No point applying for a mortgage when the market is out of control that only hedgies with cash offers 200% over asking have a chance at buying anything/everything. Most first time buyers have given up at this point.
The bigger question everyone should be asking is why the hedgies are doing this. Why are they buying properties for insanely more than they’re worth? I have a couple theories and it all has to do with the collapse of the dollar.
I think that is definitely a byproduct of what they’re doing and certainly something they consider a win but I don’t think it’s actually their main objective right now. I believe wealth preservation during this inflationary period is the immediate objective paired with continued “creation” of “wealth” by driving the real estate market up so that they are not only converting worthless fiat to shelf-stable real estate, they are also pumping up the value of that real estate artificially by manufacturing scarcity. If they manage that and there isn’t a major crash of the housing market, then they will then shift their focus to what you are talking about.
I’m looking too. I’m finding some homes are going for about what they should be priced—even in Florida. You can find a decent condo near Delray on the east coast and near Ft Myers on the west for under $200,000. You have to be ready to buy and to jump quickly, but not everything is going for double what it should be. Particularly in a condo complex, you can’t double the price when the place next to you went for half as much. No one would buy anything in the complex if they were scamming or over-inflating.
South Carolina has some decent housing that doesn’t feel like you’re being raped. Much lower priced than Florida. The Charleston area is dynamic and worth looking at.
I’m just in the frame of mind that A) Something big is coming if not stopped B) Hard assets are the way to go C) warmer climates continue to lure and fascinate and with some good research, you can make a good investment there and D) There is no price tag on happiness. We’ve all seen that life is pretty fragile these last two years. Live somewhere that fulfills your soul. Where you live is the most important choice you can make. It accounts for a lot of your life.
This is a typical Real Estate cycle. I've been watching RE since the 70s. The RE cycle repeats itself in the same way. The government exacerbates the cycle with stupidity. Take for instance the Dodd-Frank bill which caused the RE bubble to burst in 2007. Whenever the government manipulates the process it gets worse.
Big Corporations are buying RE at a higher percentage then in past cycles. This causes a run up in the market. The Fed is going to squash this RE market by raising interest rates to bring down the inflation rate which is caused by the DOLT in Chief. The current inflation is caused by a tripling of fuel prices. Fuel prices affect EVERYTHING. As the market cools, people who got in at the tail end of the pyramid scheme will have to wait 5 years to be able to sell their house at the price they paid. I remember when interest rates for housing was at 18% during the JIMMY CARTER years. LOOK IT UP. People were happy to get in at that rate because the threat was they were going to go up to 25%. My advice is to wait it out. If you want to move, then move and rent for a few years. You will save money in the end.
Oh man I’m so sorry you’re stuck there, that sucks. I’m in IL so I can relate to some extent. There are some small towns here that still have houses that come up for reasonable prices. In a different part of this thread I also mentioned fixer uppers. If you’re not queasy at the idea of living in something that needs a lot of work and doing most/all of that work yourself you’d be shocked what a bank will sign off on. You’d have to move though I’m sure, I would be surprised if there is anything affordable in NY, fixer or otherwise.
I don’t remember what it was, and I’m kicking myself for not saving it, but I read about some change that Trump made in 2018 or 19 that kicked off this frenzied buying.
Oh interesting, I don’t think I heard about that. Until last fall I had not purchased anything since early 2018. I was pretty stunned at the prices and how fast everything was selling when I started looking early last year. I’d originally wanted to move state but that proved utterly impossible because there was no way to even look at a property before it went contingent. I’m open to some risk but buying sight unseen is not for me.
It could be. But a company won't fire people they can make money with. They'll fire them when they aren't making money with them. So this isn't about some future but about something that has happened in the past month or year.
It is much more ominous. We can talk about rate hikes and economic collapse all we want. But none of that talk can even scratch the surface of reality. When you or your neighbours are losing your houses, or fighting for food in a manufactured food shortage.
