Interest rates are not going back to 3%
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
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Interest rates are not going back to 3%
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Realtor · Ogden, UT · Member since 2019 · 338 posts · 415 votes
3yI'm going to offer a different opinion because I believe our government has become so addicted to easy monetary policy that I bet they'll happily drop the fed rate back to 0% at the first chance they get. Fiscal responsibility is only going to continue to get worse under our current leadership and political landscape in my opinion.
I wouldn't bank on it happening in the near-near future but I'm fairly confident that down the road we'll have another bizarre incident like Covid or a 2008-style recession and our geniuses at the Fed will happily drop rates back to zero and keep them there way too long again in a similar reckless fashion.
Personally, I just hope my portfolio is large enough at that point that I can refinance the whole thing back into the 2-3% and be set for life. That's what I'm banking on and looking forward to!
94 Replies
- Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes3y
You are 100% correct. They are not going back to 3%.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Only the "wealthy" are able to buy home huh....... LOL.......
In 2022 that's 5,800,000 home sales. So am I to believe that's 5.8 million "wealthy" people?
In 2021 it's 6,900,000.
2020 6,500,000.
Since 2019 it's more than 30 MILLION homes sold. To put that in terms, it's saying the entire population of Texas, twice the population of New England, half the entire population of the Midwest....... Or in common sense terms, a fu#k-ton of people.
So these 30 million+ people are all just "wealthy"? If that's what you think, and it may be true in your perception, I say this says way more about yourself and life/income level than it does the market or those 30million "wealthy" home buyers. Maybe wealthy in your opinion, NOT wealthy by definition of the word.
- Investor · Kansas City · Member since 2023 · 70 posts · 62 votes3y
1000% agree with you on this. I don't think people truly understand where the rates used to be back in the 70's-90's. Just like you said, this is more of the norm than anything else.
- 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
https://www.sacbee.com/news/lo...
I think these folks are leaving NY and CA and going to FL and TX and AZ to buy, not rent. - Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @James Hamling:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Only the "wealthy" are able to buy home huh....... LOL.......
In 2022 that's 5,800,000 home sales. So am I to believe that's 5.8 million "wealthy" people?
In 2021 it's 6,900,000.
2020 6,500,000.
Since 2019 it's more than 30 MILLION homes sold. To put that in terms, it's saying the entire population of Texas, twice the population of New England, half the entire population of the Midwest....... Or in common sense terms, a fu#k-ton of people.
So these 30 million+ people are all just "wealthy"? If that's what you think, and it may be true in your perception, I say this says way more about yourself and life/income level than it does the market or those 30million "wealthy" home buyers. Maybe wealthy in your opinion, NOT wealthy by definition of the word.
hahahaha those who bought homes today subscribed to BP I guess
- Member since 2019 · 7k+ posts · 4k+ votes3y
Better question is this:
Is it possible for inflation to reach 2.5% again ? It's possible but chance are quite mild. Maybe it would sticky more into the 3 to 4. - Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
@Chris Seveney Context, context, context.
It drives me bonkers the liar-statements of sitting sidelines to just time a bottom. It's the worst kind of lie, a self-lie.
First, to those of you arguing of timing any kind of bottom, you ALWAYS leave out the 1 simple item of HOW will you know when it's a "bottom"? How, what indicates it? Rates just dropping? Ok, well when/if rates drop it's to STIMULATE the economy, so your gonna have to compete against all the other people being stimulated to also act. So than your argument will be the market is too hot, so again, wait to time THAT "bottom".
So when activity is lower, rates are "too high".
When rates are low, activity is "too high", or prices "too high".
When BOTH are down..... uhm, please remind me when is that exactly? How many times in last 100 years has that happened?
To the specific, could rates drop down? Sure, an event of some kind could happen that than stimulation of economy is the call to action but it's pointless because this group seeking excuses for NON-action will simply **** there excuse saying economy is too weak, prices are too high, it's the year of the Rat, Jupiter and Mars are in bad alignment etc etc etc..
