Housing trap

[moneymaker]

I predict with house prices high and interest rates about to rise that a lot of people will feel trapped in their homes, i.e. too expensive to move. Older people may move to something smaller and those with room may do additions, but many will be compelled to stay where they are. The only thing balancing this out is that many now have recovered their credit scores from previous foreclosures.

[Coronita]

I’m thinking more like banks are going to relax lending standards again… so more populists can buy a home they really can’t afford with borrowed money they really don’t understand and can’t really afford. And so, as long as they have reasonable payments, initially, it won’t matter what the loan terms are or what interest rates are….The biggest issue will be people who can’t come up with the downpayment. So perhaps they’ll bring back very little down loans again too.

[Coronita]

The other thought process is that, now that the dow is approaching 20,000….People “feel” more wealthy……

[spdrun]

The other thought process is that, now that the dow is approaching 20,000….People “feel” more wealthy……

The last time a similar rally happened was 1999, and we know how that ended LOL. I suspect after the hopey-changey Trumpey effect wears off, the party will end. High rates and a deflating stock bubble should be fun to watch.

[spdrun]

Good thing is that rates are going up … personally, I hope that Yellen is under orders to sabotage the Trump economy till her term expires in 2018.

10 year is at 2.47%, WOOOOHOOOOO! Should be good for 30-year rates staying above 4%. Hope we hit 5+% soon 🙂

BTW, left to their own devices, banks tend to be more conservative about lending. If the GOP succeeds in gutting FNMA/FHFA, that would be a lovely thing for housing prices. If you’re a buyer.

[Coronita]

Like I said on another thread spdrun… Don’t fall down and get left behind.

[spdrun]

Recessions happen every few years. We’re getting overdue for one.

Goal during the next one is to purchase enough rental housing so I can bow out of the race for the rest of my life and do whatever the hell I want to.

Fifty-sixty grand a year or so, adjusted for inflation, should allow me to rock back on my heels and enjoy life. Maybe take some Federal loans and go to graduate school. Public university, which in NYC is dirt cheap.

Since I’m cheap as hell, I don’t actually need more. I have no interest in running to keep up with people whom I dislike. I have no interest in most material things other than income-producing housing.

I buy computers and phones for under $200 an item. I’ve never spent more than $3000 for a car. No real hobbies other than travel, and I tend to travel like a student, on the cheap. I’m a born repairman with a third-world scrounger, scrooge mentality, and I’m proud of this.

[mixxalot]

smart!

[scaredyclassic]

[quote=spdrun]Recessions happen every few years. We’re getting overdue for one.

Goal during the next one is to purchase enough rental housing so I can bow out of the race for the rest of my life and do whatever the hell I want to.

Fifty-sixty grand a year or so, adjusted for inflation, should allow me to rock back on my heels and enjoy life. Maybe take some Federal loans and go to graduate school. Public university, which in NYC is dirt cheap.

Since I’m cheap as hell, I don’t actually need more. I have no interest in running to keep up with people whom I dislike. I have no interest in most material things other than income-producing housing.

I buy computers and phones for under $200 an item. I’ve never spent more than $3000 for a car. No real hobbies other than travel, and I tend to travel like a student, on the cheap. I’m a born repairman with a third-world scrounger, scrooge mentality, and I’m proud of this.[/quote]

did i ever tell u about the time me and my kids,found an entire case of olive oil while dumpster diving, except 1 bottle was broke and the remaining bottles were oily?

it was a great day in family history.

[Coronita]

[quote=spdrun]Recessions happen every few years. We’re getting overdue for one.

Goal during the next one is to purchase enough rental housing so I can bow out of the race for the rest of my life and do whatever the hell I want to.

Fifty-sixty grand a year or so, adjusted for inflation, should allow me to rock back on my heels and enjoy life. Maybe take some Federal loans and go to graduate school. Public university, which in NYC is dirt cheap.

Since I’m cheap as hell, I don’t actually need more. I have no interest in running to keep up with people whom I dislike. I have no interest in most material things other than income-producing housing.

I buy computers and phones for under $200 an item. I’ve never spent more than $3000 for a car. No real hobbies other than travel, and I tend to travel like a student, on the cheap. I’m a born repairman with a third-world scrounger, scrooge mentality, and I’m proud of this.[/quote]

Wait but on another thread you said you wouldn’t be playing in this game if foreclosure is a result of mass deportation.

So which is it?

[scaredyclassic]

[quote=spdrun]Recessions happen every few years. We’re getting overdue for one.

Goal during the next one is to purchase enough rental housing so I can bow out of the race for the rest of my life and do whatever the hell I want to.

Fifty-sixty grand a year or so, adjusted for inflation, should allow me to rock back on my heels and enjoy life. Maybe take some Federal loans and go to graduate school. Public university, which in NYC is dirt cheap.

Since I’m cheap as hell, I don’t actually need more. I have no interest in running to keep up with people whom I dislike. I have no interest in most material things other than income-producing housing.

I buy computers and phones for under $200 an item. I’ve never spent more than $3000 for a car. No real hobbies other than travel, and I tend to travel like a student, on the cheap. I’m a born repairman with a third-world scrounger, scrooge mentality, and I’m proud of this.[/quote]

56k after tax?

[spdrun]

If mass deportations and arrests start happening, this won’t be the sort of country I wish to live in. I stand by what I said.

I would take advantage of a natural economic cycle. Profiting from arrests and deportation is a bit too close to Nazi gold to me.

[Coronita]

[quote=spdrun]If mass deportations and arrests start happening, this won’t be the sort of country I wish to live in. I stand by what I said.

I would take advantage of a natural economic cycle. Profiting from arrests and deportation is a bit too close to Nazi gold to me.[/quote]

So the extreme econimoc collapse that you are holding out for, what do you think will happen as a result? Don’t you think the two are related? Who do you think would be blamed for econoomic collapse?

Imho, before we see an economic collapse, well be busy fighting another war…. Just saying

[spdrun]

I’m saying I hope to ride the natural economic cycle (which tends to reset every 8-10 years). But if Trump turns this country into a literal police state, I’m out.

[gzz]

Interest rates have barely increased and their volatility has been between a gradually falling range.

[Author]

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