Here in Canada virtually everyone in my circle of friends has about 500k in mortgage debt. People with variable rates paying 1% last year would be paying about $400 in interest costs a month, plus about $2,000 in principal, so $2,400 total. In the last year that rate has jumped to 2.5%, meaning their payments are now $3,000 per month. We’re barely even getting started, if rates get to 20% like in the 70’s that payment will increase to over $10,000 per month. A LOT of people are going to lose their homes.
This! ☝🏻 I don’t understand this concept ever, but especially after the housing crisis in during Obama’s first term. It’s a no brainer. We’re in a fixed mortgage w/ an insanely low interest rate and we were planning on doing a new build soon and moving. Well again, it’s a no brainer w/ the mortgage rates steadily increasing and set to increase even more throughout the year, there’s no way we’re going to attempt to move and lose our low interest rate.
i think bad credit or anticipation of market improving or ability to unload the house. it's not ideal, but somexs when ppl have bad credit this looks like a better deal. (never had one myself, but thinking that is the logic)
Lots of people had them, particularly when rates were 1% and fixed was 2%. Standard mortgages here only offer 5 year fixed rates, so even amongst those that got fixed rates, 20% come up for renewal on any given year. Most people who have their mortgages coming up in a year or so have no idea what kind of pain they are in for.
I was in this crowd and had to pay $5k penalty to switch lenders and lock in a better rate last fall.
It’s a game that’s rigged so that a good chunk of people will fail, and everyone gets squeezed.
Just woke my husband up (he’s the money manager) and asked him if we had fixed vs variable on our house and warehouse… he gave me the stink eye for waking him up, but so glad to know all our mortgages are fixed at 3%! Whew! I can sleep now! And the warehouse will be paid off in less than two years 😎. Thanks for listening!
I did a couple years ago. It dropped my interest rate dramatically. All this was so I could double and triple my principal payment. I dumped tax returns and my annual bonus in there as well. Paid my house off three weeks ago. Mortgage debt free. Bought the house in 2006 for $225k. It was the best way for me to max out my principal payments so that I could finish the mortgage off. It only made sense by doing the math and maximizing my principal payments to put me on a 3 year payoff. The interest rates were so incredibly low, it worked in my favor.
It worked out for me, but it was a unique circumstance where maximizing my principal payments was paramount for a finite repayment plan to pay the house off before the ARM kicked in. I would only recommend it for paying off the mortgage within a set window before the rate can vary. After years of paying off my last divorce, all I have wanted to do is pay off all my debt and be completely in the black. My intention was to save like crazy for the last 10-15 years of my working career. If i can swing it, I want to retire in 10 years well before I hit 60. Sell my urban home and buy 50-60 acres in the foothills of the mountains and spend the rest of my life fully self sufficient. Right now, I have no remaining revolving debt. If I can't save up to buy something, I'm not buying it.
You have to pay interest because the banks bribed politicians to give them the ability to print and loan money. It has also distorted the system, ramping up the prices for everything and forced almost everyone into debt.
HOW are people still signing up for ARMs after what happened in 2008??? There was even a very popular Hollywood movie about it and still morons are buying more house than they can afford and agreeing to adjustable rates. Fucking staggering.
Might have been my thread. I wasn’t dismissing potential shortages but questioning whether the sudden attention by the MSM on food shortages was fear mongering, because whenever they get involved in an issue you know there’s more behind it.
I really want to sell my house now, when the prices are high, then wait for the crash and buy another one at the bottom of the market but I don't want to have to pay capital gains on the equity if I don't find another place within a year.
The other issue is what to do with all my stuff while I wait for the market to crash?
It's not necessarily an inevitability? - that the market will crash?
Is there a q post saying it will?
Is it not possible that part of the plan involves market stabilisation and assets changing hands peacefully (albeit with cabal bubbles like Disney, Netflix, etc popping) instead of a crash?
If debts are forgiven and usury ended, wouldn't that cause the market to boom?
I know higher oil prices are helping, but after Russia kicked out the Rothschild banking cartel and ended usury in their country, their economy seems to be doing a lot better.
