This is the problem. The Banks are in line with the Libertarian billionaire cash big corporate real estate buyers that are not only American but also foreign money especially Chinese millionaire and billionaire money that are buying up all the affordable housing and land. They are making a renter's nation for US and for US farmers on food prices. You are pointing out who controls our money systems. This is about an oligarch economic controlling society like Max Headroom life. All you are doing is frightening and discouraging to buy now at very high commercial prices to drain America into servitude. The dollar is paper and ink. The money market systems are thin air. The value is controlled by the very rich people from the Libertarian DAVOS billionaire society (Putin is one of these billionaires) and they are wanting to be kings, emperors, and god deities. And you are helping them to win control over our lives.
I can't hear what you're saying because of the god awful music competing. If you want a music video, then make a music video. If you want to teach something, then leave the damn music out!
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
Although a housing market price correction appears imminent, it might be wise in the near term to shift funds from real estate to alternative asset classes like stocks or commodities such as gold. With interest rates rising significantly, economic data pointing towards a recession, and stricter mortgage lending criteria adding strain, a 40-50% reduction in prices may be essential for market stability. For individuals facing financial decisions, seeking guidance from an impartial financial professional familiar with prevailing market conditions is recommended.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing your thoughts. I’m glad to have been of help, and I hope you find Rebecca Lynne Buie’s expertise valuable. Investing is a passion of mine as well, and I wish you success in safeguarding and growing your portfolio. God's blessings to you!
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Carol Vivian Constable’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Carol.
Older millenial here; born in 83. Bought a house in 2012 for $109k and as a result my taxes are only $1,500 a year and can only increase 3% each year. Refinanced to a 2.75% rate. It’s currently worth $350k and if I bought it today the taxes would be $6,000 a year and my interest rate would be more than double. Also graduated without student loans when scholarships were still good and credit hour costs weren’t obscene. Got my masters degree for like $10k in tuition. My joke is that I was the last X-Wing out of the Death Star.
@@BassPlayer9000 Yeah it’s freakin terrible. I thought graduating in 2008 was bad because there were no jobs but now everyone has jobs but no one can afford anything. Despite what the video says I still think we need a crash. Recessions are a normal part of the credit cycle when you borrow like we do; it’s the correction that wipes out malinvestment and significantly cuts back asset prices. Sure, not everyone will be in a position to take advantage at the bottom of the crash but as things recover there is a Goldilocks zone where many many people can get on the train (before the next crash). Having a recession every 6-7 years allowed people to “get on the train” as the recovery started. When you avoid a recession through monetary manipulation it not only makes the train speed away faster from those that aren’t already on it but we don’t allow for a reset to benefit the younger generations. It’s been 16 years since we’ve had a real correction… almost an entire generation. If you’re between 25-35 or if you happened to fall off the train for whatever reason (health, unemployment) you have effectively been left behind. Having a recession every 6-7 years keeps thing from getting out of hand. It also allows people to get on the train at regular life intervals and even if you miss it or aren’t well positioned (I.e. half way through a cycle) the next train is right around the corner.
There will not be a (large) crash. There is so much money waiting on the sidelines to invest, and it will snap up any decline in real estate prices. It’s just not going to happen. The 2008 crash was a product of widespread fraud and structural flaws in the mortgage market. Not a reflexive pull back from high prices.
@zoraster3749 we do need a crash. Yes, it won't make the houses cheaper, but it will hurt the rich and may make some of them jump out of windows again, and that's a win. The poor are in such a state that a recession won't do damage to them, because they're already in poverty and paycheck to paycheck. But to be honest, we need revolution, not recession.
Because they know people are buying them as an alternative to housing so they're jacking the prices up. No matter which avenue you try to take just to have a roof over your head, there's going to be a scalper in the waiting.
A real estate crash would mean a loss in confidence in it as an investment vehicle, meaning investments might go into things like R&D, new businesses, startups, etc. In the short term a housing market crash would cause a lot of property owners to lose their bets, but in the long term it would stop being a drain on societies wealth.
Its also about perspective, there are things i COULD be doing to save more BUT im early enough in my career to know that the payout for those sacrifices is a drop in the bucket compared to how much ill be able to save by getting promoted (up for one in a couple weeks) and job hopping. If youve already budgeted for $5 coffee twice a week every week it doesn’t make that much sense to cut it and be less happy for 12 months to save $520 if you’re going to be given $15000 at the end of that year either way. Deprivation is not a healthy mindset so it doesn’t make sense for people who don’t know WHEN theyd be able to afford a house to live with their belts as tight as possible until they can - a matket crash would be a green flag to people like me however to tighten in anticipation of that opportunity, a de-abstracting of numbers. You see the same advice given a lot in weight loss and exercise circles, people aren't built to pursue vague "improvement", they need goals and those goals need to seem obtainable and not 10+ years away.
What we need is a good, hard recession and the job losses that come with it. Not only will homeowners be foreclosured on but this time, unlike 2008, so will commercial buildings. Greed is a sin for a reason. Many will pay their wages of sin to karma.
People HAVE to live somewhere. Its investment value can only diminish with strict government regulation to discourage its use as an investment. Housing will always go up in price, if demand is never met with supply thank to the issues pointed out in the video. Eventually, big boys will own most of the land and homes and the monopoly will start printing money. That's the endgame...
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Maybe they don’t follow real estate numbers. I do, so I know exactly why my son isn’t buying one right now, and he shouldn’t be. Waaaay overpriced. Maybe they need to see real estate listings and what a payment would be.
@@katydid2877 I've directly shown my parents house prices and their counter-argument was that salaries have universally increased 10x since 1982. None as blind as those that don't want to see.
@@thesquirrel082190they literally add living space for those that do not want or are unable to own a home. Please try to not be stupid on the internet
I don't care anymore. I wanted a house for so long, gave in and ended up buying a tiny plot of land outside of the city and a trailer for a fraction of the cost to rent last year. Don't own a house and may never, but it doesn't even matter because I'm set and all your fear propaganda and depressing videos about this don't faze me now.
The sad truth is that housing is continually under-supplied, so prices will only drop due to a lack of demand. Housing prices will only decrease when you are less able to buy one, at which point someone with a lot more money with you will get to take advantage of the deal.
if something is undersuplied.. its price goes up not down... if price will be too high, people will pay rent and there will be still buyers to make money on them, easy, and its not coincidence that building a house in capital city in my country takes 10 years because of all of the regulations ... prices will go down only because of the demographics, housing prices will go down as soon as generation of babyboomers die or leave to retirement houses and sell their houses to underpopulated generation bellow ...
Yes but what's more is that the dollar is depreciating really fast and the market is quickly accounting for it. Homeowners need an incentive to sell and if there are high interest rates, high crime, high regulation, sky high insurance premiums then nobody will sell or even build.
@@jonyD143 Selling and building are inverse actions. If people are unwilling to sell, that will reduce supply and drive prices up, which in turn makes building more profitable.
@@xkidmidnightxthose 8 million were never going to affect the equation of buying a house when they're mostly capped at low skill labor that results in little capital to buy one.
As someone who bought 2 years ago, I'd advise people to take that warning about elites being the only property owners to heart - don't keep renting forever. The only 2 ways I'm seeing young people buy a home is 1) massive inheritance or 2) getting married/not having kids and saving. I took option 2 and saved for 9 years. If you don't have rich family, start on route 2 now and buy when you reach 20%. If you're watching videos like this, you're smart, and you can do it if you play the long game.
Wish I could wait longer on the kids thing but with the future of womens healthcare on the line I’m having a kid now so I can get some semblance of quality healthcare before abortion becomes fully illegal
Yeah, my husband and I are working towards saving 20% (we're actually getting fairly close given the kind of house and land we plan on buying). We're just in the process of trying to get a remote job for my husband before we go house hunting since his current job is location-based.
That's really sad if you think about it - humanity is going to rapidly die out. It's not like 2 adults having only 1 child, it's like 3 out of 4 adult pairs barely keep up with expenses and 4th is trying to slowly save up for a house, and hopefully at the time they get a house they still would want a child...
I was fortunate to buy my house back in 2009 for $126,000 during the heart of the 2008 housing market crash. That on (at the time) a $32,000 salary. Despite having a low annual salary, having a stable job and purchasing a house in a rural area helped getting the mortgage loan. I don't see the conditions that led up to the last housing market crash happening anytime soon.
This is more like the 1970s, when high interest rates and inflation in other areas put long term downwards pressure on housing prices until these pressures went away.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The best method I can think of would be to reduce the amount of residential property a corporation can own which would increase supply without raising prices significantly.
Or Georgism! Look it up. If you tax the land residential property sits on at 100% of its rental value, it will not make sense for corporations to invest in property!
Well short term yes ~long term that would just increase the price of rent & divert building to apartments instead of homes (bc corps greedy & will find a way to justify their losses). The 2nd half of the equation is forced market adjusting; giving regular people access to loans & funding construction companies to make buildings en masse. This would increase the amount of trades people & their wages (and learning opportunities), which would help those people/families get housing via straight up cash, and for others the Gov could divert record Corp and rich individual profits to low interest or 0 interest loans, funding for low income households, and mortgage buyouts for low/middle class people who bought pre forced market rate adjustment. Realistically the route of the issue is the constant diversion of money away from middle & lower classes via taxes and abysmal wages compared to the cost of living. The corporations at large are basically all in one giant bubble where they've learned how to suppress labor value & competition in their favor. That and how to get people to pay to own nothing for "services" that do little or objectively make our lives worse collectively. At this point, there is no incentive for most corporations to build unless it's for things like AirBNB bc their capital values are sooo high. Investing in apts or housing isn't NOT profitable, but it has the potential to inadvertently be used for non-commercial purposes (ie normal people having stable housing where they live/work) and therefore lower property values and market rent rate. Unless it's government funded or funded by wealthy individuals for their own purposes, building just doesn't happen anymore. That's why we're in a crisis of low-inventory in the first place where there seems to be no end in sight. The gov at this point HAS to step in and regulate things. It's too far gone to correct itself.
Ok I was worried you were going to tell me something new to be afraid of, I'm glad I'm already aware of all the other things that suck about trying to get a house.
The problem is purely artificial. We have the tech to solve the supply issue in one or two years basically. The reason why the market won't do it is because the housing market is a speculative Ponzi. Having enough supply would be a big problem. So the problem is really just the result of greed and some mismanagement.
@@dojadog4223 The problem really lies in the way American cities are designed, the government and businesses created such stupid building laws that now the cost of maintenance is sky-high, and no more can be created because everyone wants to make a profit that is impossible to obtain Basically the game was rigged from the start, and people now only live with the consequences
One thing often not addressed is urbanization and the change of needs around it. Previous generations had jobs spread out all over the world. Companies created job opportunities in smaller towns and didn't need to rely on international airports. Nowadays, you have to choose between 1. An affordable home far away from any good jobs 2. A relatively affordable home in the outskirts of a big city with hours spent on commute each Day 3. An insanely priced home with a good commute. Price to income ratios are bad as it is, but they average across the above categories. If you look at price in a locality with income of jobs available within half hour commutes, the number will look way worse.
The last "market correction" that lowered the price of housing was immediately followed by an unprecedented buyout of now cheap housing by corporations. Those same companies are still in power today, and have infinitely more capital than 99% of people will be, ESPECIALLY after a housing crash. The only solution is to go after the cause of the problem, which is the companies buying out obscene amounts of housing as investments instead of homes.
