A "Hurricane" is Coming for the Real Estate Market - Billionaire Real Estate Investor
HTML-код
- Опубликовано: 8 июн 2024
- One of the world’s most successful and respected real estate investors is sounding alarm bells of the hurricane brewing in the real estate market. Barry Sternlicht is a billionaire and the co-founder, Chairman, and CEO of Starwood Capital Group, an investment fund with over $120 billion in assets under management. Starwood is one of the largest real estate firms in the world and Sternlicht’s position as CEO gives him an inside look into what’s happening in the real estate market. That is why it got my attention when in a recent interview he talked about a quote “category five” hurricane that’s months away from hitting the real estate market.
To truly understand what is going on in the real estate market, you first need to understand the relationship between real estate values and interest rates. Real estate is an asset that has what is referred to as a fixed income stream. A fixed income stream is a relatively predictable amount of cash year in and year out. If you are an owner of an office building and your tenant has a 10 year lease, you know what you should be getting paid in rent over the next 10 years. These locked in cash flows are the fixed income stream real estate produces. Here is what Sternlicht meant when he said any asset with a fixed income stream decreases in value as interest rates rise.
Real estate is what economists refer to as a commodity. The price of any commodity is dependent on the supply and demand dynamics at that given time. We know from earlier that the value of the building is dependent on the cash it generates. However, what determines what rent you as the owner can charge for each of those units? It’s the supply and demand of apartments within that particular real estate market.
For owners of the apartment building, so-called “strong fundamentals” is when demand outstrips supply. Over the past few years, the economy has been extremely strong. Unemployment was low and government stimulus programs were high. Add to that the fact that home prices skyrocketed, forcing many would be home buyers to stay renters. These factors caused demand for apartment units to increase, pushing our demand line here out to the right. Notice how the supply and demand line now cross at a much higher price. The higher rents increased the cash apartment buildings generated, making them even more valuable.
*Disclaimer: Neither this video, not any content produced on this channel should ever be considered investing advice or official financial advice. All content is made for entertainment and educational purposes.
Click this link to get up to 15 free stocks from moomoo U.S when you make a qualified deposit! Terms & Conditions Apply: j.moomoo.com/00mF1u
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
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!
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!
My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
Credits goes to " Sonya lee Mitchell" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Thanks. Good video. I'm never 100% sure I can make money. Never place 100% of your savings in just one type or type of investment
Always aim for a week. Set your maximum cups lost per week. it's still perfectly logical, it's quite passive and rewarding
Every investor's dream is to find a strategy that guarantees, if not 100% success, at least 99.99%.
It's like that. The crypto space is a very sensitive area. It took me two months to understand the benefit of functioning correctly, the adaptation saved me. Thanks to the expert, John Joseph
What sets John Joseph apart from other account managers is his ability to comply. His managerial skills are second to none. With profitable weekly signals, one can only be grateful.
Who is this man everyone is talking about? Is there any way to contact him?
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
The people your describing sound like parasites
Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I’m a real estate broker 20 year experience and agree, I do not like the quick rate at which home prices rose over past 3 years, covid did have a positive impact on price increases, it’s unsustainable
🚨🚨🚨 SCAM WARNING 🚨🚨🚨
Several RUclips channels have been plagued with automated computer programs (Bots) posting unrealistic gains with different 'advisors' (scammers) and tricking ordinary people into contacting them. This post appears to be one of those scam attempts..
Simply. No.@@SandraDave.
..in only 6 months! IF what you say is true---you got into highly leveraged, read: highly volatile markets and came out OK. This advice is not for your average investor.@JamieJeff-in9qo
What are the best strategies to protect my portfolio from a crash? I've heard that the market crash will devastate the financial market, so I'm concerned about my $200k portfolio.
Amidst recession, investors need to understand where and how to allocate funds to hedge against downturns and still make profits. if you can't navigate the market you should consult with an expert advisor
The US-Stock Market had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed to such troubled markets, but there are avenues lurking around if you know where to look I’ve netted over $450k in the past 10months.
@@ElizabethGalvin1 Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them? My portfolio is in the red waters right now
Laura Marie Ray is my Advis0r. She has since provided entry and exit points on the securities I concentrate on. If you want to check her out, you may do so online. I usually trade in accordance with her strategy.
@@ElizabethGalvin1
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her
Newbies need to learn the ropes, know how much risk they can handle and diversify their portfolio. Some folks get help from money experts or do their homework before making investment moves. It's all about being smart with your funds.
Watching how the real estate market is being manipulated in favor of some persons, I’ll advise we venture into other marketing options and look for other ways to invest that will be favorable to us
A common mistake we newbies make is venturing into the market without help and legit guidance
NOBODY BECOMES A MILLIONAIRE OR BILLIONAIRE BY WORKING FOR OTHERS AND DEPENDING ON THEM, GOOD INVESTMENT BRINGS MILLIONS OF DOLLARS AND CONSISTENCY BRINGS BILLIONS. THE MARKET IS ALL ABOUT CRYPTO NOW YOU MIGHT WANT TO LOOK INTO IT
Investing in Stocks and Forex is the wisest, it's a place where millionaires and future billionaires come to get inspired. If you've not been involved in any you're missing out. Most importantly If you know how to trade you can make a ton of money no matter where you find yourself
Bitcoin is the best coin to invest in fast rising and if you are lucky to have a good broker then I believe you have absolutely nothing to worry about because you are in for a finicial uplift.
I'm New to Bitcoin and forex trading. Can someone guide me on a good way of trading
I used to think every investor went broke during recessions, meanwhile some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some, and profit for others, it all starts from having the right mindset. That said, I've set asides $150k to invest for future, unfortunately l'm a complete noob.
The market has gone berserk! regardless of experience level, everyone needs some sort of coach at a point to thrive forward.
I've been down a ton, I only hold so that I can recover, I really need help, who is this investment-adviser that guides you
Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing
Every major crisis brings lucrative opportunities to those who seek it out
I was in a small town in Massachusetts and a realtor told me that all the home owners who had multiple homes...sold, then bought back when the houses fell in price. They wanted a housing crash to come. Makes perfect sense.
