/biz/ - Business & Finance

they are tho
QE is inevitable

>>53934380
Do you realize how sticky inflation is now? There’s no way the Fed can lower rates until 2025

>>53934380
a mortgage is simply a 5x leveraged position in real estate. They too can be liquidated before the pump just like crypto degens.

>>53934390
theres no way the government can maintain 120% and rising debt to GDP with positive real rates, theyll force Powells hand before the US defaults
>>53934393
except mortgages dont have a liquidation price, you just have to pay your monthly and wait for QE before thinking about moving again

>>53934380
Those days are over, zoom zoom.

>>53934366
It will go slightly below previous ath, just like bitcoin.

>>53934366
>normies blindly succumbed to FOMO to such an extent that they now owe 30 years of wageslavery to their jewish overlords

>>53934366
>Nick Gerli
Kek

Let's see here...6 units with $6000 cashflow per month if they are full and no repairs. So I would break even some time in about 50 years. Sounds like a great investment.

>>53934414
An enormous amount of real estate spending over the last bubble build was through HELOCs, which are subject to margin calls. People were investing hard until only just recently so we haven't seen liquidations from these people. Most of them can't even sell now because they took renting leases thinking line go up forever. So they'll have to cover out of pocket, or default.

>>53934812

Yeah I'm still seeing people wanting june 2022 prices and you're just not going to get that.

Retard here, if wages aren't keeping up with inflation isn't OPs chart a little disingenuous

>>53934908

His chart is just extending a trend line there's no guarantee that it will keep doing that.

>>53934812
Ive seen so many reel/TikToks pitching real estate ponzis along these lines

>buy home
>renovate
>lease or Airbnb
>reappraise higher than purchase price + reno costs.
>cash out refi and buy next property
>I now own $42 mil in real estate with only $35 mil in debt and have made $7 mil dollars! You can too if you subscribe to my channel

These people are going to get absolutely wrecked as the market drops and they are $10 mil underwater with no cash flow as tenants stop paying rent and AirBnB rental bookings evaporate. These are the “high credit score buyers” that are referenced when “experts” say this time is different from all the sub prime lending that caused the last crisis. Also keep in mind many landlords are just now completing 6+ month eviction processes for tenants that didn’t pay a dime while the Covid eviction bans were in place.

I expect we will see inventories start slowly climbing over the course of 2023 with the market free fall starting end of year/2024

>>53935092

We are about to have a historic amount of inventory come online over the course of the year.

>>53934606
The bottoms aren’t slightly below previous ATH, they are all the way down to the ATH from 2 cycles prior

>>53934366

Yes.

>>53934755
/thread

>>53935139
I really don't see that happening because rent would have to decrease so much

>>53934755
and its in spic over-run AZ lol, who the hell wants to live in mexico.. also likely wont even be able to support a population in that desert in 50 years anyway

>>53935163
>rent would have to decrease so much
what, exactly, makes you think it isn't going to? developers went insane when interest rates were low over covid buying up commercial real estate, tearing down office buildings and redeveloping them into mixed use multi family condo/apartment communities. record number of these units can be seen coming to market now.

>>53934366
I've been waiting for the housing market to collapse for a couple years now (post covid)

>>53935212
Rent never goes down. Rent is already only like 400-700.

>>53934366
Maybe not forever, but it still has a ways to go. Housing is still very cheap compared to what you get. As more third worlders pile in and multiply the housing market will approach the natural state of poverty wherein people pay basically everything they make to have a roof over their head. That means more people will live in houses with extended families, roommates, etc. If one or two people can pay for a large 3000+ sq. ft. house then housing is still undervalued.

>>53935092
If you have a $42 million portfolio and $35 million in debt then you should sell everything and get the fuck out immediately. If there is one small market correction your life is ruined.

>>53935255
moron

>>53935092

https://www.reddit.com/r/wallstreetbets/comments/vdokhk/the_big_short_2_trailer_just_dropped/

I know it's reddit but this is probably what you are referring to.

