Grim Outlook for Real Estate

phreddyp

Well-Known Member
PREMO Member
I've heard about the housing crisis since 1972 housing too high , interest rates too high, no interest in selling, no interest in buying, commissions too high, too many houses on the market, not enough houses on the market, it's a buyers' market , it's a sellers' market, cost to subdivide too high, land too high, building materials too high, too much down payment required, oppressive costs imposed by the state and counties, impact fees, storm water management, septic tanks, sewer hookups, sprinkler systems and so on and so on.

Now this moron wants you to believe that this time it's different ! You can either rent and pay someone else's bills and taxes or you can pay your own and have an appreciating asset or you can live on the streets. Those are pretty much your options.
 

Gilligan

#*! boat!
PREMO Member
You can either rent and pay someone else's bills and taxes or you can pay your own and have an appreciating asset or you can live on the streets. Those are pretty much your options.
That explains the financial disaster that befell so many homeowners back around 2008-2009 when they found themselves seriously under water on their property values.

Or not.

According to Zillow, the value of my place has fallen 35K in just the last month or so.
 

phreddyp

Well-Known Member
PREMO Member
That explains the financial disaster that befell so many homeowners back around 2008-2009 when they found themselves seriously under water on their property values.

Or not.

According to Zillow, the value of my place has fallen 35K in just the last month or so.
Yes that was a problem , but if you made your payments and refinanced you should be in pretty good shape now.
 

Gilligan

#*! boat!
PREMO Member
Yes that was a problem , but if you made your payments and refinanced you should be in pretty good shape now.
I wish I had refinanced!....I thought I should get in on the 3% rate action but I couldn't qualify because of a lack of "pay stubs". Business sucked over the COVID period.

Fortunately only a few years left on existing mortgage and its paid off.
 

Clem72

Well-Known Member
I wish I had refinanced!....I thought I should get in on the 3% rate action but I couldn't qualify because of a lack of "pay stubs". Business sucked over the COVID period.

Fortunately only a few years left on existing mortgage and its paid off.

If you only have a few years left then the amount of interest saved is unlikely to be higher than the closing costs on a new loan anyways.
 

phreddyp

Well-Known Member
PREMO Member
If you only have a few years left then the amount of interest saved is unlikely to be higher than the closing costs on a new loan anyways.
Last year was a perfect time to do a cash out refinance, if your business needed capital for expansion or operations 3% interest rate is pretty compelling.
 

Gilligan

#*! boat!
PREMO Member
Last year was a perfect time to do a cash out refinance, if your business needed capital for expansion or operations 3% interest rate is pretty compelling.
I was going to pull a small chunk of the equity out if the refi had gone through.
 

PeoplesElbow

Well-Known Member
I say you buy a place to live not as an investment, after taxes, maintenance and improvements its likely a wash after 10+ years. It does help with taxes early into the load, but you still have to pay $100 to save about $25 in taxes.
 

KassadiXX

New Member
If we consider the indices in aggregate, then there is no such correction for them as for ETFs. The graphical analysis shows that the S&P500 Real Estate may decline up to 25% with a strong correction. The following strong correction points are visible from the Real estate Market Index (HMI): the end of April 2022, mid-October 2022, and mid-December 2022. Now is far from the best time to invest in the real estate market. It's good that I've done this before, using the help of Equity Release Harrogate.
 
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