This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're right. I was able to diversify my 450K portfolio across markets with the aid of an investment coach, and I was able to use high dividend yield stocks, ETFs, and bonds to generate a little over $830K in net profit.
@@danieljackson87 Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
You can employ another adviser, but Julie Anne Hoover is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
That was different. Those mortgages were not worth keeping, many of them. They were adjustable, and often interest-only. People today have a stable 30 year 3% mortgage. That's not going anywhere.
everyone wants to be a landlord nowadays... its not just the investors its ppl who have good credit buying houses and not living in them like their suppose too
A 2 bedroom 1 bath 1200 sqft bungalow on a busy road in the Berkshires just closed for $440k. Roughly a year prior, the property was purchased for $320k by and llc and flipped. Prior to that sale, the est value was $265k. This type of atmosphere is disenfranchising a generation! Warped property values and artificially inflated property tax rates are essentially unfettered class warfare. This is a very, very big problem.
It is regressive wealth transfer away from Gen Z and future generations. Housing is an expense. Who pays for the baby boomers who not only lived for free, but profited from their house??? Future generations. Who pays for high property taxes to pay for lavish boomer pensions? Future generations
he fumbled his answer. Sounds like he meant to say, 67% all cash transactions and few mortgages to close, but contradicted himself. Fed watch have the rates coming down in the 2nd half of 2024.
The real estate market is a strange bird. Commercial bleeds into residential and vise versa. Real estate crisis are never triggered by the same events. What caused the 09’ - 2010 bust will not cause the next crash. As a matter of fact a real estate crash and reset is long overdue. We need them from time to time to give the little guys a chance to get in on the action.
What do you mean "no one knows why it happened" for 2021!? The FED should have raised rates then to slow the overinflated pricing. People were spending 50-100K over asking because rates were SO LOW that banks were giving out loans WAY over assessments. Realtors LOVED it and squeezed every bid they could to raise the values. Now property taxes are catching up and payments are jumping 100-500/mo on those people. This wasn't some known fluke. It was the direct result of interest rates being WAY to low for too long. This over compseation now is them trying to pull back on that mistake and taking the economy down with it.
The Fed and Congress have created the worst housing bubble of all time. Inflation is continuing to go up. This guy is suggesting that if that is gonna cut rates, he’s living on a different planet. Inflation is not going away.
The average american CANNOT AFFORD HOUSING. Think about that. The Middle class, the people who set the pace and determine whether we're in a healthy economy, CANNOT buy homes and if they did, they used all their savings and took money from family to buy, and are now upside down. Generations of a family's wealth tied up in a depreciating asset meant to help their children get ahead. Home values don't always go up, especially if you cant afford to take care of them. Weather and disasters are destroying homes, sellers dont wanna lower their price, and builders are withholding inventory to keep prices high so they dont lose! Nobody wants to lose, but when the masses are all complaining, something needs to happen. Stop building mega homes for a population who needs starter homes. Boomers had their chance during '08. I was still in high school when housing was even remotely affordable for my generation.
I remember the late 70s...when rates were sky high. It was impossible to get a mortgage, many as high as 18%. I bought several places on contract for deeds at 8%...but prices were low, also people didn't have the money that has been pumped into the economy like it has now...and the uber wealthy weren't as rich. Also the national debt wasn't even one trillion dollars yet. That didn't happen until Reagan came in with his tax breaks for the rich and doubling of the FICA tax.
You’re right about everything, except the problem came when people began to view real estate as an “investment” and one that could never go down in value. That can’t be blamed on Regan.
@@lukethompson5558 Although that’s when the top tax rates fell to historic lows. Supply-siders justified Reagan's tax cuts during the 1980s by claiming they would result in net increases in tax revenue, yet tax revenues declined (relative to a baseline without the cuts) due to Reagan's tax cuts, and the deficit ballooned during Reagan's term in office. The increased wealth of the top tier increased speculation.
Look at Japanese bond debt. After a decade of super low rates, Japan is finally raising their rates. Slowly but they are raising. The Japanese are starting to repatriate that money from the US back to Japan. This means US needs to raise rates meaning higher yields because it’s less attractive otherwise. Rates therefore will remain high because the US will have to offer higher yields to stop the bleeding.
the key solution could be a carried-on % rate as if you are current in a mortgage contract on your primary home, you can carry that % to the upgrade house. That will make the market fun again. (fed pays the differences-- lol)
In Summary: 40-50% of income to mortgage is the new normal. If you bought a house after 2021 you will forever be poorer than existing home owners. You will not have the same life your parents had. Sorry!
Host doesn't know the difference between average and median 😂😂 You don't use average with real estate prices cause the distributions are so skewed toward the top side
Your math is a bit off, 7% mortgage is about $10k/year not the lifetime of the loan. That means if you kept that fixed rate you would pay ~$300k in INTEREST over 30 years not $10k
2:35 that was Covid, work from home, stimulus and people doing zoom in their tiny apartments with kids and no toilet paper. Flippers trying to make a profit on houses they did nothing but cheap cosmetic improvements (if that).