>>53935255
>Rent never goes down.
>Apartment rental prices have dropped in every major metropolitan region across the U.S. over the past seven months as the largest batch of new housing in almost 40 years hits markets across the country.
https://www.cbsnews.com/news/rents-apartments-fall-2023-housing/

>>53934380
>QE is inevitable
>>53934536
>Those days are over, zoom zoom
The US is prime for a lil printing run because the dollar has just hit its ath against the bong and euro, last achieved in 1985. So they can now justify a lil print run.

Millenial bong land obba

>>53934624
>now owe 30 years of wageslavery to their jewish overlords
I'm not a Jewish but I would kind of agree with them that is any normie is dumb enough to figure
>yeah just take out a massive loan when interest rates are at zero cos its like free money
.... there's only one way those graphs can go from zero

Luckily years of being a poor has enlightened me to being a little careful making such assumptions

>>53934380
If so we hyperinflate:)

>>53935443

>>53934755
If that cardboard shitshow even makes it that long

>>53935323
I don’t have it, it was an example of one of the videos I saw of someone bragging about how “easy” it was to make money in real estate.

>>53935501
Zoom out. Numerous years.

>>53934755
>So I would break even some time in about 50 years
Pop a little commercially installed, battery backed solar on the roof, add another 50 on. I mean, boot straps... get em pulled lazy dazy

>>53935411
this

>>53935389
This is exactly the type of thing I was talking about. In almost everyone of those examples they are 90%+ loan to equity and a small correction is going to have them tits up $10s of millions of dollars. Even if they wanted to cash out now, good luck unloading 100s of units all at once without impacting your sale price. They are whales now bagholding shitcoins

>>53935564

So that brings me to the next question. When are we going to see these baggies rope?

>>53934755
>buying anything in Arizona

Makes me kek everytim

>>53935522

>>53935581

>>53935574

I know rite? The hyperinflation of a shithole where no one wants to live is such a joke.

>>53935323
They can't. It's illiquid money trapped inside a chain of debt and leaseholds within a market with a wide order book.

>k kkeep me posted

>>53935742

It's probably going to over correct and then follow the long term trend line that you are showing. But anyone who thinks they will get a mansion for 50k is dreaming.

>>53934366
Yeah they did.

The amount of posts online with justifications for why housing CAN'T fall were insane, it was the ultimate top signal.

Now they've entered the anxiety phase, there is a seed of doubt growing in the normie mind, next will come the denial, fear and finally panic and capitulation.

Wouldn't be surprised if housing was down more than 50% adjusted for inflation. Where I live it's already down over 20%.

>>53934812
why does usa have to default house investors?

>>53935773

>>53934366
I don't give a fuck - renting is still way more expensive than buying in the UK, and rental tenants have zero rights.

>>53935389
>I know it's reddit but
Something "being Reddit" hasn't mattered in like a decade
4chan users are practically a subset of Reddit users now and reddit doesn't live rent free in our head anymore

>>53935802
They didn't take normal mortgages to leverage 20 houses against each other. They used high risk investment products from banks, and those banks are going to break knees asking for their money if they think the collateral is going bad.

>>53935870

Exactly. Mortgage rules were tightened but these niggas used helocs and other collateralized products.

https://www.zerohedge.com/political/shocking-baltimore-footage-shows-pursuit-crash-building-collapse

>crackheads lower your housing supply
heh he thought it would "go down"

>>53935163
Only mortgages go down as you pay off the principal. Rents will increase due to increased maintenance costs.

>>53935870
will they save them BY PRINTING MONEY?

>>53934366
Who would sell their home right now? Interest rates are sky high and they're not coming back down for a long time. The only people that would sell right now are those with enough equity to buy a new home cash. With that in mind inventory is going to stay low so the housing market isn't going to fall too hard. It won't grow either. Just crab.

>>53935411
>Detroit
>Nashville
>Vegas
>Dallas
>Big City
>Big City
>Big City
>Big City
>Fucking NYC and LA included in this cherry-picked list
>CBS presenting a lie with statistics as usual
If you bought property that was a good deal you are not having these problems. Reasonably priced rent and 1% or more per month of the purchase price. This is literally only happening in big cities.

>>53936154
Inventory is already mooning retard.

>>53935389
Top fucking kek, how can you claim Keynesianism is evil when this is the type of inefficiencies it removes

>>53936164

Source?

