/biz/ - Business & Finance

The market hasn't reflected the current state of affairs yet but I estimate that those people were already people at the end of their agreements at the properties they rent or cash buyers who were already dead set on buying.

Population growth. Meaning higher demand for real estate.

>>18668945

Us birth rate is trash.

Boomers trying to dump.

>>18668945
But that population is largely making sub-$15/hr so they're not the ones buying homes. That population largely is losing their non-essential jobs and they're fucked for the foreseeable future?

What justifies going from affordability on a single income with money to spare versus mandatory 40 hour work weeks for married couples? That's insane levels of inflation over a ten year period.

>>18668970
Look at immigration numbers dummy

>>18668619
You’re comparing a near market bottom to a near market top, but yeah shit’s fucked yo

>>18668619
house prices go up due to inflation, at 3.33% it will double every 20 years.

then you have other factors, are more people wnating to live in this area than before? new employers? growing local business? lowering crime rates?

Then also you the thing these online prices miss is, what was the house like when they bought it, and how much did they spend on repairs&improvement.

inb4 'reddit spacing'

>>18668619
It's already crashing, theyre just imposing stricter guidelines.
Reminder if you aren't paying your mortgage you're paying someone else's.

>>18668994
So that makes the inflation rates even less sustainable. Paco isn't making enough to buy these entry level houses @ $250,000

I make $68,000/yr as a skilled laborer and this is nearing unaffordable on my salary unless I want to sign a 30 year mortgage.

>at 3.33% it will double every 20 years
So by 2040 zoomer's kids are gonna be looking at $500,000 homes and still making the same 8 bucks an hour we have as our minimum wage? That's unsustainable and insane.

>>18669051
>muh sekrit klub
I use double spacing because it looks good. I was posting on this mongolian throat singing board before you were a chunk of splooge in your father's ballsack nigger

>>18668994
>immigration numbers
Do immigrants have the money to buy property the local regular population is not able to buy or...?

>>18669088
Our system is unsustainable and insane. The clown world meme isn’t a meme.

>>18668619
>Wages haven't gone up nearly enough to justify this kind of inflation
Quantitative easing explains all of it, the FED printed money and handed it out to banks.
Whats the only asset that is totally dependent on credit availability? Real estate. With so much money available and with investors looking for better profits than treasury bills offer they flooded the real estate market, which explains the prices going up.

That is and has been my theory, can anyone come up with a better one?

>>18668619
Only temporary, rich people will start buying up all the houses, but you will get your chance too.

>>18669184
When anon
I need to buy a house. My wife is graduating soon.

>>18668619
The price of real estate is determined by mortgage rates. The lower the rates go, the higher the prices go.

>>18668619
>complaining about 150k
If you want to buy within a 1hr commute of Sydney or Melbourne you're looking at 600k, and anything closer is even more

>>18668619
Also keep in mind that the real estate market is highly local, think about things that happened in the last ten years.

Las Vegas went through hell with housing so it is very possible that prices doubled from what they were ten years ago because ten years ago it was a ghost town, same thing with Miami and other parts of Florida, Arizona, Indiana and others.

Think about plant closures and industry closures like in the rust belt area, or again Indiana, Michigan, Ohio and others

Think about the oil boom, places like Youngstown or other places in Oaklahoma, Washington state all had major housing shortages when oil prices went way up.

Think about the tech boom that began in 2007 after the recovery from the dot com bubble along with the smartphone driven markets that sprung up that will explain housing prices in California, think of the labor market, think of the retirees, think of legacy values, current values there are huge factors that can justify pricing other than just investors and weird supply and demand issues.

>>18669184
But what will "rich people" do with all these houses?

If you buy at a too high price, you never recoup the money or even lose much of it, if the rent you try to demand is too high for those around the area to live in them. So either the house is empty (lowers value, raises costs and no income in the meanwhile) or rented out at a reasonable price.

>>18668987
Maybe if the US government didn't blow trillions of dollars bombing desert mud huts things would be better

>>18669088
Nothing about our system is sustainable. Buckle up, money printer about to go BRRRRR like never before

>>18668945
you have population declines in countries where housings gone up 25% in the last four years

>>18668619
You need to time the mortgage default which will inevitably occur. We won't see 2008 levels of market crash but rather a nice correction in the neighborhood of 20 to 25% in most markets. I expect this will happen in July

>>18668619
real estate have doubled in price every decade for the past 100 years wtf are you clueless moron talking about

>>18669276
Landlord here. The ones that know the market don't lose money renting. We may not perfectly time the market but it don't matter. We are renting it out and making it. So even if we break even on sale price after 5 years, we made that rental money. Though, usually we buy upcoming areas only. Again, it's all about location. Where I am, I literally have over 20 applicants with a Craigslist add in a day.