![Megan Thee Stallion - Bigger In Texas [Official Video]](http://i.ytimg.com/vi/QxTkZTLWdo4/mqdefault.jpg)
This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're right. I was able to diversify my 450K portfolio across markets with the aid of an investment coach, and I was able to use high dividend yield stocks, ETFs, and bonds to generate a little over $830K in net profit.
@@danieljackson87 Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
You can employ another adviser, but Julie Anne Hoover is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
That was different. Those mortgages were not worth keeping, many of them. They were adjustable, and often interest-only. People today have a stable 30 year 3% mortgage. That's not going anywhere.
Why do people ask people that sell real estate how the market is? What kind of answer do you think you will get?
Surprisingly, this guy was quite candid though. I guess once you’re this old and rich, they give a more honest answer
There's no inventory shortage only a shortage of affordable inventory 😂😂😂😂😂😂😂😂😂😂
Agreed, this is a heads up to us all. Find a way to make more money, there is plenty at the top, but nothing for the masses
everyone wants to be a landlord nowadays... its not just the investors its ppl who have good credit buying houses and not living in them like their suppose too
YES.
A 2 bedroom 1 bath 1200 sqft bungalow on a busy road in the Berkshires just closed for $440k. Roughly a year prior, the property was purchased for $320k by and llc and flipped. Prior to that sale, the est value was $265k. This type of atmosphere is disenfranchising a generation! Warped property values and artificially inflated property tax rates are essentially unfettered class warfare. This is a very, very big problem.
IVE SEEN THAT HERE IN CT FOR 175K 1/2 ACRE TOO
It is regressive wealth transfer away from Gen Z and future generations. Housing is an expense. Who pays for the baby boomers who not only lived for free, but profited from their house??? Future generations. Who pays for high property taxes to pay for lavish boomer pensions? Future generations
All cash is not a mortgage
He misspoke. You know what he meant. Lady didn't have a clue.
I think he meant to say that '67% of all transactions were for all cash.'
Yeah
Morgan looking even more beautiful than in studio. Stunning.
he fumbled his answer. Sounds like he meant to say, 67% all cash transactions and few mortgages to close, but contradicted himself. Fed watch have the rates coming down in the 2nd half of 2024.
The real estate market is a strange bird. Commercial bleeds into residential and vise versa. Real estate crisis are never triggered by the same events. What caused the 09’ - 2010 bust will not cause the next crash. As a matter of fact a real estate crash and reset is long overdue. We need them from time to time to give the little guys a chance to get in on the action.
What do you mean "no one knows why it happened" for 2021!? The FED should have raised rates then to slow the overinflated pricing. People were spending 50-100K over asking because rates were SO LOW that banks were giving out loans WAY over assessments. Realtors LOVED it and squeezed every bid they could to raise the values. Now property taxes are catching up and payments are jumping 100-500/mo on those people. This wasn't some known fluke. It was the direct result of interest rates being WAY to low for too long. This over compseation now is them trying to pull back on that mistake and taking the economy down with it.
The Fed and Congress have created the worst housing bubble of all time. Inflation is continuing to go up. This guy is suggesting that if that is gonna cut rates, he’s living on a different planet. Inflation is not going away.
Professor Jeremy Senile said his realtor friend in New York told him rents having been falling for the last 18 months in a row. 🤣🤣🤣
Professor Jeremy Siegel is just a liar. Why do they give him airtime? 😂
Why would you need a mortgage if you are bringing cash
The average american CANNOT AFFORD HOUSING. Think about that. The Middle class, the people who set the pace and determine whether we're in a healthy economy, CANNOT buy homes and if they did, they used all their savings and took money from family to buy, and are now upside down. Generations of a family's wealth tied up in a depreciating asset meant to help their children get ahead. Home values don't always go up, especially if you cant afford to take care of them. Weather and disasters are destroying homes, sellers dont wanna lower their price, and builders are withholding inventory to keep prices high so they dont lose! Nobody wants to lose, but when the masses are all complaining, something needs to happen. Stop building mega homes for a population who needs starter homes. Boomers had their chance during '08. I was still in high school when housing was even remotely affordable for my generation.
Is that Larry David?
I thought it was Howie Mandel. What is this dude the CEO of “record high people buying with cash.. “very few people closing with cash” 🤣
Close, it's Larry King.
Interest rates will still be going up in 2024, not down. Fed is still hiking rates. How will mortgage rates go down? You been under a rock?
exactly ,I don't see inflation going away in 2024
@@MrRagusawitz 2024 here..rates going up..eggs are $8/dozen..there ya go.