>>53936154
Because you are assuming every home owner has their balances and bills in check. Why would you ever assume something like that?

How does one actually profit off of owning a house? Like how do you use your gains? If you just use your equity to buy a better house with a new loan then why should I care? I got a car and a bunch of AR 15s with my gains from stocks but you want me to give the bank tens of thousands of dollars for the privilege of paying rent to them instead of a nice based retiree? Fuck off 50/SQ ft or fuck off retards

>>53936154
The people selling will be those who bought recently over leveraged and have now lost their jobs and can’t make payments, or over leveraged landlords who have dozens of properties that have increasingly deadbeat tenants behind on their rent that they can’t quickly evict. Even if rents are still high, a disruption to cash flow puts them behind on their mortgages for the rentals and they will be forced to unload properties to keep up with their total mortgage expenses

>Did normies really think HUMAN POPULATION would only go up exponentially forever?

>>53936177
It came to him in a dream.
Historic lows. Housing isn't going to crash, just crab. Sorry to say if you missed out on 2% interest rates you failed the IQ test and you'll never own a home. Try to be happy about it.

>>53935126
No
>>53936164
You sure?
>>53936269

>>53936233
This, i made a webm from the WSB vid

>>53936215
>>53936233

I don't think the housing market will ever crash again. Klaus: You will own nothing and be happy.

>>53936112
No. Blasting the real estate market is an expressed goal of current fed policy. There will be no lowering of rates or QE until there's blood in the water.

>>53936335
Housing market will always crab or go up, never ever go down after a tripling in interest rate. Ofcourse not

>>53936233
Wishful thinking. Inventory is still low and rents are so high that you could easily make your mortgage payments and still be a bargain to the rent cattle.

>>53935710
Find a way to get out. Sell the company to someone else.

>>53936155
no one cares about rents in chudville. rents are going down in the areas in which >90% of the country lives. deal with it, cletus.

>>53935856
Go back nerd. Christ Is King + Its The Jews, tell me when reddit absorbs those facts of the realm, until then, it matters.

>>53936333
>chads
ikneel...

>>53936370
Nobody is buying real estate jenga towers lmao

>they don't know that interest rates follow a roughly-60-year cycle and we're going to see a general upward trend in interest rates until 2040

>>53936333
Who lends them the money? Absolutely insane

>>53934366
>>53934366
>>53934366
>Did normies really think housing would only go up exponentially forever?

I think it might. The big difference in 2023 compared to 2008 or any previous time in recent memory is that we still don't have enough housing for people. Homebuilders constructed tons of single family homes in the run up to 2008 because they were being financed with cheap credit and it was easy for people to buy a home. Before 2008 if you weren't a college student or extremely poor it was considered very weird if you rented an apartment instead of buying your own house (only exceptions being if you lived in NYC or something). Now even in some midwestern cities it's hard to find an adequate stock of housing, and as a result even the apartment rents are jacked up. It never used to be like this. Renting an apartment always used to be a cheaper monthly payment than a similar sized house. That was the trade off. Yeah you paid slightly less each month, but you didn't own it, you just pissed your money away. Now they're both prohibitively expensive, but one of them leaves you with literally nothing.

>>53936635
This was likely all HELOC. And today all of them are likely in extreme debt

>>53936657
record multi family units are coming online year after year. not everyone wants to own a home.

>>53934624
this

>>53934380
hahahahahahahahaha. They already did nigger. Look what happened.
You really held the whole way down didn't you?

>>53936789
No reason to gloat against anons

>>53935742
>inflation adjusted
>10% is halving times of 7 years
I for one am looking forward to paying off my debt with cheap-as-fuck 2030 money.

>>53935411
noooo
u cant just like, post facts
housing go up forever!
rent go up forever!
YOU MUST BELIEVE OUR DOGMA

>>53936668
He talks about "pricing power companies"
But even Nestle recently compared about crashing margins due to inflation. Shit is fucked

>>53934366
idk anon normies think this chart will go up exponentially too. you're just bummed out you didn't buy in time aren't you?

>>53935742
what exactly are you trying to say with this green line? the average is already marked and your line doesn't follow any kind of logic

>>53936870
It seems to follow a 1% increase per year. Why? dont know

>>53936865
I'm actually quite fearful for those who bought recently, even at lower interest rates. Times are going to be hard for them.

