SpyDa said So I got a question. Right now the houses are about 20% inflated. So if you buy a house right now for 400k and put money into equity and the housing market corrects and drop 20% to about 320k. You've paid about 30k down on your loan to about 370k but the house values at 320k. Did you come out on top for buying over renting Or did you take an L?

You only take an l if you need to sell.

Live there 5 years and it won't matter

Prad Bitt said Not so simple, young people may need time to save for down payment not to mention you still need a cushion to own a home, can’t call landlord if you need an AC, roof, water heater, plumbing etc etc

Better buy that home warranty it works.

One of the best threads I’ve read through on BX in a long time. A lot of different view points on a serious topic when it comes to finance and home ownership.

SpyDa said So I got a question. Right now the houses are about 20% inflated. So if you buy a house right now for 400k and put money into equity and the housing market corrects and drop 20% to about 320k. You've paid about 30k down on your loan to about 370k but the house values at 320k. Did you come out on top for buying over renting Or did you take an L?

“If you sign a recording deal for less than a quarter mill'
And your advance is a hundred-thousand dollar automobile
I know the vehicle was probably beautiful (Yeah it's tight)
But did you ask your lawyer if it was recoupable?
It's n*ggaNOMETRY.”

SketchTurner said comments like these trip me out everyone is "some dude" "some dude who wrote a book" "some dude who has a youtube" "some dude who is a realtor" "some dude with an opinion" people say to me "why should i listen to some guy on the internet about whether i should get vaxxed?" but i'm like "what makes u think bill gates and fauci are telling u the truth? especially when they're getting paid off this stuff" for me its not about credentials.. its about "does it make sense?" and also "what is my opinion after listening to multiple sources and takes?" which btw, is something i find to be SORELY LACKING in people today in general its genuinely surprising and somewhat disheartening to see how many people only listen to one side of an issue

I'm some dude you don't know too. I don't understand why people put so much stock in random unknown people have to say.

Proveone said There is near consensus among experts that the housing crisis was caused primarily by the rise of predatory lending and products with exotic features marketed to consumers without adequate information (Neg Am and ARM loans) or preparation and sometimes using fraudulent information, as well as the failure of the PLS market. But don't take my word for it, read the full report.

Who doesn’t know this about the previous crash

You were said we won’t have a crash in the near future because ARMs just started happening recently and won’t start causing another crash until 2026. I explained that our current housing problem is not the same as 2026. It’s not a bubble caused by ARMs, but by access to cheap money due to abnormally low interest rates.

That was clickbait, dude actually spoke facts of the current market. I guess he wanted to enlighten the dummies thinking we would have a crash … I watched it thinking “I got time today … “ but the key thing I got out of it is home values only rose 1% above inflation. Meaning it’s still increased in its normal range of 1-2%

Man, the fed has been controlling this inflation. They would’ve hit us harder with rate hikes but that would only admit to their mistakes of pumping money into our economy …

Teddy KGB said Who doesn’t know this about the previous crash You were said we won’t have a crash in the near future because ARMs just started happening recently and won’t start causing another crash until 2026. I explained that our current housing problem is not the same as 2026. It’s not a bubble caused by ARMs, but by access to cheap money due to abnormally low interest rates.

Man, ARMs have adjusted. And most people just refinance since they have the equity. With the fed raising rates till the end of the year no one will turn down a refi when arms adjust. Also lenders are appeasing to lower credit scores in the 500s.
If people want to look for a “crash” keep watch of the mortgages that are being issued now and see what happens in 5 years …

Brucebaner2 said Stop it, you throwing away money when you take your hard earned savings to buy a house YOU LIVE IN. If you a vet do what you want, everyone else should rent and buy their first house as an investment property ONLY. The American Dream is nothing more than than American debt. Get house poor, take out more credit, pay off student loans and live paycheck to paycheck. They giving away 9 year car notes to go with 20 year student loans, bundled with 30 year mortgages. Forget about credit cards unless you using them to make money, buy a car you can afford to pay cash, don't buy a house to live in UNLESS you get zero down. Rent, stack your money, invest in something and rinse and repeat for 10 years. At this point you should be around 30 and start making CAREER moves and start working on becoming an accredited investor. Having a sizable investment portfolio is important because a requirement for AI is a million in a*sets. I could go on but I HOPE I'm getting through.

That’s way to much wisdom for most folks on the site

Teddy KGB said Who doesn’t know this about the previous crash You were said we won’t have a crash in the near future because ARMs just started happening recently and won’t start causing another crash until 2026. I explained that our current housing problem is not the same as 2026. It’s not a bubble caused by ARMs, but by access to cheap money due to abnormally low interest rates.

