I know I’m supposed to want it to keep going up as a wealth generator or whatever.
But like… I wouldn’t be able to afford the monthly payments if I bought my house right now and it’s scary. Also none of my friends are buying homes, none of them are even renting full places. Just like renting rooms.
So what are your feelings home owners of lemmy?
Bought my house in 2019, and it’s apparently worth 30% more than what I paid for it if my rates bill (local property taxes for the US people) is anything to go by.
Problem is, it’s all paper gains. The only way I see any of that money is by selling my house - which I kinda need in order to live in - and buying something else that has also gone up by 30%, so I’m net-even, less increased property taxes which I directly benefit from via improved infrastructure.
Now if I was a blood sucking parasite and bought a second house as a rental property by using my increased capital to muscle out first home buyers with less capital, then the gains might be enough to allow me to sleep at night under the weight of my own crushing dread at the person I had become. Maybe.
I’m really surprised to see all these bitter comments. Downvote me all you want, but I think people hate the housing market because of a lack of knowledge.
I did my homework, worked my ass off and in a few months I will be buying two houses. One to live in and the other as an investment. And the best part is that the first one will be paid off in 5 years (thanks to publicly available banking tools). The investment property will not be paid off until the end of the mortgage. Why? Because it will give me huge tax deductions (again - great banking tools). After a few years I will be able to buy another investment property which will give me even more tax deductions. And so on and so forth.
So no, I don’t want the housing market to crash.
You are probably in a different tax bracket than us.
The median house hold income is 60kish in the US. Meaning half of all households make less than that.
2k for rent or 3k mortgages just isn’t doable. But that is the only thing availabe for most of us. The math can’t work with taxes, insurance, and utilities. Children right now is a poverty sentence for 50% of Americans.
And “make more money” can’t work for everyone. The median is 60k per household, meaning 10s of millions of people would need to find much higher paying jobs to be able to deal with this. But that’s not possible, there are not 10s of millions of 80k+ jobs just sitting around.
As I said before - lack of knowledge. You are assuming that the monthly repayment will be $3k. There are tools available for everyone to make it way less.
Let’s start with offset account. Having it setup with your mortgage will decrease the interest part of the repayments as long as you will keep adding money to that account. More money, smaller interests.
Second tool - interest only loan. For first few years you will pay only interests. In my case it will cut the monthly repayments almost by half. Combine it with the offset account and each month you save some money on offset account the interests rate will be lower allowing to save more.
And finally - interest in advance (pay the whole year of interests upfront). I don’t know US tax laws but where I live this gives me tax deductions starting from the day I will take the loan. This will work only for investment property.
Also there is a thing called refinancing a loan. When the interest only and in advance things are coming to an end refinance a loan and start over.
On top of that is the mindset. People need to realise that in order to make things better some sacrifices have to be made. So when buying a house get the investment property first and work your ass toff to pay it off as soon as possible. After few years the value of the property will go up and you will be able to get a bigger loan. Buy another investment property in a better neighbourhood to get a bigger return.
To summarize, talk to someone who knows that stuff (not a banker, a real money guy), check bank offers, read articles about investments, learn about taxes. It’s easy to complain and do nothing.
When people can’t even afford 2K rent, there are no games to play. Median house hold income is 60k After taxes that’s closer to 40k. When rent alone is 24K, there are no games to play, no moves to be made. The math doesn’t work. 2K isn’t me over exaggerating, it’s median.
Then you’re supposed to put 6% into your 401k, then how ever how much for medical insurance , then cost for car insurance ,gas… where is money for food? Where is the 20% for investing for retirement? The basic of budget is 50,30,20. You’re not supposed to spend more than 50% of your income on “needs”, yet the median rent is more than 50% of the median after tax household income.
All those tricks are just putting the debt ahead into the future. That only works if you think you’ll be making more in the future, but wages have been super stagnant.
You can’t play games when rent requires more than half your income.
I own my home, life is fine, I’m fine. But try to do the math, try to make it work. For 60k gross pay and 24k yearly rent, explain how to make it work, how to save up the 10% down for a house and save for retirement.
I bought this year in the US w/ my partner. Thanks to my credit union, got a rate about 1% lower than average at the time. Mortgage payment is significantly less than rent and most importantly: it’s going to be way, way, WAY less than rent in 10-15 years. Sure, we’ll have other associated home ownership costs, etc etc, but it’s worth it to us. Also, honestly, we LOVE this house. Took our time to find the right place and it has paid off, much happier here than any of the places we rented.
Burn it all down and end secondary real estate market. The housings price problem started with that.
I’m just trying to build wealth and just entered the market, so I’m not too excited for me, but it needs to happen. It’s a basic necessity that the majority of people can’t afford, how is that okay? I will lose a bunch if the market crashes and probably never be able to achieve my goals, but its not very feasible right now anyway. I wanted a hobby farm, thats never going to happen regardless. Something has to change.