I believe that the common people need to do the opposite of what these billionaire investors complain about. Everything works in their favor, not ours.
They always tell you to tighten up and save, but they are the most active investors in recessions. Covid 19 made so many millionaires and billionaires as did the 2008 housing crash
@@nickolausmcconnell2664 they want to get the common people out of the way so they can make room to create wealth.
Yes!!! Like these Ray Dalio videos where he’s been saying it’s all going to hell in a hand basket for the passed two years. He better lose some of his money if it all does go to shit, and if he doesn’t, he should be paid a visit. Just like we should’ve marched on the fed already. If these federal govt mofos think they’re going to lock us down again, they are in for a serious surprise. The second we start catching wind of that we should grab our rifles and match on Washington and give them the ultimatum, “come out now in an orderly fashion and you’ll get a trial before you’re publicly hung, don’t come out and be massacred in place.”
He's mostly afraid that commercial properties will loose some value. Those properties are owned by the wealthy to super wealthy class.
Absolutely!
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
__Very true. Despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately $950k that same year. In reality, all I was doing was getting professional advice.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are a lot of independent advisors you might look into. But i work with Gregory Thomas Patchak and I have been working together for nearly four years, and he is excellent. You could proceed with him if he satisfies your discretion. I endorse him.
I just googled him and I'm really impressed with his credentials; I reached out to him since I need all the assistance I can get. I just scheduled a call.
I don't look at my house as an investment, it's paid in full, all I care is I have a roof over my head, could really care less about what the market does.
Very curious why you're here, then.
@@mowthpeece1 because I can be, I don't need to explain myself to no one.
@@mowthpeece1because their curiosity goes beyond themself.
Good for you. But others have used it not just as investment. But speculative investment
@@betweenyellowan_dred that sounds like THEIR problem, and the reason real estate prices are what they are is BECAUSE of speculation, and why fewer people can afford to buy a home. A house is a place to live, not get rich off of, that's just greed and it hurts everyone except the guy hoping to make a buck at YOUR expense.
This video is beyond amazing. You’ll achieve a lot doing this.
when it comes to lnvestment, it’s wrong to engage in an option cause its performance level can’t make high dividends. I ad vise to diversify into various options.
Do not lay your eggs in one basket; coupled with ideas and guides from a financiaI consuItant will generate high dividends and balance volatility.
IsabeIIe ChIoe Scott is my consuItant, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
Thanks, I found her page immediately I researched, I read through her resume and seems pretty interesting, I just reached out to her
😂😂
He owns 3,200 single family houses. Corporate America purchasing a lot of homes. This, in part, is why home prices have gone up. This, in part, is why the average American can’t purchase.
With owning property comes owning the water rights. Those rights are becoming gold.
This isn’t talked about enough. Large organizations are buying up a lot of homes.
So true
This should be illegal in many ways. It’s creating such a prominent divide between the living class and millionaires and billionaires.
Why have you not mentioned immigrants buying homes? We have mass immigration going on. What do you think that does to home prices?
Make sure to subscribe to the channel 🎉
Charlie Munger: The real estate crash of a generation ruclips.net/video/i8PDEXyajdE/видео.htmlsi=VOmaZd-Sb2TkAZmQ
I buy small houses on large lots in towns where new houses are being built on small lots. Eventually the large lot will either be split or someone will want to build a mansion there. It’s always a “good deal/good idea” if it’s a good company/property etc. market fluctuations are just gravy.
Get your investments right before venturing into real estate, I leverage on the volatility of the market for significant returns rather than holding and loosing value to the volatility of the market I made my first mill from going diverse, mainly stocks, ETFs, few Cryptocurrencies and bonds. thankful to my now financial advisory Olivia Rene Reyes. It’s a long term plan for me so I invest and re-invest. about to purchase my second property ..she's the best in the business
I discovered her website by doing a search for her name online. Her résumé is really impressive, and I'll be sending her a message soon.
🚨🚨🚨 SCAM WARNING 🚨🚨🚨
Several RUclips channels have been plagued with automated computer programs (Bots) posting unrealistic gains with different 'advisors' (scammers) and tricking regular people into contacting them. This post appears to be one of those scam attempts..
What this dude is not telling you is that this happens by design and he will make more money off it. Take what he is saying with a grain of salt. Education on the housing market since the Great Depression and bank crashes in 2008 are all by design
Bingo. Every major financial crisis can be traced to banks or govt unleashing some new financial scheme (trust companies, margin, rate hikes, computer trading, subprime loans, MBOs, etc.) where retail investors (dumb money) and taxpayers get wrecked while they print more money (inflationary) and let banks walk away with pockets full + bailouts while thinning out their competition through consolidation. Next up, you won't anything...everything will be a continual lease; back to feudalism.
Agreed
1oo%. He'll make money and just pass the costs on to his pathetic renters, like they all do!
Exactly. People use the word "fix" when speaking of problems. House values falling is nothing anyone wants to fix, the fix is the fall. Basically if you are prepared for this you will be fine, if you are not....only someone trying for your vote will act as if they care.
(No one cares....they simply tell you to look at the bright side..."you have your health").
It's not necessarily by design; it's a symptom of a failing Capitalistic System that has no checks and balances to prevent it. So people like this guy have figured out how to take advantage of it, as one does in a Capitalistic system. Which, unfortunately, is exasperating the financial problem. The cycles are getting shorter and larger.
My great grandfather lived through the depression. I remember him telling me about how there was no money. Plenty of things to buy, but everyone was broke. He said that in the next depression there would be plenty of money, it just won't buy you anything. I kinda think we're going in this direction right now.
Hyperinflation
With BRICS coming to fruition that could become very true.
