/biz/ - Business & Finance

>>49729187
These are the people calling you chud

That's some norf education right there

>>49729187
My mom used this exact same logic to try to pressure me into cosigning a $2M mortgage with my sister just before the market went south.

>>49729519
>$2M mortgage
what the fuck

>>49729187
Next stop for this repost is Blind I guess. OP never stopped being a faggot.

>>49729187
we had this thread already
>are you owed money?
a woman wrote this

Where is the entire thread, I need to read the comments.

>>49729519
And you signed? Lmao

>>49729551
She wanted the land because according to her it is in a beautiful location, the house on top of it is a shitshack. That was enough reason to sell her kids into financial slavery.
>>49729643
No of course not kek. She's still mad about it.

https://www.reddit.com/r/AskUK/comments/vdhduq/what_happens_if_you_buy_a_house_then_a_few_years/

>>49729519
he signed? shrump it.

>>49729759
its gotta be a troll, even women aren't this dumb.

>>49729187
it's starting

>>49729685
buy it up for a 20th of the price in a year and then put a no mum's allowed sign on it

>>49729187
HAHAQHAHAHAHAHHAHA FUCKING CHRIST THERE IS NO WAY PEOPLE ARE THIS RETARDED

>>49729519
>doing business with females

>>49729979
fr though what happens to bungie niggers? I don't do normie "sports" that could have me killed or in severe discomfort.

Let's say you recently signed on a mortgage: what happens after the collapse? Please explain to me like I'm a mongoloid.
>Thank you

>>49729685
Your mom's a moron.

This is your average home owner's IQ.

>>49729187
this is fucking hilarious

>>49731138
You get absolutely cucked, in worse cases your debt to the bank is valued more than the actual property itself, a guy I knew had his property devalued due to some council shenanigans and he was stuck paying $700k mortgage value on a $500k property, he was set up for loss no matter what he did and every day he looked like he was going through hell because he originally wanted to change careers and got stuck.

>>49731269
Yeesh, that's pretty bad

I'm a retard like OP's pic. What happen to debt in hyperinflation scenario? Will bank reassess the debt according to hyperinflation value

>>49731138
>agree to pay $500,000
>you must still pay $500,000

>>49729685
Tell your mom that I think she SUCKS!

>>49729685
Your mom is a boomer piece of shit. No offence.

>>49731138
imagine a guy sells you a shit sandwich for $5. and everyone else at the time agrees that the shit sandwich not only is worth $5, but will be worth $10 in a year. you buy the shit sandwich for $5. a year down the road when reality sets in your shit sandwich sitting in the fridge is now worth 10 cents, and everyone agrees its worth 10 cents. problem is you spent $5 on it. same thing applies to having a loan. you buy a house for x amount of dollars, that's what's agreed upon, simple as. $5 is $5 and 1 million is 1 million. you owe whats agreed upon regardless if the market changes its dumbass mind

>>49731121
The bungie-jews are awfully quiet and evasive about this SIMPLE question.. COHENcidence much?

>>49731067
nice Don, anon, I haven't seen that one before.

>>49733968
they pull you back up

>>49729979
this is a good question actually

>>49732956
Oh I KNOW she cucks. My fucking cock.

>>49729231
fpbp

>>49731894
Most likely. If they did it in Weimar Germany like that in the 1920s, you can be damn sure that jews have figured out how to close all loopholes for the debtgoys.

>>49731121
you bounce up and down a few times then are lowered to a crew on the ground, wtf do you think happens?
I hate zoomers so much it's unreal

>>49731138
its only a problem if you have to move, the monthly payments are the same

How do house prices go down? I don't remember millions of people becoming homeless in 2008, so if the supply isn't increasing by millions of houses becoming empty how the fuck does the price go down?

>>49734550
The one I did, a guy got lowered and brought you back up

>are you owed money

lmao

>>49734589
Sounds like you could have just climbed up yourself, lazy bones.

>>49734559
>How do house prices go down?
interest rates roughly dictate how much someone can borrow, at the moment people treat their housing price range by how much their monthly repayments would be on the loan.

we can use new zealand as an example because i was looking at it the other night. 1 year ago a 500k loan would have cost about 3400 per month in mortgage repayments, right now that same loan is around 4100 to pay.

imagine this happens to millions of people simultaneously, many will be forced to sell their existing house because they cant afford the repayment costs (this is if they are lucky, the unlucky ones will have it taken off them by the bank eg 2008).

tl;dr = more housing supply means prices go down, plus people cant afford to bid higher prices so double whammy

>>49729519
>$2M
>Mortgage
Your mom earns at least $500k a year right? Right?

