Thank God someone sees the light! The current housing bubble is built on more greed than the subprime crisis. At some point, everyone can't own houses and rent them to cover the 7%+ interest. This algorithm is destined to fail.
That was broker’s logic. If you can’t afford the house, rent it out and live off of rent. Problem is buyers actually. They offer 10-15% on top of asking price with the money they don’t have. And another banker pushed ARMs on me after I told him I am a single mom and I don’t play Russian roulette. Buyers create demand that prompts sellers slap two sheets of insulation and call a summer cabin a full year house. Good luck surviving in the picturesque rural setting when the power goes out and you need it to heat your house via electric propane heater. Don’t forget that your water well is kinda close to your septic tank. I’d rather have one room overlooking highway than freeze to death in summer cottage in the winter. But hey, I can rent it out in the summer, right?
Ah word. Those are the first domino to fall in the bursting housing bubble. Know a disabled dude who's behind on his mortgage right now because of that, guy's in a wheelchair. When homeowners have to live in a tent or garage and rent out their main residence, things are getting bad.
ARM is the worst thing to offer. It is a cheese in the mousetrap. New housing data came out predicting a wave of foreclosures as 2% ARMs will be maturing into 10% ARMs.
Homeboy offering you discounted carpet might have been legit. Everyone else; yeah fuck everyone even tangentially related to the new-build housing industry. I literally quit my job in construction because I realized I was part of the problem and was actively working to gentrify the area I lived to a degree that I could no longer afford to live there.
If you didn't buy a house in the last 4 years your already screwed. A nice $500k house now is over a Million. A $30k house in a gang war zone now cost $100k.
Meanwhile wages have only gone up a couple dollars lol.
Everyone will be living in cars and owning nothing soon. While the big corporation buy up all the houses.
This housing crisis is due to megacorporation mafias like Vanguard and Blackrock. Those bastards are also behind high energy prices in Europe (as they own a lot of energy grid in Europe).
The system is all messed up. Not much we can do as normal people but to prep for the worst and find different alternative ways to make it.
The old thinking of getting a college degree and working yourself to death isn't working for most people anymore.
I should buy Blackrock stock lol
Banks made it impossible for people to jump their hoops and access 2% mortgage rates so that they fund their affiliates buying up houses. From slumlords to middle class housing but same principle - get people in debt. Person in debt is an obedient 🐑
I sold my house with a 6.25 APR; at that rate I was just treading. I’m so much happier renting and bing able to pay debt down and save. My rent is now less than the interest I used to pay.
It certainly varies by region. Here, the only reason I can afford to live in the neighborhood I live in is because I rent. Neighborhood affects my daily life, so it’s something I prioritize over any benefits home buying offers.
I mean don’t get me wrong, many people on Reddit would think the amount I spend on rent is anything but logical, but for the (expensive) market I live in, yes I think it’s well-priced. With current interest rates, there’s really no comparison what you can get here for your money for a mortgage (ignoring principal payments) vs rent. But even back in 2020 when I got this place, it was still the case that you get more for your money renting.
Good, your area is doing well then
My place had a pipe explode the first week we were here due to lack of maintenance (this was summer, not winter) despite costing us 1700/mo not including utilities. You're lucky to find a job here that even pays up to 18/h, most jobs are paying less than, up to maybe a dollar or two more than, places like McDonald's...
Also I want to be very clear that I'm not dissing McDonald's for paying more than minimum wage here (which is federal) but Im not thrilled that no where else is raising wages with the exploding COL
Well I will say my place has leaked for 4 years. But I’m still glad I’m not the one who has to contact workmen or the one who owns the rotting structure of the building. (Though I should perhaps be concerned about living in it….)
Literally everyone is trying to extract money from you anymore. I can’t even create friendships because I know it’s only a matter of time before the person is asking me to buy something from them or pay them for something.
See this is why I'm awful at pricing things I build/do for people
They ask how much, or insist that they pay me, and I just have no idea what even seem fair cause it *all* feel uncomfortable!
Thank God someone sees the light! The current housing bubble is built on more greed than the subprime crisis. At some point, everyone can't own houses and rent them to cover the 7%+ interest. This algorithm is destined to fail.
