How the US is Subsidizing High-Risk Home Buyers — at The Cost of Those With Good Credit

#51
#51
GroverCleveland said:
Well, he's right. Get fixed debt on assets now. Inflation means paying the debt off with cheaper dollars, plus the inflationary appreciation on the asset itself.
Click to expand...
What happens when the price of the asset goes down? Housing prices aren't exactly going up right now.
 
#52
#52
Sounds like luther “economics”. It’s ok to suffer for the “greater good” so long as we all do. Kinda like his philosophy on paying taxes….”I’ll happily pay more as long as everyone else has to but wont’t pay more voluntarily”.
 
  • Like
Reactions: UT_Dutchman, AM64 and VolStrom
#54
#54
VolStrom said:
What happens when the price of the asset goes down? Housing prices aren't exactly going up right now.
Click to expand...

It doesn’t really matter. If inflation continues then you will be paying on the same amount of money with more dollars. Imagine trying to fill a bathtub and inflation causing you to have a larger bucket to do the job. It sucks for groceries and clothes but is a great hedge if the rate is fixed.
 
  • Like
Reactions: AM64 and McDad
#55
#55
Orangeburst said:
So McDad is a Mack..how appropriate..LOL

Moving Van Driver To Old Man At Country Store Porch:
Hey Mac, which way to Redbud?
Old Man:
How'd you know my name was Mac?
Driver:
Just guessing.
Old Man:
Then guess your way to Redbud.
Click to expand...
Mack is my landlord persona. It commands more respect than my given name, Percival.
 
  • Like
Reactions: AM64, hog88 and Orangeburst
#56
#56
VolStrom said:
What happens when the price of the asset goes down? Housing prices aren't exactly going up right now.
Click to expand...
True, but that is untypical with regards to asset appreciation, but the inflationary aspect remains true in most cases.
 
#57
#57
McDad said:
Like most investment strategies, it should be a longer term approach. Plus, if it is your primary residence, you're still getting full functionality regardless of value fluctuations.
Click to expand...
I want no part of the real estate business. My dad was in real estate and it seemed like every day he was asking me to fix something at a renters house or apartment. If they didn't want something fixed I had to get the crap out that they left behind in the middle of the night when they skipped out without paying the rent. I can make just as much money just investing it than I can in real estate and not have the hassle.
 
  • Like
Reactions: Silence Dogood
#58
#58
sonofUT62 said:
It doesn’t really matter. If inflation continues then you will be paying on the same amount of money with more dollars. Imagine trying to fill a bathtub and inflation causing you to have a larger bucket to do the job. It sucks for groceries and clothes but is a great hedge if the rate is fixed.
Click to expand...
So you expect this relatively new thing called inflation to be a forever thing? We're in a for a world of hurt in the next few years when our economy crashes due to the idiotic management of our debt. Remember back not too long ago when housing prices crashed? I think we're headed their again.
 
  • Like
Reactions: AM64
#59
#59
VolStrom said:
I want no part of the real estate business. My dad was in real estate and it seemed like every day he was asking me to fix something at a renters house or apartment. If they didn't want something fixed I had to get the crap out that they left behind in the middle of the night when they skipped out without paying the rent. I can make just as much money just investing it than I can in real estate and not have the hassle.
Click to expand...
You don't own your home?
 
#61
#61
VolStrom said:
So you expect this relatively new thing called inflation to be a forever thing? We're in a for a world of hurt in the next few years when our economy crashes due to the idiotic management of our debt. Remember back not too long ago when housing prices crashed? I think we're headed their again.
Click to expand...

Im not any kind of expert on real estate investment. My comment is that as long as inflation is high it’s better to be an owner than a renter. As long as inflation is high you’re again paying your mortgage with more dollars. If the market crashes you still have your house and the equity you have accrued. As far as investment or the market crashing on multiple houses that you own that’s not my area of expertise. I would confidently say that there’s not much possibility of it happening in Tri Cities Tennessee, because the construction of new inventory is so strangled. But that’s just my opinion.
 
#62
#62
VolStrom said:
I do, but I don't rent it out to people that trash it or don't care about it because they don't own it.
Click to expand...
If you're a homeowner, you're in the real estate business.
It is rather illustrative of your negative thought process to connect my recommendation to you mismanaging rental property like your father did.
 
#63
#63
sonofUT62 said:
Im not any kind of expert on real estate investment. My comment is that as long as inflation is high it’s better to be an owner than a renter. As long as inflation is high you’re again paying your mortgage with more dollars. If the market crashes you still have your house and the equity you have accrued. As far as investment or the market crashing on multiple houses that you own that’s not my area of expertise. I would confidently say that there’s not much possibility of it happening in Tri Cities Tennessee, because the construction of new inventory is so strangled. But that’s just my opinion.
Click to expand...
So we agree. I really don't care what happens to the housing market because I'm staying where I'm at until I die or my kids make me move into an assisted living home. Rental properties are a pain in the ass and I want no part of them, they're like having a 24/7 job.
 
  • Like
Reactions: SpaceCoastVol
#65
#65
McDad said:
If you're a homeowner, you're in the real estate business.
It is rather illustrative of your negative thought process to connect my recommendation to you mismanaging rental property like your father did.
Click to expand...
You bringing my father into a discussion on this board really crosses a line with me *******.
 
#68
#68
sonofUT62 said:
It doesn’t really matter. If inflation continues then you will be paying on the same amount of money with more dollars. Imagine trying to fill a bathtub and inflation causing you to have a larger bucket to do the job. It sucks for groceries and clothes but is a great hedge if the rate is fixed.
Click to expand...

That’s assuming your income rises with inflation if it’s your residence. Rental properties you just raise the rents because people will always need a place to live.
 
#75
#75
McDad said:
I'm not here to make enemies but I'm not responsible for your anger and cannot help you with it. This is on you. I'm at peace.
Click to expand...
You disrespected my father. You didn't apologize for what you said, you just doubled down. This isn't on me, this is on you.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top