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Guest
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Posted: Fri Apr 07, 2017 12:59 pm GMT Post subject: |
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victorgbishop wrote: | Real Estate Guy wrote: | It will come down HARD.....soon. Can't wait. |
What really stinks is that - I've waited for this time for 4 years. Watched rates plummet. Scratched and saved over 30k, see rates rising - almost daily and now, there's low inventory.....what is going on???
We live in a townhouse and are expecting in early May with baby #2. Need room badly and NOW there's low inventory??? I've been toying with going on Zillow and seeing who has been foreclosed on and try and sending them a letter to purchase their house. |
4 years is nothing. Lots of people have been sitting on the sidelines since 2006 for prices to come down hard. The reason for the low inventory is that most of the new construction that you see are for the rich, so current middle class homeowners can't afford to trade up and won't put their houses on the market. If you need more room, rent a bigger apt. Sometimes the simplest solution is right in front of you. |
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Real Estate Guy Guest
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Posted: Fri Apr 07, 2017 7:01 pm GMT Post subject: |
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Good read! I will show this to family members pressuring me to get in before it's too late.
Yet, I read something yesterday that the Fed may not raise interest rates, and may even lower them again. Not sure if that is possible… |
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Guest
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Posted: Sat Apr 08, 2017 10:49 am GMT Post subject: |
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Quote: | Even Malden and Everett now have "luxury" housing |
This is a classic sample of overpriced housing market.
For home buyers, when most of the decent areas in inner city become unaffordable, people look into less desirable areas. Yet people usually want the best of product for they can afford, so it is justified to get the "luxury" they can buy.
For home builders, they want to max on profit with least payment. If they can get a cheaper home build in less desirable area, and throw in some extra decor and call it "luxury", yet still capture buyer demand, they are happy to do it over and over again.
Seeing Luxury in Malden is a warning sign, not a triggering point of bubble pop. Get in housing market now is dangerous, but you won't go belly up tomorrow though. |
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MR Guest
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Posted: Fri Jun 16, 2017 4:59 am GMT Post subject: |
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Thank God I didn't listen to you guys in 2014 and bought my single family home in Milton then even though it seemed like we were in a frothy market already back then. It's appreciated $100k since then. My mortgage payment including interest and property tax is under $1800 and locked in for 30 years. |
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Posted: Fri Jun 16, 2017 12:55 pm GMT Post subject: |
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MR wrote: | Thank God I didn't listen to you guys in 2014 and bought my single family home in Milton then even though it seemed like we were in a frothy market already back then. It's appreciated $100k since then. My mortgage payment including interest and property tax is under $1800 and locked in for 30 years. |
The vast majority of the people on this board know nothing about housing. There is only one thing to know. You buy low when no one wants to buy and sell high when everyone wants to buy. |
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Guest
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Posted: Fri Jun 16, 2017 3:15 pm GMT Post subject: |
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Anonymous wrote: | MR wrote: | Thank God I didn't listen to you guys in 2014 and bought my single family home in Milton then even though it seemed like we were in a frothy market already back then. It's appreciated $100k since then. My mortgage payment including interest and property tax is under $1800 and locked in for 30 years. |
The vast majority of the people on this board know nothing about housing. There is only one thing to know. You buy low when no one wants to buy and sell high when everyone wants to buy. |
It seems as people on the board are either risk averse or interested in investing in real estate (with differing strategies and required returns). |
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Guest
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Posted: Fri Jun 16, 2017 10:09 pm GMT Post subject: |
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Quote: | Thank God I didn't listen to you guys in 2014 and bought my single family home in Milton then even though it seemed like we were in a frothy market already back then. It's appreciated $100k since then. My mortgage payment including interest and property tax is under $1800 and locked in for 30 years. |
yeah, a lot of folks here are just ranting, and even more folks here are not listening and accepting opinion at all. But that is what makes the world so interesting. There are must be a lot of fools out there that act irrationally, before opportunities available for a few to pick on, when the timing is right.