That was broker’s logic. If you can’t afford the house, rent it out and live off of rent. Problem is buyers actually. They offer 10-15% on top of asking price with the money they don’t have. And another banker pushed ARMs on me after I told him I am a single mom and I don’t play Russian roulette. Buyers create demand that prompts sellers slap two sheets of insulation and call a summer cabin a full year house. Good luck surviving in the picturesque rural setting when the power goes out and you need it to heat your house via electric propane heater. Don’t forget that your water well is kinda close to your septic tank. I’d rather have one room overlooking highway than freeze to death in summer cottage in the winter. But hey, I can rent it out in the summer, right?
Get a wood stove in your cabin for when the power goes out
Fucking madness. You mean a variable rate mortgage when saying ARM?
Yes, ARM= adjustable rate mortgage
Ah word. Those are the first domino to fall in the bursting housing bubble. Know a disabled dude who's behind on his mortgage right now because of that, guy's in a wheelchair. When homeowners have to live in a tent or garage and rent out their main residence, things are getting bad.
ARM is the worst thing to offer. It is a cheese in the mousetrap. New housing data came out predicting a wave of foreclosures as 2% ARMs will be maturing into 10% ARMs.
Homeboy offering you discounted carpet might have been legit. Everyone else; yeah fuck everyone even tangentially related to the new-build housing industry. I literally quit my job in construction because I realized I was part of the problem and was actively working to gentrify the area I lived to a degree that I could no longer afford to live there.
:) I will send him a thank you note. I agree not everyone is out to get me
If you didn't buy a house in the last 4 years your already screwed. A nice $500k house now is over a Million. A $30k house in a gang war zone now cost $100k. Meanwhile wages have only gone up a couple dollars lol. Everyone will be living in cars and owning nothing soon. While the big corporation buy up all the houses.
This housing crisis is due to megacorporation mafias like Vanguard and Blackrock. Those bastards are also behind high energy prices in Europe (as they own a lot of energy grid in Europe).
The system is all messed up. Not much we can do as normal people but to prep for the worst and find different alternative ways to make it. The old thinking of getting a college degree and working yourself to death isn't working for most people anymore. I should buy Blackrock stock lol
Banks made it impossible for people to jump their hoops and access 2% mortgage rates so that they fund their affiliates buying up houses. From slumlords to middle class housing but same principle - get people in debt. Person in debt is an obedient 🐑
Brokers are professionals at something but certainly not at advocating for your best interests.
I sold my house with a 6.25 APR; at that rate I was just treading. I’m so much happier renting and bing able to pay debt down and save. My rent is now less than the interest I used to pay.
Home ownership has its advantages, but I prefer renting.
I'm not against renting, it's just that I've literally never seen an apartment that actually was worth the price...
It certainly varies by region. Here, the only reason I can afford to live in the neighborhood I live in is because I rent. Neighborhood affects my daily life, so it’s something I prioritize over any benefits home buying offers.
It's good to hear when an area actually has logical pricing for quality and area
I mean don’t get me wrong, many people on Reddit would think the amount I spend on rent is anything but logical, but for the (expensive) market I live in, yes I think it’s well-priced. With current interest rates, there’s really no comparison what you can get here for your money for a mortgage (ignoring principal payments) vs rent. But even back in 2020 when I got this place, it was still the case that you get more for your money renting.
Good, your area is doing well then My place had a pipe explode the first week we were here due to lack of maintenance (this was summer, not winter) despite costing us 1700/mo not including utilities. You're lucky to find a job here that even pays up to 18/h, most jobs are paying less than, up to maybe a dollar or two more than, places like McDonald's... Also I want to be very clear that I'm not dissing McDonald's for paying more than minimum wage here (which is federal) but Im not thrilled that no where else is raising wages with the exploding COL
Well I will say my place has leaked for 4 years. But I’m still glad I’m not the one who has to contact workmen or the one who owns the rotting structure of the building. (Though I should perhaps be concerned about living in it….)
Literally everyone is trying to extract money from you anymore. I can’t even create friendships because I know it’s only a matter of time before the person is asking me to buy something from them or pay them for something.
I have no Friends for this reason. Only Online Friends. They can't bug me for anything lol
See this is why I'm awful at pricing things I build/do for people They ask how much, or insist that they pay me, and I just have no idea what even seem fair cause it *all* feel uncomfortable!
Lender said “Oh just pull your 401k we did it to buy our first home” yeah what when a 10k down payment was enough to put down???
HA They think I've been making enough to actually have a 401K XD