/biz/ - Business & Finance

Because they're poor, have terrible or no credit, and never bothered to teach themselves about interest, credit, or mortgages.

>>20706004
>would've only been 100k with inflation taken into account

opportunity cost

>>20706004
Because the housing bubble is about to pop

>>20706004
Because the cost of housing represented as a multiple of median annual income has tripled since 1970. Don't worry though, consumer electronics are still really cheap so we're not in an asset bubble.

>>20706004
I see people going on about not being able to buy houses, but the interest rate is getting lower as the house prices go up.

Imagine in the 80's and 90's paying 15-25% interest rate on home loans.

People just want shit to come easy in life, buying a house is the first adversity people face even after living at home till there 30.>>20706004

>>20706823
Even with interest rates taken into account, houses are not affordable. 250-280k as a minimum for a modest new construction home.. yeah right, thats out of reach for the median household income. This asset bubble must pop soon or youll have the entire country like san Francisco with suit wearing professionals living in tents.

>>20706004
>>20706758
https://wtfhappenedin1971.com

https://pastebin.com/cFa6x8M8


"HOME OWNERSHIP A THING OF THE PAST
Privately owned housing would become a thing of the past. The cost of housing and financing housing would gradually be made so high that most people couldn't afford it. People who already owned their houses would be allowed to keep them but as years go by it would be more and more difficult for young people to buy a house. Young people would more and more become renters, particularly in apartments or condominiums. More and more unsold houses would stand vacant. People just couldn't buy them. But the cost of housing would not come down. You'd right away think, well the vacant house, the price would come down, the people would buy it. But there was some statement to the effect that the price would be held high even though there were many available so that free market places would not operate. People would not be able to buy these and gradually more and more of the population would be forced into small apartments. Small apartments which would not accommodate very many children. Then as the number of real home-owners diminished they would become a minority. There would be no sympathy for them from the majority who dwelled in the apartments and then these homes could be taken by increased taxes or other regulations that would be detrimental to home ownership and would be acceptable to the majority. Ultimately, people would be assigned where they would live and it would be common to have non-family members living with you. This by way of your not knowing just how far you could trust anybody. This would all be under the control of a central housing authority. Have this in mind in 1990 when they ask, "How many bedrooms in your house? How many bathrooms in your house? Do you have a finished game room?." This information is personal and is of no national interest to government under our existing Constitution. But you'll be asked those questions and decide how you want to respond to them."

>>20706823
Imagine in the 80s and 90s houses costing 1/4 what they do now. And honestly if we are talking about an equivalent mortgage payment in either case, one would prefer as much of it to be interest as possible so you can leverage MIT to the fullest extent.

>>20707261
>>20707295
Idk I don't think buying a house has ever been easy, people like to say buying a house back in the day was easier.

To be fare if someone bought a house in the 40-50's, I'm happy for them they lived through the depression.

We have had similar times after that with war and economic collapse, but in the last 10 years we have been very prosperous. The opportunity to buy a house is the greatest it's ever been.

>>20706004
Because they need to pull themselves up by they're bootstraps and put in some sweat equity

>>20707505
The blue is 75k @ 20% so 1/4 of today's prices
The green is today's prices at the standards loan rate.

>>20707505
Houses in my area were vastly more affordble in 2014, in only 6 years everyone is priced out.. thats an asset bubble

>>20707611
Can you move to a place that is more affordable

>>20707505
>Refinancing not possible in your universe?

>>20707749
Well I didn't adjust for inflation on the person paying 1500 in the 90/80's

>>20707505
Think about it. If 75% of your mortgage payments are interest, that means you get to write off ~$10k+ annually of mortgage interest from your taxable income. That means you're saving probably $2000-$3000 annually, at minimum. That means your actual mortgage payments are effectively still 20-30% less than the modern example.

You also get the benefit of owning a $70k house that will appreciate 200% in the next few decades.

In the latter example, you can't deduct shit for mortgage interest and you can watch your equity halve in value in the coming decades as housing returns to a historic mean that has held up for over a century.

>>20707683
I could possibly find another job and relocate to another state, which may be my only option. Were going to see how the next year or two shakes out, things look like they may improve given the monetary crisis at the door.

>>20708247
Inflation on the repayments. @ 1000$ in 1980 that equates to $4000 in 2019.so that is roughly 4000$ a month in house repayments. I don't know if I could afford $1000 a week repayments.

>>20708704
If you're in America, you're fucked.
If Trump wins enjoy riots for the next 4 years.
If Biden wins, he can't even form a sentence, so you know he's a puppet for the financial beneficiary of the democratic party.

>>20709057
Honestly the chart does not specify the dates or whether the examples are inflation adjusted or not, so I can't really speak to that.

Rentlet logic is hilariously stupid. They would rather pay rent to borrow housing then just borrow money because prices might go down and give them a better deal. Maybe. But the dollar is guaranteed to go down in the long run. The actual equity you get in the house, and eventually paying it off and having no payments, is gravy on top of the savings you'll get from inflation after a few years. Rentlets can only think a year in the future in seems.

>>20709252
this guy again
a home is a cost offset
or a rental
it is not both

you are offsetting a cost at the expense of other gains

>>20709252
I hope they extend the eviction moratorium for another year, watching landlords kvetch is highly amusing

>>20706004
Just cost too much & no steady job. Would rather fuck around all day in this rigged ass clown world

>>20709350

You can get almost 0 down mortgage, and pay a mortgage just like rent. There is less up front cost than renting with first months rent, safety deposit, and fee. Except the mortgage is a fixed cost that will never increase and eventually go to 0. Buying is stricty better than renting. There is no "cost offset" or w/e you are talking about.

Also, if you do but money down, its leveraged like crazy. So even if your house only goes up with inflation, you make crazy gains on your down payment. No other investment can beat free leverage from the government, and you can't get margin called on a mortgage either.

Zero reason to rent unless you can't get approved for a mortgage. Although better than a mortgage is buying in cash if you want to truly escape debt slavery.

>>20709845
cost of living
you rent to cover the cost
you buy a home to cover it long term

fist problem
life is temporary, there is no need for permanent fix

second problem
you pay for 3 houses not one and equity start registering in 3 years or so
if you move you are selling at a loss

third problem
you are saying to the universe I like it here

>>20706004
I'm a GenX with no debt and great credit. I will not buy a house. I have lived independently since I was 18.

The banks have forced the prices of houses up insane amounts by offering larger and larger loans. The houses are no longer worth what people are paying for them. I am never going to be in debt, so it is unlikely I could ever 'afford' one. Plus as a renter if the area goes to shit, I just wait my lease out and move. That includes if shit neighbors move in that the management refuses to properly del with as well.

When my lease is up here, I'll be moving because what used to be a beautiful complex in a nice area is now a run down crap hole with homeless wandering through. A new company bought it just after I moved in and they covered the grass with gravel, killed the fruit trees and bushes by not watering them, stopped maintaining the buildings, and began moving in large groups of ghetto fucks all while steadily raising rent. I have an easy way out and don't have to worry about trying to sell some place to some sucker that I paid too much for.

Because they cant change a lightbulb

>>20707274
richard nixon

>>20710107
Haha you live in an apartment

>>20707274
>https://wtfhappenedin1971.com

what if whatever happened in 1971 let the US win the Cold War?

>>20706004
vote for reagan they said. he'll fix everything they said.