This, today, is one of the most OBVIOUS times to invest in Real Estate, if a person doesn't "get-it" now, there never going to "get-it", that's the cold hard truth. There not just waiting for a "Unicorn", there waiting for a Leprechaun, riding a purple Unicorn, chasing flying-pigs. There is NO-TIME where a person could just pull up a MLS search, randomly buy any 1 of 30 available listings, in there pre-selected area, instantly get a perfect condition home, that rents in 10 days, has 0 work to do, with a 14-cap day 1. And as moronic as this sounds, that is the expectations of these preaching of waiting for "perfect".
Can rates go down, yup, and there will be a reason for it, AND a reaction from it called COMPETITION. Competition = price INCREASE.
Context....... Rates go down, competition and price goes UP. This should be a "duh" item because it literally just happened.
- Investor · Member since 2021 · 591 posts · 695 votes3y
I frequently hear inexperienced investors say things like:
"The property doesn't cashflow now, but I'll refi when rates come down."
...they use the word "when" as if rates dropping is as predictable as the sun setting!
Bottom line: NOBODY knows what rates will do in the future.
It's fun to discuss, and we can make educated guesses, but ultimately, it's just speculation...
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Troy P.:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Yes, I should have phrased that better. Anyone who wants a decent investment in a decent area and not wanting to dodge bullets every night is now facing a tough time making that "dream" happen due to a combination of prices, rates, and inflation going wild.Lol.
OR another way of saying it is Business as usual.
The idea that an Investment Real Estate business should be simple, so simple that a person in minutes or hours can at most basic level just buy any old property, easily and readily make considerable profits, LOL, that's just infantile.
Being a Landlord is a BUSINESS. Being a real estate broker of any kind is a BUSINESS. Why is this basic fact overlooked so much today? This is not a slot-machine, it requires more skill and care than just sitting down, throwing a few $$$$'s into it and sitting back watching everything make $$$$. It simply does NOT work that way.
So difficult to find good deals, yup. Complexity in how to do it all, yup. The sun rises in the east and set's int he west, yup. Any other obvious facts?
There is nothing new in this facet of REI being a BUSINESS and requiring intelligent care and actions as ANY business requires. The only "change" is people thinking something differently, thinking it's supposed to be easy, simple, "cheap".
Name the business, any business, and online there will be tons of books preaching of how simple all those can be started also, so it's not the books fault. It's the fault of this "poof" generation that has become "e-z-junkies". They've never had to try at anything, get awarded for just showing up
- Member since 2019 · 7k+ posts · 4k+ votes3y
Bottom line: NOBODY knows what rates will do in the future.
>>>
this is wrong, someone that knows how to read bond market know what rate would do in future.
just because you are not graduated from university of bond market doesn't mean
everybody doesn't understand what the rate in future. - Member since 2019 · 7k+ posts · 4k+ votes3y
Mortgage rate depends on 10 year note
10 year notes depends on T-Bill/Bond market
All the whole bond market depends on US Dollar
All US Dollar movement depends on M2
M2 depends on Treasury balance, Fed Repo, how much they're printing etc.
So mortgage rate is low = Fed is printing more money
mortgage rate is high= when Fed is burning dollar
Can Fed not to print US DOllar ? Impossible because it's the reverse currency of the world
Is the Fed printing predictable: It DOES
At certain point, they have to print money again as demand for US Dollar increases. - Lender · PA · Member since 2019 · 533 posts · 461 votes3y
Having lived through several periods were interest rates reached very high levels I can share with you my observations. Low interest rates cause inflation! Inflation causes the Federal Reserve to increase interest rates to slow economic activity. To end a recessions it often requires the Federal Reserve to lower rates. However, this time things are considerably different than the last three. First, we had economic expansion from June 2009 to present 14 consecutive years of growth. The growth was attributable to low interest rates permitting unfettered access to capital. The long period of expansion prohibits the federal reserve from significantly lowering rates again. Most economist believe such a stimulus would almost certainly cause a rapid return of runaway inflation. This is the new normal. These rates are closer to historical interest rates. These rates should cause housing prices to moderate and then fall. Of course that depends on the area of the country you live in. Good luck and keep moving forward! Time waits for no man.
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Eliott Elias:
What is shocking is the amount of people holding off on buying because of the rates, new investors were spoiled by the 2-3% rates and will most likely never buy until they see that again.
they dont understand market already changed since 3rd week of january, suddenly seller is increase listing price more than desktop valuation software.