Now show what percentage of residential properties are in those corporations' portfolios (and compare it to the current supply in the country). Even if they emptied out their portfolios of all residential properties, it still would not increase supply enough to answer the demand.
stop manufacturing facts. This "unprecedented" buyout doesn't even register on the scale of overall homeownership. Per the Congressional Research Service, institutional ownership of rental properties in 2022 was 1.2% and rental units was 4.3%. Meaningless when we're between 3.8 and 5.5 million houses behind what we should have been building to keep up with demand (also from the CRS)
Isn’t this the disproven “blame Wall Street” narrative? Housing is a supply and demand problem. He says it himself - America is building less homes today than it was when it had 50% the people. Don’t you think if there were 2x the homes, it would be cheaper to buy one? China overbuilt homes and now they’re dirt cheap. Don’t be fooled by media trying to make you angry at scapegoats. Anti-building regulation designed to inflate existing home values is the issue.
Stop spreading these myths. It’s not corporations or PE driving up home prices. There’s so much evidence against that it, this channel even has an episode on it. The silent and baby boomer generations have voted for 60 years for any measure that reduces housing supply and housing density in basically every corner of the western world. We have a supply problem 60 years in the making, not some evil cabal of corporations.
As a farmer, i understand your issue about talking to banks about loans. Unconventional income doesn't work in their computer algorithm, and loan officers don't do much than push buttons on a computer anymore. I'm lucky enough to have some smaller banks in the area that don't have a bunch of branches, and loan officers that are willing to look at statements, plans, and talk to you, and not just fill in boxes on a screen. You may try to find smaller banks that may be more friendly to talk to. The only downside is that the rates may not be the best. And if you're in a large city, small banks may not exist anymore for all i know.
Yeah, I don't know what's with this video. A *market correction*, as I would not characterize it as a "crash", does help. But ultimately people need to get involved, look to support pro-housing organizations like YIMBY, to increase housing supply because NIMBYs and real estate interests have lobbied for the past 30-50 years to maintain artificial scarcity.
Yes, this video lied when it said house prices barely dropped from 2007-2008 which is true but a lie at the same time, the actual bottom was 2011 not 2008
@@sor3999YIMBY alone won't solve things. As the video points out real estate developers won't put themselves out with the risk of losing money. The government needs to step in and Directly build more housing, an absolute ton of it.
Basically, Byzantine zoning laws, along with an unprecedented rise in population (but not birth rate), has made housing unreachable for those who do not already have it.
Couple that with high interest rates discouraging greenfield development and a flourishing rental market which discourages sales of existing housing stock and you have yourself a recipe for houselessness and homelessness for generations to come.
I think the biggest reason why a lot of people beg for a crash is because they were in situations like me. I had finally hit a stable point with a good job, and if I pinched some pennies and played it smart then within a few years I could afford the down payment on a house. Then I watched as my growing savings became utterly paltry in the face of a house market that tripled in price in about a year's time or so. Now, that down payment was higher than my gross pay and it would take a decade to catch up. But hey, I could still do it, right? Wrong. Now interest rates have tripled and a fixer upper starter home needing tens of thousands in repairs can run in the high $2k to low $3k a month range, and my wages can't support that, nor can the 3% annual raises. We watched over the course of 2-3 years as the housing market was ripped away from us. It's no wonder people feel a crash to where we had been before is the only way they'll ever own a home.
Exactly my situation. I lived way below my means in my 20’s and saved up a lot but then I look at home prices and I’m not even close. Unless I wanted to buy some shitty home in a bad location and fix it up which is a useless investment
Hell, I make 43k a year, am going on 23, and have nearly saved 100k I couldn’t even afford a 3 bedroom barndominium to built on under an acre of land with a built in garage cause it would cost between 400-500k Barndominiums are made to be cheaper than normal homes and even still it’s that pricey
I think the thing about this that disgusts me the most is that, when someone cannot get a proper home, they build their own ramshackle abode. The state then comes it, deems their ramshackle abode "unsafe" as per regulations, and bulldozes it, rendering them completely homeless once again. Any society that cannot build adequate housing is doomed to fail, or to fall into some kind of revolution. Imagine a rule, enshrined into the constitution, that the average house price in a given are must not exceed the Median Income x 5. Or a similar limit. Obviously a lot of caveats, but it's starting from a place much better than what we have now.
A lot of people have not in my backyard mentality. They don't want a lot of hoovervilles around their area. They want to maintain property values and assemblation within the suburbs or wherever they're living so that those affordable homes would not fly. I would not want to live in California or place. It just has junkies in homeless. People just hanging out everywhere that can be moved to an urban area. That's a sanctuary for all those things.
Gonna be a lot of problems there. If I can't sell an average house for more than 5x median income while it costs 6x median income to build, I simply won't build anything, and then it'll be like in USSR, where beef got mandated to cost 2 roubles per kilo and no higher, and soon, there was no beef on the shelves.
@@Hisu0 Yep, there's a tangle of caveats in that. T'would behoove such a system to work its way along the production pipeline to streamline material acquisition & assembly. Worst case scenario, homes are created at a small loss, for society's cost-benefit analysis renders that a housed individual will produce more over time, and thus pay taxes, then the difference of home sale had as a loss. (Simplified for yt comment)
@@nickolasbrown3342 If houses are built at a loss which are then recuperated by rent or some other service, that means those who build houses have to benefit from that service, which means they have to be a part of the same corporation, and we all know that the larger the corporation gets, the worse it performs.
That's the reason I chose to live abroad. I can bring my job with me and live comfortably, it's sad I can't do that in my own country on what I thought was decent enough income to support myself. Wages are too low, the interest rates are too high (when considering home prices). Don't get me started on the insane rental market. Gone are the days when a family could be supported by one person working full-time. Freaking sad. People sacrifice time for money, seems we are giving more time and not getting more money in return. We're already a renting society. Subscriptions, digital assets you don't actually own, rental homes, cars..ect. I feel it's only going to get worse.
YEP. In 2009 I couldn't find a bank to give me a mortgage for $265,000, because I was only making $75,000 / yr, with a $25,000 down payment, because I had $20,000 in student loan debt and had only been working for 2 years, so I hadn't built up enough credit yet (also, lack of debt).
I’m British but live in Sweden and so understand the issues faced by America. Housing is a messed up market here in Europe also. I remember reading “the housing theory of everything” a few years ago and it has stuck with me. The premise behind the paper is that the unaffordable housing creates so many issues in areas seemingly unrelated to housing. For instance, we have a population crisis because it’s not exactly romantic to start a family of your own whilst you are stuck in your parents house. Another issue relates to productivity. If housing is really expensive then people have to look further out from their place of work to live. This affects productivity because it means people get tired due to commuting and also it stops new ideas that could arise as people don’t socialise outside of work with colleagues due to not living in close proximity to each other. You’ve even got the obesity crisis if you live far out from work, you won’t cycle or walk you’ll drive!. I doubt that the housing crisis will get better in England because a lot of the wealth and political power here is associated with the land owners. It’s why I’ve become sort of a georgist. Home owners may add a conservatory to their house to increase the values of their homes but that addition doesn’t really explain the large increase in value of their home. That large increase is mainly due to scarcity of available homes and demand factors outside of the work of the home owner such as good career opportunities in the local area or attractive educational opportunities for children.
You'd almost think it's not a coincidence there is a housing crisis everywhere in the West and there is some global monetary policy that ruined everything.
@@solaireastora5394 Blaming obesity on not being able to bike to work is absurd and easily outweighs my anecdotal evidence. Go to the gym. "I sure wish I wasn't obese, but my work isn't close enough to ride my bike! Not my fault 🤷" Are you kidding? 😆
So if builders aren't building because of the risks and cost of holding land and selling the house in the future, could a good option for prospective home buyers be to buy the land and take out the loan themselves so that they carry the risk instead of builders? If you're buying a house to live in it long term then you won't care as much about temporary dips in value.
If the government was smart they would make a lot of the expenses associated with building your own home on your own land tax deductible in order to incentivise new builds, but I doubt that'll happen.
@jghifiversveiws8729 how lame to play roulette with bureaucracy. It's like going to get a sandwich but they mess it up consistently for 5 years until you say 'i don't even want the sandwich anymore, I have waited 5 years for you to get it right' but then the sandwich shop assures you that they will get it right this time, which you then say 'okay I'll wait' and now it's 10 years later and the sandwich is still not right. So in the 15 years total; you got two sandwiches, that are not even up to the mark. In other words; you have been scammed. Seek King Yeshua and be free from deception
You still can run into issues with zoning and local outrage by doing this. They think a piece of land is an empty lot or even a small green space and then get upset when it’s bought and someone wants to build something. Like no joke I’ve seen people get these projects shut down.
@@smh9902they will lend you for the land purchase, but it needs to be with a plan to build. Once the construction is done the loan for the land and the construction loan get combined.
Most of us lived through the 08 crash, people got amazing home buying prices for at least 5 years after the crash, minus a short time where loans were hard to get. Prices come back slower than jobs and mortgage availability.
@@joram4115 at this rate in another 50 years the new new American dream would be owning a tent out in the woods or under the bridge, atleast thats better than living in a cardboard box in a corner of a cyperpunk city.
I’m a new dad, I moved closer to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year.
just search Monica Mary Strigle. Pretty simple with sophisticated looks but has empathy for her clients and takes you on if are ready to explore the business model she presents.
The best thing that can happen for the housing market is for houses to stop appreciating or just slowly. We need wages to catch up to the home prices. 2nd more homes be built and this included apartments. Both will take time like 10 years.
we need wages to catch up with inflation. It will never happen tho, but it's the only fix. There is no "middle class" now days, its you are poor or you are rich.
So, your solution is to have the capital markets work in reverse? When wages climb, guess what happens to housing prices? Why would houses ever stop appreciating against a depreciating dollar and rising wages? In order to have your reality, you’d just need to convince all those people with already high wages to stop buying houses until your wages catch up. Good luck with that.
We all need a home of our own, but home ownership as a commodity for investment shouldn’t exist This system only benefits needlessly wealthy people as they wring profits out of poor people, all while being commended for it like they’re providing for their victims somehow. They make a huge effort to distance themselves from this reality they create, but no matter how you put it if you’re getting rich off of owning more shelter than you could ever need it’s not coming from disposable income and optional luxuries They’ve got their clients cornered
Adam Smith nearly 300 years ago had already criticized the concept of rent-seeking. He talks about how rent-seeking behavior seeks to profit from the land without contributing to making that land valuable the way the laborer, the builder, or the seller does. I believe it was kind of couched in the context of criticizing things like sharecropping for example. The land is not valuable by virtue of you owning it, it is valuable for what it can contribute to society whether that be shelter, food, raw resources, industry, etc. A man who owns his plot of land can make his own decisions (within the law) to do what he wants with it. He can expand on it, invest in improvements, use it for business or build a home and equity on it from which he could loan against to finance new ventures. Renters rarely have the option to do much more than repaint the interior walls before having to paint them back to white when leaving. Renting makes sense for like tourist destinations and people who travel frequently but in order for the system to be healthier they need to be a severe minority of the housing market.
this system is nothing new . Rich people buy houses, cars, paintings etc.. since money was invented . it just more prevalent now given the increase in disparity from richer people to poor and social media
it just sucks now because the Govt bails out the Rich CEO with tax payers money . thats what everyone should complain about it. At least the elected officials can even the playing field
I disagree, not all the landlords are vampires and many people who rent their houses can't work (disabled, elderly). So it depends more of who is the owner.
@@angelr194Perhaps they should get a real financial advisor to help them with retirement using better investments. Even with the inflation in the housing market... it still doesn't outpace the stock market.
After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.
I concur; I've been in frequent communication with an investing advisor for more than 17 months. I definitely remember needing inspiration to keep my business running after a protracted divorce. I researched licensing consultants, sometimes known as portfolio coaches by some.
I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
The only way for housing to be affordable is for government to take action and discourage housing as an investment. Something like low taxes on first home, but with each new home, the taxes go up exponentially. Like on the second home the taxes can be 20%; on a third home, the taxes can be 50% and so on. Only then will private equity stop buying homes as a form of investment. And only then can real people buy homes as a place to live as opposed to a vehicle to make money. So, this means that home prices will never go down because the government, regardless of the party, is in the pocket of the elites.
