TAA wrote:
Millennials can easily buy homes. Just not in expensive places they feel entitled to live in.
Which places are the expensive places?
TAA wrote:
Millennials can easily buy homes. Just not in expensive places they feel entitled to live in.
Which places are the expensive places?
Picture me trollin wrote:
Mr. Obvious wrote:in the long run housing prices have to move in some sort of tandem with wages. There are a lot of local and shorter term exceptions to that general rule. I am not following the market closely enough ti know what the present trendlines are
May be being propped up by foreign investors and others
Rolling is right, many wealthy Argentinian, Chinese and Russian investors see U.S. real estate has an attractive asset class since their currency is often manipulated, their equity markets are far more volatile and difficult to value and their economies are tied to more basic industries like mining and energy.
voice of reason wrote:
Picture me trollin wrote:May be being propped up by foreign investors and others
Rolling is right, many wealthy Argentinian, Chinese and Russian investors see U.S. real estate has an attractive asset class since their currency is often manipulated, their equity markets are far more volatile and difficult to value and their economies are tied to more basic industries like mining and energy.
What do you think?
So my choices are to:
keeping renting and hide money under my mattress
buy a house with cash
buy with a cash and turn around and finance over 30 years with 3.75% so can invest in stock market
Please advise.
ndnsns wrote:
TAA wrote:Millennials can easily buy homes. Just not in expensive places they feel entitled to live in.
Which places are the expensive places?
Vancouver Canada. Makes San Fran look like a bargain bin.
centro does it better wrote:
Two words: laissez faire
All you Bernie fans think we need to attack the free market with a hacksaw to equalize everything. If that's not communism, I don't know what is.
Communism is where the workers own their own labor and the means of production as opposed to capitalism where a handful on non-workers own everything.
So should we not buy houses because it's all a scam?
Scam or no? wrote:
So should we not buy houses because it's all a scam?
Yes
We are entitled generation. We have powers. Yes drop all home prices in the USA. We have college dept that other generations never had, I think. We are so far beyond other generations due to our special powers. Move Obama Care to older generations only, even though we voted for it. Why don't all older generations just die and go away so we can use our powers and have millions.
Yess wrote:
Scam or no? wrote:So should we not buy houses because it's all a scam?
Yes
Why keep renting if you can buy a house with cash or build one yourself?
Do prices have to come down?
That's a good question.
Prices did come down after 2008 as a market adjustment to reality.
But market conditions have caused prices to creep up.
And it's not just the low interest rates.
Low interest rates don't always make home values go up, and rising interest rates do not mean prices will go down just to keep the same mortgage payment.
Inventory, or homes available for sale has a big impact on prices/value.
People were shell-shocked when their homes lost so much value in the bubble burst.
Some still don't have enough equity to sell, and others just don't feel comfortable trusting the market to sell.
So there are fewer established homes for sale then would normally be.
Fewer choices means higher prices.
The biggest equity gains people are seeing are not by values going up, but by paying their mortgages down.
People do not like selling their house for less than they paid for it so I don't see prices going down for that reason. They will just hold on to their homes.
Low cost new construction may be the answer but if they are competing against few established homes then they won't sell too low.
The young people's best shot at buying a home is that home prices stay put and their wages go up.
Then there is the whole mortgage industry.
They have over-corrected and do not give loans very easily.
While appraisers are more conservative and do not give high appraisals.
The bottom line with all of this is that those with a lot of money will do well in the current market and those that are cash poor and middle to low income are worse off than before the boom even started.
The inequality gap seems to widen.