>>53936860
wrong thread

>>53936870
yeah he's a moron who thought he was marking the average probably. kek

>>53936668
But housing hasnt really come down, yet. Has it?

>>53936895
it has, substantially, in the markets that typically lead the rest of the country. specifically the overpriced tech-heavy markets. look it up and realize that it's coming even for your bumfuck backwater berg in proportion to how much it inflated

>>53936878
yeah that's fair, am pissed i don't have a house but now is defo not the time.

>>53934366
How can we contribute to correction and to flippers roping themselves? Do we target the materials they use to flip houses? Do we increase the amount of niggers and spics in the area to move in as neighbors.

Flippers really need to pay for fucking over the entire country by inflating home prices

>>53936926
Im not doubting you. Do you have a chart?

>>53936949
>Do we target the materials they use to flip houses?
not a bad idea
and don't worry about the niggers. the government has got that covered with their forced (((affordable housing units)))

>>53936949
brb buying up all the "gray luxury wood-inspired vinyl plank flooring" I can find. Also gonna go buy every generic $400 stove/oven sears sells.

>>53936995
I need a chart

>>53937446
just google it retard
countless pictures of the US with the expensive tech cities showing steep house price decline

>>53934366
From 1970 - 1998 there was no price appreciation of housing, and it was basically a depreciating asset.
Then the government and the banks ruined the entire economy, and we're likely never going to recover.

>>53936949
I always wondered what would happen if we simply DDoSed the real estate websites into the ground.

>>53937468
Found one

and they were right. seethe and kill your self Doomnigger

>>53938409
>asks for a chart that shows significant house price decline in tech cities
>says he found one himself
>it's a chart of median home prices in the US
yeah, you're hopelessly dumb m8

>>53934366
bought my house in october, got locked in a 5.25% interest rate didn't have to put no money down cause utilized VA home loan

>prices go up
perfect my home is worth more and is hedging inflation

>prices go down
perfect, i'll buy a second home with the $200k+ i have in the bank

win win scenario imo op

>>53938432
watch it

>>53936174
>removes
this is exactly the type of distortion Keynesianism creates, retard.

>>53934366
No. They thought rates were going to rise for a long time and stay there so they panic bought, causing prices to rocket. To most, it was worth the risk because either way they got in while you got priced out.

>>53934380
That won't save it. Rip people that bought the top

>>53936354
This was caused by refinances. This means the majority of homeowners refinanced. That means unless they have to sell then they wont. The asset prices will still go down mind you, but this chart does NOT mean that it will crab up.

>>53939472
Thats pretty bad

>>53934414
>there’s no way
Our modern government runs off of debt, hyper inflation is the biggest threat. The debt ceiling will be raised every time without fail like it always has before until an actual depression occurs worldwide at some point.

While QE is going on, yes. But practically no one expected the fed to raise rates, and so suddenly. It's literally unprecedented.

>>53939472
San Francisco is an outlier. It was an epicenter of wealth, and the city is an absolute overpriced shithole. That wealth has dispersed outwards with WFH. The loss in San Fran is another suburbs gain

>>53939741
sure, sure, whatever you're smoking

>>53934812
my man are you not aware of how big HELOCs are now? HELOCs are literally at an ath rn

>>53936220
>Like how do you use your gains?
in an inflationary environment the profit comes from the low interest mortgage, not the house, because even risk-free assets like t-bills now return more than the interest on the mortgage of anyone who bought in 2021 and earlier

>>53939791
What happens when home values go down?

>>53934755
That house literally won't even last 5 years

You can plainly see they did the "plan o home" quality. Which as we all know is Chinese fiberboard and the cheapest nuts and bolts that aluminum can buy, and electric work that would make any seasoned electrician cringe.

>>53939791
>btc is at ath so it's never going down

>>53941090
>>53935515
Wouldn't house prices drop even more if there was some viral video exposing how frail and shitty these houses really are?

I'd imagine people seeing how pathetically built their homes were would only ruin any chance of selling it off for a return.