Quote: | The vast majority of the people on this board know nothing about housing. There is only one thing to know. You buy low when no one wants to buy and sell high when everyone wants to buy. |
Everyone just ask yourself this question today. Isn't it currently that EVERYONE wants to buy? If yes, then you know what to do now. |
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Real Estate Guy Guest
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Posted: Tue Jun 20, 2017 3:57 pm GMT Post subject: |
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To the person who feels excitement in buying a property in Milton in 2014 and now has "100k" in equity: Congratulations, you should sell. The sad reality is that if you keep it another few years, you'll be lucky if it's worth what you paid for it. 10 years from now it will probably be worth less. All the people that over paid in 2006 are finally selling now for just about what they paid back in the last bubble. The difference this time is the Fed Bank won't be able to bail out all the buyers again, so people that over pay now will most likely have to sit with it for a VERY long time......or loose. The FED did something that goes against every principal of free markets and now our country is broke, and yet people continue to do the same things. It amazes me how human nature is. This is why we have the 1%, the top 10%, and then the rest.
How can anyone honestly think now is a good time to buy??? Seriously? |
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Posted: Tue Jun 20, 2017 5:02 pm GMT Post subject: |
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Real Estate Guy wrote: | To the person who feels excitement in buying a property in Milton in 2014 and now has "100k" in equity: Congratulations, you should sell. The sad reality is that if you keep it another few years, you'll be lucky if it's worth what you paid for it. 10 years from now it will probably be worth less. All the people that over paid in 2006 are finally selling now for just about what they paid back in the last bubble. The difference this time is the Fed Bank won't be able to bail out all the buyers again, so people that over pay now will most likely have to sit with it for a VERY long time......or loose. The FED did something that goes against every principal of free markets and now our country is broke, and yet people continue to do the same things. It amazes me how human nature is. This is why we have the 1%, the top 10%, and then the rest.
How can anyone honestly think now is a good time to buy??? Seriously? |
It may be easy for you to sell and rent because you are old and your kids are grown. It's hard to sell and rent if you have young children going to school. Most people have to wait until after the kids finish grad school and move out for good before they sell. I'm stuck as a homeowner for at least 15 more years so it doesn't matter if prices go down in a few years. In 15 years prices will be up again. Prices never go down in the long run unless you buy at the peak. I do agree that if you haven't bought by now, it's too late and it's better to keep renting. |
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Real Estate Guy Guest
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Posted: Tue Jun 20, 2017 6:34 pm GMT Post subject: |
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Well said. Agreed. |
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Posted: Wed Jun 21, 2017 3:34 am GMT Post subject: |
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Real Estate Guy wrote: | To the person who feels excitement in buying a property in Milton in 2014 and now has "100k" in equity: Congratulations, you should sell. The sad reality is that if you keep it another few years, you'll be lucky if it's worth what you paid for it. 10 years from now it will probably be worth less. All the people that over paid in 2006 are finally selling now for just about what they paid back in the last bubble. The difference this time is the Fed Bank won't be able to bail out all the buyers again, so people that over pay now will most likely have to sit with it for a VERY long time......or loose. The FED did something that goes against every principal of free markets and now our country is broke, and yet people continue to do the same things. It amazes me how human nature is. This is why we have the 1%, the top 10%, and then the rest.