@@LainiLiving if BRICS were to happen it's not going for a decade or 4. BRICS is like the EU currency except with all those random countries? You expect China and India to get along? LOL. And if BRICS were to happen...do you think China and Russia will sit back after the fall of the US and just be a side country. No, they're just trading one country over another. :P
Plenty of money in America sitting in REAL ESTATE NOT CASH!
@@transacumen5172im afraid to hold on cash , soon the US dollars will devaluate . They r already doing it .
He’s part of the problem. Real estate groups buy up neighborhoods and then either rent them out, not allowing for purchase or they sell them at exorbitant amounts
Yes and I’m a realtor in AZ. They even buy new homes and rent them
Everyone’s saving are dwindling and foreclosures will happen. Look at the 2020 savings of the people to today.
Exactly right, until we regulate the housing market to serve home owners this problem is never going away. Real estate groups, insurance companies, and attorneys are the reason the middle-class can no longer afford homes.
Bingo! It's so rich that this "category 5 hurricane" warning is coming from this guy. He should be looking in the mirror and facing one of its culprits.
He is part of the problem. He is lousy.
Don't give a shit about predatory investors, I'm worried about families buying homes for themselves.
In 10 years home prices have tripled (300%+) yet salaries only went up 10%. Totally sustainable 😂
No $hit. Fo real.
it is indeed very sustainable. Just ask people from third world countries.
Where have they tripled? I live in the midwest and my property has increased in value approximately 50% over the past 8 years.
@@poooky321 North DFW. My childhood home went from 160k in 2012 to 450k by 2022.
My mothers house purchased for $360,000 in late 1990’s, now worth 3 million + . That’s Vancouver. Prices were inflated by investors. The house is a 3 bed, one bathroom, 1960’s with no significant remodeling, price tag should be $230,000.
The Fed's goal isn't to lower inflation but to force home owners into foreclosure so the Billionaire Investors and Pension Funds can buy up those homes at cheap prices in order to rent out at astronomical prices.
Yup. Move you into a 2x2 cube. You’ll own nothing but be happy about it
yes, that's exactly the plan like they did in Hawaii, except they burned the place down so they can buy it for cheap. I always say that since billionaires/government are in control of everything, things like these happen by arrangement, not by accident.
Shut up. You don’t know what you’re talking about. Interest rates are increasing in hopes that home prices will decline so everyday people can buy. But people are so greedy and states are allowing builders to only build luxury homes, it’s not happening. It’s your neighbors selling their raggedy un repaired homes for $200,000 over the value. They are who is causing the problems.
Exactly
I am very skeptic on people talking about a business where they are very heavily invested in.
You should listen. They have the knowledge. You are not trusting
I totally agree. Don't follow the sheep. These fake shepards only have their own interests.
The problem is that these companies are buying and building residential starter homes to rent. This raises the prices and forces people into renting, artificially raising the cost of rent. Notice how they are complaining that people aren't selling their homes. Have they looked in the mirror? One of the most aggregious things stated is the view that the property value is based on income generated, the average family buys a home for shelter not income, but the investors are pricing them out of affordable shelter, it should be illegal.
Ding ding ding! Glad someone is awake. 100% should be illegal. No one should be legally allowed to own thousands of homes. Millions of these houses and apartment complexes sit EMPTY across the country, many owned by literal foreign interests too. They control the inventory, and they manipulate the market. It's illegal in the NYSE, but somehow we allow it in real estate.
The whole thing needs severe regulation. Of course, they'll screech and rage and wail about "communism" and "socialism" and this and that. They just want to bend everyone over and watch the world burn. They have no interest in anything else. It's all about exploitation and greed with these lunatics. Housing is for living, not trading like a stock or leeching off of as a middle-man. Most of these sociopaths belong in prison.
Notice how he enjoyed it when he was saying “I also think that a nice little recession will clear this, and people will come back to the office”. A nice little recession means people losing their jobs, homes etc., and he is talking as if the ordinary people’s lives are a joke to him. This shows how out of touch this person, and how he is part of the problem we’re having today.
This is because the big players with the know how and the strategy won't let a crisis go to waste and during a recession they will sweep in and pick off the bad loans/defaults/foreclosures that happen during a recession. Then they'll just wait for an economic boom and their asset values and/or cash flows will come back (usually even stronger).
it's a "nice little recession" to him because the transfer of wealth involved will mean more money in his pocket
as a property manager
and gen x person
may i vent?
it was easy for boomers
to aquire houses
or "assets"
and they used houses
or "homes for humans with souls" as i like to call them
to gain passive income
we turned homes into profit making entities
and now
younger people are struggling
and
as a property manager
may i reveal a secret
just like you do not need a car salesman
you do not need a property manager
for single family homes
many times they do all their work from home
just making calls
i am so upset
that my daughter
whi just graduated college
with zero debt
and owns her car
will probably have a hard time
buying a home
i will suggest she buys a tiny
cheap home and pays it off asap
or
i hope that some new tech
finds a way to 3D print homes
or the market crashes
because why
are we spending a lifetime
making payments on something as basic as a home to live
and screwing future generations
dooming them to a life of
apartment living and zero savings
while owners
sit in ft lauderdale
wasting money on restaurants, plastic surgery and toys
Yes
I especially like part about, people with souls.
Artificially keeping interest so low for so long is the culprit of these exorbitant high prices for homes, and unafordability.
It definitely contributed!
I paid 6-7/8% for my loan back in 1998 and the market was tight then too. No one cried in their beers back then, you did what you needed to do. Nothing has changed really except the government has printed a sufficient amount of money such that your money is worth half now as what it was in 2000. What is expensive is not the housing, it is the inflation!
This is what pumped up the stock market and killed the working class. Now 2% of the population controls 98% of the wealth. America did a fantastic job of destroying the middle class.
You are correct....7.25% used to be a good rate to lock in. Only it is the effect of the higher rates now and not the rate itself. The short term doubling . In 1998 you were buying a house for 120K....today it is 330. It won't hurt anyone to just stay put and give up luxuries for a bit. How much is an Iphone, Earpods, & Chinese made jeans these days? Yeah...pretty nobody needs that. They need to go for a walk and lose weight. Maybe play a game of Frisbee instead of taking pills @@AmericaAndAllies
Artificially? Whenever I see or hear someone using that word lately, it just because they salty. Artificial means not real, and I have a real 2.25% rate.