The year is 2035, you enter your local 7/11 to buy yourself a g fuel before your shift in the local crypto mine. The android working the counter says they only accept Red Rabbit token. You pull out your phone, draw a stick man in less than five seconds on a yellow back ground and then sell it as an NFT. From the sell you make 6 Red Rabbit token, about 5 million dollars in old world money. You go to buy the drink only to find out that from the time you closed your phone to the time you talked to the cashier the coins had dropped in value to only 3 dollars per coin and you now owe at least 10 Red Rabbit token to the robot for the gamer fuel. You leave the store, frustrated, and drive off in your Tesla

Yes, normies are retarded

>>53938409
>devastating 10% downturn after a 5000% increase with literally drawdowns too insignificant to see on a chart

>>53934366
>>53936824
>>53938409
>>53938432
> 100-year history of residential real estate prices in the U.S. The graph is based on Robert Shiller's historical housing index which adjusts for the significant increase in the size and quality of homes over the past 100 years
imagine waiting for house prices to collapse

>>53936895
Yes it has. Just look at this price slash

>>53935411
How much have they gone down?
Where is rent compared to 2 years ago? How about 5 Yeats ago? Just so you nohomers know, a 200% increase followed by a 5% drop still prices you out.
The number of people on the sidelines with cash in hand means you'll never get the drop you want.

>>53943725

>320k for a dumpster fire

Yup looks like real estate is real healthy

it does. Not because it gain value but because money looses value.

>>53934755
Attention Boomers: Stop putting in fake hardwood floor in every apartment, condo, and house. Stop being too fucking lazy to vacuum.

>>53936949
>Flippers really need to pay for fucking over the entire country by inflating home prices
why are you blaming them instead of the federal reserve you absolute moron?

>>53934884
market is selling at ath in my area (nyc suburbs)

>>53944739
Agreed they did a service and cleaned up old rundown shacks. Inflation is caused by the feds money printing.

>>53944956

>high demand areas stay high in demand

What a shocker.

>>53935092
Credit scores in general over the last few years have been artificially pumped

>>53934380
QE will make the situation worse by several orders of magnitude. The Fed isn't pivoting and they aren't pausing. That is gigacope.

>>53945275

>>53935607
What indicators are you using?

>>53944208
Vinyl planks are based.

>>53943778
>The number of people on the sidelines with cash in hand means you'll never get the drop you want.
yes everyone is sitting on boatloads of cash!! oh wait, they're not.

>>53935856
imagine actually believing this

>>53934624

>>53943778
Rent is the exact same as it was a year ago. Incomes are the exact same. Mortgage rates have more than doubled and prices are down maybe 15% in the most expensive areas out west.

>>53943214
>well if you put that extra $500 a month into a low-cust index fund returning 4% for a decade, you'd have $75k!
i think building equity rather than pissing away 2k a month on rent (the average rent for a "single family home") is probably a smarter strategy for 99% of people, but i'm sure you've got it made gambling on shitcoins, right?

>>53934606
>120,000
Yeah I could go for that
Fucking mobile homes here going for $300,000

They WILL go up forever.
Because the alternative is affordable housing for the newer generations.
You will own nothing and you will be happy.

>>53947552
You probably think you're building equity when in fact your payments are like 95% interest kek

>>53947552
average renter isn’t renting a single family home.

>>53934366
function of money supply and population growth. No mass unemployment yet to force selling and population is still growing, so sadly for (You), prices are not coming down.

>>53934366
that tip never happened in canada, pricing here has literally been parabolic for 50 fucking years

>>53947869
Not anymore

>>53947868
Wow that super simplistic analysis will definitely be true

>>53947877
link ?

>>53934380
The rich will buy your houses with cash, as you bitch about the right and the left and pretend like race even matters. The only thing that matters if mega rich, and their slaves. Get back to work wagie. Tomorrow is Monday.

S-Shaped curve forming

>BUT LE BIG CRASH!!!!
two more weeks

>>53947888
Yes. As every baggie knows: you haven't lost money until you sell, so just don't sell in the red.

>>53934624
I resisted for exactly that reason. Im locked into a location and have to pay off a mortgage for 30 years. Everyone called me a rentcuck but i can move when and where i want. Only hope is to find tenants you can lease to that recoups your buy in but doubt that will work for most of them.