Most landlords in the world are still private individuals with high-paying jobs, inheritances or businesses who own more than 1 place, not corporations. But yeah.
@@talknight2 That is true. But I read a study that says that as of 2022, investment companies own about one fourth of all single-family homes in the US. In 2023, 44% of all single-family home purchases were done by private investors. That, to me, is just insane. Our society has to discourage single family homes being treated as investments. (I know you don't disagree with this, I'm not adding this reply as an argument against you. I just wanted to bring attention to this insane static, which you might already be aware of.)
@@talknight2or working poor people who don't finance cars and take 3 vacations a year. I topped out with 8 houses and the most I ever made was one year I made 72k. Most years I made 15 to 25k until I sold some and paid down debt and became a millionaire. Since my net worth hit 1m I pay about 10-20k in taxes even though I don't have any income.
To summarize the video: there is no hope, just give up because you will always be left holding the bag anyway. I would make the argument though that a housing market crash will still force a leveling of the playing field at least temporarily as the market begins to recover. That happened a couple years after 2008 as banks started cautiously giving mortgages again and people started to rebuild their careers.
This is one of those areas where government intervention can really help the situation. Being able to identify unproductive land and give grants to contractors to build housing tax free will dramatically increase the supply. There may also need to be laws put into place limiting the sale of houses to individuals for solely investment purposes. If nobody is occupying the homes as their primary domestic residence then the owner will face a tax that increases per quarter linearly for the first 4 quarters, and then exponentially in following quarters (as the tax is aimed at getting the home sold or rented to occupants). The money from the taxes should be directed back into the fund for home building grants. This would help keep taxes lower for the rest of the population, and encourage home building in times of greater demand, but slow down when demand is satisfied.
@@theprimonemo A couple states have this going on in the US I believe. I remember my mother complaining about having to pay additional property taxes in South Carolina because she and her now husband were staying together in an entirely different town but he couldn't put the house he was living in before then up for sale on his own for a few years because of issues with a prior marriage. So there it sat, unoccupied until the issues were resolved and it could be sold off. I remember thinking to myself leaving homes empty that are perfectly valid for residential use (by the people who do it intentionally) should be penalized in some way. It isn't the same as sitting on an office building that wasn't built to residential codes until a good potential customer comes along. You're actively and willfully contributing to a problem affecting the country.
won't happen ppl who already have homes vehemently fight against any changes I live in a single family zoning area these ppl NOT changing I can guarantee that
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits, such as regularly setting aside money for sound investments...
*with over 10 years of tra ding experience, Mr Ricky has gained herself a good reputation by helping a lot of persons build their finances' through inves'tments.* 🇱🇷
I was owing a loan of $32,000 to my bank for my son's brain surgery, now I'm longer in debt after I invested $10,000 and got my payout several times for the past two months.
True. I first came across investing in the market in 2019. Already stashed about $80k in savings then, and the free money from the Government was pouring in, increasing inflation rate. I just got an advisor and kept the money there, just because I didn't want to keep the value of the money depreciating in the bank. Tbh, it's the best investment decision I've made since then.
I disagree. A crash would actually help. The problem is that housing, like other assets, suffer from extreme asset inflation. In such an environment everyone is rent seeking and speculating while very few people actually want to build new houses. So you ruin the supply and demand mechanism. Persistent quantitative tightening would dry up liquidity and force people/investors to sell their assets, which would reset the asset inflation. After a few years of pain, investors would invest in actually building houses again because that is where the actual demand is.
3:53 a bank told you no to lending because you “make UA-cam videos” 😮 give me a shout. You need a better mortgage broker. Or to decrease your debt to income ratio asap. We bought a little over a year ago. I’ve done UA-cam 100% since 2020. And before that I did music professionally from 2015-20. Based on the size of your channel (and what I’m guessing your ball park income is) you can definitely qualify for a mortgage.
You might want to take a look at the next thing which is likely to happen, which is the government stepping in to disrupt the market. In California, there are already laws being proposed to limit the number of single-family homes an investment entity can own. And even if they don't pass this year, which is likely, if the market doesn't fix itself in some other way, these attempts to make it illegal for big investors to buy up hundreds or thousands of homes will keep coming, and eventually they'll succeed.
2:30, everyone likes to point out that house prices only fell around 21% nationally in 2007-2008, but what about the next 2-3 years? Houses in my neighborhood went from the low $300''s to around $100-130k in only two years. I went from being able to qualify from barley one home to three homes, so you cannot say that a crash wouldn't do any good for first time home buyers.
Cries in Canada where 30-year mortgages aren't really a thing and everyone has a 3 to 5 year mortgage. There's a reason we're in a recession right now.
What is a normal down payment percentage wise? A 3-5 year mortgage means you would need to pay back 20% to 1/3 a year plus interest. I think Canada has issues with zoning and the fact that almost the whole country wants to live in the far southern part of the country despite it having a ton of land and less people than U.S.
@misterogers9423 he's kind of off on his statement. Standard mortgage in Canada is 25 years, the 5 years is the term on your interest rate. We don't get 30 year rates locked in here, you renegotiate every 3-5 years depending on your mortgage. So you could have a 25 year mortgage for 500k on a 5 year fixed or variable interest rate, and at the end of those 5 years you either sign a new term with the same bank or move the mortgage to another bank if they don't have competitive rates for some reason.
Mortgage itself is a scam. You should be able to afford a house with full cash, not even financing. That means even in an economy where mortgages have 0 default rates, it is still a scam economy
@somthingrandom208 To add to that (yes I agree the person you responded too is somewhat weird with his answer)... Depending on the lender, amortization periods wildly vary. The bank I am with you can go from 1 year up to 10 years to lock in. The interest rates just change depending on how long you want to lock it. Generally the interest rates get higher the longer you want to lock, since more risk being put on the bank then.
I am one of the lucky 3% interest rate mortgage holders who bought in 2016 and my house is 400k in equity currently. However, I want to move closer to where I work as I'm in the "burbs" but hell-to-the-no am I going to sell and get myself upside down. I've watched my Millennial daughter move back in with me to save on "Rentership" life style and possibly save for a house? Maybe? Maybe not? It's insane and it's only going to get worse. I am to the point where I'm telling my daughter, you can live with me as long as you want but that is unsustainable as well. It's a BIG mess.
8:24 Here in Australia there's no such thing as a fixed interest 30 year mortgage, the average is 2 years before it turns into the variable rate. There's more and more homeowners feeling mortgage stress as their previously low fixed terms come to an end and they face the current interest rate. Fingers crossed it starts a proper correction
You can print more money. You can't print more land, workers and building materials. Apparently we're so busy printing money, that we can't comprehend that.
There are a few misconceptions in this. Did example: a lot of the people who own homes now and rent are retired so their rentals are their only income. The short term rental market is actually drying up in a lot of locations and as property taxes and insurance keep increasing these people have no choice but to sell their rental properties. This is literally happening right now.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@hunter-bourke21bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
There are a lot of independent advisors you might look into. But i work with *Izella Annette Anderson* and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
This is like the argument "Rain will not cure the drought!" A real estate crash will lower housing prices by up to 50% in some areas. Financing is another matter and lenders will demand more down and more income (assets) to secure the loan. Those that did not sell will be underwater with their mortgages for up to 10 years.
Lenders cant change what they're demanding in down payment because the industry is controlled by the government conforming loan requirements. Banks don't keep loans. They make a commission, then more on the sale of a bundle of loans.
Just tax land, as long as the value of hosuing increases at a rate faster than inflation, the real cost of housing will only increase, by definition. Henry George figured this out a long time ago. Tax land at 100% of its rental value and stop taxing income and sales. It is the only way. Georgism!
Yes! Land Value is the only tax that stimulates the economy by encouraging land owners to develop and fully utilize their property or sell it to someone who will.
Just because houses increase faster than inflation does not mean wages will. That is the problem, if wages increase slower than inflation (like they have for decades), then that system still won't help affordably.
That souds optimized to fuck over retirees. "Your paid income tax all your life, now that you don't have income, we're abolishing the income tax and taxing the house you live in at $50k/year" Then they'll find out how many retirees can still hold a rifle.
I'm going to have to politely disagree. I was there during the 2008 crash. Even if the problem you have is not qualifying for a loan, a correction could potentially help you because you'll need to qualify for 30% less of a loan.
How can you blame them? We are living in an age where the median american brings in 40k (reserve bank) and the median house costs 390k (natl association of realtors). Not to mention the ever increasing rental rates. Couple that with insane interest rates, colleges that can legally bury you in more debt than ever before, jobs that dont want to pay you a cent more than they have to, groceries that are at or near all time highs for the average person, and all of the political turmoil going on. Its pretty easy to imagine how the average person trying to buy a home is pretty depressed
@@Mike-zl4zsThe political factors can't be overstated, I think that makes me feel more depressed and uncertain than anything. We're in an election year and it's getting harder to remember the last time our government wasn't in a perpetual state of absolute chaos, wars are breaking out, and things like AI are gonna create massive changes to basically everything. Do we just go on with business as usual hoping the economy won't crash and everything will just fall into place? Is there really nothing we can do but prepare for the inevitable?
I graduated college 5 years ago, put my nose to the grindstone. Started paying off debt, saving, getting promoted, getting credentialed. All so I could be responsible and reach my then very obtainable goals of homeownership and becoming a parent. My reward for all that work is seeing in real time the cost of buying a home double and my standard of living actually reduce.
I know that borrowing money for building a house is expensive right now because the of the current interest rates set by the federal reserve. But, what's stopping the fed from having special exemptions for builders to borrow at a lower rate?
Political will. They would have to exercise their power towards some definable goal with a specific intent, not just "scoop out the water aboard a sinking ship" as they've been doing for a while now.
Great video as usual, but I dont care about buying anymore. That was part of my retirement plan to have a paid off home to lower my monthly overhead but that’s out the window. Not going to stress over something I can’t control.
I beg to differ. I did help me back in 2009. A 2 bed 2 bath condo that was selling for $ 147 K prior to the crash was sold for $ 27,500 afterwards. Thus, it will help me achieve my goal.
@tachobrenner If It was up to me, I let the economy keep going the way it has; unfortunately for everyone, the economy runs in cycles. I make money, either way. In 1995, I purchased a property for 190K that I sold for $ 625 K 10 years later. Thus, if you think that education is expensive, try ignorance. I would rather be educated in financing and socioeconomic cycles to keep up with the changes rather than become a slave of the elites. In summary, I just follow what's going on with the economy. Have a great day and God bless you.
@borisharhaji6870 I'm I? Unfortunately, I don't have a crystal ball; however, according to the statistics, it's looking like we will. As to when, I don't know, but I'm ready for it in case it happens. Have a great weekend.
In August 2022, I paid 685k with a 4.375 interest rate for my second property in San Diego. The property is currently worth $895k. I've already increased my ownership by over 30% in less than two years. There's no need for me to sell because I'm making over 90k in rental income from my two ADU studios, which pays my mortgage each month. In addition, my rate is ridiculously low, which I view as a benefit.
I'm sorry for first-time homebuyers who could never afford to buy one in the first place. I have no sympathy for first-time homebuyers who could afford it but decided to hold off because they believed the market was collapsing and was now priced out.
Recently, I've been considering contacting consultants. I need guidance because I'm an adult, but I'm not sure if using their services will be very helpful.
Bought my house 20 years ago. In Logan Ut. price, 125k. Interest rate was not an issue as the mortgage was easily do able on 1 fair salary. Our town was great for kids and young familys for along time, because housing costs, buying or renting were so cheap relative to local wages. I think up untill about 2020, it was still a great place for kids and familys to make a start relative to most places despite low wages, we were at least still a possibility for say 50 % of the people. Thats all gone now. Values are so high, kids and familys have no chance at all to own, and can barely afford rent on 2 salaries. Wages are really really low relative to reality here. Lots of people moving here with magic cali money paying cash for years has made our little paradise just like everywhere else. It has been great for a few at the expense of the many, and society as a whole is going to figure out pretty quick what you get when you provide the youth with nothing feasible to aim at.