That first sentence his hard to follow, but
my point is that the crash is several years away. Interest rate hikes will cool the market not k*ll it. The majority of home owners are in 30yr fixed mortgages with sub 4% rates. Unless the job market crashes (July saw solid jobs numbers by the way) they will be able to make their mortgage payments. People may not be able to as easily access their equity (HELOC's etc), but they're still better off paying a mortgage over renting.

pnoi89 said What is “woke trends?”

It’s a lot of things. Mostly I’m trying to sum up their fears more than the reality of it all.

SpyDa said So I got a question. Right now the houses are about 20% inflated. So if you buy a house right now for 400k and put money into equity and the housing market corrects and drop 20% to about 320k. You've paid about 30k down on your loan to about 370k but the house values at 320k. Did you come out on top for buying over renting Or did you take an L?

Write off the depreciation and pay down the mortgage sooner. Refinance and then rent it out if you have to. Remember that Appraisals and market value are not the same.

pnoi89 said IC’s like you definitely have to go through lots of strict requirements, like 2 years of tax returns. Congrats on getting in before the interest rate increases.

Salute!

Brucebaner2 said Stop it, you throwing away money when you take your hard earned savings to buy a house YOU LIVE IN. If you a vet do what you want, everyone else should rent and buy their first house as an investment property ONLY. The American Dream is nothing more than than American debt. Get house poor, take out more credit, pay off student loans and live paycheck to paycheck. They giving away 9 year car notes to go with 20 year student loans, bundled with 30 year mortgages. Forget about credit cards unless you using them to make money, buy a car you can afford to pay cash, don't buy a house to live in UNLESS you get zero down. Rent, stack your money, invest in something and rinse and repeat for 10 years. At this point you should be around 30 and start making CAREER moves and start working on becoming an accredited investor. Having a sizable investment portfolio is important because a requirement for AI is a million in a*sets. I could go on but I HOPE I'm getting through.

I was making $18 a hour, I didn't have bad credit, just no credit history. Got a credit card for $500 and made the payments on time for a year. Got a 2018 Camry for no money down, closed on a house for 145k, NO MONEY DOWN. Sold it 4 years later and made 80k profit and put 15k on a 400k house with a Denali that has 40k miles and only owe 35k. That's cause I was upside down on the Camry.

carden2 said The market def correcting itself. People was just overpaying for houses, the values will go back to a bit higher then it was worth in 2019 and then the market will slowly grow and go back to normal.

Not where I'm at, these muthafu*kas from Cali moving here cause they can get houses twice as big for half the price.

SpyDa said So I got a question. Right now the houses are about 20% inflated. So if you buy a house right now for 400k and put money into equity and the housing market corrects and drop 20% to about 320k. You've paid about 30k down on your loan to about 370k but the house values at 320k. Did you come out on top for buying over renting Or did you take an L?

We need more people like you… less stupid fking sheep on these forums

sinceretx said I got my first home with no money down, it was only 5 years old so still had 5 years of warranty. My boys home is almost finished being built and already worth 60k more than what he bought for and hasn't even moved in.

I heard some bad stuff about that. Like the folks who build it will end up selling to someone for 60k more. Your boy situation may be different though..

It’s slowly happening, it was bound to, but it ain’t moving all that quickly.

My boy bought a beautiful corner lot house recently, paid like $759k, he told me at the time when they were moving in (about a month later) that if he sold today, he’d immediately lose $100k.

It definitely reached a peak, but I don’t think it’s going to crash as hard or as fast as people think (or want to lol)

SpyDa said So I got a question. Right now the houses are about 20% inflated. So if you buy a house right now for 400k and put money into equity and the housing market corrects and drop 20% to about 320k. You've paid about 30k down on your loan to about 370k but the house values at 320k. Did you come out on top for buying over renting Or did you take an L?

Real Estate BX don’t think like that.

You either a homeowner winning, no mater the details of your situation.

Or you a loser renting.

No gray area. No context. No details.

Popolo said I'm some dude you don't know too. I don't understand why people put so much stock in random unknown people have to say.

In this case, that dude ain’t a random unknown. He’s a well known RE guy on YouTube.

varun313 said I noticed some overpriced a*s homes being bought when sh*t was hot Now I see their value has dropped below that listing price by a bit smh

It’s a product of low interest rates. Never fails. They drop the rates at the peak. People flood the market and buy homes.

Then we get a drop in price.

iTzMe! said It’s a product of low interest rates. Never fails. They drop the rates at the peak. People flood the market and buy homes. Then we get a drop in price.

that must be bad for the ones who all paid a sh*t tone over listing price. Now they at a loss.

People really were desperate out their minds just 3-4 months ago