Would rather just hear the interview instead of jumping back and forth with the lady explaining technicals
Many of these office buildings would make for great apartments if converted to residential…
They need to start building affordable housing apartments when new apartments are built. Not these shitty overpriced luxury apartments that are creeping in left and right, gentrifying neighborhoods
.....but they will not. Look how Florida has turned into gated communities over the last 30 years. People do not want the lower income housing so they will fund it as little as possible. @@lenderzconstable
I began my investment journey at the age of 38, primary through hard work and dedication. now at the age of 42,I'm thrilled to share that my passive income exceeded $100k in a single month for the first time.this success reinforces the important of the advices mentioned earlier. It is not about achieving quick wealth but rather ensuring long term financial prosperity.
Investors should exercise caution with theire exposure and exercise caution when concerdering new investment, particularly during periods of inflation. It's advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields
Through closely monitoring performance of the portfolio, I've witnessed a remarkable growth of $483k in just the past two quarters. This experience has shed light on experience traders are able to generate substantial returns even in lesser-known markets it's safe to say that this bold decision has been one of the most impactful choices I've made recently
The advisor I'm in touch with is *JESSICA KATHERINE ELLIS* she work with merrill, piece, Smith incorporated and interviewed on CNBC television. You can use something else, for me her strategy works hence my results.she provide entry and exit point for the securities I fucose on..
Scammer
We are in trouble because these big investors are in the process of buying all real estate!
They've been doing so for about 15-20 years now, really ramping it up in the last 5 years.
They're running out of inventory to hoard and exploit, so now they're whining and complaining about families that aren't selling their one home every 3 years. I hope these investors and corporate sociopaths eat each other alive when this country collapses. They're literally the problem.
Housing is okay for big corporations investing in Housing, they have the money, but for the people forget it, they will price you out,
I’m not bailing these mofos out! Period
I was pissed off in 2008, having to bail out banks, who by their own BS, got us in this situation. Gets bailed out and then gave themselves bonuses.
Absolute corruption and we the taxpayers are paying the price.
It will happen again. Mark my words.
During the lockdowns, they changed the rules so that a bail out (tax payer bails out the banks) won't happen again, but they will use a "bail IN". Which means that take the money internally, directly from the customers bank accounts!
Look it up!
*no wonder rent Lal apartments rent prices are so high. Interest rates are raising their mortgage payments.
When the criminals are running the prison, they'll get whatever they want.
Forget any illusion given that we the people are still in control..
Corporations and lobbyist run DC now.
Where is the data on Blackwater and other REITs buying thousands of private homes and only renting them. How do their actions contribute to this financial mess imposed on the working class while the rich victim blame and the poor fake it because they never will make it!
X
If it takes 2 hours to commute it’s not worth the job if there’s a WFH option.
Billionaires shouldn't exist. Housing should be a commodity, not a luxury
Greed. Don't worry, God has a plan for them.
Too many institutional investors investing in real estate. Those are meant for people/family to live and not for making rich people even richer….
Cold world
So when are we all marching on DC and forcing this to be illegal? Or do we not live in a democracy anymore?
@@jasonfrost5025 American's of the older generation will only march on DC to start a race war. Actually marching to force your corrupt government to change laws allowing a few corporations to buy half the homes in the US, so your children have no where to live and pay rent like serfs for ever. No they won't do that. 'F**k You they got theirs'. It's wild how the young generation will literally be rent slaves to a few corporations within 20 yrs and nobody older cares. Like they are happy for their own children to be future slaves, as long as their suburban home doubled in value over 2 years.
World leading economist Milton Friedman said, “I have never see a contraction of money and credit that did not coincide with a depression and have never seen a depression that did not coincide with a contraction of money and credit.” Recessions and Depressions , therefore, are easy to manufacture, yes, orchestrated- order out of chaos. Just contract money and credit and see what happens….
Boom
@@outli3r692 boom boom thailand
@@louloufarangset that’s where I’m headed.
Making accurate predictions for the housing market is quite a task due to the uncertainty surrounding the Federal Reserve's ability to effectively reduce inflation and borrowing costs. This delicate balance must be maintained to prevent a substantial decrease in demand from buyers, affecting everything from houses to automobiles.
If you are new to the market, I recommend seeking professional assistance. The most effective approach to creating a well-organized portfolio is to begin with a professional who is knowledgeable about the turbulent yet profitable market.
Who’s the person guiding you?
Thanks, I just googled Stacey Lee Decker and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
🚨🚨🚨 SCAM WARNING 🚨🚨🚨
Several RUclips channels have been plagued with automated computer programs (Bots) posting unrealistic gains with different 'advisors' (scammers) and tricking people into contacting them. This post appears to be one of those scam attempts..
I can’t believe big 800 million plus high rise offices complex’s are still being built. When office buildings are 30% empty.
" I also think a nice little recession will clear this and you will see people return to the office". Spoken like someone who is truly out of touch.
I mean, he's not wrong. Companies are getting stricter by the month and a recession will only further take away from worker leverage.
Spoken like someone who owns several multi-million dollar commercial properties that he desperately needs tenants to continue to lease so he doesn't lose money on property taxes.
Remember, EVERYTHING you hear on these topics, from these people, is from the angle of their own self-preservation. Nothing they're telling you is a solution or even honest. They're saying what they want in hopes that it keeps them wealthy. They want people to obey and listen to their "advice," because that's what will pad their wealth even more while everyone else suffers.
Lol ya he's probably clueless, hence the billionaire status
It’s pretty vile, but it’s true. Working from home is a luxury that will be wiped out when a true recession hits.
@@ntwynnRemote work isn't going anywhere. The reality is that it saves companies money. Sometimes significantly so.
