/biz/ - Business & Finance

My dad will buy me a rental property. I just need $10,000. I already have $5,000.

I'm looking for others interested in joining forces and closing on investment opportunities together.

I'm interested in real estate and a few different service industries.

Prior to jumping into to anything, our group is definitely going to need to know each other.

If interested, we'll set up a private Discord and possibly arrange some meetup dates.

if hyperinflation is coming doesn't it make sense to get into a mortgage now even at these high rates because if were getting 10-20% inflation we can easily pay off loans like mortgages because our paychecks will be going up but the loans remain the same price.

makes sense to fill up to the gills in debt desu

Should I rent out the basements in my rental properties?

What exactly makes a "bad neighborhood"? Also, why and how do "affordable" home prices reflect such a neighborhood? What i'm really asking is, what should I be careful or watchful neighborhood wise if I come across a decent priced home?

Location: Iowa
Job: Mechanical Engineer (BSME)
Salary Progression: $55,000 in 2019 starting out, $63,000 in 2022

House prices are up 70% in my area in the same time period and interest rates have gone from ~3.5% to 7.1%. THEYRE not falling either, they’ve just flatlined.

I’m literally, unironically priced out. Anyone else have the same problem?

Rentcuck here, can someone help me understand what the problem is here?
Consider two scenarios when mortgaging the same asset at the same monthly payment rate. On the one hand, buying at the top with low interest rates and high principal. On the other hand, buying at the bottom with high interest rates and low principal
>$500k@2.5% for 30y ~ $2k/mo
>$300k@7% for 30y ~ $2k/mo
>$148k@16% for 30y ~ $2k/mo
The total interest+principal paid for all of those loans over 30y is the same, ~$715k
Obviously in the higher interest rate cases, your total payments are a larger % of interest payments, but ultimately you're paying the same amount to the bank, and you end up with the same asset
However, assuming you put in an additional $500/mo in payments, here's what happens:
>$500k@2.5% - Total payments reduced to $650k over 22y
>$300k@7% - Total payments reduced to $518k over 17.5y
>$148k@16% - Total payments reduced to $296 over 10y
It seems to me that if your plan when purchasing a house is to stay in it for a long time and not use it as a speculative asset or retirement plan, high interest rates driving low costs is a much better deal? This also doesn't account for additional payments like taxes/insurance/closing costs that are a % of the value of the home. You also have no hope of refinancing out of a higher principal cost w/ low interest rate.
So what, high interest rates are actually a good thing for this?

I got a property that I'm getting ready to flip. I've always used real estate agents but one of the neighbors approached me wanting to buy. What do I need to know to cut the real estate agent out of this transaction? I've only found junk info on le web.

Red pill me on the impending housing crisis, how the fed's manipulation of interest rates effects home loans and when the best time to buy is

Why are house prices still so high even though sales are dropping?

Does this mean the real estate market is going to crash now?

No memes, no spite driven reasoning (“fuck the boomers!” or “fuck rentoids!”), let’s try and have a rational discussion on where we think the price of shelter is headed in the next year.

Here are a handful of baseline facts I think we can all agree on:
1. The price of homes has rarely ever gone down over the 100 year dataset we have in the US
2. The price of homes is loosely tied to the wages that wage slaves are currently making, there’s some ratio of take home pay to shelter cost that stays within a certain range over time
3. Nominal wages basically do not go down, real wages yes, but the number always increases even if it gets you less than before
4. Real estate is highly local and illiquid, price increases in one location say very little about what will happen in your area (unlike most other assets)

Okay, so what does this say about the price of shelter in the US?

Here is my case for prices stagnating or rising slower than before: White collar wagies have some say over their wages, not a ton, but more than other forms of wagies. Currently most white collar occupations are feeling squeezed by rent increases (along with general inflation), notable exceptions include QE fueled occupations like software engineers or other tech workers. I predict that we will see white collar wagies demand higher wages to accomodate higher rent prices and they’ll mostly get them, over time, as graduate wages will go up. White collar wagies will accommodate the higher rent prices and things will basically cool off.

Here is my case for prices actually declining: A massive recession wipes over the US, workers in tech get laid off and the US loses a ton of workers this command extremely high incomes. Rent prices in cities fall, houses get foreclosed, people panic sell.

I don’t see house prices falling through general rate increases, I think only a recession with rising unemployment can make that happen.