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?
I’m trying to fix up a few things then get it re-appraised so I can get PMI taken off my mortgage. After that I don’t really care, I plan to live here for awhile so if the value goes down in the short term I’m not too bothered.
You point out the Catch-22 that a lot of people miss on this stuff. They get so fixated on increasing their property values because they want to screw someone over when they finally sell their house…not stopping to think that the same thing is about to happen to them when they go to buy one. Not to mention, higher property values means higher property taxes (in some places, anyway).
Yeah like it’s cool my 200k town home I bought 4 years ago is now selling for 400k (neighbor just sold for that much).
Except that means that the 350k home I was thinking might be a nice upgrade one day, is 700k.
Like I’m way more screwed over now unless I intend to like sell my home then move to the middle of nowhere. All that higher value means is property taxes like you said. But of course renters are the most screwed.
This is precisely why your home price won’t crash. You are locked in and so is everyone else. You literally can’t do better, so selling is a bad move.
I just sold my condo and went back to renting. Best choice ever. Feels great to be free.
This was actually my thought process when I got divorced. It probably would have been prudent in many ways to downsize to a condo, since it’s just me, however I could afford to buy my ex out of the house and any percent gains will be off a much higher base. I’m hoping that when I do eventually downsize, that my equity will be higher than if I had a paid off condo. In your example, doubling prices gained $200k inequity for the condo owner, vs $350k gain for the house owner (of course it’s more complicated when you factor in the mortgage)
… so yeah, it would suck for the housing market to crash, or stay down
I have like 15 years left on a 30 year fixed rate. I’d like to move closer to where I work, but I don’t want another 30 year loan and a 15 year would currently be a much higher interest rate, so I’m stuck with my house until it’s close to being paid off. Doesn’t really matter what homes are costing when you have to buy another after selling. Expensive houses only help people who own multiple homes and aren’t replacing what they sell.
A housing crash is only bad for you if you’re either outright selling, or moving to a less expensive house.
A bad crash can make you owe more than you can get for the house, which can make it impossible for you to move without losing money. If you lose your job or have to relocate involuntarily, property being cheaper elsewhere isn’t much consolation if you are under water on your existing loan.
Meh I don’t care. We bought a couple years ago when rates were super lower but prices were high. Our mortgage is less than rent would be and we’re not going anywhere for a long time. I think of the house as a place to live, not an investment really. Like a car. It serves a purpose and I’ll use it until I can’t anymore.
Same boat. Got a 10 year lock in at ~2% interest and now the rates are more then double that.
Going to do everything we can to keep that rate although we doing extra repayments just in case.
Doing extra payments when you have a 2% loan is just throwing money away. Savings accounts rates are minimum 4% right now - put your extra payments there if you’re super risk adverse. If you’re less risk adverse, buy mutual funds that match the market.
The interest on my mortgage is fixed for the next 10 years, so I’m more than OK with a crash. In fact, I hope it crashes hard so those who own properties as investments burn.
Someone is renting out a duplex by me for $2700 a month.
I hope it crashes and burns so they have to sell at a heavy loss for the crime of trying to rent out just a normal home for so much.
Like this was supposed to be the affordable part of town with small homes, town homes, and condos. Now investors are like… what if revenue stream?
I’m not selling in the foreseeable futher, so i care little.