>>18669310
>I expect this will happen in July
I see more of a slow slide downwards until jan/feb next year.

Foreclosure will be delayed by the state, small savings touched and the realisation that things cannot stay the way they are will sink in.

>>18669310
>We won't see 2008 levels of market crash
Curious what's the logic here? Why wouldn't it be worse considering things are worse now?

>>18669396
things are wrose, but there's also more people
tough call

>>18669276
Rich people who roll up property dont even use their own money to roll up property, the accountants figure it out, then the owner goes and sells the company worth hundreds of millions.

>>18669450
They set up corporations and get money from fund managers and banks.

>>18669098
You're a fucking retard. People with money hoard properties and rent to the unwashed immigrant masses, then they use the rent money to buy more properties.
Unless you kill the demand, i.e. gas all the immigrants the housing prices will go up forever.

>>18669338
>after 5 years, we made that rental money
I rent out a couple of small flats in my hometown myself and I think you talk about a quite specific case.
A lot of the neighbouring flats and houses around my area were bought, sometimes "renovated" into "luxury"-apartments over the past decade and then sold to heavily leveraged "investors" who cannot afford to rent out these apartments under a certain level of rent.

As soon as there is leverage involved, we undoubtedly will see selling. Otherwise the current expenses simply cannot be met by the rent.

>>18669251
>Also keep in mind that the real estate market is highly local

this. Just look at houses in tier 2 and tier 3 cities and you'll find a much more affordable cost of living.
>muh tier 1 city lifestyle
you can't have everything

>>18669338
>jewish controlled money borrower
>cant spell ad
fucking checks out

also, what do you faggots think is gonna happen when boomers are gone? the next generations are smaller in size, and have a lot less accumulated wealth. Prices are gonna pull an oil on you and basically you will get paid to own real estate

https://www.youtube.com/watch?v=cd4-UnU8lWY

>>18669471
>rent to the unwashed immigrant masses
But who is paying these enormous amount of rent for imigrants?
Do they rent out these luxurious penthouses and freshly renovated studios with their own elevator and big rooftop terrace near big cities?

>>18669098
They are willing to mexipack 12 to a 600sq/ft apartment, and live off canned beans and tortillas.

>>18669543
Not only that, why would a property owner buy single family homes when they can buy townhouses or small apartment complexes that they can rent to 2-5 families at once?

I don't understand how anyone affords anything. Real estate is retard levels of inflated. I would love an app like Zillow but it lets you click on a house and see somebody's occupation.

>>18669543
These are rented by the middle-tier wageslaves and H1-B immigrants of the cities. It's doesn't make sense for them to buy, because they don't expect the job forever.

The cheaper condos are rented by the illegals, the bottom of the barrel is rented by the hipsters.

>>18669600
I'll admit I can afford a mortgage it's not too much to afford but I don't represent the average American as my earnings are high and I don't want to lock myself into 30 years of indentured servitude.

What person working a 9-5 making $12-$16 an hour looks at a 30 year commitment like that where they'll be paying upwards of $1500 on top of everything else for the majority of their adult lives?

>>18669396
Government-sponsored enterprises, or GSEs (Fannie Mae and Freddie Mac) gave out mortgages like free water in the mid 2000s which led to the subprime mortgage crisis. Although you are right, the situation could possibly be worse since we are approaching depression levels of unemployment (>20%).

>>18669338
>landlord here
I honestly hope the covid outbreak fucks you and you lose all of your assets and you end up having to rent from some asshole. Sincerely. You deserve the same as the people you steal from.

>>18669471
>housing prices will go up forever.
so it basically means the rich get richer and fuck everyone else. and people wonder why there are mass shootings.

>>18669600
this. we already know most people lie about their wealth and really have much less than they tout, they only get assets like houses using credit. Good boy points buying a roof over your head sounds mighty Chinese to me.

>>18669780
Go back to r3ddit, you filthy communist.

>>18669666
Are your posts supposed to be facetious?
We're all slaves you retarded faggot. Its that or die homeless in the street. You're acting like some delusonal boomer.

>>18669541
>Prices are gonna pull an oil on you and basically you will get paid to own real estate

Never in a trillion years will that happen. They'll just de-list everything.

>>18669953
It will happen when millions of mortgages get defaulted on and banks will own a sizeable chunk of the housing market with no demand, while having to pay taxes and utilities.
They will literally pay you money so you take the house off their hands.

>>18668619

>>18669098
Greetings from Canada, rich chinks bought all our shit. They happily go for over a million over asking on the regular.

>>18670056
I'll believe it when I see it. They already had a bunch of housing surplus after 2008 and they just let it all stay unoccupied and fall apart.