- Member since 2019 · 7k+ posts · 4k+ votes3y
meant to say market started rebound on last week of Jan, the last "excellent good time" to buy was in november and december, when there's only one visitor visiting an open house, in janary average group visiting open house is like 30 groups, very different environment now, price is already melting up.
- 3yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Steven Goldman:
Having lived through several periods were interest rates reached very high levels I can share with you my observations. Low interest rates cause inflation! Inflation causes the Federal Reserve to increase interest rates to slow economic activity. To end a recessions it often requires the Federal Reserve to lower rates. However, this time things are considerably different than the last three. First, we had economic expansion from June 2009 to present 14 consecutive years of growth. The growth was attributable to low interest rates permitting unfettered access to capital. The long period of expansion prohibits the federal reserve from significantly lowering rates again. Most economist believe such a stimulus would almost certainly cause a rapid return of runaway inflation. This is the new normal. These rates are closer to historical interest rates. These rates should cause housing prices to moderate and then fall. Of course that depends on the area of the country you live in. Good luck and keep moving forward! Time waits for no man.
One little point I would like to add to this.. is even though its been 14 years from the bottom the market did not really start moving in earnest until 2012- 2014 so in my mind this huge run has been done in 8 to 9 years.. back in 09 to 2012 credit was still VERY tight to non existent for investors. - Lender · PA · Member since 2019 · 533 posts · 461 votes3y
I agree Jay. When you hit bottom you can only go up. The damage was in fact done in a shorter period of time, but the last 8 or 9 years of monetary policy was very destructive.(Covid did not help)In many cases money was injected into the commercial market at a zero rate. As PPP loans were forgiven. Not to mention the EIDL loans which were also extremally low interest.
- 3yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
How's this for a hot take?
The Federal Reserve is independent of the Federal Government, and while there will be places and times where it does not operate to it's charter, by and large, over a long period of time, it will be the best central bank in the world (or the least bad). It will beat inflation, attempt to avoid deep recessions and depressions, and not really care about the Federal Government's deficit or debt. Jay Powell is operating this way currently, and his term doesn't end until 2026. He has no reason to support Biden, any other democrat, or any republicans that might replace them. Not until 2026 do we even have a chance of getting another lead central banker who might diverge from this approach.
The "recession" of 2023 could very well be as mild as it is right now for most of the year, giving the Fed no reason to start lowering rates. In fact, if anything, housing costs are INCREASING (paradoxically because of high mortgage rates), and a major reason inflation is slowing is because of lower oil prices (perhaps because we've been releasing so much oil from the strategic oil reserves). The Fed will ignore oil prices and other core CPI items that are influenced by oil prices in it's inflation forecast and act accordingly.
Wage growth, and other prices, still grow, and the Fed is being very clear that they will raise rates until labor costs get in line with their core inflation targets. That's a tall order with 10,000 baby boomers retiring every single day, and Gen Z not being a large enough generation to fully backfill the massive amounts of retirees. The Fed might have to fight hard for a long time to curb wage inflation with this headwind.
Thus, rates will stay high and rise, perhaps for years or decades. Right now, the market is betting against this, which is why the 10-year treasury is inverted. If I'm right, the market will catch on by the end of the year, and investors will run away from the 10-year, causing it to soar. Literally from 3.5% to 5.0%+ in a 12-18 months. All debt that is pegged to the 10-year will rise in concert.
With higher rates and slowing inflation, growth will slow at most companies and a new "normal" will set in. This new normal will be characterized by more muted growth assumptions (but still a forecast of growth - because, remember, this is a soft landing) and a higher cost of capital. This news doesn't really impact the labor force much, because they will see the real value of their wages increase. It impacts the owners of capital in a dramatic way.
Asset values and equity values today (or at least, as of a year ago) were dependent on optimistic future growth assumptions and low interest rates. Bring those assumptions back down to Earth and continue to crank up the cost to borrow and all asset classes like housing, stocks, commercial real estate, private businesses, and other income streams will become cheaper. But, because the country is still reasonably well capitalized, this will be a process, not an event (a decline, rather than a crash).