>>53947877
this is ont, im bc unfortunately, but hope we get an actual correction that lasts for many years this time

>>53947994
Vancouver is fucked until you decide to start building multiplexes. Literally no space to expand anywhere so have to build up.

>>53947901
twitter.com/himansh36013599/status/1621514579871412234

>>53946949
Me and everyone I know that's not a poorfag is just waiting for a good entry point but good luck with your crash champ.

>>53936154
me for one
I bought in 2013, paid cash, have now moved into another house that's paid for, don't want to be a landlord and don't care if I get tippy top dollar out of it

>>53936949
ALL IN GREY PAINT

>>53936354
1990 was 33 years ago, most boomers and Xers own their homes outright or have variable rate HELCOS on the property, stop looking at inventory (circulating supply), total supply is massive, and the demos most likely to dump their bags won't be looking to purchase another home

>>53948283
Is it true that HELCOS have margin calls? And why?

>>53948326
they are based off the capital value of your house. If you bought at 200k and it appreciated to 300k while you paid down 50k of the principal, you could get a 150k line of credit. If however the capital value of the house goes down to say 250k and you have more than 100k on credit you're now on the hook to repay the difference to bring your amount to less than 100k.

>>53936949
>Do we target the materials they use to flip houses?
this wont work because current day flippers dont actually do any improvments to the property

>>53948383
I see. Thanks.
What can go wrong

>>53934366
Housing is stepping down quite nicely from its perch. A premonition of a strong market is a reduction in the value of solid assets Which is happening as the weeks progress.

>>53947928
retarded

>>53947552
>b-but if I don't spend every cent I make I'll blow it all on funko pops and twitch streamers!!
There's literally no decade or longer period in living memory wherein the stock market hasn't massively outperformed SFH. A down payment alone properly invested, even if you'd bought in the nadir of the post GFC market, would be worth more than the house is worth now. "Muh savings" (which again, hadn't been true for years) is false economy, the ultimate divie trap. Stop trying to get anons to catch a falling knife

>>53934366
>there's gonna be a crash because..because there just will be, OK!!!!

There still isn't enough inventory to even keep up with current demand

>>53947863
the chart i was replying to was only comparing the cost of renting vs buying a single family home, hence why i singled that out

>>53948644
ok but you'd still have to spend ~200k on rent for that same decade and have nothing to show for that
plus being able to deduct things like mortgage interest from your taxes means less money going to israel

Tea. I know many people who are acri ely remodeling their house with the idea of flipping it "once interest rates come down". They're not different than the shit coin bag holders who think their coin will magically hit 50b mcap just because they have "memes". Euphoria hits hard and capitulation takes a while to wear off. It won't be until their realtors give up on them that they realize their shit house won't sell for $700k, but too many bartenders turned realtors and are still trying to cash in on the mani and they're telling them "two more weeks".

>>53948992
just taking your example, if you'd a $36k downpayment into s&p way back in 2010, you'd have made about 400% ROI, so 144k. But you would've spent almost 100k more on rented at a static price of 1500/month for 13 years

>>53934755
This is what Chinese people buy

>>53939762
>what is Reno

>>53948070
I just said the only people selling have enough equity to buy cash.

>>53949047
they are just trying to get their cash out of china not make an investment

>>53941165
Imagine sinking 3 million into that.
Yeah, real estate a giant scam.

>>53939509
Well then it has to be stagflation according to you. What are your bags filled with? Silver? Idk about silver but stagflation means an easy 2x but this time it’s global so gold?

>>53949349
gold does look like it's its turn to run

I’m almost convinced of stagflation at this point. Any Cmmg recommended miners of gold? I want a minimal amount of silver/copper exposure, mostly lithium/gold/uranium.no etfs

>>53934366
Yes. My old army classmate thought it would keep going up. This was in 2019 though, so she was right

>>53947809
Zoomie please buy our bags

>>53947877
>Orangeville 1m
Sure Toronto is fucked up, but cities 3 hours away pretending they're better than like Scranton north America and charging 1mil are hilarious

>>53949449
This is insulting.

>>53949473
Please buy, great value!