After all, in an economy with limited corruption much of the economic gains are reinvested instead of wired overseas or hoarded.
However, this isn't inflation due to too much money sloshing around, it's more about lack of supply vs. huge demand, and people will be focussing on food/water.
I don't see it creating a huge upsurge in demand for property, so how would high interest rates curb inflation in this scenario? It wouldn't, it just sounds like another one of their scams.
I'm no financial expert, so I may be missing something obvious here :)
Interest rates were double digits when we bought our first house (about forty years ago). We bought one with an assumable mortgage,and a low interest rate, which required a larger down payment. At the time I was disappointed about it, but my husband is a smart guy and knew what we could afford. He's still a smart guy and we paid off our current house in ten years. That wasn't easy, but turned out to be a great move. People need to stop buying property they can't really afford. We saw the effects of that in 2008 and later, when people couldn't afford their McMansions as interest rates shot up and they had variable rates mortgages.
My best friend sold and bought a big beautiful home in a free state. Every single person in his life told him not to do it and that "he will regret it" etc... Now he's settled and enjoying a way better life. I've tried hard with my parents in CA to consider getting out of the housing market. People just can't make those huge decisions until the herd is also doing it.
In CA we currently have homes that are $900k for 3 bed 1 bath in neighborhoods that have considerably got worse and worse over time. Its just a fact. The hedgies like Black Rock are buying up all the properties which puzzles me a bit. I know they want to kill the middle class and make homes unaffordable aka rent your whole life. But I can't understand why they'd do that if they knew the home market was going to collapse. Maybe their money is safer being parked in land and they know it will eventually go back up? At the same time they can charge ridiculous rent.
The bond market is toast (like a 2 week dead body in the spare bedroom no one wants to deal with). Equities are not far behind if you haven't been watching. They have to park that money someplace else ... ergo, real estate. It's actually genius. A rental home is a defacto bond. It has a coupon rate - interest rate (monthly rents), face value (purchase price), but no 'maturity' time variable ... which is the genius part. Most bonds have a maturity date where the bond will no longer pay interest. At that point it's just cash under your bed. Property however can last 100 years if well maintained.
They are turning the US housing market into the next investment vehicle market ... a De facto Bond market. They can drive up prices to muscle out new home buyers without a second thought. It's easy when you manage 8 Trillion in assets.
When you mention the bond market I have a few questions. I believe my parents are heavily invested in bonds with their old financial advisor. I've tried very hard to guide and wake up my family in these areas but I have little understanding with bonds. Is there anything I could say to get their attention? If the bond market goes under I'm assuming so will their investments? It blows my mind that financial advisors just continue to take their commissions and not guide them.
I'm a huge advocate for precious metals especially gold/silver. Been trying to get my Dad and family to take a small investment but they laugh it off. Funny how a good family friend owns an LCS and they still won't buy any. Got my lil bro invested but had to buy it for him. Anyways, I appreciate your time anon!
God bless
First, Im not a financial advisor. I do have an MBA and have studied markets EXTENSIVELY. Second, ur question about the bonds depends on WHAT KIND of bonds. There are all kinds … treasury, corporate, municipal, cds … they all have a’rating’ (A+ Thru F). The worse the rating, the higher risk but better interest (in theory). Not likely they own junk bonds. They wont ‘loose it all’. But if their interest rate is for shit (2-3%) as most existing bonds are, when rates start going up, the value of those bonds with garbage low rates will drop. Its inverse relationship.
Last year I liquidated ALL my stocks, CDs, IRA, mutual funds and bought a $3000 safe and started filling it with Silver
That's crazy, in europe you have homes that are up from the 1600s, but building from stone vs building from plywood, pine 2x4 (1.5 X 3.5) and tar shingles shouldn't be expected to last.
