Housing market

[Reno911]

Things are not good for the middle class and future middle class. Tucker Carlson's breakdown below is very good. For those of you that know about Black Rock you already know what's going on.

 

[tornquad201]

I hope she does for your sake but you can't blame her if she doesn't, I have a close friend living in one of my rentals and to be honest I'm itching to kick him out. The guy barely pays shit on the rent and is always behind while the house is worth triple what I paid for it only a few years ago. It's not something personal but I'm pretty much his sugar daddy at this point with as little rent as he pays and he can barely afford that.

I never been late and don’t bother her for nothing as far as Maintenance goes .

 

[benchmstr]

I buy, sale, and rent as a side hustle..I’m only asking and wholesaling now..not buying shit other than garbage.

saving for the inevitable crash coming..I made a killing off of the last crash..if me and my wife do half as good as we did last time, I will quit my job immediately

 

[Biggerp73]

Inflation means cash is useless and assets go up

Yes that's the point if inflation happens house prices will rise

 

[TheOtherOne55]

I JUST bought a house during this fuckin housing market. Its nuts.

And honestly, i dont know WHEN a good time is to buy. Also, i live in f*ckin LA so jesus christ that shit is expensive.
We originally started looking PRE-Covid, stuff was ok....but Covid happened and we kept looking.
My wife is in finance and with interest rates sooo lowww, she said, "let's buy something...its free $$$ right now."
But...the market is nuts. The demand is higher than the supply right now so the stuff we were looking at was 20+ offers deep, 10+ all cash, each going 100k over asking. Yeah...thats what it was like. We just got lucky and loved something so moved quick and the buyer liked us.

But its not slowing down either. I justtt read some news saying April 2021 vs April 2020 (nationwide) is still a 19% increase. And that was STILLL all during Covid. That right there shows you its not slowing down at all.

But we've been in here for 4 months now and we love it. It was a biiiitch and the financial stuff you have to go thru was ridiculous. This was our FIRST HOME purchase....that first down payment hurt lol

 

[Biggerp73]

I JUST bought a house during this fuckin housing market. Its nuts.

And honestly, i dont know WHEN a good time is to buy. Also, i live in f*ckin LA so jesus christ that shit is expensive.
We originally started looking PRE-Covid, stuff was ok....but Covid happened and we kept looking.
My wife is in finance and with interest rates sooo lowww, she said, "let's buy something...its free $$$ right now."
But...the market is nuts. The demand is higher than the supply right now so the stuff we were looking at was 20+ offers deep, 10+ all cash, each going 100k over asking. Yeah...thats what it was like. We just got lucky and loved something so moved quick and the buyer liked us.

But its not slowing down either. I justtt read some news saying April 2021 vs April 2020 (nationwide) is still a 19% increase. And that was STILLL all during Covid. That right there shows you its not slowing down at all.

But we've been in here for 4 months now and we love it. It was a biiiitch and the financial stuff you have to go thru was ridiculous. This was our FIRST HOME purchase....that first down payment hurt lol

You couldn't qualify for a first time home buyer down payment assistance program?

I'm looking to buy probably summer 2022 and I'm saving up for a down but hoping to get in one of those programs

 

[FrancisK]

You couldn't qualify for a first time home buyer down payment assistance program?

I'm looking to buy probably summer 2022 and I'm saving up for a down but hoping to get in one of those programs

The problem with that right now is that people in a much better position than you with easier financing or even cash will be competing against you.

 

[MAD_SCIENTIST]

With all that is said, how should one invest their money in? What should one buy?


MS

 

[Beaver24]

The market is supply and demand. Once suppy comes back above demand prices will drop. We have had 1, housing crash I which I myself believed in. A small group of us on Patrick.net! Everyone said no way but it happened. I don't see it right now. I see a level out with inflation and rising interest rates.
We do not have fake loans and mass foreclosures coming but we so have Corona protection ending. We also have hedgefunds buying houses as rentals.. they could decide to flood the market selling ?
I don't see how in Phoenix the demand goes below supply for sometime. In addition material shortage have rocketed up.
Interest rates may never go up as monetary policy is so horrible.

Maybe a little dip . Mortgage apps are starting to go down. I see level off but no crash.

 

[Zarati]

I think you misunderstood what I was getting at.. I’m all for learning about those things and believe those things, how hedge funds and top entrepreneurs manipulate certain markets etc.. I think everyone knows that..

But this conversation is about housing market and pros and cons etc..

I was only saying what I was saying because Zarati started talking about how the pandemic was handled and we’re all meant to be sheep while the rich get richer and manipulate everything etc...

I don’t think we should talk about the pandemic or how it was handled or politics...

Let’s keep the conversation about the housing market, or any market, and how you think (since you probably know more than I do along with other members) we can not fall into the traps of these mortgages and this market that’s going on right now...

What’s our best move? How can we invest relatively safely??

Bro no one knows what will happen, there's nothing to learn other than knowing inflation means cash loses its value, assets go up as a result. Cash is king, not this time around. Real estate is king. Riches don't hold onto cash since trillions were printed

Best time to take out loans to buy properties. Low rates plus money you owe is going to lose its value

 

[FrancisK]

With all that is said, how should one invest their money in? What should one buy?