I remember the late 70s...when rates were sky high. It was impossible to get a mortgage, many as high as 18%. I bought several places on contract for deeds at 8%...but prices were low, also people didn't have the money that has been pumped into the economy like it has now...and the uber wealthy weren't as rich. Also the national debt wasn't even one trillion dollars yet. That didn't happen until Reagan came in with his tax breaks for the rich and doubling of the FICA tax.
You’re right about everything, except the problem came when people began to view real estate as an “investment” and one that could never go down in value. That can’t be blamed on Regan.
@@lukethompson5558 Although that’s when the top tax rates fell to historic lows. Supply-siders justified Reagan's tax cuts during the 1980s by claiming they would result in net increases in tax revenue, yet tax revenues declined (relative to a baseline without the cuts) due to Reagan's tax cuts, and the deficit ballooned during Reagan's term in office. The increased wealth of the top tier increased speculation.
Yeah but now 0.1% of the population control 90% of the wealth
So fewer people buying homes...why are rents going down?
Really in-touch with regular people on this piece...
They have to ignore regular people otherwise their "strong economy" narrative won't sell
Look at Japanese bond debt. After a decade of super low rates, Japan is finally raising their rates. Slowly but they are raising. The Japanese are starting to repatriate that money from the US back to Japan. This means US needs to raise rates meaning higher yields because it’s less attractive otherwise. Rates therefore will remain high because the US will have to offer higher yields to stop the bleeding.
The thumbnail really made me think he was Satya Nadella - the Microsoft ceo
We remain in the biggest speculator driven housing bubble in history.
"67% of all mortgages in the last quarter were cash" - TRANSLATION: Hedge funds.
Dude looks like Larry King without hair.
MAYBE- I
Or Alan Arkin.
I bet all these grus . Prices cant stay this high.
When the Recession comes and people lose their jobs, prices will take the elevator down.
What does he mean: „all cash“? 100% equity?
the key solution could be a carried-on % rate as if you are current in a mortgage contract on your primary home, you can carry that % to the upgrade house. That will make the market fun again. (fed pays the differences-- lol)
In Summary: 40-50% of income to mortgage is the new normal. If you bought a house after 2021 you will forever be poorer than existing home owners. You will not have the same life your parents had. Sorry!
The economy would suffer greatly if that were true. We are barreling towards new housing policies anyway.
haha yea right. keep praying
@@tylercampbell6272thats part of what is causing the credit crisis
@@tylercampbell6272Any housing policy at this point would make things worse, either by constraining supply even more, or increasing demand.
Host doesn't know the difference between average and median 😂😂
You don't use average with real estate prices cause the distributions are so skewed toward the top side
Home values are declining rapidly in Massachusetts and Florida. This decline will continue for over a decade.
I say let the builders suffer for a few years. Hopefully some take dramatic losses and bring down prices or just go out of business.
Geez, what’s your issue with home builders?
For those of us who missed the low interest, it is what it is. For those who locked in the low rates good for you!!! ❤hope I can buy a home someday.
Whoa!
PLEASE UNDERSTAND THEY CANT TRADE UP BECAUSE THEY CANT AFFFORD
I don’t see how people borrow 150k from a bank and complain that the bank wants to make 10k off the loan over the course of 20-30 years 😂😂😂.
Your math is a bit off, 7% mortgage is about $10k/year not the lifetime of the loan.
That means if you kept that fixed rate you would pay ~$300k in INTEREST over 30 years not $10k
@@stephen.bohner my math is not off. 7% of 150k is 10.5k. At a fixed rate you pay 10.5k over the life of the loan. What are you talking about?
@@clarencepreston573 7% is the yearly interest, not lifetime. You pay $10.5k in interest per year
@@clarencepreston573 compound interest
Did you account for compounding interest? @@clarencepreston573
Who the hell feeds this guy? Who ties his shoe laces? Just about everything he said was wrong and/or nonsense.
Pretty sure these people just look at the headlines from 2006 and repeat them. "Yeah but it's different this time" - the yield curve disagrees
Nobody can afford anything anymore, except the very rich.
this ☝
Investment home bubble.
2:35 that was Covid, work from home, stimulus and people doing zoom in their tiny apartments with kids and no toilet paper. Flippers trying to make a profit on houses they did nothing but cheap cosmetic improvements (if that).
Air B&B renters are facing a land fall next year and could potentially affect the market when the recession occurs.
It’s 1% of the market, student loans and CC balances will cause more impact
Hm. We will see. @@matbob7249
@matbob7249 might be small but very concentrated to Hotspots..
nonsense
CEOs of large real estate companies are almost always bullish. LOL
No talks of foreclosures and bankruptcies, huh? Inventory…
Cap
Im seeing too many homes getting build all over .
A useless interview
Smh😂
“Rates are going to come down in the beginning of 2024” …. And the part he left out is “or Biden’s gonna lose his job!”
0
more working homeless