I agree! Thanks for the input. The amount of houses they have been buying in CA is unbelievable. They are pricing out young families etc... Maybe in a weird way it's a blessing to these young families that can't buy in CA and end up leaving the state
I was thinking the same. Put stuff into storage. Move into an apartment. But....no storage units to rent. No apts to rent, no houses to rent. Everything is at a total stand still. Bot this place 5 years ago for 150K and it's now worth 300K+. Ridiculous but that gave the city means to hike up all the property taxes. So high now we might lose the house if it keeps going up. Yet....if the values go down you think they will lower the property taxes?
I think if you lived in it over two years there is no capital gains tax for under 500K increase. Anything over the 500K is taxed as capital gains. At least that is what my accountant told me when we sold two years ago and downsized.
Myself and a few others on this board keep banging this particular drum but I'll take another shot:
Folks, I strongly believe that it's going to get much, much worse than it is now. Remember Q's words: "Sometimes you need to show them".
The real President has alluded to the creation of a NEW Republic. Q has alluded to taking down the Federal Reserve. Think about how bad things have to get to create broad support for a new Constitution and a new financial system.
I would argue we are not in the storm and that "the storm" is at least a year away, perhaps more.
Those of us who make it through this will be living in a far different, far better world. I genuinely believe this. But we're going to have to go through hell to get to heaven.
We are a relatively small town, 70K and we have EXACTLY 1 house for sale under 300K. Nobody is buying because Nobody is selling. And our values and taxes skyrocketed this last year. Sell? and buy what? Nothing to buy. So a lot of real estate agents, mortgage lenders, etc are out of work.
Another prophet (Liberty from Spirit Move Ministries) mentioned Wells Fargo too, to pull your money out of the big banks. We have been at a local credit union since 2004, I'll never go back to big banks again.
One reference about how they will be involved in a scandal. That’s not a big reach, they have one every few years. The latest is black lending, which is always being complained about. Once you look at their credit scores that explains it.
As to who is involved, we shall see.
The prophetic words from God though Julie encompass one a day to His children, they should be revered for what they are His word. Its not just this one there’s years of these to call it one reference is to not understand He is telling us what is happening in this world to not fear what is happening and what is coming.
Yeah here in the area of Texas where I live, every home is sold through a bidding process. Most homes have 20+ bids and sell within 24-48 hours. They usually do this on the weekends. I am good friends with a couple, who I consider very upper middle class (both young doctors) that have bid on 12 homes so far and still haven't landed one.
True. Not much on the market here. I'm getting "we'll buy your house" calls several times weekly. The small homes in my neighborhood are sold almost immediately, then turned into rentals. Probably over half are rentals now.
It's not just mortgage processors however they are a bulk group, there are more as well because special projects employees have been consolidated and let go and jobs are being posted in India. They are moving offshore.
They wouldn't lay off in anticipation though. They obviously don't have need of them now.
No point applying for a mortgage when the market is out of control that only hedgies with cash offers 200% over asking have a chance at buying anything/everything. Most first time buyers have given up at this point.
The bigger question everyone should be asking is why the hedgies are doing this. Why are they buying properties for insanely more than they’re worth? I have a couple theories and it all has to do with the collapse of the dollar.
Right. Property is a good hedge against inflation. Follow their lead. Max out your debt and buy property.
It's part of their great reset.... to turn this nation into renters vs owners - ie "you'll own nothing and be happy"
I think that is definitely a byproduct of what they’re doing and certainly something they consider a win but I don’t think it’s actually their main objective right now. I believe wealth preservation during this inflationary period is the immediate objective paired with continued “creation” of “wealth” by driving the real estate market up so that they are not only converting worthless fiat to shelf-stable real estate, they are also pumping up the value of that real estate artificially by manufacturing scarcity. If they manage that and there isn’t a major crash of the housing market, then they will then shift their focus to what you are talking about.
This
Wouldn't even stop the federal government from revoking your land and citing reasons though.
I’m looking too. I’m finding some homes are going for about what they should be priced—even in Florida. You can find a decent condo near Delray on the east coast and near Ft Myers on the west for under $200,000. You have to be ready to buy and to jump quickly, but not everything is going for double what it should be. Particularly in a condo complex, you can’t double the price when the place next to you went for half as much. No one would buy anything in the complex if they were scamming or over-inflating.