It strikes me as odd that schools, quality of life and crime are overlooked in discussions about real estate. Most of my life I've lived in neighborhoods that most working professionals could very comfortably afford but perpetually overlooked. Invariably everyone opts for more affluent communities where better conditions are guaranteed. Conversely, those same issues cause trepidation over new development. Let's not also forget that developers are notorious for violating regulations and producing shoddy work. Around here they built rampantly over wetlands and residents have been paying the price for decades. Point is that tons of issues need addressing beyond simply building more homes.
One obvious thing not mentioned in the video is that if real estate prices do crash, there would be a spike in demand for housing from all the people who could now afford to buy homes. And that demand could quickly drive the prices right back up.
The obsession with home ownership in this country is also a big issue. Home ownership should not be seen at the primary wealth generating vehicle, just as much as buying a car isn’t to secure generational wealth.
It's seen that way because it IS that way. A house appreciates in value and decreases your costs. A car loses value and only costs you more the longer you have it.
The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserved. Anyone who is not investing now is missing a tremendous opportunity. Imagine investing $1000 and receiving $7,300 in 3days.
I think to combat the negative effect of inflation, it's a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, cryptos and real estate, since this can help protect your portfolio against inflation. I've heard testimonies of people accruing huge return during recessions.
Dora Hobbs method is the best. Got her info on ABC News in December 2022 and started following her lead and it’s favoring me. Lost my job in April 2022 and right now I'm back on top again as I always win with her strategy.
i go all across my area and i see new homes being built pretty much every month, its insane and i thought that i would be able to afford a home in this area with how much is being built, just to realize that they are owned by greedy landlords that majority own those houses not to sell, but to host on airbnb and rental sites for incredibly incredibly high prices like none ive ever seen, and yet people are actually buying into them it is sickening
Gave up on this a couple years ago. Renting is cheaper and smarter unless you can buy a house in cash and who has half a million dollars laying around? I’ll rent, increase my income, and get into real estate in the next few years. If I still don’t buy a house I’m fine with it. I refuse to pay $3000 for a bed.
We got our suburb house in the NY/Philly metro area in 2017 (yes, that means NJ), using my VA home loan, so no down payment was necessary, no loan insurance was required, and interest rates for us was lower than the average, even with our sub-par credit scores. The pandemic came and the value of our little 100 y/o, 3 br, no driveway, fixer-upper skyrocketed by $175k. The real estate market is so effed up, we definitely need a basic public housing option in the US- it would really go a long way for so many. Fyi- we did not sell or refinance, as we like what we have and where we are, and don't need some huge McMansion.
As a recent father residing in the Bay Area, I'm contemplating the prospect of buying a single-family home. However, given the soaring real estate prices, I'm torn between whether it's prudent to make a purchase now or to divert my funds into stocks, anticipating a potential correction in the housing market. I've been hearing positive sentiments about companies like Nvidia and AMD, suggesting they could be promising investments.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
Millions of people, maybe even myself, who _work_ and/or are retired will be living out of cars and tents, eventually, pretty sad. My guess is this problem becomes _extreme_ in parts of Florida, California, New York, Illinois, and, eventually, in Texas where I live(Houston), especially the Texas Triangle. I suspect that a small but significant number of people will move to cheaper parts of the midwest, the deep south(Gulf states other than Texas and Florida), and less expensive states in the northwest quadrant of the country (Wyoming, Montana, Idaho). Edit: A couple of Mid-Atlantic states might be a possibility, as well.
Iowa should be safe for a long time. The only California people that move here are the ones that only get social security disability and then all they do is complain and leave. A lot of people don't want to stick around the states so it should keep the prices low but it's still gone up a lot but a lot less than most other areas. Plus Iowa has the second highest property tax rate outside of New Jersey.
@@DiecastinatorI think you're right, I'm not interested in living in Iowa. Most of the Plains states will be okay, outside of the bigger cities.Two or three of the Mid-Atlantic states are a possibility. We've covered the whole country, outside of Alaska and Hawaii.
Jobs aren't fungible. I live in the Bay Area and due to the nature of my work, there are only about a few dozen companies I can work for, most of them in places as expensive as here. I can't work remote, either.
We are living in a housing bubble. You don't need to be an expert to see this. The price and value do not match and the market historically always corrects itself.
good to hear someone that actually knows "how money works" because there are so many dooms dayers that people listen too . The great crash is just around the corner for the last 15 years. Imagine sitting on the sidelines thinking that and watching the markets triple in price so you can buy in the great crash for 2x what you could of if you didnt wait lol. Worse yet is that if the great crash happened the dooms dayers still wouldnt buy in because they think everything will go down 99%.
Wait, the floor in the housing crash happened nowhere near the year 2008. The price of houses just got started going down in 2008. They continued to go down, in some areas for an additional five years after that with a valley in like 2013. Afterwards, it was extremely easy for a lot of people to buy homes because they were super cheap.
I am actively searching for different ways to invest or diversify my $400k portfolio so it can increase exponentially during this next bull run. Ideas?
You’re right Holly. Since I have been working with a seasoned professional advisor for the past eight months now, and it’s been an amazing experience both financially and psychologically. I've been able to quit living from paycheck to paycheck and my portfolio has grown massively into six figures!
He’s the licensed fiduciary I work with. Just look his names up on your search engines and you’ll get the necessary details you need to set up an appointment with him. Cheers!
My city is getting ready to up-zone a significant proportion of the residential areas for denser development. With townhomes, developers will be allowed to build up to 10 units on the same plot of land as a single detached house and charge a lower price per unit. The developers will make a good profit and new homebuyers will have a greater supply of affordable housing. My only concern would be corporate and ‘mom & pop’ investors paying 30% above asking price in cash in order to save their profits. I am meeting with the Area Planning Commission in a few weeks to propose a primary residence clause so that these units are reserved for the people living in them.
Question about this. I bought a condo a little over three years ago but my credit wasn't as good as it is now. There was a small chance that a 30-year mortgage could fall through, but taking a 15-year was a LOCK at super low interest (2.5% fixed) Why was I lock for the 15 year at 2.5% and not a lock for a 30-year at 3% even though my monthly is over 50% higher than if I had a 30 year mortgage?
How about this: We can bring down the value of houses to the correct level, if you have to live in the house you buy…no more rental investments…all current rental investments have to sell their houses to someone who is going to actually live in it…this will solve the housing shortage…bring the value down to its actual value and the banks will not have to give loans to people that can’t afford them
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This is the problem. The Banks are in line with the Libertarian billionaire cash big corporate real estate buyers that are not only American but also foreign money especially Chinese millionaire and billionaire money that are buying up all the affordable housing and land. They are making a renter's nation for US and for US farmers on food prices. You are pointing out who controls our money systems. This is about an oligarch economic controlling society like Max Headroom life. All you are doing is frightening and discouraging to buy now at very high commercial prices to drain America into servitude. The dollar is paper and ink. The money market systems are thin air. The value is controlled by the very rich people from the Libertarian DAVOS billionaire society (Putin is one of these billionaires) and they are wanting to be kings, emperors, and god deities. And you are helping them to win control over our lives.
Please do a video on Georgism and how it could fix a the problems with housing, poverty, and inequality!
I can't hear what you're saying because of the god awful music competing. If you want a music video, then make a music video. If you want to teach something, then leave the damn music out!
I created a Brilliant account finally with your link. So thank you but also you are welcome.
@@TerabyteTy300 Thank you, but also it's genuinely an awesome product. Have fun learning!
A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won’t alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.
There's also a lack of discussion about the role that major financial institutions-banks, private equity firms, and giants like BlackRock-played by purchasing properties post-2008, treating them as investment assets. It's impossible to fully understand the current housing crisis without acknowledging this trend. Additionally, larger luxury properties are inherently more profitable than smaller, more affordable homes, leading developers to prioritize luxury developments for higher returns.
Although a housing market price correction appears imminent, it might be wise in the near term to shift funds from real estate to alternative asset classes like stocks or commodities such as gold. With interest rates rising significantly, economic data pointing towards a recession, and stricter mortgage lending criteria adding strain, a 40-50% reduction in prices may be essential for market stability. For individuals facing financial decisions, seeking guidance from an impartial financial professional familiar with prevailing market conditions is recommended.
How can I find a trusted financial planner like yours?
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
Thank you for sharing your thoughts. I’m glad to have been of help, and I hope you find Rebecca Lynne Buie’s expertise valuable. Investing is a passion of mine as well, and I wish you success in safeguarding and growing your portfolio. God's blessings to you!
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’’Carol Vivian Constable’’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Carol.
Older millenial here; born in 83.
Bought a house in 2012 for $109k and as a result my taxes are only $1,500 a year and can only increase 3% each year.
Refinanced to a 2.75% rate.
It’s currently worth $350k and if I bought it today the taxes would be $6,000 a year and my interest rate would be more than double.
Also graduated without student loans when scholarships were still good and credit hour costs weren’t obscene. Got my masters degree for like $10k in tuition.
My joke is that I was the last X-Wing out of the Death Star.
I am the same age now that you were in 2012. It feels impossible to reach the goal of owning a home now.
@@BassPlayer9000 Yeah it’s freakin terrible. I thought graduating in 2008 was bad because there were no jobs but now everyone has jobs but no one can afford anything.
Despite what the video says I still think we need a crash. Recessions are a normal part of the credit cycle when you borrow like we do; it’s the correction that wipes out malinvestment and significantly cuts back asset prices. Sure, not everyone will be in a position to take advantage at the bottom of the crash but as things recover there is a Goldilocks zone where many many people can get on the train (before the next crash).
Having a recession every 6-7 years allowed people to “get on the train” as the recovery started. When you avoid a recession through monetary manipulation it not only makes the train speed away faster from those that aren’t already on it but we don’t allow for a reset to benefit the younger generations.
It’s been 16 years since we’ve had a real correction… almost an entire generation. If you’re between 25-35 or if you happened to fall off the train for whatever reason (health, unemployment) you have effectively been left behind.
Having a recession every 6-7 years keeps thing from getting out of hand. It also allows people to get on the train at regular life intervals and even if you miss it or aren’t well positioned (I.e. half way through a cycle) the next train is right around the corner.
There will not be a (large) crash. There is so much money waiting on the sidelines to invest, and it will snap up any decline in real estate prices. It’s just not going to happen. The 2008 crash was a product of widespread fraud and structural flaws in the mortgage market. Not a reflexive pull back from high prices.
@zoraster3749 we do need a crash. Yes, it won't make the houses cheaper, but it will hurt the rich and may make some of them jump out of windows again, and that's a win. The poor are in such a state that a recession won't do damage to them, because they're already in poverty and paycheck to paycheck. But to be honest, we need revolution, not recession.
My 22 year old cant even afford a SINGLE WIDE MOBILE HOME........SSSSHHHIIIITTTT
My plan was to live in a van down by the river... but have you seen the prices of vans lately?!
Because they know people are buying them as an alternative to housing so they're jacking the prices up. No matter which avenue you try to take just to have a roof over your head, there's going to be a scalper in the waiting.
I'm saying
My 2023 Promaster 3500 Ext was 57k ODT.
😂
How about live in another country? Developing, but still not expensive, good weather, not so expensive medical care, not so high property prices?
A real estate crash would mean a loss in confidence in it as an investment vehicle, meaning investments might go into things like R&D, new businesses, startups, etc. In the short term a housing market crash would cause a lot of property owners to lose their bets, but in the long term it would stop being a drain on societies wealth.
