/biz/ - Business & Finance

when did you realize taking my dick was your moms way of using her mouth

>>12509212
three duplex apartment buildings ago

>>12509212
When i started studying accounting and finance.

>>12509212
it can't be!!!!

>>12510281
How does it feel to be a wagecuck for life

>>12509212
when I thought what happens with mortgages during recession

>>12510318

>I own three apartment buildings
>i've got 6 wagie households paying my mortgages and tendie bills for me
>Implying im the wagecuck

>>12509212
>call it mortage, margin, leverage, collateral whatever
it is all just CREDIT

lads

what if I got my retired dad and uncle to get together with me and I tried to buy a nice 500k house?
think itll be easy enough
he'll make atleast 40k
my uncle at least 40k
ill make at least 65k
and ill have about 100k saved by the time I do it

also, how much would you put down?

>>12510429
>buy house
>house appreciate
>take more loan on that house, buy apartment in low cost/up coming trendy area
>rent it out
>it's appreciates
>repeat

why don't zoomers do this

>>12511512

houses have already appreciated way faster than is sustainable long term. we're in for a crash

>>12511761
When do you see a crash coming?
and how bad?

more like the common goys way of becoming a debt slave for 30 years

>>12509212
Pls explain. T brainlet

>>12511512
Most zoomers have shit or no credit to apply for a mortgage plus slot have too many student loans bills so think "I'll just pay off this >100,000 debt that I can't default on and then I can start getting my life together and invest and all that :)"

>>12511892
Nobody knows but its clear that the unlevered return on renting property out is too low to justify the risk.

>>12511929
You buy a house for 100k

You put in 10k as payment

You borrow the other 90k from the bank, paying interest

Hopefully it appreciate in value, meaning you can use that value to borrow for more things or another house. Or rent it out, basically making some wagecuck pay your mortgage while getting richer

>>12511512
>>buy house
Gee, why doesnt everyone just do this? its so easy lmao

>>12509212
when I learned about stuff like the pattern day trader rule, "accredited investors", and just the general state of the traditional finance system. Maybe my early 20s? Now I'm a 30 year old boomer and I have also realized that the government has centralized the distorted the pricing of risk in the economy and uses the mortgage market as a primary means to inflate GDP in a predictable way that is conducive to creating relatively permanent and stable social cohesion. They have centralized the pricing of risk by making banks conduits of loan origination to fannie, which has 3 trillion in "assets" which are IOUs and negative 3 billion in equity. I am not an accountant but their books looked weird to me, maybe an accountant here could look. Anyway in contrast to the traditional banking system that decentralizes risk ultimately through customer discretion in banking the new system centralizes and socializes it. This is probably preferable given that people don't have the time or interest to care about whether the bank they use is a solvent and knowledgeable about local real estate and business that they lend on, they can just trust the FDIC. The end effect of this is higher taxes and higher real estate prices through wider availability of leverage, as the OP said

>>12511997
Do you think we'll see a real estate crash anytime within the next decade?

>>12511977
>You buy a house for 100k

Where? besides rural arkansas

>You put in 10k as payment
I know a lot of zoomers, no one has this much to throw down

>You borrow the other 90k from the bank, paying interest
Good goyim

>Hopefully it appreciate in value
Its been going up for over 10 years now. its a little late for that party, something has to correct at some point

>>12511997
How do I profit off this? Short real estate?

>>12511977
Thanks fren.

>Hopefully it appreciate in value, meaning you can use that value to borrow for more things or another house. Or rent it out, basically making some wagecuck pay your mortgage while getting richer

This it th part I didn't understand. If the equity in your property increases you can leverage that? Why the fuck wasn't I told about this.

>>12512082
>Why the fuck wasn't I told about this.
To keep you out of the ponzi until it's over inflated and we dump our bags on you.