Of large world economies, the US is the best positioned for the next several decades (or again, the "least bad"). If you think our problem with an aging workforce is bad, try Europe, or Japan, or China. I'd rather be in debt like the US, but with a reasonable workforce to pay it off than better capitalized but with a looming demographic collapse like these other countries/regions.
Rising rates will expose the unsustainable spending in the US, and the obvious, but hard, choices to end or painfully reform social security, medicaid, and other large buckets of the American safety net will be made, and the transition away from these unsustainable solutions will begin.
If this (ridiculous, I know) take that the American government and Federal Reserve will, over the next few years, operate the way it is supposed to and do it's job, less bad than any other major world economy, then, this means a reset to a new normal that we have to prepare for.
It's also the mark of a major shift of wealth away from the owners of capital and towards the laborer. Business owners, however, will have to deal with it, and stare it in the face, unless they want to work IN their businesses, instead of ON their businesses.
What does one do in times like these?
- Personal finance 101 (Be frugal, spend less than you earn, build up a solid emergency fund, have access to CASH and other forms of liquidity) - can't pounce on the great deals that are already starting to emerge if you don't have access to capital.
- Lend - Mortgage rates are 7%? CoC Returns and cap rates are 4-5%? Why not buy a mortgage instead of a house?
- Buy with light/low/no leverage - rates are 7% and cash flow/cap rates are 5%? No leverage means better cash flow and lower risk.
- Negotiate - assets of all types, in all classes are already starting to come on sale. Prices are down 20-25% in some real estate markets, for example. Sellers are willing to negotiate, including offering great financing terms, lower prices, and other concessions.
- Assume existing debt
- Join the party and have low expectations/assumptions for market-driven growth (average rental rates, etc.)
Generating cash flow is WAY easier today than it has been in the last few years. If for no other reason than buying debt is now a valid investing approach again.
I think these changes are here to stay.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Carlos Ptriawan:
meant to say market started rebound on last week of Jan, the last "excellent good time" to buy was in november and december, when there's only one visitor visiting an open house, in janary average group visiting open house is like 30 groups, very different environment now, price is already melting up.
Ya know, if there was an Agent out there who say specializes in investment properties, and had predicted that when there was a roar of a "crash" impending, holly-cow that would be one smart guy wouldn't he.......
Lol, yeah, just saying. I gotta say, remember all the attacks I took back in Oct. Nov. for forecasting this.
And for those who say "nobody knows....", well, I did. Did I drink from the skull of Nostradamus? Maybe. Is it some Greco-Norse witch-craft, possibly. Or maybe it's just MATH, reading MATH and listening to the math completely removed of any preconceived notions of what I want it to say?
yeah, I hear the collective internet saying "see, I knew it, WITCH-CRAFT!"
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @James Hamling:
Quote from @Carlos Ptriawan:
meant to say market started rebound on last week of Jan, the last "excellent good time" to buy was in november and december, when there's only one visitor visiting an open house, in janary average group visiting open house is like 30 groups, very different environment now, price is already melting up.
Ya know, if there was an Agent out there who say specializes in investment properties, and had predicted that when there was a roar of a "crash" impending, holly-cow that would be one smart guy wouldn't he.......
Lol, yeah, just saying. I gotta say, remember all the attacks I took back in Oct. Nov. for forecasting this.
And for those who say "nobody knows....", well, I did. Did I drink from the skull of Nostradamus? Maybe. Is it some Greco-Norse witch-craft, possibly. Or maybe it's just MATH, reading MATH and listening to the math completely removed of any preconceived notions of what I want it to say?
yeah, I hear the collective internet saying "see, I knew it, WITCH-CRAFT!"
yea i really dislike when people saying "NOBODY KNOWS THE FUTURE"... HAHAHAHAHA lol lol
while this whole financial market is projecting future number with actual $$$ value hahaait is over guys, price is already melting up, my house got bidding war already ;-) lol
- Investor · Baton Rouge, LA · Member since 2019 · 184 posts · 167 votes3y
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Yes, I should have phrased that better. Anyone who wants a decent investment in a decent area and not wanting to dodge bullets every night is now facing a tough time making that "dream" happen due to a combination of prices, rates, and inflation going wild.Lol.