Its also about perspective, there are things i COULD be doing to save more BUT im early enough in my career to know that the payout for those sacrifices is a drop in the bucket compared to how much ill be able to save by getting promoted (up for one in a couple weeks) and job hopping.
If youve already budgeted for $5 coffee twice a week every week it doesn’t make that much sense to cut it and be less happy for 12 months to save $520 if you’re going to be given $15000 at the end of that year either way.
Deprivation is not a healthy mindset so it doesn’t make sense for people who don’t know WHEN theyd be able to afford a house to live with their belts as tight as possible until they can - a matket crash would be a green flag to people like me however to tighten in anticipation of that opportunity, a de-abstracting of numbers. You see the same advice given a lot in weight loss and exercise circles, people aren't built to pursue vague "improvement", they need goals and those goals need to seem obtainable and not 10+ years away.
What we need is a good, hard recession and the job losses that come with it. Not only will homeowners be foreclosured on but this time, unlike 2008, so will commercial buildings.
Greed is a sin for a reason. Many will pay their wages of sin to karma.
People HAVE to live somewhere. Its investment value can only diminish with strict government regulation to discourage its use as an investment. Housing will always go up in price, if demand is never met with supply thank to the issues pointed out in the video. Eventually, big boys will own most of the land and homes and the monopoly will start printing money. That's the endgame...
@@xyz987123abcThe problem is that even if that were to happen, the Feds would just bail out all the big guys again, likely making things worse.
It's called cash
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Living expenses are dropping in many places compared to 2022
My parents: Just buy a house
Me: How the fuck do you expect me to buy one?
"Well, last time I checked (1982), you could buy a house with a jar of pennies."
"Ok, could you help me home hunting? These are my figures"
Let them realize on their own
Parents are fckng delusional.
Maybe they don’t follow real estate numbers. I do, so I know exactly why my son isn’t buying one right now, and he shouldn’t be. Waaaay overpriced. Maybe they need to see real estate listings and what a payment would be.
@@katydid2877 I've directly shown my parents house prices and their counter-argument was that salaries have universally increased 10x since 1982.
None as blind as those that don't want to see.
HOMEOWNERS ARE THE NEW NOBILITY CLASS.
Once you own 3 properties, you can have people refer to you as LORD.
Haha this is great.
LAND LORD, LORD OF THE LAND.
Never ended lol.
My current goal is to become a landlord, and have some serfs beneath me.
landlords add nothing to society
@@thesquirrel082190they literally add living space for those that do not want or are unable to own a home. Please try to not be stupid on the internet
How long until savior?
I don't care anymore. I wanted a house for so long, gave in and ended up buying a tiny plot of land outside of the city and a trailer for a fraction of the cost to rent last year. Don't own a house and may never, but it doesn't even matter because I'm set and all your fear propaganda and depressing videos about this don't faze me now.
The dream!
Well he is right. Most people will never own a house.
Owning a trailer is fine; doesn’t have to be a house
Propaganda is supposed to make you feel comfortable. This is cold hard reality
Wow good for you
The sad truth is that housing is continually under-supplied, so prices will only drop due to a lack of demand. Housing prices will only decrease when you are less able to buy one, at which point someone with a lot more money with you will get to take advantage of the deal.
if something is undersuplied.. its price goes up not down... if price will be too high, people will pay rent and there will be still buyers to make money on them, easy, and its not coincidence that building a house in capital city in my country takes 10 years because of all of the regulations ... prices will go down only because of the demographics, housing prices will go down as soon as generation of babyboomers die or leave to retirement houses and sell their houses to underpopulated generation bellow ...
Yes but what's more is that the dollar is depreciating really fast and the market is quickly accounting for it. Homeowners need an incentive to sell and if there are high interest rates, high crime, high regulation, sky high insurance premiums then nobody will sell or even build.
@@jonyD143 Selling and building are inverse actions. If people are unwilling to sell, that will reduce supply and drive prices up, which in turn makes building more profitable.
Adding in 8 million "refugees" and "migrants" into the country in the past 3 years certainly hasn't helped this equation.
@@xkidmidnightxthose 8 million were never going to affect the equation of buying a house when they're mostly capped at low skill labor that results in little capital to buy one.
As someone who bought 2 years ago, I'd advise people to take that warning about elites being the only property owners to heart - don't keep renting forever. The only 2 ways I'm seeing young people buy a home is 1) massive inheritance or 2) getting married/not having kids and saving. I took option 2 and saved for 9 years. If you don't have rich family, start on route 2 now and buy when you reach 20%. If you're watching videos like this, you're smart, and you can do it if you play the long game.
Great insight and congratulations on your home. It's a shame it takes so much focus and sacrifice though.
So if you're single you're SOL
Wish I could wait longer on the kids thing but with the future of womens healthcare on the line I’m having a kid now so I can get some semblance of quality healthcare before abortion becomes fully illegal
Yeah, my husband and I are working towards saving 20% (we're actually getting fairly close given the kind of house and land we plan on buying). We're just in the process of trying to get a remote job for my husband before we go house hunting since his current job is location-based.
That's really sad if you think about it - humanity is going to rapidly die out. It's not like 2 adults having only 1 child, it's like 3 out of 4 adult pairs barely keep up with expenses and 4th is trying to slowly save up for a house, and hopefully at the time they get a house they still would want a child...
Least depressing "How Money Works" Video 😭😭😭😭
Average capitalism moment
At least if you know that the train is coming, there's a possibility that you can crawl off of the tracks
gosh this comment deserves more lols
@@elosacle yea off the tracks and onto the fire, we made our own hell.
"How money works" really means "Why you're screwed"
I was fortunate to buy my house back in 2009 for $126,000 during the heart of the 2008 housing market crash. That on (at the time) a $32,000 salary. Despite having a low annual salary, having a stable job and purchasing a house in a rural area helped getting the mortgage loan.
I don't see the conditions that led up to the last housing market crash happening anytime soon.
This is more like the 1970s, when high interest rates and inflation in other areas put long term downwards pressure on housing prices until these pressures went away.
Most people your age back then would have turned their nose up. They want to live in a new modern home downtown. You won
If you can't see the precursors of 2008 right now, you aren't looking, or are blind. We are heading into a market crash exactly like 2008, but worse.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
😂😂😂
The best method I can think of would be to reduce the amount of residential property a corporation can own which would increase supply without raising prices significantly.
Or Georgism! Look it up. If you tax the land residential property sits on at 100% of its rental value, it will not make sense for corporations to invest in property!
Well short term yes ~long term that would just increase the price of rent & divert building to apartments instead of homes (bc corps greedy & will find a way to justify their losses). The 2nd half of the equation is forced market adjusting; giving regular people access to loans & funding construction companies to make buildings en masse. This would increase the amount of trades people & their wages (and learning opportunities), which would help those people/families get housing via straight up cash, and for others the Gov could divert record Corp and rich individual profits to low interest or 0 interest loans, funding for low income households, and mortgage buyouts for low/middle class people who bought pre forced market rate adjustment.
Realistically the route of the issue is the constant diversion of money away from middle & lower classes via taxes and abysmal wages compared to the cost of living. The corporations at large are basically all in one giant bubble where they've learned how to suppress labor value & competition in their favor.
That and how to get people to pay to own nothing for "services" that do little or objectively make our lives worse collectively.
At this point, there is no incentive for most corporations to build unless it's for things like AirBNB bc their capital values are sooo high. Investing in apts or housing isn't NOT profitable, but it has the potential to inadvertently be used for non-commercial purposes (ie normal people having stable housing where they live/work) and therefore lower property values and market rent rate. Unless it's government funded or funded by wealthy individuals for their own purposes, building just doesn't happen anymore. That's why we're in a crisis of low-inventory in the first place where there seems to be no end in sight. The gov at this point HAS to step in and regulate things. It's too far gone to correct itself.
Corporations only own a tiny minority of residential properties. Something akin to 3%. Blaming corpos will get you nowhere.
@@LoganChristiansoneveryone knows that number is bullsh** buddy. They currently control the market and are the single reason the prices remain high.
@@duancoviero9759 "Everyone knows that number is bullshit" Cool conspiracy theory, bro, go tell someone who gives a shit.
Ok I was worried you were going to tell me something new to be afraid of, I'm glad I'm already aware of all the other things that suck about trying to get a house.
Same here I thought there would be something different or new
The problem is purely artificial. We have the tech to solve the supply issue in one or two years basically. The reason why the market won't do it is because the housing market is a speculative Ponzi. Having enough supply would be a big problem. So the problem is really just the result of greed and some mismanagement.
@@dojadog4223 The problem really lies in the way American cities are designed, the government and businesses created such stupid building laws that now the cost of maintenance is sky-high, and no more can be created because everyone wants to make a profit that is impossible to obtain
Basically the game was rigged from the start, and people now only live with the consequences
One thing often not addressed is urbanization and the change of needs around it. Previous generations had jobs spread out all over the world. Companies created job opportunities in smaller towns and didn't need to rely on international airports. Nowadays, you have to choose between
1. An affordable home far away from any good jobs
2. A relatively affordable home in the outskirts of a big city with hours spent on commute each Day
3. An insanely priced home with a good commute.
Price to income ratios are bad as it is, but they average across the above categories. If you look at price in a locality with income of jobs available within half hour commutes, the number will look way worse.
working from home becoming more considered is a hopeful change for less central living.
The last "market correction" that lowered the price of housing was immediately followed by an unprecedented buyout of now cheap housing by corporations. Those same companies are still in power today, and have infinitely more capital than 99% of people will be, ESPECIALLY after a housing crash. The only solution is to go after the cause of the problem, which is the companies buying out obscene amounts of housing as investments instead of homes.
lol exactly. It is literally cooperate greed ruining housing.
Now show what percentage of residential properties are in those corporations' portfolios (and compare it to the current supply in the country). Even if they emptied out their portfolios of all residential properties, it still would not increase supply enough to answer the demand.
stop manufacturing facts. This "unprecedented" buyout doesn't even register on the scale of overall homeownership. Per the Congressional Research Service, institutional ownership of rental properties in 2022 was 1.2% and rental units was 4.3%. Meaningless when we're between 3.8 and 5.5 million houses behind what we should have been building to keep up with demand (also from the CRS)
Isn’t this the disproven “blame Wall Street” narrative? Housing is a supply and demand problem. He says it himself - America is building less homes today than it was when it had 50% the people.
Don’t you think if there were 2x the homes, it would be cheaper to buy one? China overbuilt homes and now they’re dirt cheap.
Don’t be fooled by media trying to make you angry at scapegoats. Anti-building regulation designed to inflate existing home values is the issue.
Stop spreading these myths. It’s not corporations or PE driving up home prices. There’s so much evidence against that it, this channel even has an episode on it.
The silent and baby boomer generations have voted for 60 years for any measure that reduces housing supply and housing density in basically every corner of the western world. We have a supply problem 60 years in the making, not some evil cabal of corporations.
As a farmer, i understand your issue about talking to banks about loans. Unconventional income doesn't work in their computer algorithm, and loan officers don't do much than push buttons on a computer anymore. I'm lucky enough to have some smaller banks in the area that don't have a bunch of branches, and loan officers that are willing to look at statements, plans, and talk to you, and not just fill in boxes on a screen. You may try to find smaller banks that may be more friendly to talk to. The only downside is that the rates may not be the best. And if you're in a large city, small banks may not exist anymore for all i know.
Lending loosened by 2012, and homes were still a great deal from 2011 to 2013. The reset helps people catch up.
literally my story. Got my first and only home in 2013 and it was like 80k less than it was on its last sale before the bottom fell out
Yep, while interest rates were bottoming and borrowing money was practically free. Now the opposite has occurred.
Yeah, I don't know what's with this video. A *market correction*, as I would not characterize it as a "crash", does help. But ultimately people need to get involved, look to support pro-housing organizations like YIMBY, to increase housing supply because NIMBYs and real estate interests have lobbied for the past 30-50 years to maintain artificial scarcity.
