/biz/ - Business & Finance

>>55965967
>adjustable rate m8

>>55965967
>$2k mortgage
lol lmao no with 7% rates and 20% down on an average house you’re still looking at $3-4k.

>>55965995
>20% down on an average house

Are new home buyers even putting down that much

Almost EVERYONE is desperately praying for cheaper housing prices.

Do you really think crying whining retail will actually get their dream crash, buy the bottom of said asset and then WAGMI am i rite? Max pain is still crab and up, not down.

>>55965999
They would probably have to due to debt to income ratios.
My guess is the only people buying anything right now are high earners, dual incomes, and people with a lot of help from their parents.

>>55966024
You haven’t thought this through.
What would cause a market crash would be a significant amount of job losses which which means demand in any meaningful sense dries up due to lack of liquidity since you can’t get a mortgage without an income.

remember most people said it wouldn't crash before 2008
also the population was still increasing even back then so that argument doesn't apply

>>55965967
>making $135k/yr
>rent is $2600/mo split two ways
Yea I could do this for a few more years

>>55966029
Isn't there some kind of federal program that lets you do 10% if you're a first time home buyer intending to make it your primary residence?

>>55966119
>make $80k
>rent is $2600/mo split 3 ways
>just as I get enough experience to interview for jobs offering $130k my two roommates have to bail
>going to have to move into a $1500/mo studio
Just as I'm about to make it

>>55966301
You can do whatever but you still need to meet the income requirements and you also pay an additional fee each month called mortgage insurance so you’re going to have a huge monthly payment.
Pic related

>>55965967
Not a chance of the housing market crashing, unlike 2008, most new home purchases have been done by corporations and as we know major investment companies always invest to turn a profit.

>>55965967
>Rent is 1300 a month
>household income 220k
>NW 700k
putting away 10-12k a month and enjoying the journey for now. we'll have our day anon.
even if prices mostly hold, i simply refuse to ape into the market, waive inspections, all that retarded stuff that used house salesmen said was "the new normal". a few people here are still spastically offering full price same-day on the cheaper houses, but it's slowing a lot now.
i'm really just waiting for better listing quality if nothing else.

>>55966369
i am not suggesting another 2008 but the "corporations could never crash things" argument is extremely weak.
they invest to make money but sometimes they fuck up really badly

>>55966369
This. Too big to fail corporations have bought up the market. They will be bailed out before allowed to crash.

>>55966409
>"corporations could never crash things" argument is extremely weak.
You have no idea how the world works zoomzoom.

>>55966434
i am a millennial, dipshit. big corpos (banks) mostly got bailed out in the last crash as we all know, but houses were still on fire sale if you had liquidity. the economy was still ruined at the time.
and yes, clearly the 1/8 to 1/15 (sources vary) of houses bought by institutions last year means they own everything. might as well give up now.

>>55966476
>i am a millennial
Doubt.
>yah but 2008
Meaningless. Too big to fail real corporations weren't the ones holding houses then. Consumers were the ones that got hit. This time around too big too fail corporations are holding real estate. They will get bailed out same as the banks that got bailed out this year.

>>55965967
>many people FOMOing
>volume down 37% from jan 2022
>volume at its lowest levels since 2011

dumbass

>>55967479
Not as many people selling though. Nobody smart would trade a low interest rate mortgage for a high one.

>>55965980
does adjustable rate change the principal if there's a 20-30% drop out of 500k+interest?

>>55967498
There will be forced sellers. Every over leveraged Airbnb wannabe will be bled out by a lack of demand versus property taxes, maintenance, and interest. Realistically just comes down to where the Fed decides to take us on their wacky ride.

>>55967498
Houses are one of those things that get sold because of life's demands. There will always be young couples who need room for kids, middle aged people who downsize because their kids moved out, and boomers who want to get somewhere warmer to die. That and like the other anon said Airbnb is played out and oversaturated

>>55967521
another pipe dream of a priced out renter who has no knowledge of real estate

you cannot borrow for a rental property unless you have 2 years of income showing that you can make the payments on that rental property and whatever debt you hold. your have to have reported the income on your 1040 and paid taxes on it

payments cannot exceed a certain percentage of your gross income... DTI ratios used to be 36%, although in 2017 they raised it to 45% if you meet certain requirements (high credit score, cash reserves, >20% down), and then raised it again to 50% in 2022 for highly qualified buyers (dumbasses are still stuck to 36%)

2007-08 happened because retards were taking out adjustable rate mortgages. ARMs were fucking 30% of loans processed in 2004-07, and when the increased payments were due, retards couldn't afford them

so underwriting requirements changed, banks can't issue those loans to people who aren't qualified, and >90% of buyers have to take out a fixed rate mortgage. this means foreclosures don't happen (foreclosures at a 15 year low, 20x less than 2008) because no one is unable to make their payments because americans are fixed at 30 years at those cheap rates

the percentage of cash buyers is the highest it's been in 32 years - people other than zoomers don't need to borrow at 7% mortgage rates, they simply sell their house, cash in tax-free equity, and buy then next place in cash.

or if they're a recent buyer (2010-21) they keep the place since there's a cheap mortgage attached to it which is better than cash (banks are paying 5.25% interest), then they rent it out to some idiot who gives them essentially tax-free rental income (there's a shit ton of deductions), and use that additional income to increase their purchasing power for a new place

>>55965967
I'm FOMOing VINU, a lot of people has been recommending it to me so I gave it a try and it's working just fine

>>55966053
But I'm an essential worker. I won't lose my job.