Will housing ever be affordable again?

[winb83]

My starter house has already gained a cool 15k in equity since I bought it last year. Bought it when interest rates were at 6.8, don't think rates are going down anytime soon.

Some of ya'll need to get off the sidelines and jump in the game. Housing is one of the easiest wealth vehicles and a hedge against inflation.

People say this but they often skip the things they pay into the house but don't get back. Maintenance, property tax, mortgage interest, insurance, taxes when the house is sold. A house cost you money and just because you get a lump sum when you sell it doesn't mean it didn't cost a bunch of money for the years you lived in it. Now if you renting that house out it's a different story but they one you live in has a long term cost.

I like buying stocks/etfs. Other than the capital gains tax (long term in my case) you pay when you sell them that's all they cost unless they pay you a dividend which isn't really out of pocket money because they generate that themselves.

 

[RageKage]

 

[MegaTronBomb!]

I'm on the belief that people do have to view housing as a place to live first and primarily... not as revenue generating asset.

But one of the uncomfortable truths is that the places that you can find affordable housing, are straight up places that people don't want to live.

 

[the cac mamba]

People say this but they often skip the things they pay into the house but don't get back. Maintenance, property tax, mortgage interest, insurance, taxes when the house is sold. A house cost you money and just because you get a lump sum when you sell it doesn't mean it didn't cost a bunch of money for the years you lived in it. Now if you renting that house out it's a different story but they one you live in has a long term cost.

I like buying stocks/etfs. Other than the capital gains tax (long term in my case) you pay when you sell them that's all they cost unless they pay you a dividend which isn't really out of pocket money because they generate that themselves.

so you're gonna be paying 5k a month to rent, from age 60 to 80? that's your plan?

 

[Sly Cookin]

Guy has a good idea. Higher taxes on vacant properties. That could be a counter to corporations buying up homes.

 

[Cakebatter]

People say this but they often skip the things they pay into the house but don't get back. Maintenance, property tax, mortgage interest, insurance, taxes when the house is sold. A house cost you money and just because you get a lump sum when you sell it doesn't mean it didn't cost a bunch of money for the years you lived in it. Now if you renting that house out it's a different story but they one you live in has a long term cost.

I like buying stocks/etfs. Other than the capital gains tax (long term in my case) you pay when you sell them that's all they cost unless they pay you a dividend which isn't really out of pocket money because they generate that themselves.

You are spot on. Its the little secret many won't tell you. There is an actual advantage of rising home value, and it's the ability to borrow against that value/home equity. Its the easiest way to come up with the cash for the down payment for an investment property.

 

[Forsaken]

I mean mortgage rates are 7% and the prices of houses are still fairly high. Whenever those rates come down the house prices will just continue to climb higher. If rates ever got back to 5% people would lose their damn minds bidding up the price of houses. Outside an economic meltdown I think we're here to stay on housing prices the average person can't afford.

Yes, prices will come down. People are literally living paycheck to paycheck with maxed out credit cards.

 

[Absolut]

People say this but they often skip the things they pay into the house but don't get back. Maintenance, property tax, mortgage interest, insurance, taxes when the house is sold. A house cost you money and just because you get a lump sum when you sell it doesn't mean it didn't cost a bunch of money for the years you lived in it. Now if you renting that house out it's a different story but they one you live in has a long term cost.

I like buying stocks/etfs. Other than the capital gains tax (long term in my case) you pay when you sell them that's all they cost unless they pay you a dividend which isn't really out of pocket money because they generate that themselves.

Imagine not owning a home due to property tax and maintenance concerns

 

[OperationNumbNutts]

Yes. Just boomers dying alone would ease the pressure.

I believe someone posted it in Coli but an article was written on that. They said a large wealth transfer mainly among whites is going to happen when homes are passed down to them.

 

[Tres Leches]

they keep printing so everything goes up measured against the dollar breh so the answer is hell no

 

[YvrzTrvly]

Thread on housing and see no mention of Adam Smith or Thomas paine two theorists that everyone should know about.

Says it all really

 

[YvrzTrvly]

Depopulate the earth brehs. Let the market free fall like in Japan. Funny thing is it'd happening regardless of if it is planned. Gen z now no longer wants conventional lives. Settling down and retiring and 65 all that. They barely can get out from under their parents. Not rushing to have kids.

No the house prices are not coming down without a crash. Break the fukking system. Let that shyt implode.

High living cost, resource scarcity? Make less humans. Have more resources. This era of civilization has peaked and we either correct it or get corrected. There's too many of us here... Harsh reality.

I see a population decline that will be conscious and subconscious that will plummet the market. Then eventually as resources become accessible again there will be boom in births and home purchases again. Maybe for your kids kids kids.

Incorrect please research carrying capacity.

You sound quite malthusian which you probably know Jack shyt about as well

 

[OfTheCross]

Again the average home cost 6x the median income. You can call it doom and gloom or whatever you want but home ownership is on average unaffordable for many people. If you making like $70K a year you can't afford a $421K home. Anything past half that price and you're struggling really. The gap between the typical wage and what the average home cost is growing and continues to grow and it doesn't seem like it will ever come back into alignment.

That's doom and gloom talk. 70k salary with $15K down will allow you to get something for $240K.

There are more than 3000 homes available in Houston alone that are within that price

 

[Rekkapryde]

Yes.

It will have to involve significant regulations on real estate investment trusts(REIT) and barriers on private equity firms to keep them from buying any property that is not used as a residence. In essence, companies will be kept out of buying homes.

100% this.

This was by far the killer over the last few years. Investment companies should not be allowed to buy residences like they have been.

 

[OfTheCross]

People say this but they often skip the things they pay into the house but don't get back. Maintenance, property tax, mortgage interest, insurance, taxes when the house is sold. A house cost you money and just because you get a lump sum when you sell it doesn't mean it didn't cost a bunch of money for the years you lived in it. Now if you renting that house out it's a different story but they one you live in has a long term cost.

I like buying stocks/etfs. Other than the capital gains tax (long term in my case) you pay when you sell them that's all they cost unless they pay you a dividend which isn't really out of pocket money because they generate that themselves.

A house costs you money you're going to spend regardless... unless you plan on living out of your car