That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
Why can't young people afford houses?
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Last: 1 day ago by boognish_bear
historian said:
The thread is about people buying new homes. People don't buy homes udon credit cards.
No but they buy homes out of their budget. Same thing
That is often the case. It certainly does not explain all of them, however.
“Incline my heart to your testimonies, and not to selfish gain!”
Psalm 119:36
Psalm 119:36
NEW 📰 : Housing costs are the biggest driver of inflation in the U.S., accounting for ~36% of the CPI.
— Roosevelt Institute (@rooseveltinst) March 13, 2025
While other price pressures have eased, shelter inflation remains stubbornly high. @Regmi_Ira explores what this means for affordability & Fed policy. https://t.co/YfxuvgPWCI pic.twitter.com/NOQsBdoGI8
BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
agreed. that is why I rent by choice. I'm a native Dallasite/Texan and find the property taxes on single family homes not a good investment unless you are raising a family. As an empty nester, renting makes more sense. I can make more investing $50K in property taxes than appreciation these days. Not to mention the serious cost of upkeep. For instance, my hot water heater went out in my apt. the other day and I had a brand new one the same day. In my home, that would have been a $5K ordeal. same when my fridge went out. Sure , taxes and repairs are baked into my rent, but a much better financial deal for me.nein51 said:BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
J.R. said:agreed. that is why I rent by choice. I'm a native Dallasite/Texan and find the property taxes on single family homes not a good investment unless you are raising a family. As an empty nester, renting makes more sense. I can make more investing $50K in property taxes than appreciation these days. Not to mention the serious cost of upkeep. For instance, my hot water heater went out in my apt. the other day and I had a brand new one the same day. In my home, that would have been a $5K ordeal. same when my fridge went out. Sure , taxes and repairs are baked into my rent, but a much better financial deal for me.nein51 said:BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
If you already have some level of wealth owning a home is, for lack of a better term, a scam.
It does build equity and since most people have no money that equity has huge value. It also adds a layer of stability for most people.
However, when you factor repairs, maintenance and taxes (which most people pretend not to see) it's incredibly expensive.
Agree the property taxes in Texas are very high. Renting is a reasonable choice for empty nesters.J.R. said:agreed. that is why I rent by choice. I'm a native Dallasite/Texan and find the property taxes on single family homes not a good investment unless you are raising a family. As an empty nester, renting makes more sense. I can make more investing $50K in property taxes than appreciation these days. Not to mention the serious cost of upkeep. For instance, my hot water heater went out in my apt. the other day and I had a brand new one the same day. In my home, that would have been a $5K ordeal. same when my fridge went out. Sure , taxes and repairs are baked into my rent, but a much better financial deal for me.nein51 said:BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
However I would not wish to be a landlord in Texas either. Quality of the tenants is just too risky.
For investment properties I prefer Wyoming and Colorado.
Not sure if this is true or not
What the US Government is doing to hide housing delinquency and prevent capitalism.
— Darth Powell (@VladTheInflator) March 21, 2025
Borrower buys house with no money down
Borrower never makes a payment
Government (FHA) takes the late payments owed, places them on the back of the loan as a subordinate 2nd lien at 0% interest…
We're hitting biblical levels of FHA housing delinquencies and that's NOT counting all the loans FHA is modifying to artificially bring borrowers current by placing them MORE in debt. https://t.co/PDnJBjjjai pic.twitter.com/Ckw6KjhL0Q
— Darth Powell (@VladTheInflator) March 21, 2025
Thiel calls it what it is: a catastrophe for young people. And he’s right
— ib (@novapilgrim) March 21, 2025
Boomers bought cheap, watched prices soar, and blocked new homes with zoning laws
When cities grow by 10%…
Housing prices jump 50%
Wages barely move pic.twitter.com/27QYypZCXI
agreed. I wouldn't want to be a landlord for a few single family houses. I'm in the multifamily business and thankfully we have the scale to employ mgt companies. I live in a high rise and really enjoy it.KaiBear said:Agree the property taxes in Texas are very high. Renting is a reasonable choice for empty nesters.J.R. said:agreed. that is why I rent by choice. I'm a native Dallasite/Texan and find the property taxes on single family homes not a good investment unless you are raising a family. As an empty nester, renting makes more sense. I can make more investing $50K in property taxes than appreciation these days. Not to mention the serious cost of upkeep. For instance, my hot water heater went out in my apt. the other day and I had a brand new one the same day. In my home, that would have been a $5K ordeal. same when my fridge went out. Sure , taxes and repairs are baked into my rent, but a much better financial deal for me.nein51 said:BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
However I would not wish to be a landlord in Texas either. Quality of the tenants is just too risky.
