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/biz/ - Business & Finance

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56366315 No.56366315 [Reply] [Original]

>Parents bought a house for 200k 15 years ago
>House is now worth 600k
If I wanted to buy this house with a mortgage (currently 30 year fixed rate mortgage rates are at 8%) I would have to pay 50k a year in interest alone (basically the US's average salary)

Can any RE bagholder explain to me how is this not a bubble?

>> No.56366334

You realize they’re paying fresh out of college kids 120k to “work” from home as software “engineers”, right?

Salaries have skyrocketed

>> No.56366353

>>56366334
they dont
i earn like 45k

>> No.56366367

>>56366334
Yes 90%+ of the population are software engineers earning six figures a year. They will surely keep house prices moving up. This is definitely not like 2008 despite zilloq trying to offload 100s of thousands of homes and have been doing so.at a loss and are so desperate they are offering 1% down to buy a home. Next couple of years are going to be wild

>> No.56366391

>>56366315
>Can any RE bagholder explain to me how is this not a bubble?
just because something becomes literally unaffordable doesn't necessarily mean it's a bubble.

A bubble implies the prices will become affordable at some point in the future. This isn't necessarily true. Particularly since owning a house isn't a necessity, you can live with 10 other people in a tiny cell block if it comes to that.

basically, things can get much worse, so it's not necessarily a bubble.

>> No.56366401

>>56366315
Move somewhere that still has 200k homes. And yes, these areas do exist, they have jobs, and they are likely low crime non urban mega city blue shitholes.

>> No.56366411

>>56366391
Tulips you fucking nigger. No one needs them but tell that to Newton.

>> No.56366413

>>56366411
maybe, but houses have been going pretty steadily up for a couple hundred years now without any real sign of stopping.

maybe you'll get lucky though.

>> No.56366437

>>56366334
CS positions have fucking cratered the last year my dude.

>> No.56366498

>>56366413
Oh fuck off. We're talking a out the short term near exponential increase in the price of an asset. Bet tulips have also increased in price over the past 200 years.
>this time it's different

>> No.56366519

>>56366391
>just because something becomes literally unaffordable doesn't necessarily mean it's a bubble.
I lost 50 iq points reading this
>>56366411
please don't use the n word on my board. thanks

>> No.56366546

>>56366315
Their house is still worth $200k. Nobody is taking a 30 year mortgage to buy residential real estate. Nobody will buy it with cash either. There's no liquidity for their bags. The state is propping up home prices for tax purposes. Sorry goycattle.

>> No.56366612

>>56366353
then you're either not worth more than that, or you're too lazy and stupid to figure out that the boomer model of going to college for 4 years and expecting some corporation to just hand you a 6 fig salary doesn't exist anymore.

>> No.56366641

>>56366498
>>56366519
>the price went up, it must be a bubble
maybe it is, maybe it isn't

if the price never goes back down, it's not a bubble.

>> No.56366646

>>56366334
God damn boomers are retarded

>> No.56366664

>>56366546

This. Housing is basically a ponzi scheme that only continues because the thing being sold is a basic human need, and the people and government are creating artificial scarcity by restricting building. Homeowners support it because it is one of the few hedges against rampant inflation, and the government supports it because they can continuously tax homeowners on unrealized gains.

>> No.56367096

>>56366315
Only retards rent.

>> No.56367605
File: 101 KB, 1112x620, houshold income of home buyers.png [View same] [iqdb] [saucenao] [google]
56367605

>>56366353
majority of home buyers are couples who are combining incomes, median income of home buyers in 2020 was 102k

add in the stupid low rates that they got in 2021 and you get a median home value well over 400k in desirable metro areas

zoomers are unable to comprehend perspectives other than their own which is why we get this thread every day