuries
They’ve got their clients cornered
Adam Smith nearly 300 years ago had already criticized the concept of rent-seeking. He talks about how rent-seeking behavior seeks to profit from the land without contributing to making that land valuable the way the laborer, the builder, or the seller does. I believe it was kind of couched in the context of criticizing things like sharecropping for example. The land is not valuable by virtue of you owning it, it is valuable for what it can contribute to society whether that be shelter, food, raw resources, industry, etc. A man who owns his plot of land can make his own decisions (within the law) to do what he wants with it. He can expand on it, invest in improvements, use it for business or build a home and equity on it from which he could loan against to finance new ventures. Renters rarely have the option to do much more than repaint the interior walls before having to paint them back to white when leaving.
Renting makes sense for like tourist destinations and people who travel frequently but in order for the system to be healthier they need to be a severe minority of the housing market.
this system is nothing new . Rich people buy houses, cars, paintings etc.. since money was invented . it just more prevalent now given the increase in disparity from richer people to poor and social media
it just sucks now because the Govt bails out the Rich CEO with tax payers money . thats what everyone should complain about it. At least the elected officials can even the playing field
For real. I'm quite conservative and have been for decades, even have family that owns a lot of real estate that has a chance to being passed on to me someday. But, I agree. I'm pretty free game with most every other market, but real estate ownership being more accessible because of cutting out investment, would really help the wealth gap.
I disagree, not all the landlords are vampires and many people who rent their houses can't work (disabled, elderly).
So it depends more of who is the owner.
That's the reason I chose to live abroad. I can bring my job with me and live comfortably, it's sad I can't do that in my own country on what I thought was decent enough income to support myself.
Wages are too low, the interest rates are too high (when considering home prices). Don't get me started on the insane rental market. Gone are the days when a family could be supported by one person working full-time. Freaking sad.
People sacrifice time for money, seems we are giving more time and not getting more money in return. We're already a renting society. Subscriptions, digital assets you don't actually own, rental homes, cars..ect. I feel it's only going to get worse.
You are the people who out price locals in their countries, making them not to afford homes in their own countries
@@snillockimcan you blame him? What would you rather have him do, waste all his money on rent?
I can see why he chose to leave
@@snillockimthat’s the point, can you not blame them??
And do you pay taxes abroad? Or only live with your tourist visa.
exactly
Zoning needs to change more inventory per acre
won't happen ppl who already have homes vehemently fight against any changes I live in a single family zoning area these ppl NOT changing I can guarantee that
I’m British but live in Sweden and so understand the issues faced by America. Housing is a messed up market here in Europe also. I remember reading “the housing theory of everything” a few years ago and it has stuck with me. The premise behind the paper is that the unaffordable housing creates so many issues in areas seemingly unrelated to housing. For instance, we have a population crisis because it’s not exactly romantic to start a family of your own whilst you are stuck in your parents house. Another issue relates to productivity. If housing is really expensive then people have to look further out from their place of work to live. This affects productivity because it means people get tired due to commuting and also it stops new ideas that could arise as people don’t socialise outside of work with colleagues due to not living in close proximity to each other. You’ve even got the obesity crisis if you live far out from work, you won’t cycle or walk you’ll drive!. I doubt that the housing crisis will get better in England because a lot of the wealth and political power here is associated with the land owners. It’s why I’ve become sort of a georgist. Home owners may add a conservatory to their house to increase the values of their homes but that addition doesn’t really explain the large increase in value of their home. That large increase is mainly due to scarcity of available homes and demand factors outside of the work of the home owner such as good career opportunities in the local area or attractive educational opportunities for children.
You had me until obesity. I've never walked or biked to work and I'm not nearly obese. Terrible excuse
You'd almost think it's not a coincidence there is a housing crisis everywhere in the West and there is some global monetary policy that ruined everything.
Did your reason behind moving to Sweden include housing or was it exclusive of it?
@@carloshour8263your personal anecdote isn't an indication of the big picture
@@solaireastora5394 Blaming obesity on not being able to bike to work is absurd and easily outweighs my anecdotal evidence. Go to the gym. "I sure wish I wasn't obese, but my work isn't close enough to ride my bike! Not my fault 🤷" Are you kidding? 😆
YEP. In 2009 I couldn't find a bank to give me a mortgage for $265,000, because I was only making $75,000 / yr, with a $25,000 down payment, because I had $20,000 in student loan debt and had only been working for 2 years, so I hadn't built up enough credit yet (also, lack of debt).
