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/biz/ - Business & Finance

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49312100 No.49312100 [Reply] [Original]

Considering that the fed seems set to raise interest rates past 6% this summer, would you call houses a good investment right now?
It seems like the price is very likely to decrease quite a bit in the imminent future, especially when correcting for inflation.

>> No.49312134

>>49312100
If you can afford to put down a large down payment, it might actually be better since it'll be cheaper. If you have to eat 80%+ of the loan with huge interest rates then yeah it's probably not worth

>> No.49312216

>>49312134
>large == 20%+?
what are you implying here

>> No.49312285

>>49312216
large is 50+. Like mortgage interest rates are already like 4-5% now... you need a large down payment to make it worth that interest rate

>> No.49312307

>>49312285
>punting 50+ seems kinda high
i think 30 max seems good but i understand ur reasoning now, i guess time will tell

>> No.49312360

>>49312100
That's a man.

>> No.49312363

>>49312100
>rates past 6%
Not going to happen
The most we'll see is 2%
Government and personal debt is high to raise interest rates higher than the cpi.
What we're seeing is the fed lining up for another signal to boost.
>raise rates to say 2%
>keep printing
>keep buying bonds
>keep buying assets
>reduce rates back to 0%
>stock market to the moon
The fed and the government want high inflation.
High inflation
>inflates away debt so you can borrow more
>increases asset prices
>increases tax revenues
The only schmucks inflation is bad for is low paid workers, welfare queens, and boomers with pensions and savings.
Those in the know have been buying land

>> No.49312365

>>49312100
that's a woman(man)

>> No.49312373

>>49312100
That is a man.

>> No.49312377

>>49312363
>land a hedge against inflation?
legit everyone been calling for a "tank" but i mean i see -10%+ but in perpetuity why would it matter if you just plan to rent?

>> No.49312467

>>49312363
>The most we'll see is 2%
I'm sorry but I didn't even read the rest, you know effective rates are 5.4% right now, right?

>> No.49312493

>>49312100
This is unironically a man

>> No.49312536

>>49312377
I see property as a decent harbour against our current inflation.
But you may say that property is about to crash.
But I just don't see the same situation as we had in 2008.
>Demand for property remains high
>investors are moving out of overvalued stocks into commodities that will rise with inflation
If you have a in demand commodity such as property that you can use or draw an income that will rise with inflation from. Then why wouldn't it hold value or not lose value as much as other investments?
If you have the money to buy a property now would be a good time. The fact that we're looking at multi-year high inflation incoming is the first indicator.
Secondly, demand is not going to stop. Immigration is going to continue. There's billions of people from all over the world who want to live in the USA that has a government that wants them

>> No.49312627

>>49312536
The same situation we had in 2008? Absolutely not.
A sudden change in monetary velocity coupled with economic uncertainty and rising interest rates that could push big investors and retirees alike to think about selling? Maybe.

>> No.49312643

>>49312536
> i see -10% max
>everyone been calling for a tank
most of that seems like cope but yea fwiw the land is only going up maybe we see 2x this inna year from now, anon

>> No.49312660

>>49312536
Not crash like 2008, dip.

>> No.49312662

>>49312467
I'm talking about the federal reserve rate not the commercial rates banks set.
The reason banks are able to have a higher rate is because of demand. They can set a higher rate and people will still pay

>> No.49312780

>>49312660
I honestly think a lot of this talk of property crashes is wishful thinking.
A lot of millennials are tired paying high rents living in shithole cities and now want the boomer properties in the suburbs. But the price tag is $1m+ and now you've got people from third world who have no problem with sharing in large numbers to pay high rents.
You see there's loads of people out there who can afford to buy the boomers house in suburbia and there's thousands of third worlders chasing after those rentals to share.
All this talk of property crashes is millennial cope.
If they want in now is the right time.
Interest rates can't go up so much as to make it impossible for the government to service its debt and trigger a recession.
They want high inflation

>> No.49312803

>>49312100
HAHAHAHAHAHAHA

>> No.49312942

>>49312100
2to3%, but QT is going to drive the average mortgage rates up past 8%. The bank Jews wont want MBS now that the fed wont buy them.

>> No.49313851

>>49312100
>would you call houses a good investment right now?
Checked, but no. Give it a year or two to bottom out.
Also.. That a woman

>> No.49314031

>>49312100
I miss her so fucking much bros. She was perfect...and innocent too. Sigh
:(

>> No.49314091
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49314091

>>49312100

No way they are getting to 6%. I'm calling it at 1.75% max.

My opinion on mortgages; https://youtu.be/r5LRkMnTK_k

>> No.49314111
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49314111

>>49312467

>>> >>49312662

We are talking about Fed Funds, not mortgage rates.

>> No.49314188

I'm buying a 300k house and paying 100k of it up front. For me, it's 80% a quality of life change and 20% investment. I'm sick of the apartment/condo life and need to move to something different. I'm getting in now on a 5 year fixed rate and if it goes up more after that I should still be able to afford it since I'm paying a huge chunk of it in cash now. I'm alright burning some cash because inflation is wild right now and the markets are weird. I'm kind of screwing myself if shit starts booming and I don't have huge amounts of cash lying around but the change in living arrangement is very valuable to me right now so whatever.

>> No.49314255
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49314255

>>49314188

What made you pick the ARM instead of the 30 year fixed? At least putting 33% down means yoir monthly payment should be fairly low. Hopefully you can easily manage the mortgage.

>> No.49314297

>>49314255
I don't think anyone really offers 30 year fixed here.I would probably take it if they did.

>> No.49314324

>>49312780
>number go up forever. there will be no correction
This is the top signal. Sell now.

>> No.49314334

>>49314255
Wait, sorry, I misunderstood your post. It's a 25 year mortgage with a 5 year closed rate. i.e. it's locked for 5 years which I can then go and either pay more of it off or lock it at the rate at the time for another 5 years.

>> No.49314770

>>49312363
This is what's unironically going to happen, timeframe for rate reduction after 2% increase?