>>12512018
I think I'm in the minority maybe even extreme minority when I say I don't think it's probable that we will, although you'd have to define crash. I definitely don't see a market wide 2008 style crash anywhere in the near future or next decade. Underwriting standards are too good. The only things slowing it down right now are wage growth and rates having risen but the market appears rock solid to me at least.Of course there are good areas and bad areas. The only thing that I see that could cause problems is a US rate increase that happened because of a market dump of bonds by china or something, although I bet it would just be handled somehow before coming to that. If rates went up really fast and were not controllable it could a freeze of credit. but the government will likely step in, and where would investors go in that case? every other government (with positive yields i.e. not charging YOU to hold your money for 10 years in nominal terms) is as bad or worse, it's all a big free floating mess and as much of a mess as the US is, it's still one of investors' best options. but what's the point of anything if ultimate risks cant be consummated in major failures? people will turn to bitcoin when bailouts keep coming

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr458.pdf

that's a good, somewhat outdated read on some of these topics and a lot more and has a lot on the last financial crisis which is worth reading about

>>12511997

I know exactly nothing more than when I started reading this, explain better

>>12512216
What about everybody being poor and not being able to afford buying?
I mean im not looking for a crash..
But for 500k houses to drop to 400 would sure help

>>12512022
>not understanding I used even 10s for easier to understand explanation

>>12512082
there is a thing boomers do, and have done since the 70s https://www.nerdwallet.com/blog/mortgages/not-just-higher-interest-rates-affecting-mortgage-refinance-possibilities/
"Even though mortgage rates are moving higher, appreciation in your home might let you make a mortgage move that you might not have been eligible for previously. Here’s how higher home values can affect your mortgage refinance opportunities:

A cash-out refinance. If you’ve weighed a lower mortgage rate against loan costs and decided a refinance seems to be a toss-up, this could be the tiebreaker: a cash-out refinance. Tapping some of your home’s value in a cash-out refi can let you make improvements to your home and property. That adds value to your home in the long term.

"
How do you think they can afford summer houses, boats , cards and whatever?

>>12512223
Go look up Fannie Mae. He is saying that these government institutions are "socializing" the risk that comes with taking out mortgage loans. By socializing them across the entire country the US can leverage that to make our economy look like its doing good and justifies taxing us more.

>>12512234
I thought about this too, but the solution has been to import rich foreignors and encourage them to buy houses (see chinese people)

>>12512238
Ah nvm then

>>12512270
Importing rich can not be at a commensurate rate that the middle class is going poor though, no?

>>12511997

Non conforming loan still exist, but those are usually harder to find and usually cater to specific demographic. For example, as a chink, I can get 600k+ loan with a 30 year locked rate, from a chink bank in the US, provided that I provide a sufficiently high down payment for (usually 40%). I won't have to disclose my income, just that I have sufficient capital available to cover the down payment and closing costs.

>>12512234
>What about everybody being poor and not being able to afford buying?
One thing I've heard recently that made me do a double take is some minimum wage raises being phased in in the area I'm in, ending at $15/hr pretty soon. This can either result in many small businesses failing because they can't raise their prices to afford that (although I dont know if they're raising "server" wages for restaurants) or it will just make rents go up once it's old news if the non minimum wage part of the local economy can absorb it i.e. pay more for local services than they were before. a 30% increase in wages among that class of worker is probably enough to keep the party going for a few more years even with slowly rising interest rates as long as it doesn't hurt the local outlook enough to erase jobs when it is implemented. I'm against minimum wage by the way, I'm just explaining why places with already strong economies that enact minimum wage laws could see their real estate markets boueyed by that alone, moreso the multifamily rental market obviously, but still, some people considering buying houses may also be considering renting and if a 30% wage increase among a fairly large class pushes rent prices up they may be more willing to buy a house. underwriting standards were lowered in the past to keep the party going as well, since if you give people leverage with really low qualifications, people will use it that shouldn't as we saw. Also I see a future where a lot of people just rent their whole lives, and property owners continue to be on the winning side of a growing wealth divide simply from their own momentum, access to easy money, and support of the government

>>12512258

yep

> fuck muh kids, my pappy didn't leave me a shit, im gonna refi this bitch and die in debt
> jerry down the street is gonna be SOO jealous of my micro yacht

my parents been collecting six figure passive income from real estate, living rent free for a decade and when its paid off it in a few years it will almost double. Net worth 6m+. When I asked for help with college the most I got was 20$ a week for gas and had to live on my own, ended up falling asleep in class every day from working full time and flunked out. became a male prostitute, thanks mom and dad. Still get 100$ for Christmas from them tho, so it's cool.

