Housing market

[maldorf]

How does a will protect you from debt? Curious about that...

Also, I think that’s pretty smart pulling the money out and using it for cash flow instead of just letting it sit...

It will help save a lot of legal fees if you die. Things won't get stuck in probate court. Simple stuff like your automobiles even.

We drew up ours. It wasn't cheap fliling the will, but it's a lot less than what could happen later. Ours was pretty simple and yet I think we spent about $4k on it.

 

[get it in ya]

How does a will protect you from debt? Curious about that...

Also, I think that’s pretty smart pulling the money out and using it for cash flow instead of just letting it sit...

Exactly I hate equity. I think there is 5 trillion in equity in homes in the U.S, imagine that money was put to work, crazy. He mentioned he didn’t want to take equity out of his home because didn’t want to leave his wife with debt. What I meant about a will was if he took equity out and invested it she would get his investments which would more than cover the debt(mortgage) she got stuck with. That’s what I meant about a will

 

[get it in ya]

It will help save a lot of legal fees if you die. Things won't get stuck in probate court. Simple stuff like your automobiles even.

We drew up ours. It wasn't cheap fliling the will, but it's a lot less than what could happen later. Ours was pretty simple and yet I think we spent about $4k on it.

I just did a will, mine was very simple with a few real estate investments, stocks, home and it was a little over $300, best money I ever spent. Felt weird reading it though lol

 

[SOUR DIESEL]

Now is the time to pull profits from any real estate you own.

This time next year that 600k house might be selling for $195k ... seriously ... it will
correct to fair value soon..

^^^why would you say this? ..what indicators are you using to support this notion/statement?

not "picking" on you ..but do hope you can come back & answer this/provide some support

^^^i think too many times (..even with regards to AAS) people make/repeat/parrot a statement with no support
[..factual (..which is preferred) ..but some don't even try to provide anecdotal evidence either]


►things like "home loan apps are down" is not good support
..this could be cause by many different things
..including the obvious subsequent rise in median home prices that would "price-them-out" so they not longer qualify regardless

(..this is not like the the "08" bubble that was fueled by Neg-Am/Def-Int/SISA/No-Doc "predatory" loans)

.

 

[maldorf]

^^^why would you say this? ..what indicators are you using to support this notion/statement?

not "picking" on you ..but do hope you can come back & answer this/provide some support

^^^i think too many times (..even with regards to AAS) people make/repeat/parrot a statement with no support
[..factual (..which is preferred) ..but some don't even try to provide anecdotal evidence either]


►things like "home loan apps are down" is not good support
..this could be cause by many different things
..including the obvious subsequent rise in median home prices that would "price-them-out" so they not longer qualify regardless

(..this is not like the the "08" bubble that was fueled by Neg-Am/Def-Int/SISA/No-Doc "predatory" loans)

.

The impression I get is that one of the main reasons for existing home sale prices going so high is that the supply of them is so low. Hardly any listings. Supply vs demand. Im not sure why people arent selling their homes now. I think the corona virus started a lot of it and made it worse, but the effects of that are coming to an end now. The supply of existing homes for sale is low enough that it is pushing some folks to build when they werent planning on it and then they find the crazy prices there. That drives up new home prices too.

 

[Matsuo Munefusa]

Exactly I hate equity. I think there is 5 trillion in equity in homes in the U.S, imagine that money was put to work, crazy. He mentioned he didn’t want to take equity out of his home because didn’t want to leave his wife with debt. What I meant about a will was if he took equity out and invested it she would get his investments which would more than cover the debt(mortgage) she got stuck with. That’s what I meant about a will

Yeah I agree the way you’re thinking is smarter. Something creepy to me about taking a loan out against my house even though rationally I know it’s the smart thing to do. We’ve been on the fence about it and she (wife) is supportive either way. I think it’s mainly an ego thing for me lol like “I own this house 100% by god I won’t make payments on it”....

 

[get it in ya]

Yeah I agree the way you’re thinking is smarter. Something creepy to me about taking a loan out against my house even though rationally I know it’s the smart thing to do. We’ve been on the fence about it and she (wife) is supportive either way. I think it’s mainly an ego thing for me lol like “I own this house 100% by god I won’t make payments on it”....

I totally agree with your thinking also. Having no mortgage is awesome!! Owing the bank sucks! I hate banks lol. Only reason I did it was because I make an extra 5% investing it, but then there is no sure thing investment. In your situation it’s a guarantee you will never pay a mortgage and your saving on interest. I will be honest if I had mine paid off I would not refinance. I owed about 120k so I refinanced cash out. The most important is we have plan, a lot of people don’t have one

 

[get it in ya]

The impression I get is that one of the main reasons for existing home sale prices going so high is that the supply of them is so low. Hardly any listings. Supply vs demand. Im not sure why people arent selling their homes now. I think the corona virus started a lot of it and made it worse, but the effects of that are coming to an end now. The supply of existing homes for sale is low enough that it is pushing some folks to build when they werent planning on it and then they find the crazy prices there. That drives up new home prices too.

My opinion is Whats keeping housing market alive is low interest rates. Imagine rates were 5-6% with the prices of houses? Not many would buy a house, mortgage would be insane. What happens when they try to raise rates? With the prices being so high? We might see shit hit the fan

 

[maldorf]

My opinion is Whats keeping housing market alive is low interest rates. Imagine rates were 5-6% with the prices of houses? Not many would buy a house, mortgage would be insane. What happens when they try to raise rates? With the prices being so high? We might see shit hit the fan

Yes, that is surely part of the equation. I'm actually rooting for rates to go up so that it becomes more affordable to build. We won't have to finance much if things calm down.

Back in 08 when the market was shit, we got a good deal on building this house. Had work done cheap too.

