Nor do you. Got it. The institutional money is magnitudes greater than joe homeowner that is downsizing.
Not saying it will happen. Just really cracks me up that people don’t think this can happen.
Thoughts on Real Estate- bubble burst or not?
- Thread starter Cobra1776
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Not saying it will happen. Just really cracks me up that people don’t think this can happen.
This. People aren't buying cash by dipping into their savings account or portfolio. They're financing through investment firms that offer cash on their behalf in order to beat out investors. Everything is inflated right now, not just real estate. This ride can't last forever
I watched a video last month on YouTube (sorry, can't find it right now) about investing. The video said that if people invested in a mix of stocks/funds from the composite indexes (S&P500, DJ, Nasdaq...) over the past 50 years and didn't try to time the market or mess with their portfolios, their average annual growth would be 10%-12%. However, in reality, since people like to **** around and time the market and they don't play the long game, actual realized growth was less than 4%.
In other words, whether we are talking about the hot real estate market, buying a car you don't need during a chip crisis, etc. it seems like the more you mess with things and try to "get rich quick," the more it will cost you (unless you are a professional who knows wtf he is doing). In times like these, keep the car you have if it is running, keep the house you are living in if it meets your needs (it may not be perfect but nothing in life is), etc.
In other words, whether we are talking about the hot real estate market, buying a car you don't need during a chip crisis, etc. it seems like the more you mess with things and try to "get rich quick," the more it will cost you (unless you are a professional who knows wtf he is doing). In times like these, keep the car you have if it is running, keep the house you are living in if it meets your needs (it may not be perfect but nothing in life is), etc.
What we’re seeing here is people selling their home up north for major bank and moving here thinking it’s still a bargain. Most are cash buyers. I personally hate it, as it’s getting so over populated. Infrastructure can’t handle it.
I guess we will know in a few months
To be safe fake your death. 80k ain't worth risking
Joe Homeowner makes up more than 80% of home purchases.
Real-Estate Investors Bought a Record 18% of the U.S. Homes That Sold in the Third Quarter
Single-family homes represented a record 74% of investor purchases. Low-priced properties made up 36% of purchases, an all-time low.
www.google.com
Here's another perspective on what is occurring:
BlackRock isn’t to blame for the dumpster fire housing market
The boogeyman isn’t who you want it to be.
www.google.com
Agreed in solely single family. I was speaking of housing in general which is probably not specific enough.Joe Homeowner makes up more than 80% of home purchases.
Real-Estate Investors Bought a Record 18% of the U.S. Homes That Sold in the Third Quarter
Single-family homes represented a record 74% of investor purchases. Low-priced properties made up 36% of purchases, an all-time low.
Here's another perspective on what is occurring:
BlackRock isn’t to blame for the dumpster fire housing market
The boogeyman isn’t who you want it to be.
Interesting article and it is obviously highly localized. I do find it kind of funny that the article seems to paint the institutional as the boogeyman (or certainly could become the boogeyman). I would still imagine that institutionals being 1/3 of buyers is going to have a localized impact.
Buying a house in Los Angeles is borderline crazy right now. I know somebody who recently bought and they had to get an all cash bridge loan to even compete. The theory is you offer all cash just to close the property and then refinance into a traditional 30 yr loan. That bridge loan ain't cheap and has some hefty interest rates. This environment really sucks for first time buyers or people who just want to move up to a larger house. The CA housing market has been crazy for a few decades, nothing new here. It's been boom or bust with small windows of normalcy mixed in.
I agree with the above comment. Don't try to time the market with any of these asset classes. Buy and hold for the long term and you'll come out ahead no matter what.
I agree with the above comment. Don't try to time the market with any of these asset classes. Buy and hold for the long term and you'll come out ahead no matter what.
Just got off the phone with another realtor that called after I viewed a home on FB.
That home was sold so she started in on gathering my info.
I told her I’m really not interested in anything specific, would just have to be a hidden deal (good luck).
We talked and she said that she actually feels bad after some sales because people are overpaying in her opinion.
Broker that sold me my current home in 2016 said the same thing.
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That home was sold so she started in on gathering my info.
I told her I’m really not interested in anything specific, would just have to be a hidden deal (good luck).
We talked and she said that she actually feels bad after some sales because people are overpaying in her opinion.
Broker that sold me my current home in 2016 said the same thing.
Sent from my iPhone using svtperformance.com
Real estate here is insane. Major housing shortage. However, my business is thriving. Beat my volume by 20% from last year. 3 closings this week and 6 for the month. 4 scheduled for January so far and more buyer clients than I can manage.
I am truly blessed in my business.
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I am truly blessed in my business.
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I hope no burst, bought a second house last year for rental/AirBnB. Was banking on inflation to hit.
You'll be alright on Air bnb stuff. Even if you only rent it 10 days out of the month, that should cover your expenses. The problem with second homes in the last crash is there was not Air BNB to advertise availability of empty spaces. My Uncle and Aunt own a real estate company in North GA they couldn't give away properties during the last crash.
So you are baking on the American Dream being killed for corporate greed? Nice
The market will correct. Those who ignore history...
With high inflation, wouldn’t you expect people to have to tighten down on pleasure spending?
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10 days to cover the months expenses???
I “might” be able to do that during peak season for 3-4 months of the year. Rest of the year when nightly rates are lower….not a chance. I need those 5-6k months during peak season to cover the slow months.
Of course this is all region specific but thinking you’ll break even at a 30% occupancy rate “may” work in only the rarest of cases.
That’s also taking into account I bought in 2019 and am under contract to sell for @60% more than I paid.
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No, I just saw the Government dumping loads of cash around for poor reasons, and figured the outcome would be inflation. So I purchased an asset as a hedge/chance to make income. What should I have done? Changed my profile picture to say I'm against inflation?
It would shift what they would do. They might not go to Florida from my state, but they might book a weekend at a nice lake over the summer. After the lock downs, I don't think sitting at home is a popular option for a lot of people.
Correct yes. 100% to be expected.
Some of these people are thinking that there's a bubble that will pop.
If real rates got to 6 or 7% that would eat into home prices... we're at NEGATIVE 6%... it's a long way to go.
I'm old enough to remember when 6 or 7 percent was considered a reasonable rate.
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