Yes, this video lied when it said house prices barely dropped from 2007-2008 which is true but a lie at the same time, the actual bottom was 2011 not 2008
@@sor3999YIMBY alone won't solve things. As the video points out real estate developers won't put themselves out with the risk of losing money.
The government needs to step in and Directly build more housing, an absolute ton of it.
So in other words my generations been screwed basically.
Basically, Byzantine zoning laws, along with an unprecedented rise in population (but not birth rate), has made housing unreachable for those who do not already have it.
What's the proof for Byzantine zoning laws? I'm reading such a term for the first time.
Couple that with high interest rates discouraging greenfield development and a flourishing rental market which discourages sales of existing housing stock and you have yourself a recipe for houselessness and homelessness for generations to come.
@@therussianemiratiByzantine is a english colloquial term for backwards, archaic, regressive, etc.
Boomer: “You just have to roll up your sleeves and work.”
::Drives home to a house that cost $19k in 1983::
I think the biggest reason why a lot of people beg for a crash is because they were in situations like me.
I had finally hit a stable point with a good job, and if I pinched some pennies and played it smart then within a few years I could afford the down payment on a house. Then I watched as my growing savings became utterly paltry in the face of a house market that tripled in price in about a year's time or so. Now, that down payment was higher than my gross pay and it would take a decade to catch up. But hey, I could still do it, right?
Wrong. Now interest rates have tripled and a fixer upper starter home needing tens of thousands in repairs can run in the high $2k to low $3k a month range, and my wages can't support that, nor can the 3% annual raises.
We watched over the course of 2-3 years as the housing market was ripped away from us. It's no wonder people feel a crash to where we had been before is the only way they'll ever own a home.
Exactly my situation. I lived way below my means in my 20’s and saved up a lot but then I look at home prices and I’m not even close. Unless I wanted to buy some shitty home in a bad location and fix it up which is a useless investment
Hell, I make 43k a year, am going on 23, and have nearly saved 100k
I couldn’t even afford a 3 bedroom barndominium to built on under an acre of land with a built in garage cause it would cost between 400-500k
Barndominiums are made to be cheaper than normal homes and even still it’s that pricey
I think the thing about this that disgusts me the most is that, when someone cannot get a proper home, they build their own ramshackle abode. The state then comes it, deems their ramshackle abode "unsafe" as per regulations, and bulldozes it, rendering them completely homeless once again.
Any society that cannot build adequate housing is doomed to fail, or to fall into some kind of revolution.
Imagine a rule, enshrined into the constitution, that the average house price in a given are must not exceed the Median Income x 5. Or a similar limit. Obviously a lot of caveats, but it's starting from a place much better than what we have now.
A lot of people have not in my backyard mentality. They don't want a lot of hoovervilles around their area. They want to maintain property values and assemblation within the suburbs or wherever they're living so that those affordable homes would not fly. I would not want to live in California or place. It just has junkies in homeless. People just hanging out everywhere that can be moved to an urban area. That's a sanctuary for all those things.
Gonna be a lot of problems there. If I can't sell an average house for more than 5x median income while it costs 6x median income to build, I simply won't build anything, and then it'll be like in USSR, where beef got mandated to cost 2 roubles per kilo and no higher, and soon, there was no beef on the shelves.
@@Hisu0 Yep, there's a tangle of caveats in that. T'would behoove such a system to work its way along the production pipeline to streamline material acquisition & assembly. Worst case scenario, homes are created at a small loss, for society's cost-benefit analysis renders that a housed individual will produce more over time, and thus pay taxes, then the difference of home sale had as a loss.
(Simplified for yt comment)
@@nickolasbrown3342
If houses are built at a loss which are then recuperated by rent or some other service, that means those who build houses have to benefit from that service, which means they have to be a part of the same corporation, and we all know that the larger the corporation gets, the worse it performs.
Progressive Vacancy Tax.
Finfluencers after holding a for sale sign in front of a burning house 🕺💃🕺💃
That's the reason I chose to live abroad. I can bring my job with me and live comfortably, it's sad I can't do that in my own country on what I thought was decent enough income to support myself.
Wages are too low, the interest rates are too high (when considering home prices). Don't get me started on the insane rental market. Gone are the days when a family could be supported by one person working full-time. Freaking sad.
People sacrifice time for money, seems we are giving more time and not getting more money in return. We're already a renting society. Subscriptions, digital assets you don't actually own, rental homes, cars..ect. I feel it's only going to get worse.
You are the people who out price locals in their countries, making them not to afford homes in their own countries
@@snillockimcan you blame him? What would you rather have him do, waste all his money on rent?
I can see why he chose to leave
@@snillockimthat’s the point, can you not blame them??
And do you pay taxes abroad? Or only live with your tourist visa.
exactly
YEP. In 2009 I couldn't find a bank to give me a mortgage for $265,000, because I was only making $75,000 / yr, with a $25,000 down payment, because I had $20,000 in student loan debt and had only been working for 2 years, so I hadn't built up enough credit yet (also, lack of debt).
I’m British but live in Sweden and so understand the issues faced by America. Housing is a messed up market here in Europe also. I remember reading “the housing theory of everything” a few years ago and it has stuck with me. The premise behind the paper is that the unaffordable housing creates so many issues in areas seemingly unrelated to housing. For instance, we have a population crisis because it’s not exactly romantic to start a family of your own whilst you are stuck in your parents house. Another issue relates to productivity. If housing is really expensive then people have to look further out from their place of work to live. This affects productivity because it means people get tired due to commuting and also it stops new ideas that could arise as people don’t socialise outside of work with colleagues due to not living in close proximity to each other. You’ve even got the obesity crisis if you live far out from work, you won’t cycle or walk you’ll drive!. I doubt that the housing crisis will get better in England because a lot of the wealth and political power here is associated with the land owners. It’s why I’ve become sort of a georgist. Home owners may add a conservatory to their house to increase the values of their homes but that addition doesn’t really explain the large increase in value of their home. That large increase is mainly due to scarcity of available homes and demand factors outside of the work of the home owner such as good career opportunities in the local area or attractive educational opportunities for children.
You had me until obesity. I've never walked or biked to work and I'm not nearly obese. Terrible excuse
You'd almost think it's not a coincidence there is a housing crisis everywhere in the West and there is some global monetary policy that ruined everything.
Did your reason behind moving to Sweden include housing or was it exclusive of it?
@@carloshour8263your personal anecdote isn't an indication of the big picture
@@solaireastora5394 Blaming obesity on not being able to bike to work is absurd and easily outweighs my anecdotal evidence. Go to the gym. "I sure wish I wasn't obese, but my work isn't close enough to ride my bike! Not my fault 🤷" Are you kidding? 😆
So if builders aren't building because of the risks and cost of holding land and selling the house in the future, could a good option for prospective home buyers be to buy the land and take out the loan themselves so that they carry the risk instead of builders?
If you're buying a house to live in it long term then you won't care as much about temporary dips in value.
Banks do not give out loans to purchase land. You will have to pay cash.
If the government was smart they would make a lot of the expenses associated with building your own home on your own land tax deductible in order to incentivise new builds, but I doubt that'll happen.
@jghifiversveiws8729 how lame to play roulette with bureaucracy. It's like going to get a sandwich but they mess it up consistently for 5 years until you say 'i don't even want the sandwich anymore, I have waited 5 years for you to get it right' but then the sandwich shop assures you that they will get it right this time, which you then say 'okay I'll wait' and now it's 10 years later and the sandwich is still not right. So in the 15 years total; you got two sandwiches, that are not even up to the mark.
In other words; you have been scammed.
Seek King Yeshua and be free from deception
You still can run into issues with zoning and local outrage by doing this. They think a piece of land is an empty lot or even a small green space and then get upset when it’s bought and someone wants to build something. Like no joke I’ve seen people get these projects shut down.
@@smh9902they will lend you for the land purchase, but it needs to be with a plan to build. Once the construction is done the loan for the land and the construction loan get combined.
Most of us lived through the 08 crash, people got amazing home buying prices for at least 5 years after the crash, minus a short time where loans were hard to get.
Prices come back slower than jobs and mortgage availability.
I live in a van down by the river. Seriously. I actually do.
Good on you! The van life is supposed to be the shit!
Nice! The new American Dream.
@@joram4115 at this rate in another 50 years the new new American dream would be owning a tent out in the woods or under the bridge, atleast thats better than living in a cardboard box in a corner of a cyperpunk city.
Woah… you can afford a van??? You must be from upper middle class. Lucky 🍀
😂😂😂 Matt Foley
The 2008 crash certainly helped people afford homes.... until the Fed reflated the bubble.
I love the fact that this channel destroys every hope that I had
I’m a new dad, I moved closer to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year.
this is all new to me, where do I find a fiduciary, can you recommend any?
just search Monica Mary Strigle. Pretty simple with sophisticated looks but has empathy for her clients and takes you on if are ready to explore the business model she presents.
The best thing that can happen for the housing market is for houses to stop appreciating or just slowly. We need wages to catch up to the home prices. 2nd more homes be built and this included apartments. Both will take time like 10 years.
we need wages to catch up with inflation. It will never happen tho, but it's the only fix. There is no "middle class" now days, its you are poor or you are rich.
So, your solution is to have the capital markets work in reverse?
When wages climb, guess what happens to housing prices? Why would houses ever stop appreciating against a depreciating dollar and rising wages? In order to have your reality, you’d just need to convince all those people with already high wages to stop buying houses until your wages catch up. Good luck with that.
@MichaelChengSanJose u obv got a economic background he don't
@@apexvulture5415 There is a middle class (I'm firmly there) but it's shrinking. And that's never a good thing for societal stability.
Progressive Vacancy Tax.
I love how this video had 3 ads for gold in a row, they know their target audience
We all need a home of our own, but home ownership as a commodity for investment shouldn’t exist
This system only benefits needlessly wealthy people as they wring profits out of poor people, all while being commended for it like they’re providing for their victims somehow.
They make a huge effort to distance themselves from this reality they create, but no matter how you put it if you’re getting rich off of owning more shelter than you could ever need it’s not coming from disposable income and optional luxuries
They’ve got their clients cornered
Adam Smith nearly 300 years ago had already criticized the concept of rent-seeking. He talks about how rent-seeking behavior seeks to profit from the land without contributing to making that land valuable the way the laborer, the builder, or the seller does. I believe it was kind of couched in the context of criticizing things like sharecropping for example. The land is not valuable by virtue of you owning it, it is valuable for what it can contribute to society whether that be shelter, food, raw resources, industry, etc. A man who owns his plot of land can make his own decisions (within the law) to do what he wants with it. He can expand on it, invest in improvements, use it for business or build a home and equity on it from which he could loan against to finance new ventures. Renters rarely have the option to do much more than repaint the interior walls before having to paint them back to white when leaving.
Renting makes sense for like tourist destinations and people who travel frequently but in order for the system to be healthier they need to be a severe minority of the housing market.
this system is nothing new . Rich people buy houses, cars, paintings etc.. since money was invented . it just more prevalent now given the increase in disparity from richer people to poor and social media
it just sucks now because the Govt bails out the Rich CEO with tax payers money . thats what everyone should complain about it. At least the elected officials can even the playing field
I disagree, not all the landlords are vampires and many people who rent their houses can't work (disabled, elderly).
So it depends more of who is the owner.
@@angelr194Perhaps they should get a real financial advisor to help them with retirement using better investments. Even with the inflation in the housing market... it still doesn't outpace the stock market.
After selling a couple homes in 2022, I'm anticipating a housing crisis in order to buy inexpensively. As a backup plan, I've been thinking about purchasing stocks. What recommendations do you have for the best time to buy? On the one hand, I keep reading and seeing trader earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?