Regarding home ownership, you need to own your home by the time your retire to even survive. The cost of living is rising daily, and social security and\or pensions barely cover your monthly bills. When to retire is also important. By the age of 40, we decided to buy fixer-uppers, live in them and fix them for 3 to 5 years, sell them and move on to the next one. We made enough money from our last home sale in 2020, to buy TWO fixer-uppers. One in Illinois and one in Indiana. We now have a rental
evenue home and the other I am remodeling to sell in 3 years when we retire. You also have to retire with no debt. It seems almost impossible for anyone! My wife and I are both 62 and both worked since we were 16. We will still have to retire on a serious budget because we have to project inflation and other changes that WILL happen over the next 10, 20, 30 or so years. Retirement was supposed to be an easy, peaceful and fun time in your life! What the hell happened!? We are stressed and it seems like no matter who we did things, it is not going to be enough to really be happy. Ghez! SMH. 'Ain't that America...'
Retiring debt free should have always been the plan.
You can own the home but what about the land on it? If you don’t own the land, you can be property taxed off it or have govt destroy your house.
Greed, deceit, and corruption is what happened. They told you if you just go to college you can get the gold watch and retire in the sunset like the older baby boomers did. Reagonomics didn’t work and when Clinton signed off on that nafta stuff that sealed the fate for the average American. They have been planning this pauper state for most Americans since they got off the gold standard in the 70s. The tricks just keep getting more devious over time.
How can one of the smartest men in real estate (supposedly) sit here in the video and not mention corporate greed with companies buying single family homes keeping prices artificially inflated and then the same corporations want to rent the same home to you at 3 times the price in 2023 but jobs pay 1990s wages. Make it make sense. Those large real estate companies also hire their friends and families who know nothing about real estate and don’t care about the home selling, buying, rental process being more emotional than financial for most people.
commercial real estate is the elephant in the room as it is not just an interest rate issue but a cultural/lifestyle issue
It's one that people are so brainwashed on now too. People absolutely lose their minds when you suggest real estate be regulated and kept away from exploitation. "BUT MUH FREEDOMS, WAHHHHHHHHHHHHHHH." And often this comes from people who are just as broke and don't own anything (as if regulating corporations from owning 30,000 houses somehow affects their financial plans as a low-income person).
Housing needs to be regulated. Severely. It is not a good or service. It's a place to live. We have to ban and outlaw all real estate exploitation. Ban all corporate/firm/investor ownership of residential property. Now. Limit home ownership to 3 homes per person. This shit is beyond off the rails.
Should’ve been titled “commercial real estate”
There was a time when people did not consider the security of owning their home with a low interest rate golden handcuffs, rather, they saw it as smart, and were happy to put down roots and build a family. Where on earth does the media get the impression that the average person wants to flip their home and family every couple of years? Where have loyalty, decency and good old fashioned family values gone? Lol.
I agree....All things in your life staying stable, if you could afford your house payment before the downturn, then you can afford it now....why jump? Stay put and build a solid foundation for opportunity in a couple of years. If you're in turmoil now, then grab the most secure life preserver and hang on for 18 months.
Making personal financial decisions based on advice from a billionaire is foolish. Unless you are also a billionaire… This guys financial interest is diametrically opposed to yours. If you eat words from his spoon you are getting played.
They are feeding us a bunch of crap. Most young people do want families and would be happy to OWN our own homes.
Historical mortgage rates (5-10%+) required owners to live in their home 10-15 years before any real equity was realized, which worked well with the traditional family. The MBO debacle ushered in super low rates to bail out paper corporations and the stock market. That along with the country actually being chronically underbuilt by 4M homes created all this crazy demand in real estate because people could realize equity and huge pay days within a few years. That is likely coming to a screeching halt with the Fed creating inflation and a likely big recession in 2024. There will be fire sales on houses from people who over-extended themselves with low rates or bought in the last 18 months.
30 year mortgage rates have averaged over 7% for most of my life. I’m 67. Don’t see interest rates dropping anytime soon
I predict these folks will buy these properties and jack up the prices for rentals to a category 10 hurricane. And continue the cycle of homelessness. Untill they start charging for living on the sidewalk.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up 750k within 2 years,
Having a counselor is essential for portfolio diversification. My advisor ASHLEY AIRAGAHI who is easily searchable and has extensive knowledge of the financial markets.
It’s a shame because these greedy WallStreet equity firms know people will always need some where to stay or live so their price gouging with their profit margins!!!!
Just one reason to outlaw and ban all investment and corporate ownership of residential property.
Who owns 3500 houses!?!? This should be so unlawful!
It is a company...not an individual. A bigger concern is that most cities get their water from one company....and you see your utilities going up and up. 3500 houses is still not many compared to how many are out there. ( 29% on credit cards should be unlawful if anything....What country would charge their young adults that kind of interest? )
@@Dancing_Alone_wRentals, one that is 32 trillion dollars in debt
I agree
Last year nearly 1/3 of all the homes sold in the entire state of Texas was bought by investors.
- reported the National Association of Realtors
They want to own you, dare I say enslave you to the corporate rat race that just gets recycled to provide a roof over your head. They pay you a wage, and you pay it back to them to survive. Thus eliminating the middle class home ownership dream.
a "nice little recession" he says.
these types are so out of touch.
He's an ESG shill. Completely disconnected.
No no, he is in Touch. He means what he says. It's not that he does not undertsand the plight of working class. It's that he sees the greedy benefit to himself, from you or your neighbour or someone losing their home and savings. He can then buy that home at a cut rate price and own 1000s of homes. For a parasite like him, millions losing their jobs and livelihoods will put another Zero on the number on his bank balance. That's all the Ultra rich care about. It's all they ever have throughout history.
Did you notice how he hesitated and gave a long answer when asked if home prices will crash? Thats what stood out most to me.
Nobody can predict the future. I would definitely be cautious in making any type of investment.
