Or if they throw a law back on that you can’t evict a non payer and you have to eat 7-12 months of rent.
Housing market
- Thread starter simply1
- Start date
There is also lots of companies buying homes and getting into a rental market.
In LA cash offers abound, and its from companies that will rent, and not flip the home.
Seems like the housing portion of this coming recession is going to be more a byproduct of the real cause vs one of, if not the main contributing factor to the Great Recession.
How about junk corporate borrowing since the GFC?
Now overlay subprime auto loans over mortgage debt since the GFC
Americans are carrying about the same amount of mortgage debt as pre-GFC with non mortgage debt increasing at an unsustainable rate.
Over half the country lives paycheck to paycheck because we are addicted to low interest financing. We finance furniture, cell phones, cars, homes, appliances, electronics, and so much more
I tell this story all of the time. Probably even in this thread.
I was managing and a loan came across my desk. 80-20 purchase for almost $700k. Borrower had one trade line for $350 credit line. No mortgage pay history.
Income was inflated and supported with a reference letter only. No income docs. No asset docs needed since they had no skin in the game.
I said this didn't make a damn bit of sense and you'd think I took a dump at the church door. A total **** storm.
Today is (currently) not close to those days.
There’s always going to be people who refuse to live within their means. The good news is if you’re really feeling the inflation currently and have a car loan you can’t swing anymore then you most likely can get your money out of it with the shortage of inventory.
For a newer/low mileage car, i agree.
Not for the 10 year old Suburban with 150K+ miles with 3+ years of loan remaining
I mean some people just aren’t good with money and have to learn the hard way, but it’s still much better than being way over your head on a $300,000 house.
That's why we always pay for cars with cash here on CF.
Is it an Iowa thing to be concerned about people living within their means? Seems every financial topic has a grip of posters concerned about the guy down the street
Poster 1: I have zero debt! I pay cash for everything! I AM THE DREAM!!!!
Poster 2: what kind of car do you have and what kind of house do you have?
Poster 1: used 2007 Town & Country and I bought the house I grew up in from my parents.
Poster 2: cool, what’s your household income?
Poster 1: 75k and my wife doesn’t work. What about you, Poster 2?
Poster 2: 2022 X7, 750k house in the burbs with a pool.
Poster 1: you must be so in debt doesn’t that feel terrible?
Poster 2: We have a two income household of 425k. Car payment is $700 and house payment is 5k, could pay it off anytime we feel like it but don’t want to take any money out of investments and don’t want to touch th $200k in the savings accounts.
I know which Poster I wish I was! (The one sitting by the pool right now).
30 year fixed has crossed 6%.
Quarter million loan with 20% down is up hundreds of dollars a month just since start of the year. It accelerates rapidly every 50K more. And the long term interest cost, don't look.
Quarter million loan with 20% down is up hundreds of dollars a month just since start of the year. It accelerates rapidly every 50K more. And the long term interest cost, don't look.
Don't be dissing the 2007 Town & Country. The Chrysler RS platform is one of the easiest vehicles to keep running. Just gotta keep the rust at bay.
I need some math help from the finance gurus on here. I have a co-worker who is currently financing stuff left and right. His whole "theory" is that the dollar is going to crash in value. So, if you finance something today, but pay it off over 5 years, you're buying it in today's dollars but paying it off with "less valuable money."
I know he's wrong, but I could sure use some math to back me up. Let's say he financed $12,000 in new windows (which he did). If that's on a 5 year note, what's he "saving," like $80? (Assuming his theory is correct).
I know he's wrong, but I could sure use some math to back me up. Let's say he financed $12,000 in new windows (which he did). If that's on a 5 year note, what's he "saving," like $80? (Assuming his theory is correct).
if it crashed its more than $80. but all of that so save somewhere around $80 isn't shuffling a full deck.
$12,000 times whatever he thinks the negative real interest rate will be for five years.
Yes, this is my point. In my head I say "man, I know you're so wrong about this, but I don't know the math the back it up."
Also, I didn't mention he's financed like 3 different house projects AND keeps buying big power tools because "those will hold their value better than the dollar."
I would be keeping an eye on his Facebook in about 6 months. Might be some good deals on tools lol.