South Carolina has some decent housing that doesn’t feel like you’re being raped. Much lower priced than Florida. The Charleston area is dynamic and worth looking at.
I’m just in the frame of mind that A) Something big is coming if not stopped B) Hard assets are the way to go C) warmer climates continue to lure and fascinate and with some good research, you can make a good investment there and D) There is no price tag on happiness. We’ve all seen that life is pretty fragile these last two years. Live somewhere that fulfills your soul. Where you live is the most important choice you can make. It accounts for a lot of your life.
This is a typical Real Estate cycle. I've been watching RE since the 70s. The RE cycle repeats itself in the same way. The government exacerbates the cycle with stupidity. Take for instance the Dodd-Frank bill which caused the RE bubble to burst in 2007. Whenever the government manipulates the process it gets worse. Big Corporations are buying RE at a higher percentage then in past cycles. This causes a run up in the market. The Fed is going to squash this RE market by raising interest rates to bring down the inflation rate which is caused by the DOLT in Chief. The current inflation is caused by a tripling of fuel prices. Fuel prices affect EVERYTHING. As the market cools, people who got in at the tail end of the pyramid scheme will have to wait 5 years to be able to sell their house at the price they paid. I remember when interest rates for housing was at 18% during the JIMMY CARTER years. LOOK IT UP. People were happy to get in at that rate because the threat was they were going to go up to 25%. My advice is to wait it out. If you want to move, then move and rent for a few years. You will save money in the end.
☝️👍
Oh man I’m so sorry you’re stuck there, that sucks. I’m in IL so I can relate to some extent. There are some small towns here that still have houses that come up for reasonable prices. In a different part of this thread I also mentioned fixer uppers. If you’re not queasy at the idea of living in something that needs a lot of work and doing most/all of that work yourself you’d be shocked what a bank will sign off on. You’d have to move though I’m sure, I would be surprised if there is anything affordable in NY, fixer or otherwise.
I don’t remember what it was, and I’m kicking myself for not saving it, but I read about some change that Trump made in 2018 or 19 that kicked off this frenzied buying.
Oh interesting, I don’t think I heard about that. Until last fall I had not purchased anything since early 2018. I was pretty stunned at the prices and how fast everything was selling when I started looking early last year. I’d originally wanted to move state but that proved utterly impossible because there was no way to even look at a property before it went contingent. I’m open to some risk but buying sight unseen is not for me.
It could be. But a company won't fire people they can make money with. They'll fire them when they aren't making money with them. So this isn't about some future but about something that has happened in the past month or year.
House by me was purchased for 450,000 a few years ago and just sold for 900,000. A 2 family, not huge or anything.
Bubble.
Same where I live. There isn't a house on my street that would sell now for under 750,000. Not mansions, just regular three and four bedroom houses.
It is much more ominous. We can talk about rate hikes and economic collapse all we want. But none of that talk can even scratch the surface of reality. When you or your neighbours are losing your houses, or fighting for food in a manufactured food shortage.
Here in Canada virtually everyone in my circle of friends has about 500k in mortgage debt. People with variable rates paying 1% last year would be paying about $400 in interest costs a month, plus about $2,000 in principal, so $2,400 total. In the last year that rate has jumped to 2.5%, meaning their payments are now $3,000 per month. We’re barely even getting started, if rates get to 20% like in the 70’s that payment will increase to over $10,000 per month. A LOT of people are going to lose their homes.
This! ☝🏻 I don’t understand this concept ever, but especially after the housing crisis in during Obama’s first term. It’s a no brainer. We’re in a fixed mortgage w/ an insanely low interest rate and we were planning on doing a new build soon and moving. Well again, it’s a no brainer w/ the mortgage rates steadily increasing and set to increase even more throughout the year, there’s no way we’re going to attempt to move and lose our low interest rate.
fixed rate, 30 year beats inflation.