I’m purchasing a house abroad because I can’t afford retiring in the country as a single woman 😢
Might do something similar as a single man. Aside from intense misandry in the US now, I almost literally can't make it on single income. I've been living on a mattress on the floor at a family member's house for about 2 years now (they also rent and can barely afford it, which is one reason they let me move in). I literally can't afford a studio here, and I have a decent job at a fairly good tech company. This shit is just completely off the rails. I'd rather go somewhere where I can own a basic roof and I'm not seen as an enemy.
Neither can I. As a single woman who never really traveled. I would like to retire abroad but scared cause its just me and I don't have a ton of money
@@Grungefan2018 You should do it. I traveled half way round the world with very little money. You be surprised how far you can get with a warm and welcoming attitude. You learn a few words of the locals. Meet some interesting characters. It costs less than you think. There's lots of nice countries that are cheap still.
Real estate brokers and investors are harming first time buyers - we’re totally forced out of buying
I’m curious to know how brokers are making things hard for first time home buyers. Brokers would love for first time home buyers to be able to afford a new home right now. Brokers are paid on commission so if first time buyers can’t buy than why would a broker enjoy this.
a big part of the business not returning to work in the office is crime, homelessness, and fear of the what is coming down the pike. The distrust in our government to lead our country in the right direction is causing people to pause, and the young people are living on CC.
Seems like a lot of what’s happening is housing is that lots of people and not just in the US smell something fishy on the horizon. People are not sitting on savings and bonds and stocks as they used to. They are buying real life hard assets. Art, collectible cars, real estate, gold silver ect ect.
Also think of all the money on the sidelines just waiting to buy real estate when the rate lowers even a little. I don’t think we have a huge nation wide crash, unless we have some black swan event.
He didn't mention the impact to the housing market that is corporations buying up houses thus making homes far more expensive to the reduced supply of homes to buy. We have American and many foreign investors buying up our houses and rending them, and a study showed that Air B&B'ing has significantly impacted the housing market by raising home values and reducing supply. Yes, I find it interesting that he didn't mention that.
Rates are not going to come down... people are delusional...
Crash is coming...
0:00: ⚡ Real estate market is facing a category 5 hurricane due to rising interest rates and limited credit supply.
2:53: 💰 The value of an apartment building is influenced by the annual income stream, expenses, cap rate, and interest rates.
5:40: 📉 The speaker predicts a serious credit contraction and a slowdown in the economy, with real estate being affected.
8:41: 🏢 The office market is being impacted by remote work, with a divide between high-quality buildings and lower-quality ones.
11:41: 🏢 The office market is facing significant challenges, with high vacancy rates in C-Class buildings.
14:40: 📈 The dramatic spike in interest rates has made it more expensive to purchase a house using a mortgage, but it has not caused home prices to fall significantly.
Recap by Tammy AI
The interviewer should have asked him why many of those old office buildings can't be converted to housing units?
@@achievementsofthegloriousw5925 Yeah I get all that, but couldn't you gut the whole thing to the steel and refit with new design...seems like that's still less than starting from scratch
I own a building in a medium sized city. Commercial on main level and residential on the second floor. 2020 hit and the main level went empty. We have been working for 3 years to navigate (with lawyers) through the bureaucracy to convert the main level to residential units. Meanwhile the homeless are camping on the street. It is truly mind blowing the layers of crap we are having to go through. All for 4 residential units. Mind blowing…..
I've been in commercial real estate for 20 years and I have never seen someone do a 5 year NPV on an apartment complex. Properties are marketed on the NOI/Interest Rate (cap rate). It's that simple. There is no reason to try and complicate it using NPV unless there are dramatic swings in expected NOI from year to year.
Being from former USSR I can say that I saw with my own eyes what uncontrolled inflation does to the housing market. My parents had a 15 year mortgage on our apartment, that they were 7 years into. When hyper inflation hit, my mom paid of 8 years of mortgage in full from her 1 month salary. It felt like overnight with your lifetime savings you could buy only a box of matches or a loaf of bread. So number wise housing prices will not go down, but people who bought homes with a mortgage will be able to pay of mortgages in a matter of month because inflation is so high that money have very little value. Only tangible things that you had held value, like cars, homes, land. You bought good expensive food when you had money, because if you did not than tomorrow your money would have depreciated even more. This is what coming to US with amount of money government printing.
God I hope not
@@lenderzconstableit s happening bro. Hope got nothing to do with it...
Like explain to me why their are mortgages on apts in Russia
Also how was she able to pay off remaining mortgage with devalued currency
I’m shooketh
The sales guy I lease my cars through moved his parents from Venezuela He told me about 6 months ago his mother started having nightmares because she sees what happened to them in Venezuela is happening here and she doesn't know what to do about it. they moved here for the safety of the United States. But now it's uncertainty but at least his mother was able to warn her kids and they have definitely taken her serious about what's coming
@meancookie89 it's if you buy a house on a mortgage and the inflation forced employers to raise wages. I think inflation has given me in the US a small raise but not enough to keep up. If everything gets inflated and they DONT raise our wages we will be in BIG trouble.
I like how he said the buildings are great places to be in there ESG. We now have a full understanding of what ESG is and how evil it is.
Yup. I caught that too.
What exactly is an ESG?
@@alfa_romeo55yush82 environmental social governance. Basically Dylan mulvany is your spokesperson
@@alfa_romeo55yush82Essentially, a social "justice" score for complying with liberal democrat party faux religious ideology. It is why there was a coordinated effort to push the alphabet agenda, e.g. Anheiser Busch and Target are the hot ones now. From my perspective, it should be outlawed. Government (pensions) and private equity firms are using tax payer, government employee, and investor dollars to push the faux religion of liberalism on private corporations. The ESG score can even be used to restrict a businesses ability to exercise credit. So much evil!
I'd like to hear the reasoning behind "survive till 25" What is going to miraculously turn this mess around?
i wonder why he did not liquidate some of his real estate assets !
Those are hegged against some commodities or backed by a fixed rate amount.
