nein51 said:Booray said:That is likely true. But my guess is if they can't sell (or won't sell at currrent prices) they will become landlords.nein51 said:Booray said:nein51 said:Canada2017 said:Not sure if most people could even absorb a 20% hit .nein51 said:Canada2017 said:If it even approaches 30% we will enter the worst depression since the 30's.nein51 said:Canada2017 said:Real estate is going to take a major hit.Doc Holliday said:We are reaping the effects of irrationally combating covid, combined with reckless spending and applying failed Keynesian economics for decades.Sam Lowry said:I agree that "two weeks to flatten the curve" was a travesty. Liberal elites knew perfectly well the lockdowns would have to last longer, but they didn't want to risk telling the truth. So they assumed people were idiots and came up with a slogan that would appeal to them. It was an insult to our intelligence and yet another sign of how little regard they have for us deplorables. I don't know why anyone tolerates it.He Hate Me said:And all it took was "Two Weeks to Flatten the Curve" and the other nonsense that followed the initial nonsense.Harrison Bergeron said:
I actually thought Stagflation was a thing of the past but it's here. Basically we've recreated the 70s with high crime, social unrest, stagflation, and global warming instead of global cooling.
Also, when I said that liberal elites did all this, I was kind of kidding. It was actually the Trump administration...
Millions of people are going to lose their homes because of it.
This will make the 2008 recession look like a walk in the park.
Told my wife recently to expect a 20% reduction in the value of our properties within the next 3-12 months .
And it could be far worse.
Know a guy who just closed on an 85 million dollar development deal . Thank God it wasn't me.
20% reduction isn't enough. I'm not sure 50% is enough. We saw values rise insanely high in a very short time period because rates were near 0.
Maybe.
But look at this chart
https://fred.stlouisfed.org/series/MSPUS
That didn't happen organically. A 50% reduction in value would basically bring us back in line with less than 10 years ago.
Many simply would be foreclosed .
Those with adjustable rate mortgages could be the first.
Home builders are also in for a very hard time....except possibly luxury home builders.
Drop in value does not equal foreclosure. It would equal a very hard time selling (which you're already seeing).
Increase in foreclosures is inevitable btw. People bought at the height of value then rates went up. Lots of people in a position where they couldnt sell if they wanted to.
Reduction in value would make it worse but that is inevitable as well.
It's not people who bought who are at risk of foreclosure. While the value of their purchase might decrease, they got in at historically low rates. Plus the better underwriting following the 2008 debacle generally means they can afford the payments. If they don't have to move, they will be ok.
OTOH, serial refinancers who depend on cash out re-fis to finance their lifestyle might be in a bind.
I agree to an extent. I think you're underestimating how many people move and how often.
If you can't afford one mortgage how do you afford two?
You don't make *that* much as a landlord, in general.
But I think we mostly agree
Only way to make it as a landlord is to buy right, and pay them off asap .
It's not about how many you own…but how few mortgages you carry .
Cause that banker who bought your family dinner last year will foreclose you in a minute if he has to .