So if builders aren't building because of the risks and cost of holding land and selling the house in the future, could a good option for prospective home buyers be to buy the land and take out the loan themselves so that they carry the risk instead of builders?
If you're buying a house to live in it long term then you won't care as much about temporary dips in value.
Banks do not give out loans to purchase land. You will have to pay cash.
If the government was smart they would make a lot of the expenses associated with building your own home on your own land tax deductible in order to incentivise new builds, but I doubt that'll happen.
@jghifiversveiws8729 how lame to play roulette with bureaucracy. It's like going to get a sandwich but they mess it up consistently for 5 years until you say 'i don't even want the sandwich anymore, I have waited 5 years for you to get it right' but then the sandwich shop assures you that they will get it right this time, which you then say 'okay I'll wait' and now it's 10 years later and the sandwich is still not right. So in the 15 years total; you got two sandwiches, that are not even up to the mark.
In other words; you have been scammed.
Seek King Yeshua and be free from deception
You still can run into issues with zoning and local outrage by doing this. They think a piece of land is an empty lot or even a small green space and then get upset when it’s bought and someone wants to build something. Like no joke I’ve seen people get these projects shut down.
@@smh9902they will lend you for the land purchase, but it needs to be with a plan to build. Once the construction is done the loan for the land and the construction loan get combined.
The best thing that can happen for the housing market is for houses to stop appreciating or just slowly. We need wages to catch up to the home prices. 2nd more homes be built and this included apartments. Both will take time like 10 years.
we need wages to catch up with inflation. It will never happen tho, but it's the only fix. There is no "middle class" now days, its you are poor or you are rich.
So, your solution is to have the capital markets work in reverse?
When wages climb, guess what happens to housing prices? Why would houses ever stop appreciating against a depreciating dollar and rising wages? In order to have your reality, you’d just need to convince all those people with already high wages to stop buying houses until your wages catch up. Good luck with that.
@MichaelChengSanJose u obv got a economic background he don't
@@apexvulture5415 There is a middle class (I'm firmly there) but it's shrinking. And that's never a good thing for societal stability.
Progressive Vacancy Tax.
The 2008 crash certainly helped people afford homes.... until the Fed reflated the bubble.
The only way for housing to be affordable is for government to take action and discourage housing as an investment. Something like low taxes on first home, but with each new home, the taxes go up exponentially. Like on the second home the taxes can be 20%; on a third home, the taxes can be 50% and so on. Only then will private equity stop buying homes as a form of investment. And only then can real people buy homes as a place to live as opposed to a vehicle to make money.
So, this means that home prices will never go down because the government, regardless of the party, is in the pocket of the elites.
Most landlords in the world are still private individuals with high-paying jobs, inheritances or businesses who own more than 1 place, not corporations. But yeah.
@@talknight2 That is true. But I read a study that says that as of 2022, investment companies own about one fourth of all single-family homes in the US. In 2023, 44% of all single-family home purchases were done by private investors. That, to me, is just insane. Our society has to discourage single family homes being treated as investments. (I know you don't disagree with this, I'm not adding this reply as an argument against you. I just wanted to bring attention to this insane static, which you might already be aware of.)
@@talknight2or working poor people who don't finance cars and take 3 vacations a year.
I topped out with 8 houses and the most I ever made was one year I made 72k. Most years I made 15 to 25k until I sold some and paid down debt and became a millionaire. Since my net worth hit 1m I pay about 10-20k in taxes even though I don't have any income.
@sparksmcgee6641 that's really amazing but to be fair 72k is still well above "working poor".
Most of us lived through the 08 crash, people got amazing home buying prices for at least 5 years after the crash, minus a short time where loans were hard to get.
Prices come back slower than jobs and mortgage availability.
Watch the damn video
You clearly didn't understand 2008.
Thanks for crushing what was left of my pathetic dreams 😅
I love the fact that this channel destroys every hope that I had
I love how this video had 3 ads for gold in a row, they know their target audience
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits, such as regularly setting aside money for sound investments...
I'm in a similar situation where should I look to increase income? Do you have any advice? What did you do ? Thank you
Well I engage in nice side hustles like inves'ting, and the good thing is I do it with one one of the best(Ricky Wen), he's really good!
No doubts, this Ricky Wen must be an icon; how good is he and how safe is "profit making" with him.?
