/biz/ - Business & Finance

>>22829134
>I personally feel like the FED would sooner write off every boomer and airbnb slumlord's mortgage balance in full rather than let the bubble collapse

same. I fell for the meme I think. I thought there was gonna be a huge housing crash but I honestly think they learned from 2008 and simply won't let a housing crash happen again.

So I sit here and stare at OUTRAGEOUS house and lumber prices and I'm just honestly not about it anymore.

>>22829134
Wait until you have 50% down or forever be a slave.

Work harder, swing low caps, or just look at LOKI and stake.

OP consider yourself lucky and buy a fucking house. I live in LA in what is essentially a renovated garage in some rich person's home for 3200 a month

>>22829134
People bought houses in the 1950s because a house was a cheap piece of shit in the suburbs where you could put your stuff somewhere that lowlives and niggers couldn't steal it. Literally just 1 year's salary.

Even in the 1980s when boomers were having families and buying houses, it was still only about 2 years' salary.

Look at houses now- average price is 5 years' salary at the 'low end' and that's in shitty areas/townhomes.

Only a fucking moron would willingly buy a Boomerbox, it was only a thing because they were cheap and salaries were good. That isn't the case now.

>>22829278
>Wait until you have 50% down
You think the stock market is gonna net less than 2.8% average annual returns for the next 30 years? Why would I do that? Debt is a tool that poor people use to get poorer and rich people use to get richer, I'm relatively rich right now and mortgage debt is currently very, very cheap. Why shouldn't I use it?

>>22829134
Do it.

My gf bought an older brick house huge backyard in tech city. Im living with her now. She just refinanced, we pay like 560 a month each both with 80k salary jobs, no kids. Worse case scenario, if her and i break up, im paying her rent 560, which is 40% of what I was paying n g for rent in the same area. Best case, we get rich as fuck together, and laugh above the poor people in our rich person bubble

>>22829371
You're either paying a mortgage in your boomerbox or paying a boomer's mortgage for him while renting his boomerbox. It's inescapable.

Price:income is retarded now, I agree. I just ask myself if it's more retarded than the FED, all the major banks, and the collective will of all the boomers who refuse to die and need their retirement accounts and their equity to go up forever. I don't think anything can trump that level of retarded, and if it can't, I may as well go with the flow and become the boomer.

>>22829455
>be a slave because reasons

That's where you're wrong, kiddo.

>>22829382
based, sounds like you have a good grip on things. I'd say if you can put 5% down on something and still come out with a monthly payment that is equal to what you would pay in rent, maybe even a little higher than rent, then it could potentially be worth it if you like the property. But renting is generally underrated. I actually rent an apartment for my self right now but I buy cheaper townhomes in other neighborhoods that have better rent/value ratios. Buying in the area I want to live in right now doesn't make sense financially.

>>22829479
Describe the option where you're not someone's slave. Renting? Boomer slave. Buying? Bank slave. Even if you buy your house with cash, you pay property tax forever, so you're the city/state's slave. Those are all your fucking options. I guess you can be homeless and bask in your freedom for a year or two before dying of hep B under an onramp somewhere. Or try going innawoods on someone's property and getting shot in the face next hunting season.

>>22829134
Buying a house is a luxury that depends on your lifestyle. You don't buy a house and live in it for financial benefit. The opportunity cost is why it is worse than renting. You can get better gains in other assets that don't have additional costs associated with them. Investing that down payment and renting is better for a single dude every time. People who look at the historical gains on housing prices as justification for their purchase do not take into account all the other costs involved with upkeep, this literally even applies to people who bought in the right place at the right time. They also omit the fact that if housing prices are going up, so is every other market. Markets are bull at the same time, and a bull market on housing has less gains than a bull market in other assets. Don't get me wrong, there are situations where buying a house is the correct move, but those are when your lifestyle calls for it. The times when your lifestyle calls for it are when you have already made, you have kids and need space (and are on a position that you need to make compromises), or you cannot let go of the fact that times have changed and homes are not as affordable as they once were and you unreasonably feel that this is the next step.

>>22829134
It's simple math really.