>>12512258
to be fair they did build the entire modern mortgage finance system, which so far has been one of the better, fairer, and more efficient ways of managing housing capital among common people as well as managing society as a whole. although its fairness is not ideal, as it's not truly fair, just equally bad for everyone, which even that is becoming less true as permanent renting is becoming a thing, which over the long term will just end up as indentured servitude with continued economic strength, if it isn't effectively that already in some places. but, they did build it, and the US housing system is more fair than in a lot of other places as flawed as it is. 2008 got out of control, but for the most part it has historically been good. It may have run its course now though. Our generation has proof of work cryptocurrency which is THE answer to all of this, because the old system has to inflate to survive, and bitcoin is a custodial international asset that is transactable and limited in supply I think the US may have good chances to just keep chugging along for a while but as other countries have currency crises which is unavoidable in the system that exists, bitcoin will grow more and more as long as the proof of work is too expensive for a single entity to attack (you can't rent 51% of the btc hashrate btw, so that calculation of $350,000/hr is very flawed, btc would be long gone if it were that cheap)

>>12512371
meh, it'll take time before anything noteworthy happens

>>12512258
Jewish economic money magic at its finest

>>12513156
>white american family dynamics

Yikes.

>>12513264
what about Equihash proof of work? ZEC is already being adopted by JP Morgan. BTC doesn't allow for privacy of transactions but ZEC does

How much of downpayment do you need? I have no debts or bills and would like a yard to play with a dog and a garden. Sick of living with my roastie.

>>12512018
So it just gets bought up by foreigners... Everyone wants a real estate crash.

>>12513341
it might bring good dollar returns if JP morgan is actually going to adopt it in a way that makes it become widely adopted among banks. I wouldn't use it for privacy though, I prefer monero. I'm not well versed in the nuances of hash algorithms, but I do recall reading that zcash requies a trusted setup and the article had some sisterhood of the traveling pants-tier bullshit story about nuclear radiation material and zooko and his band of friends all burning or disposing of some piece of infomation that was required to make the coin and that everyone trusts that they did not save any copies of to hand over to any agencies that might want such a thing. I don't know why they'd trust that, but like I said, I dont know the minute details and it may well be a good investment at the current price, I think the flaws though are too severe to make it viable long term in the way BTC and XMR are though. I'd be open to hearing why that is wrong though or why you think it's good or the trusted setup isn't a problem

>>12513471
Well thats all true, but when it comes to beating regulations and government laws ZEC would easily pass, while XMR for example would get rekt/outlawed. I could see ZEC being used in the way XRP was supposed to be used + for retail payments. Its private "enough" so that it can audit criminal events.

I think thats what makes it ideal for the "elites" who control the current banking system, they want practical anonymity with the small ability to take control at any moment. I dont see how BTC or XRP can compete, ZEC has all the characteristics of BTC basically but with privacy and potentially faster tps unless Lightning network is a success.

Personally I prefer KMD, but I am scared that ZEC will actually be adopted by the big guys, and others wont pass government scrutiny

>>12513515
>>12513515
it's probably not a bad idea to pick up suicide insurance in it. anything could happen really. what you describe is very true, they want something that's anonymous except to catch serious criminals. it's a noble idea but one that over time seems unlikely to be as resistant to corruption as something without that option. still I hadn't looked at it in a while and may pick up a few just in case after looking at it now and thinking about it a bit more.