*with over 10 years of tra ding experience, Mr Ricky has gained herself a good reputation by helping a lot of persons build their finances' through inves'tments.* 🇱🇷
On T E L E G R A M
This is one of those areas where government intervention can really help the situation. Being able to identify unproductive land and give grants to contractors to build housing tax free will dramatically increase the supply. There may also need to be laws put into place limiting the sale of houses to individuals for solely investment purposes. If nobody is occupying the homes as their primary domestic residence then the owner will face a tax that increases per quarter linearly for the first 4 quarters, and then exponentially in following quarters (as the tax is aimed at getting the home sold or rented to occupants).
The money from the taxes should be directed back into the fund for home building grants. This would help keep taxes lower for the rest of the population, and encourage home building in times of greater demand, but slow down when demand is satisfied.
In Toronto we have a vacancy tax where homes unoccupied are taxed 1% of the homes value per year. Its a start
@@theprimonemo A couple states have this going on in the US I believe. I remember my mother complaining about having to pay additional property taxes in South Carolina because she and her now husband were staying together in an entirely different town but he couldn't put the house he was living in before then up for sale on his own for a few years because of issues with a prior marriage. So there it sat, unoccupied until the issues were resolved and it could be sold off. I remember thinking to myself leaving homes empty that are perfectly valid for residential use (by the people who do it intentionally) should be penalized in some way. It isn't the same as sitting on an office building that wasn't built to residential codes until a good potential customer comes along. You're actively and willfully contributing to a problem affecting the country.
The same government that won’t stop printing money…
To summarize the video: there is no hope, just give up because you will always be left holding the bag anyway. I would make the argument though that a housing market crash will still force a leveling of the playing field at least temporarily as the market begins to recover. That happened a couple years after 2008 as banks started cautiously giving mortgages again and people started to rebuild their careers.
Gave up on this a couple years ago. Renting is cheaper and smarter unless you can buy a house in cash and who has half a million dollars laying around? I’ll rent, increase my income, and get into real estate in the next few years. If I still don’t buy a house I’m fine with it. I refuse to pay $3000 for a bed.
I remember when this country has the vision and gut to take on difficult challenges like housing and the economy but recently it's on a coward's path by being to afraid to build new housing or make domestic investments. The political will just doesn't exist.
well we have to give every excess to the ruling classes of the usa, ukraine, and isreal. dont be so selfish geez
Political will? get off your ass Pancakes, and build your own house.
No one would be afraid to build new housing in a more free market. But central bank intervention that destroys the purchasing power of your currency and raises the cost of borrowing makes it hard enough to take a risk. Add to that, local and state government regulations make it more expensive and difficult to build. Entrepreneurs are a scapegoat but I suggest you look at your bankers and politicians.
Their “political will” has almost entirely been bought by the big corporations who figured out how to force us to give them our money. It wont change unless america falls and is rebuilt into something else, because the powers that be wont let anything change
That would benefit the not-rich so politicians won't try to fix any of it.
You can print more money. You can't print more land, workers and building materials. Apparently we're so busy printing money, that we can't comprehend that.
Always a good day when HMW uploads
Bad day dude..
I cry for hours😭
I really needed this video. I think optimism got me for a second haha, thankfully I can always count on this channel
very informative video, love your unbiased telling of the facts. just wondering what school of economics you believe in?
I disagree. A crash would actually help. The problem is that housing, like other assets, suffer from extreme asset inflation. In such an environment everyone is rent seeking and speculating while very few people actually want to build new houses. So you ruin the supply and demand mechanism. Persistent quantitative tightening would dry up liquidity and force people/investors to sell their assets, which would reset the asset inflation. After a few years of pain, investors would invest in actually building houses again because that is where the actual demand is.
You might want to take a look at the next thing which is likely to happen, which is the government stepping in to disrupt the market. In California, there are already laws being proposed to limit the number of single-family homes an investment entity can own. And even if they don't pass this year, which is likely, if the market doesn't fix itself in some other way, these attempts to make it illegal for big investors to buy up hundreds or thousands of homes will keep coming, and eventually they'll succeed.
Ye i feel like something will have to change cuz if nobody can afford a place to live then how is the economy supposed to keep going
First to comment, last to homeown
Welp... my dreams are dead 🤣🥲
I know that borrowing money for building a house is expensive right now because the of the current interest rates set by the federal reserve. But, what's stopping the fed from having special exemptions for builders to borrow at a lower rate?