How can anyone honestly think now is a good time to buy??? Seriously? |
Real Estate Guy, please explain why "it is different this time". I agree with you it is a terrible time to buy a house. Why this time will the Fed not be able to bail everyone out? I honestly just want an explanation as I do not have the information and would like to explain to people/relatives who think this is a "good time to buy" why they are flat wrong. Thanks in advance. |
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Posted: Wed Jun 21, 2017 3:37 am GMT Post subject: |
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Anonymous wrote: | Real Estate Guy wrote: | To the person who feels excitement in buying a property in Milton in 2014 and now has "100k" in equity: Congratulations, you should sell. The sad reality is that if you keep it another few years, you'll be lucky if it's worth what you paid for it. 10 years from now it will probably be worth less. All the people that over paid in 2006 are finally selling now for just about what they paid back in the last bubble. The difference this time is the Fed Bank won't be able to bail out all the buyers again, so people that over pay now will most likely have to sit with it for a VERY long time......or loose. The FED did something that goes against every principal of free markets and now our country is broke, and yet people continue to do the same things. It amazes me how human nature is. This is why we have the 1%, the top 10%, and then the rest.
How can anyone honestly think now is a good time to buy??? Seriously? |
Real Estate Guy, please explain why or why not "it is different this time". I agree with you it is a terrible time to buy a house. Why this time will the Fed not be able to bail everyone out? I honestly just want an explanation as I do not have the information and would like to explain to people/relatives who think this is a "good time to buy" why they are flat wrong. Thanks in advance. |
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Real Estate Guy Guest
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Posted: Wed Jun 21, 2017 1:34 pm GMT Post subject: |
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In 2008, our largest financial banks were holding too many MBO's. These mortgage backed securities were created and bundled together in high amounts and traded. While this created much wealth for the bankers in the 2000's, when the bubble popped their "mortgages" were junk. They were upside down. This crash created a freeze of lending and buying mortgages. As the American financial system as we knew it froze up, The PRIVATE Fed Bank with their 1913 charter from Congress decided intervene. They dropped rates to zero for a decades and bought back 85 billion dollars per month in treasuries. This is known as QE1,QE2 and QE3. The Fed says they did this to save the economy. The truth is they did it to save the banks. The hope was their efforts would bail out the banks, and kick start the economy. They gambled with our Country. They assumed that when GDP got back up to 4-5% our economy could absorb the 9 trillion in debt they added to our Country's debt by their manipulation. Problem is. That hasn't happened. Their bailout and manipulation has only propped up EVERY assert class(stock, bonds, real estate) because they have starved us Americans for yield anywhere because the rates are so low for so long. Now, we have worse bubbles than ever, a GDP that is anemic and stuck at 1-2%, budget deficits, and debt now exceeding 20 trillion and climbing. Our GDP barely fuels the interest on the new high debt they gave us. Essentially, America is now broke. Other countries know it, hence see Russia, China, Iran, North Korea's new behavior. They smell blood in the water. Now, because of this corrupt Fed Private Bank, all America has is big talk , an anemic economy and debt it can't handle. We also have massive assert bubbles. So, to answer your question: unless the American economy gets back to 4%+ GDP growth for several years(my math calculates about 10 years), we can not get our new debt under control. The Fed Bank can not keep rates low forever because all the money printed they did is and will continue to create inflation. Hence why asset values are climbing. They are lying about inflation in attempt to go as slow as they can raising rates and unloading their balance sheet. Soon this will expedite. As rates rise and they start dumping all those treasuries they bought to keep rates artificially low, the opposite will happen. Rates will rise. This will eventually(1-3 years) pop the bubble assets-all of them. The problem this time is that without the 4-5% economic growth they bet on the first time, we haven't financially recovered from their prior meddling. They will not be able to print all that money again so I suggest the next correction will be much more severe and they will have to rely on the true "free market" to correct, which will mean lower prices for much longer. If by chance they do try and print those way out again, that will create massive inflation and sacrifice the dollar. Prices would shoot out of grasp and the dollar would become unsought by global investors as the global currency. This is already beginning. So, if it were me, I'd invest right now outside the dollar-metals, emerging foreign markets, select stocks-wait and buy at the correction. To do otherwise is to sacrifice a lifetime of home owner equity to the horrendous policies of the Fed Bank- more particularly: Alan Greenspan, Ben Bernanke and Janet Yelled. |
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