Zoomie, you NEED to stop being a manchild, GROW UP and buy my bags

>>53936155
Who the fuck rents out in the sticks you dumb faggot? If you can't afford to buy an actual house out in some shitty little country town, then you're just a useless mouth to feed anyway.

>>53949025
>unleveraged SPY versus leveraged SFH
Unleveraged SFH doubled in those 12 years, unleveraged SPY went 4.5x. Leveraged SFH went $36k -> $180k + principal paid (about $40k for a $220k house with a $36k down payment ) minus closing costs, minus selling costs (about $30k combined for the example) so $36k -> $190k for leveraged SFH, SSI went $36k -> $380k in that same period. Mortgage is a value trap unless the buyer premium is low or negative, simple as.

>Rented a new place late last year in Sydney
>Two houses in the area were in a suitable price range because everything is ridiculous 6+ bedroom monstrosities. Both had been on the market for a few months.
>One I didn't take has not been taken.
>Walked past earlier this week, noticed it had been painted (which it needed)
>Checked listing, still unleased
>+25% up from original price
Pure delusion

>>53950032
SSO

>>53934755
Holy shit. I'm staying in that exact same area right now for work. Right next to the zoo/botanical gardens.

>>53934755

complete with flipper gray tones...

I think a better investment might be to just burn your down payment in the trashcan by your local 7/11, at least you wont be chained to that shithouse for 30 years (at least).

>>53948443
You get overleveredged and lose everything

>>53943522
obviously just following population

>>53944208
Gen X*

>>53934812
>Most of them can't even sell now because they took renting leases
Why would they go under if they have renters paying their mortgages?

>>53951848
why do you assume these properties have positive cash flow? they don't

>>53934366
This time it really is different. No one with half a brain is going to give up the house they financed at a fixed, rock bottom rate. In 2008 a lot of people had ARM loans and so the market got assraped.

Boomers never lose in the end

>>53951858
Why wouldn't they just charge a rent price that covers what they owe in mortgage and taxes? Rent costs are insane right now and people will pay it.

Well I'm convinced. The sheer amount of denial in here means that market psychology is following the bubble/crash cycle exactly.

>>53951867

The highest volume of multi family units in history is coming online this year.

>>53949548
>>53949449
>>53949591
3 years. 3 years is all it took for this to become the norm. I hope a fucking super volcano erupts and wipes us all from the face of the earth. Our greed and hubris deserve no forgiveness, and the earth and universe would be better off without us.

>>53946901
kys

>>53952465

Yeah I don't blame people for trying to cash out it's just that there's going to be so many bag holders on the way down. We may not see this peak of prices for another 30 years.

>>53951848
You buy a house at 500k and rent it for 3k a month. This pays the mortgage and upkeep plus $500/mo profit lets say. Pretty reasonable and typical.
Six months into the lease, you've paid down the principal by something like 2k on mortgage payments and raked in 3k in rent profit. So 5k overall, sounds great! Except property values went down 5% in that time. The house is only work 485k so you're actually 10k in the red. Values keep going down, and a month later your bank gets nervous and hits you with a margin call. They claim to need collateral coverage by 20k and you end up having to pay out of pocket. That's unfortunate, but fine for a small and risk smart investor who can provide such coverage. However there are a lot of dumb shit investors who have chained together a dozen houses, so the bank comes and demands a quarter million dollars and they're fucked. How do you cover all this? Selling is the obvious thing to do, but you have to sell with the lease still in effect. In a rising market another investor might buy it up anyway, but in a falling market, nobody wants to buy your problem.

>>53934755
Arizona anon here that house is worth nothing the land is worth 3 mil. Some chink company is gonna buy it and all the neighbors and put up an apartment complex. Its fucked over here

>>53954402
>dude my arid desert land is worth 3 mil
yeah, nah

>>53954426
I dont set the prices but chinks call my retarded aunt 3x a month and offer her 2 million for her literal shack house in the heart of scottsdale and she refuses to sell bc "muh childhood home". Its literally just how it is here The chinks are waiting for the boomers to die to turn their properties into high end condos

>>53936443
Christ is King *of* the Jews.

>>53954459
cool totally real anecdote bro