MS

Honestly for the first time in my 37 years on this earth as a man who has never had a real job in his life either worked for family businesses or then my own businesses I don’t have a single idea in my head as to what I would invest my money into right now.

 

[FrancisK]

Bro no one knows what will happen, there's nothing to learn other than knowing inflation means cash loses its value, assets go up as a result. Cash is king, not this time around. Real estate is king. Riches don't hold onto cash since trillions were printed

Best time to take out loans to buy properties. Low rates plus money you owe is going to lose its value

If you can get the loan that is, you ever hear of common people getting bank loans for investment businesses and properties at their peak unless they had collateral anyway?

Unless you’re talking about a mortgage where that isn’t actually an investment.

 

[Matsuo Munefusa]

I JUST bought a house during this fuckin housing market. Its nuts.

And honestly, i dont know WHEN a good time is to buy. Also, i live in f*ckin LA so jesus christ that shit is expensive.
We originally started looking PRE-Covid, stuff was ok....but Covid happened and we kept looking.
My wife is in finance and with interest rates sooo lowww, she said, "let's buy something...its free $$$ right now."
But...the market is nuts. The demand is higher than the supply right now so the stuff we were looking at was 20+ offers deep, 10+ all cash, each going 100k over asking. Yeah...thats what it was like. We just got lucky and loved something so moved quick and the buyer liked us.

But its not slowing down either. I justtt read some news saying April 2021 vs April 2020 (nationwide) is still a 19% increase. And that was STILLL all during Covid. That right there shows you its not slowing down at all.

But we've been in here for 4 months now and we love it. It was a biiiitch and the financial stuff you have to go thru was ridiculous. This was our FIRST HOME purchase....that first down payment hurt lol

We went a totally different route but similar timeline. Also first time home owners. We had a nice little chunk of land, sweet sunset view from a ridgetop over a nice little town (next one over from my folks!). I had about 100k saved up and I stopped mostly taking work contracts during Covid and I built our house. I was GC but a lot of it my little brother and I did and also a good friend of ours pitched in sometimes. Subbed out some shit like drywall (let’s be real Mexican dudes are 100x better at drywall than we are lol). Many days it was just me and my dog out there running wiring, pipes, etc. We just fucking built that shit and around October 2020 moved my family in, with zero debt and a house that appraised advertising 300k. Notttttt bad.

 

[machomadness22]

Your suggesting renting

Rather take a 20k loss
On rent than 100-200k loss for the next 10-15 years

 

[Cito33189]

Inflation has caused the cost of lumber to sky rocket. Houses are up 30% or more prepandemic. It’s really sad the direction our economy is going. Minimum wages are increasing almost yearly now but everything else is rising as well.
What I can’t wrap my mind around is my grandfathers generation or even my dads generation( early 60’s).
I watch a lot of vehicle restoration programs and they always say in 1968 or 1972 the Dodge Challenger or Chevrolet Camaro sold for 3599 brand new or something like that. So back then were teens like o man that’s ridiculous I’ll never afford that.

 

[Matsuo Munefusa]

Inflation has caused the cost of lumber to sky rocket. Houses are up 30% or more prepandemic. It’s really sad the direction our economy is going. Minimum wages are increasing almost yearly now but everything else is rising as well.
What I can’t wrap my mind around is my grandfathers generation or even my dads generation( early 60’s).
I watch a lot of vehicle restoration programs and they always say in 1968 or 1972 the Dodge Challenger or Chevrolet Camaro sold for 3599 brand new or something like that. So back then were teens like o man that’s ridiculous I’ll never afford that.

Inflation didn’t cause lumber prices to go up. Just google why did lumber prices rise. It’s not that complicated but there are a few factors.

 

[maldorf]

Terrible time to buy unless you're selling a home yourself and just moving from one to the other.

Building a new home now is insane. We were going to until we say the prices. Homes we want to build are inflated about $150,000. I would buy a lot now if we could find one, and then sit on it for a few years until prices come down. The price to build a new home is MUCH higher than to buy an existing home. Lumber is still up about 250% and other materials are high too. Labor costs way up also, but that should get better once the covid money stops flowing everywhere.

 

[Kaladryn]

People who build houses are dealing with massive increases in material costs, many home builders are considering exiting the market because materials have become so inflated.

 

[maldorf]

People who build houses are dealing with massive increases in material costs, many home builders are considering exiting the market because materials have become so inflated.

The custom home builder looked at me like I was a crack head when I told him I wanted our new ranch to be all brick. The big 2 story we live in now and built in 08 is all brick. Putting down hardwood floors now is crazy too. Our entire first floor, stairs, and upstairs hallway are all hardwood now. $700,000 homes being built with NO brick and vinyl floors. We refuse to give up our nicer home to live in that.

 

[Biggerp73]

With all that is said, how should one invest their money in? What should one buy?


MS

Start a Nashville Hot Chicken restaurant in any decent size city that doesn't already have one.

I've been telling my friends with money to do this since 2017. Back then there wasn't a single restaurant in the entire bay area and northern California. Since then I have watched several locations open, every single one of them stays busy with lines out the door everyday, and end up opening multiple locations, all of them just as successful as the first.

The chicken is so delicious, any town that doesn't already have it, is virtually guaranteed to give excessive ROI for whoever brings it there first