Political will. They would have to exercise their power towards some definable goal with a specific intent, not just "scoop out the water aboard a sinking ship" as they've been doing for a while now.
I am one of the lucky 3% interest rate mortgage holders who bought in 2016 and my house is 400k in equity currently. However, I want to move closer to where I work as I'm in the "burbs" but hell-to-the-no am I going to sell and get myself upside down. I've watched my Millennial daughter move back in with me to save on "Rentership" life style and possibly save for a house? Maybe? Maybe not? It's insane and it's only going to get worse. I am to the point where I'm telling my daughter, you can live with me as long as you want but that is unsustainable as well. It's a BIG mess.
Great video as usual, but I dont care about buying anymore. That was part of my retirement plan to have a paid off home to lower my monthly overhead but that’s out the window. Not going to stress over something I can’t control.
We got our suburb house in the NY/Philly metro area in 2017 (yes, that means NJ), using my VA home loan, so no down payment was necessary, no loan insurance was required, and interest rates for us was lower than the average, even with our sub-par credit scores. The pandemic came and the value of our little 100 y/o, 3 br, no driveway, fixer-upper skyrocketed by $175k. The real estate market is so effed up, we definitely need a basic public housing option in the US- it would really go a long way for so many. Fyi- we did not sell or refinance, as we like what we have and where we are, and don't need some huge McMansion.
Drop the address or Stfu. $175k my ass.
I’m in Florida and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quiet mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
@@maryHenokNftAmazing! I hope it's okay to inquire if you're still collaborating with the same fiduciary and how I can get in touch with them?
@@maryHenokNftAmazing! I hope it's okay to inquire if you're still collaborating with the same fiduciary and how I can get in touch with them?
@@maryHenokNftAs a new investor, I find it valuable to hear from someone who has navigated challenging times and emerged successful. What strategies can I use to achieve success?
Cries in Canada where 30-year mortgages aren't really a thing and everyone has a 3 to 5 year mortgage. There's a reason we're in a recession right now.
What is a normal down payment percentage wise? A 3-5 year mortgage means you would need to pay back 20% to 1/3 a year plus interest. I think Canada has issues with zoning and the fact that almost the whole country wants to live in the far southern part of the country despite it having a ton of land and less people than U.S.
@misterogers9423 he's kind of off on his statement. Standard mortgage in Canada is 25 years, the 5 years is the term on your interest rate. We don't get 30 year rates locked in here, you renegotiate every 3-5 years depending on your mortgage.
So you could have a 25 year mortgage for 500k on a 5 year fixed or variable interest rate, and at the end of those 5 years you either sign a new term with the same bank or move the mortgage to another bank if they don't have competitive rates for some reason.
you're just blatantly lying or don't know what you're talking about. The average mortgage is amortized over 25 years.
Mortgage itself is a scam. You should be able to afford a house with full cash, not even financing. That means even in an economy where mortgages have 0 default rates, it is still a scam economy
@somthingrandom208
To add to that (yes I agree the person you responded too is somewhat weird with his answer)...
Depending on the lender, amortization periods wildly vary.
The bank I am with you can go from 1 year up to 10 years to lock in.
The interest rates just change depending on how long you want to lock it.
Generally the interest rates get higher the longer you want to lock, since more risk being put on the bank then.
Epic editing. Wow!
thanks for the uplifting videos
This video is really optimistic in comparison with the comments, this people have less hope than a sack a drowned puppies.
How can you blame them? We are living in an age where the median american brings in 40k (reserve bank) and the median house costs 390k (natl association of realtors). Not to mention the ever increasing rental rates. Couple that with insane interest rates, colleges that can legally bury you in more debt than ever before, jobs that dont want to pay you a cent more than they have to, groceries that are at or near all time highs for the average person, and all of the political turmoil going on. Its pretty easy to imagine how the average person trying to buy a home is pretty depressed
@@Mike-zl4zsdamm this is just tragic
Reality is often disappointing.
@@Mike-zl4zsThe political factors can't be overstated, I think that makes me feel more depressed and uncertain than anything. We're in an election year and it's getting harder to remember the last time our government wasn't in a perpetual state of absolute chaos, wars are breaking out, and things like AI are gonna create massive changes to basically everything.
Do we just go on with business as usual hoping the economy won't crash and everything will just fall into place? Is there really nothing we can do but prepare for the inevitable?