ARMs can be fixed rate for terms such as seven or 10 years, and are now underwritten much more carefully than they once were.
i think bad credit or anticipation of market improving or ability to unload the house. it's not ideal, but somexs when ppl have bad credit this looks like a better deal. (never had one myself, but thinking that is the logic)
Lots of people had them, particularly when rates were 1% and fixed was 2%. Standard mortgages here only offer 5 year fixed rates, so even amongst those that got fixed rates, 20% come up for renewal on any given year. Most people who have their mortgages coming up in a year or so have no idea what kind of pain they are in for.
I was in this crowd and had to pay $5k penalty to switch lenders and lock in a better rate last fall.
It’s a game that’s rigged so that a good chunk of people will fail, and everyone gets squeezed.
Just woke my husband up (he’s the money manager) and asked him if we had fixed vs variable on our house and warehouse… he gave me the stink eye for waking him up, but so glad to know all our mortgages are fixed at 3%! Whew! I can sleep now! And the warehouse will be paid off in less than two years 😎. Thanks for listening!
Yeah. Canada is weird. There are basically 5 banks that have an oligopoly, and they march in lockstep. There’s no real “choice”
I did a couple years ago. It dropped my interest rate dramatically. All this was so I could double and triple my principal payment. I dumped tax returns and my annual bonus in there as well. Paid my house off three weeks ago. Mortgage debt free. Bought the house in 2006 for $225k. It was the best way for me to max out my principal payments so that I could finish the mortgage off. It only made sense by doing the math and maximizing my principal payments to put me on a 3 year payoff. The interest rates were so incredibly low, it worked in my favor.
It worked out for me, but it was a unique circumstance where maximizing my principal payments was paramount for a finite repayment plan to pay the house off before the ARM kicked in. I would only recommend it for paying off the mortgage within a set window before the rate can vary. After years of paying off my last divorce, all I have wanted to do is pay off all my debt and be completely in the black. My intention was to save like crazy for the last 10-15 years of my working career. If i can swing it, I want to retire in 10 years well before I hit 60. Sell my urban home and buy 50-60 acres in the foothills of the mountains and spend the rest of my life fully self sufficient. Right now, I have no remaining revolving debt. If I can't save up to buy something, I'm not buying it.
You have to pay interest because the banks bribed politicians to give them the ability to print and loan money. It has also distorted the system, ramping up the prices for everything and forced almost everyone into debt.
Aaaaaand who owns the banks, hmm?
Exactly; the banks truly have NO skin in the game.
HOW are people still signing up for ARMs after what happened in 2008??? There was even a very popular Hollywood movie about it and still morons are buying more house than they can afford and agreeing to adjustable rates. Fucking staggering.
ARMs can be fixed rate for terms such as seven or 10 years, and are now underwritten much more carefully than they once were.
Might have been my thread. I wasn’t dismissing potential shortages but questioning whether the sudden attention by the MSM on food shortages was fear mongering, because whenever they get involved in an issue you know there’s more behind it.
The benefit of this might be a slow decline of home prices.
The downturn is already well under way --
https://www.cnbc.com/2022/04/20/mortgage-demand-falls-to-nearly-half-of-what-it-was-a-year-ago.html
I am going to be moving in the next year or so.
I really want to sell my house now, when the prices are high, then wait for the crash and buy another one at the bottom of the market but I don't want to have to pay capital gains on the equity if I don't find another place within a year.
The other issue is what to do with all my stuff while I wait for the market to crash?
It's not necessarily an inevitability? - that the market will crash?
Is there a q post saying it will?
Is it not possible that part of the plan involves market stabilisation and assets changing hands peacefully (albeit with cabal bubbles like Disney, Netflix, etc popping) instead of a crash?
If debts are forgiven and usury ended, wouldn't that cause the market to boom?
I know higher oil prices are helping, but after Russia kicked out the Rothschild banking cartel and ended usury in their country, their economy seems to be doing a lot better.
