will take another 2-5 years before I can save another 20% down for a buy and hold property, so expensive! Am currently in a house hack and make 70k a year. In chicago, multifamilys are around 400k so need 80,000k for 20% down. I can do FHA but numbers with 3.5% down but dang those numbers are pretty bad. Seems to be a good market for folks who are already established with large cash positions
Something else that affects demand is the fact that life happens to would-be buyers. Currently we have a lot of people going through credit card, default or credit card maxed or automobile repossessions student loan defaults and using credit cards to pay living expenses. Surprise! A lot of those were people who had planned on buying a home . Those factors directly affect demand because those people may want to buy a house but they now won't be able to qualify for 3 to 5 years because of those events. So it isn't just job loss. It's also cost of living excess and where have we heard that recently?
Any opinions on the DMV area? Got myself a townhouse there last November, Springfield va specifically. My realtor sends out newsletter monthly and he believes housing will appreciate well here for multiple reasons. Recent newsletter was focused on lack of land ti build. Be nice to hear some other knowledgeable opinions to though. Hopefully we get some good appreciation in DMV, i got 12-14 years here!
@James I have to disagree a bit with your assessment that ir is not greedy builders Many builders including yourself want six figure margins. If you cut your margins to maybe 20 or 30 k you won't build these ultra luxury homes and can build affordable. No one wants to build affordable because of low margins
I am so sick and tired of hearing investors and developers should receive help from the government just to afford to run a profitable business. They should learn how to run their business without any help like all other businesses out there. It’s up to the business owner to make a profitable business. If you are not a competent business owner, then business owning is not for you. Investors and their greed are the culprit for this unaffordable housing market. Purchasing hundreds or thousands of homes in bulk creates a false demand driving the market to outrageous pricing.
They aren't talking about developers receiving "help." They don't need help to make money. What they're talking about is government creating an incentive for developers to build affordable, entry-level homes instead of giant McMansions that only the rich can afford. In most major US metro areas, the land and construction to build a 1500 sqft starter home are significantly higher than what existing 1500 sqft homes sell for. Without government incentives, in most markets in the US, developers need to build houses at 2000-2500 sqft or more to even turn any profit at all. So the real question isn't whether developers should "receive help from the government just to run a profitable business"; it's "do you think it's important for there to be more affordable housing?" If your answer is yes, then you need to figure out how to make that happen. And, unfortunately, one of the most effective tools we have for making that happen is through tax incentives for builders. I'm no fan of tax breaks for rich people and companies, but in this case, it seems like a necessary evil.
They have learned how to run their businesses, by not operating in those unprofitable areas. Hence nobody builds affordable housing there. You think the govt can keep charging skyhigh costs for land, development permits, property taxes, rent control, etc and still have a profitable business? So they dont play the game there. And we dont get affordable housing. It’s that simple.
will take another 2-5 years before I can save another 20% down for a buy and hold property, so expensive! Am currently in a house hack and make 70k a year. In chicago, multifamilys are around 400k so need 80,000k for 20% down. I can do FHA but numbers with 3.5% down but dang those numbers are pretty bad. Seems to be a good market for folks who are already established with large cash positions
Something else that affects demand is the fact that life happens to would-be buyers. Currently we have a lot of people going through credit card, default or credit card maxed or automobile repossessions student loan defaults and using credit cards to pay living expenses. Surprise! A lot of those were people who had planned on buying a home . Those factors directly affect demand because those people may want to buy a house but they now won't be able to qualify for 3 to 5 years because of those events. So it isn't just job loss. It's also cost of living excess and where have we heard that recently?
In reference to the micro homes, the type of people moving into those areas tend to be the less desirables. You get what you pay for.
Any opinions on the DMV area? Got myself a townhouse there last November, Springfield va specifically. My realtor sends out newsletter monthly and he believes housing will appreciate well here for multiple reasons. Recent newsletter was focused on lack of land ti build.
Be nice to hear some other knowledgeable opinions to though. Hopefully we get some good appreciation in DMV, i got 12-14 years here!
Great vid
Home values are declining in every state.
incorrect
@James I have to disagree a bit with your assessment that ir is not greedy builders Many builders including yourself want six figure margins. If you cut your margins to maybe 20 or 30 k you won't build these ultra luxury homes and can build affordable. No one wants to build affordable because of low margins
I am so sick and tired of hearing investors and developers should receive help from the government just to afford to run a profitable business. They should learn how to run their business without any help like all other businesses out there. It’s up to the business owner to make a profitable business. If you are not a competent business owner, then business owning is not for you. Investors and their greed are the culprit for this unaffordable housing market. Purchasing hundreds or thousands of homes in bulk creates a false demand driving the market to outrageous pricing.
They aren't talking about developers receiving "help." They don't need help to make money. What they're talking about is government creating an incentive for developers to build affordable, entry-level homes instead of giant McMansions that only the rich can afford. In most major US metro areas, the land and construction to build a 1500 sqft starter home are significantly higher than what existing 1500 sqft homes sell for. Without government incentives, in most markets in the US, developers need to build houses at 2000-2500 sqft or more to even turn any profit at all. So the real question isn't whether developers should "receive help from the government just to run a profitable business"; it's "do you think it's important for there to be more affordable housing?" If your answer is yes, then you need to figure out how to make that happen. And, unfortunately, one of the most effective tools we have for making that happen is through tax incentives for builders. I'm no fan of tax breaks for rich people and companies, but in this case, it seems like a necessary evil.
They have learned how to run their businesses, by not operating in those unprofitable areas. Hence nobody builds affordable housing there.
You think the govt can keep charging skyhigh costs for land, development permits, property taxes, rent control, etc and still have a profitable business? So they dont play the game there. And we dont get affordable housing. It’s that simple.
Short answer: No.
Long answer: Hell no!
Home prices will never drop less than 2-5k, they will just stay the same or go higher. They never go lower. Lol
They did in 2009
@@9714 Yep. These people have recency bias and are going to have a very rude awakening