>>49729187
>Are you owed money?
Top kek

>>49734614
>Buy $1 million dollar house
>Market crashes
>Bank owes me
GG EZ

>Take out mortgage for a 10 million dollar mansion
>Buy house nextdoor and rent it out to basketball americans.
>Mansion value crashes to 100k
>Bank owes me 9.9 million dollars and I get free mansion

Simple as.

>>49734928
>Use 9.9 million to buy another mansion and repeat ad infinitum
>I now own the bank

>>49729231
Thess are the actual chuds projecting that all who oppose them are chuds instead

>>49734777
Witnessed, thanks for the explainer

>>49734801
She makes $25k a year working part time. Our combined income is around $200k a year before taxes but we have $400k mortgage already still being paid off. I don't think we could afford a $2M mortgage even if we were debt free at the moment.

>>49729979
Wait, how tf do they get out though

>>49731121
They cut the ropes and let you drop

>>49731894
Yes but that’s the whole purpose of the 2nd Amendment. It’s so that you can kill uppity bankers.

>>49734777
But what about a fixed rate mortgage

>>49735312
>But what about a fixed rate mortgage
im from Australia and here most banks will only give fixed terms for 3-5 years. it might be different in America as i believe some people have been able to take the whole 30 year loan at a fixed rate.

guess im trying to say if you got the whole 30 years fixed at a low rate then you're fine, even if the home valuation suffers some drawdown you shouldnt be phased.

>>49735142
Holy shit, never take any financial advice from your mom. Jesus FUCK. Tell your mom you never want to talk about money with her.

>>49731913
REEEEEEEE

>>49729231
kek

>>49735393
We have opposite mindsets when it comes to life, she believes that you can't live without debt and you should always be leveraged up to the moon and back she doesn't know what leverage is but still that's the lifestyle she's trying to push me towards. Meanwhile I'm trying to get us all debt free before my dad finally has to retire, he's sick with diabetes and heart disease, probably a result of being pressured by my mom his whole life to be on the grind. Our situation is more fucked than she thinks, she's still living in the 90s where you could mortgage and pay off a house in 5-10 years on average wages because she hasn't had to worry about the actual finances her whole life.

okay, another dumb question

lets say you took out a 100k loan at 2% interest
now lets say over the course of the next five years, there is 50% inflation.
do you still only have to pay back like 107k or so even though its worth like half as much?

iirc everyone was talking about interest rates are super low right now??

>>49735921
You're supposed to be getting raises and pumping your wages by job hopping for opportunities alongside inflation, if you're just in the same old job that doesn't give you any raise in those 5 years the value decrease of the loan doesn't apply to you, you just get fucked by increased cost of living.

>>49735921
yes, if hyperinflation hits, loans become much cheaper

>>49735921
this is how we know hyperinflation of usd is guaranteed, theres no other way to pay off our national debt

>>49731121
they only show you the ones where the cord didn't snap.

>>49729187
>reddit
go back

>>49735921
>iirc everyone was talking about interest rates are super low right now??
Yes interest rates were very low and are only just now getting raised even to where they should be in order to combat inflation. The issue is there is too much leverage in the housing market such that small rate adjustments are going to turn directly into homelessness because all loans were subprime and only allowed because of absurdly low rates. These people are not going to be able to afford the new mortgages (which are going to get changed, fixed rate is meaningless the jew will always leave himself a way) in addition to having paid 30-100% more on a property than what its actually worth. Even if they don't get foreclosed on they're going to be upside down on their property as a monetary investment, which most people consider it as for the purpose of shit like net worth for retirement.
As the first waves get foreclosed on/declare bankruptcy this will trigger even higher payments from the bank which will feed into the problem. Regular people will see that their house is under threat and start a run on the bank to get as much money out as possible because
a. Inflation will halve its worth within a few months
b. the banks have had 0 (ZERO) reserve requirement for a few years now so they have all of your money invested somewhere that they are now not going to get back.

>>49731894
Banks won’t be a thing after the fires stop burning and the bodies stop smoking

>>49734559
>I don't remember millions of people becoming homeless in 2008
Tens of thousands did. Most people end up living with family, so the average number of people living in a home goes up. It only takes a small amount of that happening to crater pices.

>>49731894
Economists say that debt is good for the indebted because the principal on their loan is smaller in proportion to their income. If you buy a bond, you have to keep inflation in mind. Banks have to do the same.