After all, in an economy with limited corruption much of the economic gains are reinvested instead of wired overseas or hoarded.
Interest rates are going to be double digits soon and housing is already grossly inflated.
The housing market will crash, it's just a matter of when it will happen.
Inflation might have something to say about that
However, this isn't inflation due to too much money sloshing around, it's more about lack of supply vs. huge demand, and people will be focussing on food/water.
I don't see it creating a huge upsurge in demand for property, so how would high interest rates curb inflation in this scenario? It wouldn't, it just sounds like another one of their scams.
I'm no financial expert, so I may be missing something obvious here :)
Interest rates were double digits when we bought our first house (about forty years ago). We bought one with an assumable mortgage,and a low interest rate, which required a larger down payment. At the time I was disappointed about it, but my husband is a smart guy and knew what we could afford. He's still a smart guy and we paid off our current house in ten years. That wasn't easy, but turned out to be a great move. People need to stop buying property they can't really afford. We saw the effects of that in 2008 and later, when people couldn't afford their McMansions as interest rates shot up and they had variable rates mortgages.
My best friend sold and bought a big beautiful home in a free state. Every single person in his life told him not to do it and that "he will regret it" etc... Now he's settled and enjoying a way better life. I've tried hard with my parents in CA to consider getting out of the housing market. People just can't make those huge decisions until the herd is also doing it.
In CA we currently have homes that are $900k for 3 bed 1 bath in neighborhoods that have considerably got worse and worse over time. Its just a fact. The hedgies like Black Rock are buying up all the properties which puzzles me a bit. I know they want to kill the middle class and make homes unaffordable aka rent your whole life. But I can't understand why they'd do that if they knew the home market was going to collapse. Maybe their money is safer being parked in land and they know it will eventually go back up? At the same time they can charge ridiculous rent.
That is EXACTLY what they are doing.
The bond market is toast (like a 2 week dead body in the spare bedroom no one wants to deal with). Equities are not far behind if you haven't been watching. They have to park that money someplace else ... ergo, real estate. It's actually genius. A rental home is a defacto bond. It has a coupon rate - interest rate (monthly rents), face value (purchase price), but no 'maturity' time variable ... which is the genius part. Most bonds have a maturity date where the bond will no longer pay interest. At that point it's just cash under your bed. Property however can last 100 years if well maintained.
They are turning the US housing market into the next investment vehicle market ... a De facto Bond market. They can drive up prices to muscle out new home buyers without a second thought. It's easy when you manage 8 Trillion in assets.
When you mention the bond market I have a few questions. I believe my parents are heavily invested in bonds with their old financial advisor. I've tried very hard to guide and wake up my family in these areas but I have little understanding with bonds. Is there anything I could say to get their attention? If the bond market goes under I'm assuming so will their investments? It blows my mind that financial advisors just continue to take their commissions and not guide them.
I'm a huge advocate for precious metals especially gold/silver. Been trying to get my Dad and family to take a small investment but they laugh it off. Funny how a good family friend owns an LCS and they still won't buy any. Got my lil bro invested but had to buy it for him. Anyways, I appreciate your time anon!
God bless
First, Im not a financial advisor. I do have an MBA and have studied markets EXTENSIVELY. Second, ur question about the bonds depends on WHAT KIND of bonds. There are all kinds … treasury, corporate, municipal, cds … they all have a’rating’ (A+ Thru F). The worse the rating, the higher risk but better interest (in theory). Not likely they own junk bonds. They wont ‘loose it all’. But if their interest rate is for shit (2-3%) as most existing bonds are, when rates start going up, the value of those bonds with garbage low rates will drop. Its inverse relationship.
Last year I liquidated ALL my stocks, CDs, IRA, mutual funds and bought a $3000 safe and started filling it with Silver
That's crazy, in europe you have homes that are up from the 1600s, but building from stone vs building from plywood, pine 2x4 (1.5 X 3.5) and tar shingles shouldn't be expected to last.