For the past two years investors have been touting REIT's as 'the thing to invest in'. And then the real estate market, particularly the commercial RE market, has tanked. Corporations have bought up all the apartments and affordable housing is being sold AS RENTALS. This is closing the market to anyone looking for a starter home. Younger people are stuck 'buying' condos and townhomes if they want any kind of ownership. Sooner or later there'll be a reckoning and REITS will fall like a stone. People are figuring out what they invest in, matters big time and they'll pull the money out REITS and end your 'golden age'.
I learned my lesson with REITS in 2008/2009. I'd rather invest in real, tangible property than a REIT, now.
Nope. Lots to buy
Amazing what happens when an entire industry is built on cheap debt
I remember harry dent always trying to predict the big crash that never came. Usually there is a book sale involved. The trick is to make lots of predictions and eventually one will be right, then you can sell stuff on the back of your prediction.
There’s fixing to be more homes foreclosure and bankruptcies than ever before. So, many people are living paycheck to paycheck and definitely using their credit cards. It always helps having inside information from accountants.
This real estate hurricane and economy it's going to be like something we've never seen in our lifetime.,.
Really enjoy these videos, thanks!
Thanks for watching!
The stress is in the commercial real estate market, not the housing market.
Maybe they shouldn't build so much of it and constantly encourage business owners to buy more and keep expanding. There are many, many empty offices here in MD and they keep building more!
You have to build them when the interest rates are low. A commercial building is the skeleton and the outside walls....the interiors are at the cost of the tenants moving in. If you have big investors who need a place to park money....now is the time to build.
Good that they are still building because those trades have work. When they stop...that is when we hold our breath.@@MsVictory1945
It's in both. Investors, wealthy bored people, and corporations (along with literal foreign investment firms) are buying residential property faster than they can trip over themselves to do so, and all in cash. It needs to be made illegal. We have to get investment exploitation out of residential housing entirely. It is literally creating the problem that they're complaining about.
@@jasonfrost5025 without investors who will fix up distressed properties? If you're saying there's too much investor transaction volume, then what happens to price when you take away that liquidity? Investors also provide quality rental properties for those who can't buy, so what happens to prices if there's a shortage of quality rentals?
Wealthy people have had a pass for too long to make money, money , money without any thought to all the people who are being squeezed out of homes because somebody is trying to make bigger stuff and earn more.
It's why they're complaining now that families have the audacity to stay in their one home they own and not sell it. Meanwhile, these investors are buying thousands upon thousands of homes, keeping them empty, and trying to ask for 2, 3, 4x the price they dropped cash for. They (investors) are draining and actively constraining the inventory to create this fake scarcity, and they are now having to compete with each other. So, now they're trying to blame single-home owners and force them to sell, just so they can scoop them up and flip them for double the price again.
These people are literal sociopaths. They all belong in prison.
That part
"oh no, the bubble we ourselves created is going to pop, let's hope taxpayers bail us out this time as well"
Rental prices should never be played with it effect real people and middle class financially support America. You squeeze them all of this goes down.
Good thing you said this. Some people loose track and forget what our economy is based on. The Obama administration forgot about the average homeowners and we're still suffering those consequences.
I think that's the whole point
The biggest problem is that neither buying nor renting is affordable anymore for most people.
Natural disasters and issues with insurance also becoming unaffordable makes things worse.
Better interest rates would be nice, but what is badly needed to rebalance the market is a massive crash.
I was looking at a house before the pandemic, but covid made me stay put and renew my lease. The house originally was only 120k after the pandemic, it sold for 220k. Shot up 100k out of no where. This year started looking at houses again. That same house is back on the market at 240k. Nothing has been renovated or changed. And two schools closed within the neighborhood. So I’m not sure where the price hikes are coming from. But I really wish I could afford that house.
Don't work for a company that wants you to pay for a building
Maybe a hidden factor is the apartments and condominiums have rising maintenance fees or HOA payments that are now higher than the mortgage payments
love to buy a condo, but the condo fees, to me, are unaffordable. I see 400-700 as the average per month
What is going is existing home sales have crashed to a level seen in the mid 1990s. Prices have not crashed but transactions have. Crashes are rare, but we are in one now, from a transaction perspective, and in many ways, a transaction crash alone is worse. If people are not buying houses, they are not buying as much furniture, landscaping, paint, appliances, cabinets, and lawn mowers, etc., to the same extent if housing was strong. Stick around we’re going to get to see what happens when an unstoppable force (rising interest rates) meets an immovable object (stubborn sellers). It is theorized that this could cause a giant black hole that sucks everything into it. Got T-Bills?
When people discover that they will have to change their central air due to the Freon change by the government, that will be a big difference in the real estate market. It has already changed from 2020 to 2023 with the switch from R22 to R410A. Now another change will make R410A obsolete. Considering the cost of HVAC, many people will not be able to afford the switch.
A "nice little recession" as the billionaire puts it, won't bring workers back to the office, because people will lose their jobs. Everything we are seeing, the destructiveness of it, is because of trillions in money created out of thin air by central banks and governments. The Fed's mandate is price stability. This is what happens when the central planners fail. Remote work is almost required now in the US. So many towns that were once affordable, which brought companies to an area, have skyrocketed in price, and are impossible to afford on the salaries that are stuck around the 2010-2015 level. Living close to work is very difficult for a lot of people. And I remember very recently, gas was over $5.00/gal, in some places over $8.00/gal. The companies can't raise paychecks to the level required to afford home purchases in many areas close to work. If you want to see even more hardship, take away remote work.
Same people who said or corporation was too broke to give me a raise this year are now telling me they have relocated my office an hour away and I have to drive there every day to do my virtual job I’ve been doing from home for 3.5 years now with perfect performance reviews. Americans are over these companies and these billionaires.
The housing crisis is not because of inflation. It's because of exploitation. Corporations, firms, and wealthy investors are snatching up millions of single-family homes and residential properties, keeping them vacant, flipping them, and utterly exploiting and fucking the market into oblivion.
The longer we allow it and don't make it illegal, the worse it will get.