For investment properties I prefer Wyoming and Colorado.
J.R. said:agreed. I wouldn't want to be a landlord for a few single family houses. I'm in the multifamily business and thankfully we have the scale to employ mgt companies. I live in a high rise and really enjoy it.KaiBear said:Agree the property taxes in Texas are very high. Renting is a reasonable choice for empty nesters.J.R. said:agreed. that is why I rent by choice. I'm a native Dallasite/Texan and find the property taxes on single family homes not a good investment unless you are raising a family. As an empty nester, renting makes more sense. I can make more investing $50K in property taxes than appreciation these days. Not to mention the serious cost of upkeep. For instance, my hot water heater went out in my apt. the other day and I had a brand new one the same day. In my home, that would have been a $5K ordeal. same when my fridge went out. Sure , taxes and repairs are baked into my rent, but a much better financial deal for me.nein51 said:BearlySpeaking said:That is not a smart financial move to have your financial future riding on a single real estate asset. It's better not to buy a piece of real estate as part of your investment planning if you don't have other adequate financial investments.nein51 said:BearlySpeaking said:I'll be okay. My solution to the coming housing price drop was not to include my home in my investment planning to begin with. I either could afford to buy it as is and still be in line with my future financial goals or I couldn't, and its purpose in my life is to have a place to live, nothing more. If I benefit financially from my home somehow down the road, then that will be a bonus but I'm not counting on it.nein51 said:
That's probably accurate. Want to wipe out a ton of wealth and bankrupt probably 30% of the country? Have the value of their home drop by 38%. That will do it.
That's just not the case for a huge number of home owners and for a lot of Americans the only real "wealth" they have is tied up in the value of their home.
I just heard (maybe a week or two ago) that between 45-50% of most American's net worth is tied to the equity in their home. I wish I could remember where I heard it so I could grab the story for you.
Ie if the value of someone's home goes down by 50% so does their net worth.
However I would not wish to be a landlord in Texas either. Quality of the tenants is just too risky.
For investment properties I prefer Wyoming and Colorado.
Sincerely happy for you.
However if it was up to me I'd live full time in Buffalo Wyoming or maybe Sheridan.
On at least 35 acres.
boognish_bear said:Thiel calls it what it is: a catastrophe for young people. And he’s right
— ib (@novapilgrim) March 21, 2025
Boomers bought cheap, watched prices soar, and blocked new homes with zoning laws
When cities grow by 10%…
Housing prices jump 50%
Wages barely move pic.twitter.com/27QYypZCXI
To everyone who thought this is an un-representative experience: Fraction of SF homebuyers who are on the young side hits all-time lows. https://t.co/H26Y5XsdpX
— Antonio García Martínez (agm.eth) (@antoniogm) March 22, 2025
The project they’re opposing is also being built on a surface parking lot lmfao pic.twitter.com/yFTUM0UB8D
— Trevor Rainbolt's Burner (@rainboltsburner) March 23, 2025
Our escrow just went up $300 a month because of rising homeowner's insurance and increasing property values. We will be fine...but I don't know how a lot of young people could fade a fluctuation like that.
It’s beginning to look a lot like 2008.
— Nick Gerli (@nickgerli1) March 24, 2025
At least for home builders.
I took this picture outside a home building site 45 min north of Tampa.