 

[method2madness]

stay where your at and ride this out. after watching literally everything i could on it and reading all the stuff about Blackrock, etc. the consensus i found was 3-5 years.

Treat your house like a long term investment. Refinance now to save before interest rates get too high. Even if/when the crash hits if your in it for the long haul you'll be able to ride it out.

 

[GettingBackIn]

There is currently a push to make a 40 year mortgage eligible to be sold on the secondary market. If that happens, expect housing prices to continue to rise considerably.

 

[maldorf]

There is currently a push to make a 40 year mortgage eligible to be sold on the secondary market. If that happens, expect housing prices to continue to rise considerably.

Hadn't heard that. My wife says they do it in Japan now. I hope we can build before that gets approved.

 

[NEMSZ]

My opinion is Whats keeping housing market alive is low interest rates. Imagine rates were 5-6% with the prices of houses? Not many would buy a house, mortgage would be insane. What happens when they try to raise rates? With the prices being so high? We might see shit hit the fan

I was listening to the Bet David podcast a couple months ago and I heard something about interest rates kicking back in/up in 2023... Not sure how true that is, but they were talking about the same thing that the housing market is inflated now because of low interest rates and all this money being thrown around...

I honestly hope there’s a correction because at this rate of devaluing the dollar AND costs of everything going up, not just homes, Damn near no one of the next generations are going to be able to afford homes or rent for that matter..

I think it’s something like making $70k-$80k a year now in certain places (like Miami where I’m at) is basically living paycheck to paycheck.. It’s ridiculous..

 

[maldorf]

I was listening to the Bet David podcast a couple months ago and I heard something about interest rates kicking back in/up in 2023... Not sure how true that is, but they were talking about the same thing that the housing market is inflated now because of low interest rates and all this money being thrown around...

I honestly hope there’s a correction because at this rate of devaluing the dollar AND costs of everything going up, not just homes, Damn near no one of the next generations are going to be able to afford homes or rent for that matter..

I think it’s something like making $70k-$80k a year now in certain places (like Miami where I’m at) is basically living paycheck to paycheck.. It’s ridiculous..

Yep, and pay isn't rising as fast to keep up. Most are just going up the old rate of 2% at best, sometimes salary not going up at all. Many folks just happy to still have a job after 2020.

 

[get it in ya]

I was listening to the Bet David podcast a couple months ago and I heard something about interest rates kicking back in/up in 2023... Not sure how true that is, but they were talking about the same thing that the housing market is inflated now because of low interest rates and all this money being thrown around...

I honestly hope there’s a correction because at this rate of devaluing the dollar AND costs of everything going up, not just homes, Damn near no one of the next generations are going to be able to afford homes or rent for that matter..

I think it’s something like making $70k-$80k a year now in certain places (like Miami where I’m at) is basically living paycheck to paycheck.. It’s ridiculous..

Exactly brother 50-60k in big cities is poverty. Not sure how people can afford anything anymore

 

[get it in ya]

Yep, and pay isn't rising as fast to keep up. Most are just going up the old rate of 2% at best, sometimes salary not going up at all. Many folks just happy to still have a job after 2020.

Exactly. Look at a chart 10-20 years. Price of houses, rents and everything else go upward angle and wages are flat. I am a union worker and we recently got a 77 cent raise. Guys get excited and I laugh. That’s a raise of $30 a week before taxes but it cost you an extra $100 a week in gas now, we didn’t get a raise lol. Our raises do not cover inflation so we fall behind every year. The purchasing power of our dollar buys less and less. Not to mention taxes of earned income is a joke!! We get hammered, but that’s another subject

 

[OuchThatHurts]

“
The World Economic Forum aims for no personal property ownership by 2030. In their video, they state “You will own nothing and you will be happy.”

The Great Reset plan where “You’ll own nothing and you’ll be happy” involves replacing shareholders of big companies with stakeholders, who critics say are left-wing bureaucrats and climate change zealots. It also replaces Mom and Pop small businesses and private enterprises with big tech and big business.”

Klaus Schwab

Sounds like you're screwed. Bummer.

 

[MonkeyBoy]

Its combination of things, low interest rates, low inventory, people coming in with cash to over pay for a price of a house and the value of the dollar. Like said before on page one, you can't print off trillions of $$ and think the value will not go down which causes houses to go up. My good friend who does house finance, does a killing said house market right now is a victim of value of $$. There is a huge crash coming eventually, not anytime soon but its coming as where your $$ won't be worth a dime!!!!

 

[maldorf]

“
The World Economic Forum aims for no personal property ownership by 2030. In their video, they state “You will own nothing and you will be happy.”

The Great Reset plan where “You’ll own nothing and you’ll be happy” involves replacing shareholders of big companies with stakeholders, who critics say are left-wing bureaucrats and climate change zealots. It also replaces Mom and Pop small businesses and private enterprises with big tech and big business.”

Klaus Schwab

That's been happening with farms for awhile now I think.

 

[OuchThatHurts]

Exactly. Look at a chart 10-20 years. Price of houses, rents and everything else go upward angle and wages are flat. I am a union worker and we recently got a 77 cent raise. Guys get excited and I laugh. That’s a raise of $30 a week before taxes but it cost you an extra $100 a week in gas now, we didn’t get a raise lol. Our raises do not cover inflation so we fall behind every year. The purchasing power of our dollar buys less and less. Not to mention taxes of earned income is a joke!! We get hammered, but that’s another subject

Yeah but seriously, have you ever given a sound piece of financial advice ever? Not that I've read. I have anywhere from 4-10 mortgages at a time. Personally, I would advise you against handling your own finances from now on. Especially with 100% equity in a property. You could fall ass-backwards into money right now. If you aren't... well... don't shift the blame. If you're not making money now, you don't want to be.