>>49735921
My grandfather paid off his mortgage like this in the 80s. Our economy crashed and we had hyperinflation (resulting in moving to a new currency).

>>49731121
Once youre dangling they try to extract additional payments to let you down. After the blood flows into your head for an hour you will do anything. Google "Predatory Bungee" or "Stripping Hanging Danglers".

>>49736186
lmao you don't really think that, right?
the only way hyperinflation hits is if the treasury is shitting bonds like a machinegun to pay its own gargantuan interest

Good day sir, your house just crashed in value. Consider the mortgage paid off and here is your free money from us too!

And then you wonder why people buy into monkey jpegs Luna and celsius

>>49729231
Don't panick, there will be massive dumps then overall crab until March 2023

>>49688128

>>49737721
Oops, sorry. Wrong thread

>>49729519
>$2 million for some plywood

A FUCKING LEAF

>>49734559
for some reason wayback machine doesn't show his twitter the day he died
https://web.archive.org/web/20110620193137/https://twitter.com/ryandunntv
is way back machine cucked?

My boomer dad is looking to buy a property to rent out. I have a financial economics degree and have repeatedly warned him he's buying the top, but he's a stubborn retard. He'll never hear the end of it once the market rugs.

>>49734559
How many people can afford a 400k+ mortgage at 10% interest? Exactly.

>>49729685
>She wanted the land because according to her it is in a beautiful location, the house on top of it is a shitshack. That was enough reason to sell her kids into financial slavery.
you should murder her
I mean it
poison her or rip her brake lines
she deserves it

>>49734559
Organic supply and demand is cope.

Tangential question:

If you get a 3% rate on a $500k mortgage, the total loan amount is something like $520k

If you get 10% on $500k, somehow that loan is like $1.8 million

Firstly, how the fuck
Secondly, if rates go down and I refinance, is my loan amount lowered too? And therefore my monthly payment as well?

>>49729551
How doI pin a post?

>>49734559
>I don't remember millions of people becoming homeless in 2008,
They actually did. You just didn't see them becasue they were white and still had a job or some means of working so they just lost their house and moved into a shitshack and carried massive debt with them and now work some dead end job.

>>49734559
Look up the term 'discounted cashflow model'

>>49736186
>guaranteed, theres no other way to pay off our national debt
Yearly obligations are 500 billion which is a 8th of the USA yearly tax revenue. Thats hardly a problem. It does mean we need to have an actual budget though. But collapse no.

Bros will i finally be able to buy a house? Will the banks jew me out of a loan if the housing market crashes to an adorable price?

>>49735755
You must be larping.
If not, you are an adult, right? Tell her to fuck off. You clearly know better than she does so why even entertain her financial delusions. Do what you know is right. I can't imagine ever letting a family member who is so clearly financially retarded pressure me into doing anything I didn't consider a good move.

>>49735351
>guess im trying to say if you got the whole 30 years fixed at a low rate then you're fine
Unless you ever have to sell

>>49739647
Should be fine assuming you have your 20%+closing on hand. Stash every penny you can. Don't miss out again

>>49739647
Affordable** though it would be adorable as well
>>49739719
I hope your right, my credit is really good. Only problem is I haven't made loans in the past and only have one credit card.

>>49737516
>"Predatory Bungee"
>"Stripping Hanging Danglers".
nice, made me actually google. gj

really hit that.. but what if?! feel

If you BUY a house interest rates rising and the housing bubble bursting wouldn't effect you at all, It would just mean you would materialise a loss if you or your kids ever sold it.

And most home loans are 30-year-fixed-interest which means your technically protected from interest rate rises.

Rentfags may be fucked doe

>>49735175
They cut the rope and you die.

>>49739845
All home loans in eurozone are fixed interest + usually a 6 month EURIBOR.

>>49739845
you materialize the loss the moment you buy

>>49729519
>$2M
I hope it was an ancient castle to renovate or something. Otherwise kys if you bought a literal McCuckshed for this amount of money

>>49731067
Posting fictional tough guys won't make you any less of an adult virgin

>>49736186
Just get Biden to forgive the federal debt.

>>49739702
If you are underwater on the house can't you just nope out of the deal? I was under the impression that home mortgages were limited to collecting the house and couldn't pursue other assets.

>>49736900
Also, there were a lot of Obamaville’s that sprung up after the 2008 housing crisis.

>>49740122
Hope she sees this bro

>>49740122
Stretching your axe wound won't make you any more of a woman, anon.