They had over 20 vacant spec houses completed for sale. And are advertising 0% down mortgages to try to move the inventory. pic.twitter.com/eb8a5R1n4z
“if you buy your house for $20,000”
— Zack Voell (@zackvoell) March 31, 2025
what century does he think we live in pic.twitter.com/UeyziAo9bh
Yeah, that Warren Buffett guy and Elon Musk guy are real dumbasses!!!LOL!!!
"Many people die at 25, but we don't bury them until they are 75." -- Benjamin Franklin
An important new paper by the Institute for Family Studies shows how low property taxes are actually negative for families and fertility.
— More Births (@MoreBirths) April 1, 2025
In essence, seniors are incentivized to hold much larger houses than they need while young people are priced out of those houses. 🧵 https://t.co/8bTKsxphgl pic.twitter.com/aRMuKUh2rq
RD2WINAGNBEAR86 said:
Yeah, that Warren Buffett guy…real dumbasses!!!LOL!!!
Certainly not dumb
Just a strange thing to say about $20,000 dollar houses
That just really dates him.
I bought my house for $379k at a 3.25% interest rate. Between rent and property taxes, its almost $3000 a month.
Property taxes and insurance is too high. I blame state and local governments for overpaying contractors and not being frugal with what they purchase.
Property taxes and insurance is too high. I blame state and local governments for overpaying contractors and not being frugal with what they purchase.
Doc Holliday said:
I bought my house for $379k at a 3.25% interest rate. Between rent and property taxes, its almost $3000 a month.
Property taxes and insurance is too high. I blame state and local governments for overpaying contractors and not being frugal with what they purchase.
What do you mean by "rent"...or was that a typo?
Yeah meant mortgageboognish_bear said:Doc Holliday said:
I bought my house for $379k at a 3.25% interest rate. Between rent and property taxes, its almost $3000 a month.
Property taxes and insurance is too high. I blame state and local governments for overpaying contractors and not being frugal with what they purchase.
What do you mean by "rent"...or was that a typo?
Boomers after selling their home to BlackRock 20% over listing instead of accepting the offer from the young working couple pic.twitter.com/npOpTOkIli
— Not Jerome Powell (@alifarhat79) April 1, 2025
I've done my best to let my own kids know when it comes time to buy a house not to buy a house based on what a lender will finance you for...but based on what fits your current budget.
Seems like such an easy concept...but obviously way too many people are buying houses they can't really afford.
Seems like such an easy concept...but obviously way too many people are buying houses they can't really afford.
-Wants to purchase a $500,000 house
— Financial Dystopia (@financedystop) April 1, 2025
-100% financed
-Makes $120,000 a year pic.twitter.com/YdyAkMaNhn
Look at the build quality on this $3.5m house ($1m house in 2028) pic.twitter.com/WlN4Bt3SQI
— Darth Powell (@VladTheInflator) April 1, 2025
In an episode of "Boy Meets World", two characters wonder how they could afford an $80,000 home
— Financial Dystopia (@financedystop) April 3, 2025
This guy runs the numbers and its much more today pic.twitter.com/WGYAo7Uhb4
Keep in mind, Boomers are ages 56-74 pic.twitter.com/jLoskdPqWq
— Callum (@AkkadSecretary) April 7, 2025
Had lunch with my real estate agent today.
He was lamenting the frustration of working with 'buyers' who are angry they can't buy a 450k house………with less than a thousand dollars available in their bank accounts.
He was lamenting the frustration of working with 'buyers' who are angry they can't buy a 450k house………with less than a thousand dollars available in their bank accounts.
Unpopular opinion: housing is going to have an epic crash.
— Michael A. Gayed, CFA (@leadlagreport) April 11, 2025
Not sure that's unpopular. It's seems essentially inevitable
Bye bye housing market 👋🏻
— AKM (@akm515) April 11, 2025
30 year at 7.07%
Savage 🔥 pic.twitter.com/nRFjX8wIkd
North Texas area not on here yet
Florida and Texas housing markets are both getting pounded right now.
— Spencer Hakimian (@SpencerHakimian) April 19, 2025
Way too much supply.
Price discovery time. pic.twitter.com/YaInMHdoAn
9% is nothing when you consider the values are probably 40/50% too high to start with.