With Black Rock it's not about making money on the homes they buy, it's about the "You'll Own Nothing and Be Happy" tyranny they're setting up for us.
When Elite-controlled organizations own the house you live in, it'll be just another lever of control over you.
Long term, of course, owning all the land will also be another mountain of real (not paper) wealth for them -- and taken out of reach from us.
I agree! Thanks for the input. The amount of houses they have been buying in CA is unbelievable. They are pricing out young families etc... Maybe in a weird way it's a blessing to these young families that can't buy in CA and end up leaving the state
they can charge ridiculous rent. or offer it up as part of the compliance package.
public storage?
I was thinking the same. Put stuff into storage. Move into an apartment. But....no storage units to rent. No apts to rent, no houses to rent. Everything is at a total stand still. Bot this place 5 years ago for 150K and it's now worth 300K+. Ridiculous but that gave the city means to hike up all the property taxes. So high now we might lose the house if it keeps going up. Yet....if the values go down you think they will lower the property taxes?
I think if you lived in it over two years there is no capital gains tax for under 500K increase. Anything over the 500K is taxed as capital gains. At least that is what my accountant told me when we sold two years ago and downsized.
Apparently at the bank I currently work at there's some legal problems with our mortgage department. Wonder if it's related
This isn't the storm, folks.
Myself and a few others on this board keep banging this particular drum but I'll take another shot:
Folks, I strongly believe that it's going to get much, much worse than it is now. Remember Q's words: "Sometimes you need to show them".
The real President has alluded to the creation of a NEW Republic. Q has alluded to taking down the Federal Reserve. Think about how bad things have to get to create broad support for a new Constitution and a new financial system.
I would argue we are not in the storm and that "the storm" is at least a year away, perhaps more.
Those of us who make it through this will be living in a far different, far better world. I genuinely believe this. But we're going to have to go through hell to get to heaven.
Fuck Wells. Blows my mind anyone even applies to banks at this point. Be your own bank
Burn it all down.
We are a relatively small town, 70K and we have EXACTLY 1 house for sale under 300K. Nobody is buying because Nobody is selling. And our values and taxes skyrocketed this last year. Sell? and buy what? Nothing to buy. So a lot of real estate agents, mortgage lenders, etc are out of work.
Wells Fargo was in this prophetic word from Julie Green. https://www.jgminternational.org/prophecies/a-firestorm-of-truth-is-hitting-your-enemies?rq=Wells%20Fargo
Another prophet (Liberty from Spirit Move Ministries) mentioned Wells Fargo too, to pull your money out of the big banks. We have been at a local credit union since 2004, I'll never go back to big banks again.
One reference about how they will be involved in a scandal. That’s not a big reach, they have one every few years. The latest is black lending, which is always being complained about. Once you look at their credit scores that explains it. As to who is involved, we shall see.
The prophetic words from God though Julie encompass one a day to His children, they should be revered for what they are His word. Its not just this one there’s years of these to call it one reference is to not understand He is telling us what is happening in this world to not fear what is happening and what is coming.
SO glad we paid off our mortgage!
2007 all over again... But much worser...
I heard supply is way over demand right now. Bubble 'but to burst.
Depends on what areas. It’s super hot in the red states
Yeah here in the area of Texas where I live, every home is sold through a bidding process. Most homes have 20+ bids and sell within 24-48 hours. They usually do this on the weekends. I am good friends with a couple, who I consider very upper middle class (both young doctors) that have bid on 12 homes so far and still haven't landed one.
True. Not much on the market here. I'm getting "we'll buy your house" calls several times weekly. The small homes in my neighborhood are sold almost immediately, then turned into rentals. Probably over half are rentals now.
It's not just mortgage processors however they are a bulk group, there are more as well because special projects employees have been consolidated and let go and jobs are being posted in India. They are moving offshore.
PTL. Just got my refi done Wednesday.
WF is getting out of the mortgage business. Not enough profit in it.
Well, mortgage interest rates did just go up ... so
Cool it with the antisemitism /s