>>49740122
Roastie detected.

>>49738974
How many people buy a single family home on variable interest rates?

>>49733968
>not bunjews

>>49739647
just go to your local credit union. they approve anybody

>>49729187
It just means you have no choice but to live in that house until the house price appreciates above your fixed loan amount.

If you foreclose, you're fucked because you lose the house and still owe money.

>>49734589
Why don't they just have another cord that sends you the other way? Guess profit margins are slim in that business.

>>49729231
exactly, only that insult is hilarious because it's like a child calling you poophead. It's just more pathetic flailing by libtards.

You have a ton of subprime autoloans. And they'll stop paying because they can't even afford to fuel it. Then you have student loans in political limbo a mere 2 plus trillion and growing. Credit cards APR is going lunar. You have a global famine brewing. The western US is going dry. The Colorado is becoming a stream. Ogollah Aquafier is going dry. You have all the shittiest element of the great depression only even worse with less social cohesion.

>>49729519
Post pics of your sister

No joke though a lot of banks in the US did give back money on mortgages after 2008 because of not taking appraisals seriously enough.

I get its a joke because that's not how it works, but the system is literally rigged in owner's favor.

>>49734980
>>>/lgbt/
>>49729231
fpbp

>>49729187
By that logic, the mortgage will pay way slower as the asset appreciates.

>>49739249
The interest is based on the outstanding balance of the mortgage at any given time, and the balance decreases as more principal is repaid. The total amount is higher when the loan term is longer, because the monthly payments are lower and the balance goes down more slowly.
If you refinance at a lower interest rate, your principal stays the same. Your monthly payment could go down because the interest would be lower, but it would be in your interest to keep paying the original monthly payment so that you pay off the loan faster, and thus end up with a lower total amount.
https://www.bankrate.com/loans/loan-calculator/

>>49731894
Debt will disappear and banks will collapse. Giving people mortgages is a risk and they will take the consequences.

>>49731913
Right. But is that really so bad if you plan to live there for a long time? Presumably you bought a house you could handle payments for, so just stick it out a while and keep paying, it'll come back.

>>49729187
Lol /biz/ has dumber posts

>>49740055
I didn't buy shit and we're in an urban area the house is a wreck needing to be demolished and rebuilt. The prices here are being purely driven by speculation and rich chinese investors and my parents moved here for the status of being in a "rich" suburb. I think she's going to try again in a few months time for another place and have my sister argue with me as well they are fully in agreement on this idea and my dad is too beta to go against them. I don't know what I'm going to do if they end up taking out another loan and just go sign up for financial suicide without me shit is just fucked we're going to end up backpedalling or losing everything if dad gets laid off like in the scamdemic or has to retire for real. Sorry for blogging my anxiety is building little by little every day.

>>49743403
unironically punch them

What happens if you buy dogecoin during musk's appearance on SNL and then it dumps to 0.05 cents. Does Robin hood return your money?

>>49735921
>do you still only have to pay back like 107k or so even though its worth like half as much?
Correct, the loan value in USD remains the same even as the dollar's value crashes. However, it's a moot point if your sources of income are not increasing at or above the rate of inflation.

>iirc everyone was talking about interest rates are super low right now??
Interest rates have gone up a lot with the economy slowing down and FED raising rates. 30 year mortgages are now over 6%.

>>49740328
You can nope out, or better yet just stop paying and dip after the sherriff posts the eviction notice. Your credit rating is in the toilet but in 2008/9 people were saving 2 years of payments before the banks worked out who to go after. IIRC there was also a lot of cases where the banks had put the deeds up as collateral and couldn't produce them for the evictions to go ahead. Fun times.

t. boomer

>>49729187
He's not entirely wrong if he lives in an Islamic Banking country.
Definitely wrong if he lives in a Jewish Banking system (aka rest of the world).

>>49729187
Nothing because your home isn’t suppose to be an investment vehicle

>>49729979
>hotbitch2019

>>49731121
You are one dumb son of a bitch. WTF do you think happens? They lower you safely to the ground. Jesus fucking Christ....

>>49734777
Im locked in with my mortgage for 2.625%
Feels Good Man.

>>49729979
A helicopter comes to pick you up. You have to swing yourself back and forth to get momentum, and at just the right time, the helicopter banks away so the blades don't chop the rope. A man grabs onto you, hooks you on to the helicopter with a karabiner. And when the helicopter rights itself, the blades cut the rope, and flies you to safety.