The top experts, however, have access to confidential information and data that is not made available to the broader public. Being knowledgeable enough to use them successfully is quite another. Big returns, not changing stochastics, are the key. Rewards and risks must be balanced. To reach your aim, pick the right size and turn your edge as often as necessary.
I concur; I've been in frequent communication with an investing advisor for more than 17 months. I definitely remember needing inspiration to keep my business running after a protracted divorce. I researched licensing consultants, sometimes known as portfolio coaches by some.
I require suggestions on how to restore my portfolio and create more effective strategies in light of the huge declines. Where can I locate this instructor?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
The only way for housing to be affordable is for government to take action and discourage housing as an investment. Something like low taxes on first home, but with each new home, the taxes go up exponentially. Like on the second home the taxes can be 20%; on a third home, the taxes can be 50% and so on. Only then will private equity stop buying homes as a form of investment. And only then can real people buy homes as a place to live as opposed to a vehicle to make money.
So, this means that home prices will never go down because the government, regardless of the party, is in the pocket of the elites.
Most landlords in the world are still private individuals with high-paying jobs, inheritances or businesses who own more than 1 place, not corporations. But yeah.
@@talknight2 That is true. But I read a study that says that as of 2022, investment companies own about one fourth of all single-family homes in the US. In 2023, 44% of all single-family home purchases were done by private investors. That, to me, is just insane. Our society has to discourage single family homes being treated as investments. (I know you don't disagree with this, I'm not adding this reply as an argument against you. I just wanted to bring attention to this insane static, which you might already be aware of.)
@@talknight2or working poor people who don't finance cars and take 3 vacations a year.
I topped out with 8 houses and the most I ever made was one year I made 72k. Most years I made 15 to 25k until I sold some and paid down debt and became a millionaire. Since my net worth hit 1m I pay about 10-20k in taxes even though I don't have any income.
@sparksmcgee6641 that's really amazing but to be fair 72k is still well above "working poor".
@@sparksmcgee6641average income in US is ~50k you’re making 150% average and call it poor.
To summarize the video: there is no hope, just give up because you will always be left holding the bag anyway. I would make the argument though that a housing market crash will still force a leveling of the playing field at least temporarily as the market begins to recover. That happened a couple years after 2008 as banks started cautiously giving mortgages again and people started to rebuild their careers.
This is one of those areas where government intervention can really help the situation. Being able to identify unproductive land and give grants to contractors to build housing tax free will dramatically increase the supply. There may also need to be laws put into place limiting the sale of houses to individuals for solely investment purposes. If nobody is occupying the homes as their primary domestic residence then the owner will face a tax that increases per quarter linearly for the first 4 quarters, and then exponentially in following quarters (as the tax is aimed at getting the home sold or rented to occupants).
The money from the taxes should be directed back into the fund for home building grants. This would help keep taxes lower for the rest of the population, and encourage home building in times of greater demand, but slow down when demand is satisfied.
In Toronto we have a vacancy tax where homes unoccupied are taxed 1% of the homes value per year. Its a start
@@theprimonemo A couple states have this going on in the US I believe. I remember my mother complaining about having to pay additional property taxes in South Carolina because she and her now husband were staying together in an entirely different town but he couldn't put the house he was living in before then up for sale on his own for a few years because of issues with a prior marriage. So there it sat, unoccupied until the issues were resolved and it could be sold off. I remember thinking to myself leaving homes empty that are perfectly valid for residential use (by the people who do it intentionally) should be penalized in some way. It isn't the same as sitting on an office building that wasn't built to residential codes until a good potential customer comes along. You're actively and willfully contributing to a problem affecting the country.
The same government that won’t stop printing money…
Zoning needs to change more inventory per acre
won't happen ppl who already have homes vehemently fight against any changes I live in a single family zoning area these ppl NOT changing I can guarantee that
That or we need to start building new cities all together
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits, such as regularly setting aside money for sound investments...
*with over 10 years of tra ding experience, Mr Ricky has gained herself a good reputation by helping a lot of persons build their finances' through inves'tments.* 🇱🇷
I was owing a loan of $32,000 to my bank for my son's brain surgery,
now I'm longer in debt after I invested $10,000 and got my payout several times for the past two months.
From NY city, I have a lot to say about him; but I'll only say "no regrets for inves'ting with Ricky Wen"
I once referred him to a friend, and when my friend started showing the profits he made within two weeks, I became jealous, lol😅
True. I first came across investing in the market in 2019. Already stashed about $80k in savings then, and the free money from the Government was pouring in, increasing inflation rate. I just got an advisor and kept the money there, just because I didn't want to keep the value of the money depreciating in the bank. Tbh, it's the best investment decision I've made since then.
Always a good day when HMW uploads
I disagree. A crash would actually help. The problem is that housing, like other assets, suffer from extreme asset inflation. In such an environment everyone is rent seeking and speculating while very few people actually want to build new houses. So you ruin the supply and demand mechanism. Persistent quantitative tightening would dry up liquidity and force people/investors to sell their assets, which would reset the asset inflation. After a few years of pain, investors would invest in actually building houses again because that is where the actual demand is.
Thanks for crushing what was left of my pathetic dreams 😅
3:53 a bank told you no to lending because you “make UA-cam videos” 😮 give me a shout. You need a better mortgage broker. Or to decrease your debt to income ratio asap. We bought a little over a year ago. I’ve done UA-cam 100% since 2020. And before that I did music professionally from 2015-20. Based on the size of your channel (and what I’m guessing your ball park income is) you can definitely qualify for a mortgage.
You might want to take a look at the next thing which is likely to happen, which is the government stepping in to disrupt the market. In California, there are already laws being proposed to limit the number of single-family homes an investment entity can own. And even if they don't pass this year, which is likely, if the market doesn't fix itself in some other way, these attempts to make it illegal for big investors to buy up hundreds or thousands of homes will keep coming, and eventually they'll succeed.
Ye i feel like something will have to change cuz if nobody can afford a place to live then how is the economy supposed to keep going
2:30, everyone likes to point out that house prices only fell around 21% nationally in 2007-2008, but what about the next 2-3 years? Houses in my neighborhood went from the low $300''s to around $100-130k in only two years. I went from being able to qualify from barley one home to three homes, so you cannot say that a crash wouldn't do any good for first time home buyers.
Cries in Canada where 30-year mortgages aren't really a thing and everyone has a 3 to 5 year mortgage. There's a reason we're in a recession right now.
What is a normal down payment percentage wise? A 3-5 year mortgage means you would need to pay back 20% to 1/3 a year plus interest. I think Canada has issues with zoning and the fact that almost the whole country wants to live in the far southern part of the country despite it having a ton of land and less people than U.S.
@misterogers9423 he's kind of off on his statement. Standard mortgage in Canada is 25 years, the 5 years is the term on your interest rate. We don't get 30 year rates locked in here, you renegotiate every 3-5 years depending on your mortgage.
So you could have a 25 year mortgage for 500k on a 5 year fixed or variable interest rate, and at the end of those 5 years you either sign a new term with the same bank or move the mortgage to another bank if they don't have competitive rates for some reason.
you're just blatantly lying or don't know what you're talking about. The average mortgage is amortized over 25 years.
Mortgage itself is a scam. You should be able to afford a house with full cash, not even financing. That means even in an economy where mortgages have 0 default rates, it is still a scam economy
@somthingrandom208
To add to that (yes I agree the person you responded too is somewhat weird with his answer)...
Depending on the lender, amortization periods wildly vary.
The bank I am with you can go from 1 year up to 10 years to lock in.
The interest rates just change depending on how long you want to lock it.
Generally the interest rates get higher the longer you want to lock, since more risk being put on the bank then.
Ah yes, my daily dose of depression. I should just subscribe to the newsletter so I can be more depressed during meetings
I am one of the lucky 3% interest rate mortgage holders who bought in 2016 and my house is 400k in equity currently. However, I want to move closer to where I work as I'm in the "burbs" but hell-to-the-no am I going to sell and get myself upside down. I've watched my Millennial daughter move back in with me to save on "Rentership" life style and possibly save for a house? Maybe? Maybe not? It's insane and it's only going to get worse. I am to the point where I'm telling my daughter, you can live with me as long as you want but that is unsustainable as well. It's a BIG mess.
8:24 Here in Australia there's no such thing as a fixed interest 30 year mortgage, the average is 2 years before it turns into the variable rate. There's more and more homeowners feeling mortgage stress as their previously low fixed terms come to an end and they face the current interest rate. Fingers crossed it starts a proper correction
You can print more money. You can't print more land, workers and building materials. Apparently we're so busy printing money, that we can't comprehend that.
There are a few misconceptions in this. Did example: a lot of the people who own homes now and rent are retired so their rentals are their only income. The short term rental market is actually drying up in a lot of locations and as property taxes and insurance keep increasing these people have no choice but to sell their rental properties. This is literally happening right now.
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@hunter-bourke21bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
There are a lot of independent advisors you might look into. But i work with *Izella Annette Anderson* and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
Thank you. I will search on her site online and do my due diligence. If She seem proficient. I write her an email and scheduled a phone call
This is like the argument "Rain will not cure the drought!" A real estate crash will lower housing prices by up to 50% in some areas.
Financing is another matter and lenders will demand more down and more income (assets) to secure the loan. Those that did not sell will be underwater with their mortgages for up to 10 years.
This kind of crash happens less than once in a lifetime
Lenders cant change what they're demanding in down payment because the industry is controlled by the government conforming loan requirements.
Banks don't keep loans. They make a commission, then more on the sale of a bundle of loans.
Just tax land, as long as the value of hosuing increases at a rate faster than inflation, the real cost of housing will only increase, by definition. Henry George figured this out a long time ago. Tax land at 100% of its rental value and stop taxing income and sales. It is the only way. Georgism!
Yes! Land Value is the only tax that stimulates the economy by encouraging land owners to develop and fully utilize their property or sell it to someone who will.
Is this different from Property taxes?
Just because houses increase faster than inflation does not mean wages will.
That is the problem, if wages increase slower than inflation (like they have for decades), then that system still won't help affordably.
That’s called property tax you nut. And that is now beginning to become a problem
That souds optimized to fuck over retirees. "Your paid income tax all your life, now that you don't have income, we're abolishing the income tax and taxing the house you live in at $50k/year"
Then they'll find out how many retirees can still hold a rifle.
I'm going to have to politely disagree. I was there during the 2008 crash. Even if the problem you have is not qualifying for a loan, a correction could potentially help you because you'll need to qualify for 30% less of a loan.
This video is really optimistic in comparison with the comments, this people have less hope than a sack a drowned puppies.
How can you blame them? We are living in an age where the median american brings in 40k (reserve bank) and the median house costs 390k (natl association of realtors). Not to mention the ever increasing rental rates. Couple that with insane interest rates, colleges that can legally bury you in more debt than ever before, jobs that dont want to pay you a cent more than they have to, groceries that are at or near all time highs for the average person, and all of the political turmoil going on. Its pretty easy to imagine how the average person trying to buy a home is pretty depressed
@@Mike-zl4zsdamm this is just tragic
Reality is often disappointing.
@@Mike-zl4zsThe political factors can't be overstated, I think that makes me feel more depressed and uncertain than anything. We're in an election year and it's getting harder to remember the last time our government wasn't in a perpetual state of absolute chaos, wars are breaking out, and things like AI are gonna create massive changes to basically everything.
Do we just go on with business as usual hoping the economy won't crash and everything will just fall into place? Is there really nothing we can do but prepare for the inevitable?
I graduated college 5 years ago, put my nose to the grindstone. Started paying off debt, saving, getting promoted, getting credentialed. All so I could be responsible and reach my then very obtainable goals of homeownership and becoming a parent. My reward for all that work is seeing in real time the cost of buying a home double and my standard of living actually reduce.