I graduated college 5 years ago, put my nose to the grindstone. Started paying off debt, saving, getting promoted, getting credentialed. All so I could be responsible and reach my then very obtainable goals of homeownership and becoming a parent. My reward for all that work is seeing in real time the cost of buying a home double and my standard of living actually reduce.
I beg to differ. I did help me back in 2009. A 2 bed 2 bath condo that was selling for $ 147 K prior to the crash was sold for $ 27,500 afterwards. Thus, it will help me achieve my goal.
You're a lucky standout case. You share that with about 20% of people. The rest either lost their jobs or didn't find a good foreclosure.
@tachobrenner If It was up to me, I let the economy keep going the way it has; unfortunately for everyone, the economy runs in cycles. I make money, either way. In 1995, I purchased a property for 190K that I sold for $ 625 K 10 years later. Thus, if you think that education is expensive, try ignorance. I would rather be educated in financing and socioeconomic cycles to keep up with the changes rather than become a slave of the elites. In summary, I just follow what's going on with the economy. Have a great day and God bless you.
Are you expecting another correction in the near future, with respect to USA real estate prices?
@borisharhaji6870 I'm I? Unfortunately, I don't have a crystal ball; however, according to the statistics, it's looking like we will. As to when, I don't know, but I'm ready for it in case it happens. Have a great weekend.
House prices in SW Florida fell much more than 20% in 2008… some fell by 75% from the peak or more
3:53 a bank told you no to lending because you “make CZcams videos” 😮 give me a shout. You need a better mortgage broker. Or to decrease your debt to income ratio asap. We bought a little over a year ago. I’ve done CZcams 100% since 2020. And before that I did music professionally from 2015-20. Based on the size of your channel (and what I’m guessing your ball park income is) you can definitely qualify for a mortgage.
It ultimately won’t matter because a housing market is virtually an impossibility in today’s market conditions
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Sharon Lee Peoples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
There are a few misconceptions in this. Did example: a lot of the people who own homes now and rent are retired so their rentals are their only income. The short term rental market is actually drying up in a lot of locations and as property taxes and insurance keep increasing these people have no choice but to sell their rental properties. This is literally happening right now.
From someone who’s in the industry, this video is spot on and I think you did an amazing job describing what’s going on. Thank you for the video!
Beyond affordable, the numbers at some point become too big to be been fathomable.
This is like the argument "Rain will not cure the drought!" A real estate crash will lower housing prices by up to 50% in some areas.
Financing is another matter and lenders will demand more down and more income (assets) to secure the loan. Those that did not sell will be underwater with their mortgages for up to 10 years.
This kind of crash happens less than once in a lifetime
Lenders cant change what they're demanding in down payment because the industry is controlled by the government conforming loan requirements.
Banks don't keep loans. They make a commission, then more on the sale of a bundle of loans.
good to hear someone that actually knows "how money works" because there are so many dooms dayers that people listen too . The great crash is just around the corner for the last 15 years. Imagine sitting on the sidelines thinking that and watching the markets triple in price so you can buy in the great crash for 2x what you could of if you didnt wait lol. Worse yet is that if the great crash happened the dooms dayers still wouldnt buy in because they think everything will go down 99%.
Someone pin this comment.
Housing markets are very local. I watched homes in my area drop almost 15% in the last year. Despite the dip people still aren't buying in this side of town. Literally 20 minutes away though houses are still going up in value despite being nearly twice the price per square foot.
One obvious thing not mentioned in the video is that if real estate prices do crash, there would be a spike in demand for housing from all the people who could now afford to buy homes. And that demand could quickly drive the prices right back up.
And once again the real problem is the artificially limited supply.
The music in this is crazy
I dig the tunes 2😊
In the Euro area, all house loans (as far as i know(except if they have a rent cap or something)) are fixed to the ECB interest rate, usually with a margin on top of that. This means that if interest rates are going up, people with mortages are more likely to want to sell. This usually means house prices go down as there are less buyers on the market.
I know quite a few people who bought homes for cheap in 2008.
My dumb ass was still in third grade
Just tax land, as long as the value of hosuing increases at a rate faster than inflation, the real cost of housing will only increase, by definition. Henry George figured this out a long time ago. Tax land at 100% of its rental value and stop taxing income and sales. It is the only way. Georgism!
Yes! Land Value is the only tax that stimulates the economy by encouraging land owners to develop and fully utilize their property or sell it to someone who will.
Is this different from Property taxes?