>>18668619
for $170,000 and are now being sold for $240,000 two or three years later. One example was literally $130,000 May 5th 2010 vs $259,900 April 10th 2020

I will point out that the buying power of those 2010 dollars is greater than 2020 dollars

>>18668619
Central banks have been doing endless QE since 2008. This has pushed the limit of what investments are suitable for people due to bond interest rates going down and down. Real estate was the last bubble to inflate due to the massive liquidity injection, and it will be the last to fall.

>>18668619
>Wages haven't gone up nearly enough to justify this kind of inflation
its called real wages and theyve been stagnant for a long time up until recently

>>18668987
Yes, youre right
Your money is worth shit now and it will get worse

>>18669216
Brilliant

>>18669088
Couldn't even buy a detached house for $500,000 in Canada.

>>18668945
OMG what? No! Once the boomers die housing is probably gonna become cheaper again. Boomers are the biggest generation in history and once they’re gone demand for houses will be remedied.

Boomers are quite simply hogging all the houses right now.

>>18669082
If you're not paying your mortgage right now, the fed is footing the bill for the next couple months.
Some lenders are even promising extended forbearance periods

>>18670493
And demand for houses is why many places have grown in value.

>>18669168
Reminds me of the market in Sweden. Rent control couple with population increase through immigration has kept the availability of rental properties low, leading to waiting queues that literally last decades. Interest rates were lowered on housing loans and the real estate prices shot up like crazy with 10% annual growth for several years in a row. When big loans are readily available to buyers, there is a huge incentive to drive up the cost of properties, since everyone can now afford the high price with a loan.

on a related note, how can i convince a nicer apartment complex to give me cheaper rent than i’m already getting?

i figure corona is making tenants less stable with their payments but i’ve still got a job and want to take advantage

>>18669118
>That oven mitt

>>18670076
Sheeeit mane what this be dog

>>18668619
The real estate market is manipulated by increasing demand for the limited supply, through immigration.

>>18668619
Never you fool. Hyperinflation is going to cause the prices to keep going up in USD.

>>18669541
They will bring in the third world to compete with you for entry level positions and affordable housing.

You don't win this game.

>>18671032
>Hyperinflation
Stopped reading right there, go back to r/wallstreetbets

>>18671032
We've already gone through the hyperinflation phase. Except instead of having trillion dollar bills like Zimbabwe, our wages remained stagnant.

>>18669276
they rather it sit empty than lower rent, and they rather it sit abandoned than selling below what they paid for

>>18669088
If you’re an oldfag making 68k, that’s really sad. I don’t even work in IT or any redd*t shit like that and I’m double that at 30.
>t. 2007 newfag

>>18668619
I just came here to post this thread. I've been looking for property and earlier today I noticed that a bunch of currently listed properties were reduced in price. The average reduction was between 5-10k but there were a solid handful that went down 20-50k. Has me thinking maybe I should hold out for a bit which is hard because I found a couple that were pretty top notch.

>>18668619

>>18670089
If they do that again people will start heavily griefing the Minecraft servers

Bought a house in fall last year. Am I fucked? 250k for 2k soft house in subs.

>>18669902
>We're all slaves you retarded faggot. Its that or die homeless in the street.
Why are you here?

>>18669396
they just say that as wishful thinking. 110K restaurants alone are expected to shutter permanently in a couple weeks. other businesses will follow. unemployment isn't going to go back once lockdown orders lift. we really are in the cusp of a depression. housing absolutely will fall.

>>18669338
Thank you for your service sir
I cannot wait for SUTER to bring me to your social caste

>>18670559
Likely you signed a lease so negotiation will be difficult. In addition, if your neighbors are not paying their rent, your landlord is not at all incentivized to take less from you right now. Better to report the rent loss at full price whenever the government hands out the landlord/mortgage bailouts.

>>18672953
No they won't.

>>18673601

no, i dont want a nicer place at my current complex. i want to move to a nicer complex.

>>18670212
woah

>>18670080
^he’s right you know

>>18672231
68k is above average salary in the US.

>>18668619
gotta wait for recent covid foreclosure laws to end then foreclosure spike will bring down housing prices everywhere

>>18672231
>living in a cucked area like Jew York or Bay area

>>18669168
That’s pretty much if. Real estate is just about 100% a function of the price of credit. You can throw in other factors like flooding the market with immigrants but the core of the problem is insanely cheap credit.

>>18669780
How are they stealing from anyone? Why should they give their property away for free? Your retarded nonsense makes no sense.

>>18669168
Real estate is neither liquid nor fungible, the fact is land price is controlled by local and federal government in addition to speculative inflation