I know that borrowing money for building a house is expensive right now because the of the current interest rates set by the federal reserve. But, what's stopping the fed from having special exemptions for builders to borrow at a lower rate?
Political will. They would have to exercise their power towards some definable goal with a specific intent, not just "scoop out the water aboard a sinking ship" as they've been doing for a while now.
Great video as usual, but I dont care about buying anymore. That was part of my retirement plan to have a paid off home to lower my monthly overhead but that’s out the window. Not going to stress over something I can’t control.
The video editor gave away that he plays league of legends. See the missing pings at 0:50. XD
I beg to differ. I did help me back in 2009. A 2 bed 2 bath condo that was selling for $ 147 K prior to the crash was sold for $ 27,500 afterwards. Thus, it will help me achieve my goal.
You're a lucky standout case. You share that with about 20% of people. The rest either lost their jobs or didn't find a good foreclosure.
@tachobrenner If It was up to me, I let the economy keep going the way it has; unfortunately for everyone, the economy runs in cycles. I make money, either way. In 1995, I purchased a property for 190K that I sold for $ 625 K 10 years later. Thus, if you think that education is expensive, try ignorance. I would rather be educated in financing and socioeconomic cycles to keep up with the changes rather than become a slave of the elites. In summary, I just follow what's going on with the economy. Have a great day and God bless you.
Are you expecting another correction in the near future, with respect to USA real estate prices?
@borisharhaji6870 I'm I? Unfortunately, I don't have a crystal ball; however, according to the statistics, it's looking like we will. As to when, I don't know, but I'm ready for it in case it happens. Have a great weekend.
In August 2022, I paid 685k with a 4.375 interest rate for my second property in San Diego. The property is currently worth $895k. I've already increased my ownership by over 30% in less than two years. There's no need for me to sell because I'm making over 90k in rental income from my two ADU studios, which pays my mortgage each month. In addition, my rate is ridiculously low, which I view as a benefit.
I'm sorry for first-time homebuyers who could never afford to buy one in the first place. I have no sympathy for first-time homebuyers who could afford it but decided to hold off because they believed the market was collapsing and was now priced out.
Even now, the real estate market is largely local.
Prices in different cities do not correspond to one other
It is recommended that individuals who require guidance get advice from a qualified and impartial financial consultant.
Recently, I've been considering contacting consultants. I need guidance because I'm an adult, but I'm not sure if using their services will be very helpful.
You may search Jessica Lee Horst to find the details you need to work with a letter to make an appointment.
First to comment, last to homeown
Just want to say I’ve been watching your content for around 5 years now and I love it. Very informative, thank you.
Welp... my dreams are dead 🤣🥲
From someone who’s in the industry, this video is spot on and I think you did an amazing job describing what’s going on. Thank you for the video!
I really needed this video. I think optimism got me for a second haha, thankfully I can always count on this channel
Bought my house 20 years ago. In Logan Ut. price, 125k. Interest rate was not an issue as the mortgage was easily do able on 1 fair salary. Our town was great for kids and young familys for along time, because housing costs, buying or renting were so cheap relative to local wages. I think up untill about 2020, it was still a great place for kids and familys to make a start relative to most places despite low wages, we were at least still a possibility for say 50 % of the people. Thats all gone now. Values are so high, kids and familys have no chance at all to own, and can barely afford rent on 2 salaries. Wages are really really low relative to reality here. Lots of people moving here with magic cali money paying cash for years has made our little paradise just like everywhere else. It has been great for a few at the expense of the many, and society as a whole is going to figure out pretty quick what you get when you provide the youth with nothing feasible to aim at.
It ultimately won’t matter because a housing market is virtually an impossibility in today’s market conditions
Epic editing. Wow!
Beyond affordable, the numbers at some point become too big to be been fathomable.
I know quite a few people who bought homes for cheap in 2008.
My dumb ass was still in third grade
very informative video, love your unbiased telling of the facts. just wondering what school of economics you believe in?
1:57 sorry buddy, can't make an immovable object more immovable.
It strikes me as odd that schools, quality of life and crime are overlooked in discussions about real estate. Most of my life I've lived in neighborhoods that most working professionals could very comfortably afford but perpetually overlooked. Invariably everyone opts for more affluent communities where better conditions are guaranteed.
Conversely, those same issues cause trepidation over new development. Let's not also forget that developers are notorious for violating regulations and producing shoddy work. Around here they built rampantly over wetlands and residents have been paying the price for decades. Point is that tons of issues need addressing beyond simply building more homes.
Wonder why people are turning up areas where they’re likely to get shot and will prevent their kid from succeeding. Can’t imagine why
The price of rent is the price. The price of a house is the minimum cost, add higher insurance, maintenance, lawn equipment, etc etc.
One obvious thing not mentioned in the video is that if real estate prices do crash, there would be a spike in demand for housing from all the people who could now afford to buy homes. And that demand could quickly drive the prices right back up.
And once again the real problem is the artificially limited supply.
The obsession with home ownership in this country is also a big issue. Home ownership should not be seen at the primary wealth generating vehicle, just as much as buying a car isn’t to secure generational wealth.
It's seen that way because it IS that way. A house appreciates in value and decreases your costs. A car loses value and only costs you more the longer you have it.
The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserved. Anyone who is not investing now is missing a tremendous opportunity. Imagine investing $1000 and receiving $7,300 in 3days.
Crypt0 is bringing a different revolution in the economy. People who are optimistic investors Earn consistently....
I think to combat the negative effect of inflation, it's a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, cryptos and real estate, since this can help protect your portfolio against inflation.
I've heard testimonies of people accruing huge return during recessions.
I would really love to know how much work you did put in to get to this stage. What’s the strategy?
Dora Hobbs method is the best.
Got her info on ABC News in December 2022 and started following her lead and it’s favoring me. Lost my job in April 2022 and right now I'm back on top again as I always win with her strategy.
*SHE MOSTLY INTERACT ON TELEGRAM!*
i go all across my area and i see new homes being built pretty much every month, its insane and i thought that i would be able to afford a home in this area with how much is being built, just to realize that they are owned by greedy landlords that majority own those houses not to sell, but to host on airbnb and rental sites for incredibly incredibly high prices like none ive ever seen, and yet people are actually buying into them it is sickening
Gave up on this a couple years ago. Renting is cheaper and smarter unless you can buy a house in cash and who has half a million dollars laying around? I’ll rent, increase my income, and get into real estate in the next few years. If I still don’t buy a house I’m fine with it. I refuse to pay $3000 for a bed.
We got our suburb house in the NY/Philly metro area in 2017 (yes, that means NJ), using my VA home loan, so no down payment was necessary, no loan insurance was required, and interest rates for us was lower than the average, even with our sub-par credit scores. The pandemic came and the value of our little 100 y/o, 3 br, no driveway, fixer-upper skyrocketed by $175k. The real estate market is so effed up, we definitely need a basic public housing option in the US- it would really go a long way for so many. Fyi- we did not sell or refinance, as we like what we have and where we are, and don't need some huge McMansion.
Drop the address or Stfu. $175k my ass.
As a recent father residing in the Bay Area, I'm contemplating the prospect of buying a single-family home. However, given the soaring real estate prices, I'm torn between whether it's prudent to make a purchase now or to divert my funds into stocks, anticipating a potential correction in the housing market. I've been hearing positive sentiments about companies like Nvidia and AMD, suggesting they could be promising investments.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I.
this is all new to me, where do I find a fiduciary, can you recommend any?
House prices in SW Florida fell much more than 20% in 2008… some fell by 75% from the peak or more
The music in this is crazy
I dig the tunes 2😊
As someone who's been saving up for a home, this video hit home. Literally. The struggle is real, folks.
Millions of people, maybe even myself, who _work_ and/or are retired will be living out of cars and tents, eventually, pretty sad. My guess is this problem becomes _extreme_ in parts of Florida, California, New York, Illinois, and, eventually, in Texas where I live(Houston), especially the Texas Triangle. I suspect that a small but significant number of people will move to cheaper parts of the midwest, the deep south(Gulf states other than Texas and Florida), and less expensive states in the northwest quadrant of the country (Wyoming, Montana, Idaho). Edit: A couple of Mid-Atlantic states might be a possibility, as well.
Iowa should be safe for a long time. The only California people that move here are the ones that only get social security disability and then all they do is complain and leave. A lot of people don't want to stick around the states so it should keep the prices low but it's still gone up a lot but a lot less than most other areas. Plus Iowa has the second highest property tax rate outside of New Jersey.
@@DiecastinatorI think you're right, I'm not interested in living in Iowa. Most of the Plains states will be okay, outside of the bigger cities.Two or three of the Mid-Atlantic states are a possibility. We've covered the whole country, outside of Alaska and Hawaii.
Jobs aren't fungible. I live in the Bay Area and due to the nature of my work, there are only about a few dozen companies I can work for, most of them in places as expensive as here. I can't work remote, either.
@@mikeydude750That’s the risk/reward for being hyper specialized. Potential for higher returns, but with less options.
We are living in a housing bubble. You don't need to be an expert to see this. The price and value do not match and the market historically always corrects itself.
Homes in America are 4 times cheaper than where I live in Markham, Ontario Canada.
Tell Trudeau to stop importing millions of immigrants who all have to compete over limited housing options.
good to hear someone that actually knows "how money works" because there are so many dooms dayers that people listen too . The great crash is just around the corner for the last 15 years. Imagine sitting on the sidelines thinking that and watching the markets triple in price so you can buy in the great crash for 2x what you could of if you didnt wait lol. Worse yet is that if the great crash happened the dooms dayers still wouldnt buy in because they think everything will go down 99%.
Someone pin this comment.
Who’s getting houses for 3% right now?
Wait, the floor in the housing crash happened nowhere near the year 2008. The price of houses just got started going down in 2008. They continued to go down, in some areas for an additional five years after that with a valley in like 2013.
Afterwards, it was extremely easy for a lot of people to buy homes because they were super cheap.
I am actively searching for different ways to invest or diversify my $400k portfolio so it can increase exponentially during this next bull run. Ideas?
I completely understand your concerns. Navigating the financial markets can be very challenging
What I would suggest you do is seek the proper guidance of a professional advisor that can manage your portfolios the right way
You’re right Holly. Since I have been working with a seasoned professional advisor for the past eight months now, and it’s been an amazing experience both financially and psychologically. I've been able to quit living from paycheck to paycheck and my portfolio has grown massively into six figures!
He’s the licensed fiduciary I work with. Just look his names up on your search engines and you’ll get the necessary details you need to set up an appointment with him. Cheers!
Great! I will definitely connect with him. Thank you
My city is getting ready to up-zone a significant proportion of the residential areas for denser development. With townhomes, developers will be allowed to build up to 10 units on the same plot of land as a single detached house and charge a lower price per unit.
The developers will make a good profit and new homebuyers will have a greater supply of affordable housing. My only concern would be corporate and ‘mom & pop’ investors paying 30% above asking price in cash in order to save their profits.
I am meeting with the Area Planning Commission in a few weeks to propose a primary residence clause so that these units are reserved for the people living in them.
Question about this. I bought a condo a little over three years ago but my credit wasn't as good as it is now. There was a small chance that a 30-year mortgage could fall through, but taking a 15-year was a LOCK at super low interest (2.5% fixed) Why was I lock for the 15 year at 2.5% and not a lock for a 30-year at 3% even though my monthly is over 50% higher than if I had a 30 year mortgage?
How about this: We can bring down the value of houses to the correct level, if you have to live in the house you buy…no more rental investments…all current rental investments have to sell their houses to someone who is going to actually live in it…this will solve the housing shortage…bring the value down to its actual value and the banks will not have to give loans to people that can’t afford them
I moved to Indonesia, for the same price you barely get by in usa you can live in a nice villa with pool in Bali, fuck their system. It's slavery 2.0