Tech Industry
Yesterday
14217
RIP Google Core Employees replaced with Mexico and India Workers
Working Parents
20h
1369
Closed now - thank you all
Tech Industry
9h
985
Women, help me understand why this is inspirational
Cars
Yesterday
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Do you really feel special in your Tesla?
India
Yesterday
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Modi is a legend, will be remembered for centuries to come
In the years before 2020, home buying was generally a sensible financial trade off - you lock in capital and give up housing flexibility, in exchange for a slightly better deal on space. Rent vs own calculation was slightly skewed in favor of own as you are assuming all the risk & maintenance work. Then, home buying cost shot up 80-100% in 2-3 years. Now, the equation is reversed - you are paying for the privilege of locking all your capital and assuming risk! You somehow LOSE long term net worth by buying. Absolutely insane. And people are justifying this unprecedented, paradigm-inverting increase in 2-3 years as “permanent” because of the pandemic we are mostly out of. Today’s homebuyers are something else. Tc 400k
Disagree.. If anything this must tell u ppl always shell more money for housing.. It’s an emotional investment for majority.. You can make the same statement about any asset.. Stocks, premium metals..
Home prices can’t fall without a financial collapse. The fed will prevent large scale deleveraging in the housing market by tanking interest rates. Rents are correlated with monthly payment on mortgages which is roughly correlated with housing prices. Which have exceeded inflation due to interest rate targeting over the last 50 years or so. Purchasing a home opts you out of any future inflationary home price increases. If you think rent will double over the next 10 years… then your effective debt burden from buying today will get cut in half. This means that as long as your staying put and not betting on a us financial collapse… then you are wise to buy regardless of any other decision. We can’t vote the Fed, and even if we could - no one has a better idea of how to manage the economy other than interest rate targeting. Perhaps a 50 year lease similar to japan is a better bet to force depreciation in housing.
Rents and mortgages are out of whack. I can rent a home for thousands less than the price of a mortgage.
“Home prices can’t fall without a financial collapse” Famous last words
it's not a business or math decision for everyone. some get emotional value out of owning a home that is not easily quantifiable in $s
They all shut up about that emotional BS real fast when house prices go down
sure, no one is ever happy when an asset they own falls in value. but my point was, at the time of purchase, the decision wasnt pure "business"
Its all supply vs demand. Google stock shot up by 2x during covid couple of my friends cashed it and bought homes
Mentality during Covid changed for sure, people saw how gov’t took care of homeowners and didn’t let defaults happen bc of job loss… Other than that, privacy became more valuable; a private yard where no foreign germs can invade, more rooms for families to come and stay… To be honest, bio weapons can definitely happen and there is nothing/ no one can do about it…so there is that aspect; if you think it won’t happen again in your lifetime, you are delusional. Not denying it sucks, personally know a lot of hard working families who were priced out due to Covid…
lol only the past 3 years? It’s been like the past 20 years in California
100% this. I got into a bidding war for every house I’ve bought with the exception of the one I own now (made the offer in February 2020). It was the best housing experience. Lots of inventory, bid under asking, and got it. Only time that’s happened since 2000.