No one needs to own more than 3 homes. No one. Period. These investment firms and corporations should be banned from owning ANY residential property. Millions of homes sit empty year 'round so they can fix and manipulate prices. It has to be made illegal.
These are real concerns. Who wants to pay $200k+ for a full tear down
During the pandemic i saw young couples rushing to buy housing with ridiculously expensive prices. I knew that was the time to sell before an imminent crash...
I knew just by logic and common sense that it was impossible that people can afford those prices for housing. When housing exceeds 25% of the average joe income, it's not sustainable.
Literally no one can afford housing if 25% is the measure. I know the old 1/3rd of income was the ideal, but late-stage capitalism laughs at that with a hearty boom. Most people have to work 2-3 full-time jobs just to pay rent. Not a mortgage. Rent.
Housing is completely off the rails and out of control. It needs severe regulation. Investors and corporations and people owning 20, 30, 100, 200+ homes needs to be outlawed and banned forever. No one needs more than 3 houses. No company or firm should be allowed to own residential property. Turning shelter into a heavily exploited and manipulated trade is a dystopian nightmare.
I read it can go higher before pulling back slightly. Remember the banks now offer 40 year mortgages.
As long as you offer 20 credit cards to individuals that should never have a credit card, you get what you deserve! Everything is interlinked❤
Wait until you’re 67 living on social security rent a home and no job. Despite all that I’m surviving.
I watched 200 acres of trees get destroyed by a company that built houses on the land 3 foot apart brick homes with 2x4 every thing a house every week something wrong with this
I’m investing my extra money in to land ! Land prices always goes up but slowly!!! House market is a game !
Home inflation can't outpace wage inflation forever. It is impossible. The only way to continue to raise prices disproportionate to wages, as investors would want, is if people qualify for a higher percentage of their income or we shove more and more people in the same size homes or move everyone to apartments to maximize profit for the land, but even then, there is a max. You would either need to qualify for a home as a group of people. The long term market for homes will be flat because it has to be.
Entitled or poor to buy … there are many regions where the disconnect is already there and a norm
One thing he didn't mention is unforeseen circumstance. I live in South Florida I'm on my dad's condo board our insurance didn't renew the building. One company out of 18 wrote a policy for us. So we went from $101,000 to 466,000 We have an ok budget but not that ok. We had to assess everybody $3,000 most of those people are on fixed incomes. And that has nothing to do with what's coming. We have our 40 year inspection The price of what the insurance will be next year, we have to raise maintenance fees and web or naive to the fact that there will be another assessment when we get the structural report on possible work needing to be done. people are freaking out and we're fully reserved!. but there are other buildings that are not and the new law says they must be by 25. Even more money they're going to have to come up with on top of everything else for their buildings. It's going to be a hurricane followed by a tsunami in Florida .
We’ve been saying this for 3 years.
Re: class C office buildings. Are you saying that the depreciation tax break taken every year isn’t simply a tax give away to owners, based on a lie?
Ha! It's because of investors that the real estate market has priced themselves out of the market. They want to blame the FED. But the FED didn't step in until they drove the prices up so high to boost their credit ratings. Now they have to face the piper for what they did. Don't feel sorry for them. Kids can't even get into the housing market because of their tactics.
Remote work will stay. It’s help millennials have and raise children.
Good point!
Yes! I'm a much better employee and parent working hybrid. ❤
Oh, good, good! I have been waiting for such a hurricane since 2008! At last, I'll be able to buy a house!
Glad i listened to Dave Ramsey,16 years ago.. we basically save most of our checks.
Buying an individual stock is a fair investment but its performance level can’t generate high dividends. Diversification is the secret to optimal performance, that’s why I have my interest set on options based on projected growth and performance.
Good approach; diversifying is really key to finance growth. can you explain in full the lnvestment options you’re into, I’m curious•
When it comes to finance growth, it’s wrong to engage in a single option. I suggest diversifying your portfolio into various options with high performance coupled with the experience and aid of a finance Pro will generate bigger returns and balance volatility.
”Do not lay your eggs in one basket.” I engage on various options (real estate, real assets, index/mutual funds, ETFs, annuities, potential stocks and cry-pto, IDOs and many others) with the aid of my finance pro, and so far have acquired so much returns (amount is confidentiaI)
sear ch the full name below, if you care
IsabeIIe ChIoe Scott
Ah yes billionaire's blaming remote workers despite record profits the last two years.....
Markets are a little more complicated than what's presented in this video. I'm not a billion investor, but i am a real estate investor.
1. Obviously spot on with office space. One thing not mentioned in the video that is paramont to this market segment is offices are generally financed with 3 to 5 year baloons and will require refinancing. When this happens, office building owners are going to be simultaneously struck with a higher mortgage payment in a market with reduced demand.
2. Multi family will thrive in the short and midterm. Without question.
3. Despite 'experts' claiming the housing bubble will burst, it won't at least through Q4 of 2024. Now is probably the best time in my life to enter the market or to trade up. I traded up my personal residence earlier this year.
Would you sell now if you had a large house in desirable area if you want to downsize?
@urbantreesteve2805 Financially, no. I wouldn't. Home prices will go up when interests rates fall. By example, if you own a $1,000,000 house and prices rise 10%, you'll net an extra $100,000 by waiting. Using the same math, you're only going to net $10,000 if you downsize now. Right now, higher interest rates could slightly offset the $90,000 delta assuming you have a low interest mortgage now. That being said, if you're looking to downsize, downsize. You'll leave some money on the table, but live your life. No matter what you do, you'll make money. You can't go wrong.
The point of my post is I think 'experts,' and there are a lot of them at least self proclaimed, are creating a lot of doubt in a market where there is tremendous opportunity. They are scaring people to take no action to get ratings. There are fundamentals that are being ignored.
Rents will most likely remain “sticky”. I doubt any landlords bringing in an avg of $3k for a one-bedroom in CA, is going to lower it in any one area.
I love how they calculated these formulas convincing people to cash out in five years with huge profits but without computation of velecity or supply of money