@@karld1791 That nonsense will also encourage more paving over of valuable farmland. We have already lost 50% of our topsoil in the last fifty years. The amount of acreage lost each year to development as reported by Acres, a land sale company, is crazy high. How do you think you'll be able to stuff your face when no farmland is left? This story, as most, never speaks of the bankster games that manipulate the markets. They only understand PART of how money works now. A very small part.
Just because houses increase faster than inflation does not mean wages will.
That is the problem, if wages increase slower than inflation (like they have for decades), then that system still won't help affordably.
That’s called property tax you nut. And that is now beginning to become a problem
Millions of people, maybe even myself, who _work_ and/or are retired will be living out of cars and tents, eventually, pretty sad. My guess is this problem becomes _extreme_ in parts of Florida, California, New York, Illinois, and, eventually, in Texas where I live(Houston), especially the Texas Triangle. I suspect that a small but significant number of people will move to cheaper parts of the midwest, the deep south(Gulf states other than Texas and Florida), and less expensive states in the northwest quadrant of the country (Wyoming, Montana, Idaho). Edit: A couple of Mid-Atlantic states might be a possibility, as well.
Iowa should be safe for a long time. The only California people that move here are the ones that only get social security disability and then all they do is complain and leave. A lot of people don't want to stick around the states so it should keep the prices low but it's still gone up a lot but a lot less than most other areas. Plus Iowa has the second highest property tax rate outside of New Jersey.
@@DiecastinatorI think you're right, I'm not interested in living in Iowa. Most of the Plains states will be okay, outside of the bigger cities.Two or three of the Mid-Atlantic states are a possibility. We've covered the whole country, outside of Alaska and Hawaii.
Jobs aren't fungible. I live in the Bay Area and due to the nature of my work, there are only about a few dozen companies I can work for, most of them in places as expensive as here. I can't work remote, either.
@@mikeydude750That’s the risk/reward for being hyper specialized. Potential for higher returns, but with less options.
I was thinking about this and I remember 2009 when everything dropped lower than shit but the only caveat was you had to have 100 percent of the cash to buy something because during times of crisis banks will not lend even 10 percent of the loan so the time really to buy something is like in 2020 just before a huge crisis and there is lot of liquidity not after the crisis when there isn't shit left in the market to loan
Took my wife and I over a year to find a lender that would actually give us a loan 2012-2013 time frame. And that was only on a $150k house!
Youre lucky...I remember having 80 percent down and still couldn't get a loan@@jordandowland7256
Bought my house 20 years ago. In Logan Ut. price, 125k. Interest rate was not an issue as the mortgage was easily do able on 1 fair salary. Our town was great for kids and young familys for along time, because housing costs, buying or renting were so cheap relative to local wages. I think up untill about 2020, it was still a great place for kids and familys to make a start relative to most places despite low wages, we were at least still a possibility for say 50 % of the people. Thats all gone now. Values are so high, kids and familys have no chance at all to own, and can barely afford rent on 2 salaries. Wages are really really low relative to reality here. Lots of people moving here with magic cali money paying cash for years has made our little paradise just like everywhere else. It has been great for a few at the expense of the many, and society as a whole is going to figure out pretty quick what you get when you provide the youth with nothing feasible to aim at.
I am actively searching for different ways to invest or diversify my $400k portfolio so it can increase exponentially during this next bull run. Ideas?
I completely understand your concerns. Navigating the financial markets can be very challenging
What I would suggest you do is seek the proper guidance of a professional advisor that can manage your portfolios the right way
You’re right Holly. Since I have been working with a seasoned professional advisor for the past eight months now, and it’s been an amazing experience both financially and psychologically. I've been able to quit living from paycheck to paycheck and my portfolio has grown massively into six figures!
He’s the licensed fiduciary I work with. Just look his names up on your search engines and you’ll get the necessary details you need to set up an appointment with him. Cheers!
Great! I will definitely connect with him. Thank you
Homes in America are 4 times cheaper than where I live in Markham, Ontario Canada.
Tell Trudeau to stop importing millions of immigrants who all have to compete over limited housing options.
Ah yes, my daily dose of depression. I should just subscribe to the newsletter so I can be more depressed during meetings
The obsession with home ownership in this country is also a big issue. Home ownership should not be seen at the primary wealth generating vehicle, just as much as buying a car isn’t to secure generational wealth.
It's seen that way because it IS that way. A house appreciates in value and decreases your costs. A car loses value and only costs you more the longer you have it.