OR another way of saying it is Business as usual.
The idea that an Investment Real Estate business should be simple, so simple that a person in minutes or hours can at most basic level just buy any old property, easily and readily make considerable profits, LOL, that's just infantile.
Being a Landlord is a BUSINESS. Being a real estate broker of any kind is a BUSINESS. Why is this basic fact overlooked so much today? This is not a slot-machine, it requires more skill and care than just sitting down, throwing a few $$$$'s into it and sitting back watching everything make $$$$. It simply does NOT work that way.
So difficult to find good deals, yup. Complexity in how to do it all, yup. The sun rises in the east and set's int he west, yup. Any other obvious facts?
There is nothing new in this facet of REI being a BUSINESS and requiring intelligent care and actions as ANY business requires. The only "change" is people thinking something differently, thinking it's supposed to be easy, simple, "cheap".
Name the business, any business, and online there will be tons of books preaching of how simple all those can be started also, so it's not the books fault. It's the fault of this "poof" generation that has become "e-z-junkies". They've never had to try at anything, get awarded for just showing up
Your imagination certainly went wild from such a simple post... I was mostly referring to the fact that a large number of people who could have been able to afford a home as a primary residence last year now cannot due to the combination of rising rates, rising prices, and rising inflation. I'm not sure how you discerned entitlement or lazy work ethic from my posts, but that was definitely not the intent. I agree with some of your points, just not sure how it was related. - 3yBruce WoodruffPro MemberContractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votesI think this is a great time for investors coming up....should be more inventory, lower prices and less competition. So what interest rates are back to normal....I don't really see a downside here....
Quote from @Brian Ellis:
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Troy P.:
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Yes, I should have phrased that better. Anyone who wants a decent investment in a decent area and not wanting to dodge bullets every night is now facing a tough time making that "dream" happen due to a combination of prices, rates, and inflation going wild.Lol.
OR another way of saying it is Business as usual.
The idea that an Investment Real Estate business should be simple, so simple that a person in minutes or hours can at most basic level just buy any old property, easily and readily make considerable profits, LOL, that's just infantile.
Being a Landlord is a BUSINESS. Being a real estate broker of any kind is a BUSINESS. Why is this basic fact overlooked so much today? This is not a slot-machine, it requires more skill and care than just sitting down, throwing a few $$$$'s into it and sitting back watching everything make $$$$. It simply does NOT work that way.
So difficult to find good deals, yup. Complexity in how to do it all, yup. The sun rises in the east and set's int he west, yup. Any other obvious facts?
There is nothing new in this facet of REI being a BUSINESS and requiring intelligent care and actions as ANY business requires. The only "change" is people thinking something differently, thinking it's supposed to be easy, simple, "cheap".
Name the business, any business, and online there will be tons of books preaching of how simple all those can be started also, so it's not the books fault. It's the fault of this "poof" generation that has become "e-z-junkies". They've never had to try at anything, get awarded for just showing up
Your imagination certainly went wild from such a simple post... I was mostly referring to the fact that a large number of people who could have been able to afford a home as a primary residence last year now cannot due to the combination of rising rates, rising prices, and rising inflation. I'm not sure how you discerned entitlement or lazy work ethic from my posts, but that was definitely not the intent. I agree with some of your points, just not sure how it was related.Your personalizing, and than projecting.
What basis do you have for your assumption that "a large number of people who could have been able to afford a home as a primary residence last year now cannot"?
By your statements, it seems that buying a home is an item out of your financial reach. That's a-ok, but than taking that personal experience and stating it "must" be the case for most/all/many, that's simply projecting, from a very self-serving perspective.
It's that kind of self-serving mindset, that comes from the same school of "rotten thinking", that has been the social experiment as of late. And given birth to a society incapable of honest self-evaluation, poor work ethic, weak will, thin skin, fearful in human interactions, and a host of other social oddities now coming common and with presses for all to "accept" these as normalcies, and placate to them.