Renting is a full loss of capital contingent on you not using any of the space/associated cost for business purposes.

Buying a house however, depending on how you transfer equity (full cash pay off, finance which turns into equity further as time goes on, etc.), is generally not a full loss investment

You can actually quite easily model in excel how much actual equity you will have as time goes on, vs rent, how much your cash flows will change, etc.

Ultimately though, if you've found an area you're willing to stay in, are willing to mortgage/pay fully, I see no reason to continue renting.

Besides, you can't rent out an apartment after you're done with it. You can do that with a property.

If you want to live in it, look into down payment assistance programs.

>>22829134
The housing market will not crash, do not wait for it, buy a house. If you want specifics, it's because boomers and investors will never let prices fall now that mortgage rates are low.

>>22829632
I think it's not as simple as 'you always get better returns in non-housing markets'. You're also paying a monthly subscription fee to gamble in those other markets, it's called rent. Whereas in home ownership, your monthly payment becomes equity that you can cash back out later.

Consider that mortgage rates may actually go even lower. Yes that's right LOWER than 2.7% for you. This is my thought process:
>Inflation metrics that the Fed uses are currently not high enough for them.
>Combine that with very recent equity market decline.
>Fed will continue MORE quantitative easing.
>QE lower yields - causes banks to lower interest rates on all loan products.

If you want to see how this will eventually play out, look at gay countries like Denmark that have NEGATIVE mortgage rates. In 2019 Jyske Bank A/S started offering a mortgage loan with a -0.5% interest rate. Get paid to borrow money to buy a house. This was 2019 where there were no major deflationary shocks like we had this year.

>>22829134
BUY A HOUSE FAGGOT

The housing market is always shifting. We are going through major change right now with the pandemic and new attitudes towards remote work. I also suspect a major infrastructure push (regardless of president) that could bring high paying jobs to a lot of currently cheap markets. Very hard to say where we will be in a few years. If you think you will be in the area for 5+ years and don't mind the up keep on a house, go ahead and buy, but remember that housing is just as much as liability as it is an asset.

>>22830024
To add to this, if you want to buy now, then you have to explain WHY you want to buy literally at the real and nominal all time top of the US housing market. On this chart everything real (blue line) before 1996 is pretty much a flat line. From 1997 you get housing price increases that became the housing bubble. Why is 2011 to now different?
>the FED would sooner write off every boomer and airbnb slumlord's mortgage balance in full
This can't happen under the current rules and would have to be changed by congress, which can't even work to agree to pass a desperately needed stimulus bill. I don't see it happening any time soon.

>>22829566
You're supposed to live at your parents while investing into crypto until you make it.

>>22830226
I don’t agree with this. Also election years are usually bad for sellers and good for buyers. Also better to buy in Fall/Winter than Spring/Summer. If you are going to buy. Buy now through February.

>>22829278
why would you put all that nice liquid capital into a house??

Theres a reason the uber rich still have mortgages...they get great rates (2%). Now the everyday joe can get really close to those rates and you wanna tie up yr capital in a house?

Why not use leverage? and sell in 10, 20 years if you want or pay it off then. Or you can pay a larger percentage down payment like 30%.

>>22829134
>>22829181
So heres one for you. Lumber prices are sky rocketing for no reason. We still have trees. So maybe its somehow a conspiracy to not let people escape by building their own homes from the skyrocketing housing bubble. So trapped in renting

>>22829382
>>22829492
Mark cuckburg had a HELOC for something like 0.01 % in that case it would absolutely make sense to pay everything at once and get the HELOC.

>>22829134
If you buy it as an investment (buy house and then rent it) do it, if not don't. Mortgage for your own house it's just enslave yourself, it's a "you know who"'s trap.

>>22829134
You're right. The prices won't ever go down until some sort of real financial risk is revealed. There's no Lehman moment in this "recession".

The best time to buy a house is yesterday. Hope you have your 20% down.

>>22829632
so renting is marginally better financially, what about all the other horseshit you have to put up with for being a rentcuck? would much rather own desu more lifestyle control, which is why we make money in the first place