As a recent father residing in the Bay Area, I'm contemplating the prospect of buying a single-family home. However, given the soaring real estate prices, I'm torn between whether it's prudent to make a purchase now or to divert my funds into stocks, anticipating a potential correction in the housing market. I've been hearing positive sentiments about companies like Nvidia and AMD, suggesting they could be promising investments.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserved. Anyone who is not investing now is missing a tremendous opportunity. Imagine investing $1000 and receiving $7,300 in 3days.
Crypt0 is bringing a different revolution in the economy. People who are optimistic investors Earn consistently....
I think to combat the negative effect of inflation, it's a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, cryptos and real estate, since this can help protect your portfolio against inflation.
I've heard testimonies of people accruing huge return during recessions.
I would really love to know how much work you did put in to get to this stage. What’s the strategy?
Dora Hobbs method is the best.
Got her info on ABC News in December 2022 and started following her lead and it’s favoring me. Lost my job in April 2022 and right now I'm back on top again as I always win with her strategy.
*SHE MOSTLY INTERACT ON TELEGRAM!*
“You will own nothing, and be happy”
Wait, the floor in the housing crash happened nowhere near the year 2008. The price of houses just got started going down in 2008. They continued to go down, in some areas for an additional five years after that with a valley in like 2013.
Afterwards, it was extremely easy for a lot of people to buy homes because they were super cheap.
Who’s getting houses for 3% right now?
The way i see it, the opportunity was during the low interest rates during the the pandemic. Try buying a house with a mortgage these days. Even if you can afford the 20 percent down on some outrageous asking price, the interest on those loans will definitely push you out.
As a former loan processor the lenders go off of standards set by Fannie and Freddy. If you want a loan outside of those entities go to a credit union, they (can) do in house loans and their standards aren’t always as strict.
Also fun fact, if you’re behind on your student loan payment, don’t think about getting any kind of government loan, like FHA or USDA. They will deny you instantly and on the spot until those student loans are caught up on. Sorry y’all, but it will get better!! I do believe that.
As someone who's been saving up for a home, this video hit home. Literally. The struggle is real, folks.
Thanks for regurgitating NAR and CNBC talking points. Tell me, what happens to record high rent become unaffordable?
All I know is the government policy only targets home values rising to generate more revenue and I know that isn’t working for me. Ideally I think policy targeting real estate values holding steady would be better but that is the hardest to do policywise and I don’t see it happening so lets try lower prices
The price of rent is the price. The price of a house is the minimum cost, add higher insurance, maintenance, lawn equipment, etc etc.
does anybody know, what of type/kind of this editing/video called? like put still image in but move it around, you know what i mean
On tumblr we call it "playing with jpegs like dolls" lmao
Ah, finally one video that gets it exactly right instead of shining people on about another “housing crash”.
In reality, first time home buyers have zero chance to come out ahead, especially not in a housing crash. Guess who has the cash and the credit to buy up all the homes as soon as they’re slightly discounted? Definitely not poor first time buyers. After the last housing bust, all the rich people in the top 3-5% have learned exactly how to swoop in ahead of regular home buyers in a distressed market.
Indeed, the best chance for a first time homebuyer is actually right now, when home prices are reaching record peaks by the month. While rich buyers are still in the market, they’ve cut back their purchases by 50% in the past few years to hold on to cash and pounce on any market weakness. So, for anyone hoping to snag a deal in a housing crash, you either have the money and are looking forward to it or you’re going to be out of luck.
Why'd the dog in the first graphic keel over? 😂
At the end, still sounds like we need a crash... or rather like the market needed to be controlled many decades ago and is now in perpetual emergency
We are living in a housing bubble. You don't need to be an expert to see this. The price and value do not match and the market historically always corrects itself.
I think the point is that nobody really waits for a crash. more like you either hope you get rich enough to buy a house (whatever the circumstances) or some societal change will make house prices to fall.
On a larger scale the whole issue is due to resources being distributed in a very non uniform way that creates vassals and serfs. So you hope to either become a vassal or that serfdom would be obliterated.
8:24 Here in Australia there's no such thing as a fixed interest 30 year mortgage, the average is 2 years before it turns into the variable rate. There's more and more homeowners feeling mortgage stress as their previously low fixed terms come to an end and they face the current interest rate. Fingers crossed it starts a proper correction
Do you have any solutions to the problems you detail in your videos?