What not all that many decades ago a person would say "wow, I can't afford homes at these prices" has now morphed into "home prices are too high", just a personalization projected outward with accountability thrown onto "the world". In the former statement/world, a person would feel that accountability, which leads to the natural question of "what can I do to afford a home", which empowers self-action, maybe improving oneself, to achieve that desire. Today, this is lacking in the most sever way, and society suffers for it.
See how it comes full circle?
The answer is with oneself, it truly is. The projection is a destruction of self-empowerment.
- Warsaw, IN · Member since 2017 · 229 posts · 270 votes3y
@Nicholas L. You have a great point that I hadn’t considered, but I am in agreement with you.
Further compounding the issue, at least in tourism areas, is the phenomenon where wealthy folks buy old homes that were being rented by the room, and replacing them with summer mansions (or winter mansions) and the supply of rentals continues to dwindle.
If we’re already at a deficit of rentals, and aren’t building enough, then you’re right-we can’t become a “renters nation”.
- Investor · Baton Rouge, LA · Member since 2019 · 184 posts · 167 votes3y
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Completely untrue. I know a lot of folks that just bought or will be buying soon and 0% of them are 'wealthy'.....just normal people.
Now you might be correct if you said that only wealthy people can buy homes in SoCal on the beach, or on Staten Island.....but in general, naw, anyone that really wants to can buy houses.
Yes, I should have phrased that better. Anyone who wants a decent investment in a decent area and not wanting to dodge bullets every night is now facing a tough time making that "dream" happen due to a combination of prices, rates, and inflation going wild.Lol.
OR another way of saying it is Business as usual.
The idea that an Investment Real Estate business should be simple, so simple that a person in minutes or hours can at most basic level just buy any old property, easily and readily make considerable profits, LOL, that's just infantile.
Being a Landlord is a BUSINESS. Being a real estate broker of any kind is a BUSINESS. Why is this basic fact overlooked so much today? This is not a slot-machine, it requires more skill and care than just sitting down, throwing a few $$$$'s into it and sitting back watching everything make $$$$. It simply does NOT work that way.
So difficult to find good deals, yup. Complexity in how to do it all, yup. The sun rises in the east and set's int he west, yup. Any other obvious facts?
There is nothing new in this facet of REI being a BUSINESS and requiring intelligent care and actions as ANY business requires. The only "change" is people thinking something differently, thinking it's supposed to be easy, simple, "cheap".
Name the business, any business, and online there will be tons of books preaching of how simple all those can be started also, so it's not the books fault. It's the fault of this "poof" generation that has become "e-z-junkies". They've never had to try at anything, get awarded for just showing up
Your imagination certainly went wild from such a simple post... I was mostly referring to the fact that a large number of people who could have been able to afford a home as a primary residence last year now cannot due to the combination of rising rates, rising prices, and rising inflation. I'm not sure how you discerned entitlement or lazy work ethic from my posts, but that was definitely not the intent. I agree with some of your points, just not sure how it was related.Your personalizing, and than projecting.
What basis do you have for your assumption that "a large number of people who could have been able to afford a home as a primary residence last year now cannot"?
Well, median household income decreased, spending decreased, mortgage applications decreased, and over that same time period home prices increased, rates increased, and inflation increased, but you're going to pretend like it's business as usual and homes are just as affordable as they were last year? I'm not saying last year was normal, and I'm not saying that everyone has a right to purchase a home. It's a simple analysis of the market in my area, which oddly enough has prices plummeting back to more (at the risk of being attacked) affordable levels.
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Troy P.:
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @James Hamling:
Quote from @Troy P.:
Quote from @Bruce Woodruff:
Quote from @Troy P.:
Well, median household income decreased, spending decreased, mortgage applications decreased, and over that same time period home prices increased, rates increased, and inflation increased, but you're going to pretend like it's business as usual and homes are just as affordable as they were last year? I'm not saying last year was normal, and I'm not saying that everyone has a right to purchase a home. It's a simple analysis of the market in my area, which oddly enough has prices plummeting back to more (at the risk of being attacked) affordable levels.
You have not seen the worst my friend.
In Bostwana to afford the house you have to work 2940 hours per year. In USA you only have to work 40 hours a day LOL.
Of course you can change Bostwana to Taiwan, but Taiwanese coming here is laughly at you guys holy cow the home in this country is so chiippp. lol
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