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Being from Denver, a hot market, I know it's hard for someone to start out in such a place. Denver and Toronto might be trendy places that younger people like, but they're terrible places to get a financial foothold.
I took my own advice about moving--that's why I'm in Indianapolis now: to own my house free and clear. I did a lot of research, got some cash together, and moved. If I'd spent my time reading conspiracy theories instead, I'd still be in Denver paying a mortgage, and if I'd gotten financial advice from the Old Testament, I'd still be renting.
That's great that you solved the issue for you, but the agenda is we have a game of musical chairs being played. There's a tendency to think everything's ok--until you lose your chair.
That's great that you solved the issue for you, but the agenda is we have a game of musical chairs being played. There's a tendency to think everything's ok--until you lose your chair.
Forty million Americans and four million Canadians move every year. I'm not the only one who moved for cheaper housing.
As you may have heard, Americans are leaving progressive basket cases like California, Illinois and New York in droves for freer, cheaper places in the South and interior west. If there's a conspiracy to control where we live, it's been an epic fail.
I believe US Home Ownership peaked under Bush... it was a goal of his administration and then it was said the crash happened because it was too easy to buy a home...
Which is it?
The short answer is that home ownership was pushed to the point that they had to offer subprime loans at non-sub-prime rates. See The Housing Boom and Bust by Thomas Sowell for a more detailed answer.
Population increase is not the driver of this. It's increasing wealth disparity and property hoarding by the rich. Population growth has slowed dramatically in the West, and is only kept up by a relative trickle of immigration to keep it from actually shrinking. When you look at the dramatic population growth in much of Canada and the United States during the first half of the 20th century, the cost of housing remained attainable despite the need for housing to be built very rapidly for an exploding population and with less technology than today. Housing is no longer affordable for the middle class, how is this not a crisis? If you're one of the lucky one's and don't think it effects you look at it from this perspective: where's the motivation to work when even full time work can't provide the basic shelter necessities for your family? This could cause a complete economic collapse.
According to a few posters in the Automotive Forum that will be done by Elon Musk. Seriously, they think so.
The short answer is that home ownership was pushed to the point that they had to offer subprime loans at non-sub-prime rates. See The Housing Boom and Bust by Thomas Sowell for a more detailed answer.
I saw it first hand living in East Oakland... the big banks got into lots of trouble for being tight with credit and denying people the American Dream... It got to the point that anyone with a Heartbeat and that could sign could "Buy" never seen anything like it.
The courtesy bagger at Safeway where I shop bought 3 homes in two years for investment plus a condo for him and his bride... he lost the three homes when the teaser rates adjusted up... he did short sale on the condo... I advised him not to give up on the condo as he could afford it and the location was good... he said he could rent in the same complex and save $600 a month... and for about a year that was true...
Had he stayed the course... he would have about 380k equity today...
Don't get me wrong... I think adjustable and teaser rates and interest only have their place... I had one adjustable when rates were high... it adjusted lower 5 times... I loved that loan... when it ticked up... I got out through a much better deal at the credit union... 2.75% fixed for 15 years... with no points... still can't believe it.
Don't gripe too much, everyone wanted to be saved from "The Great Recession".
Remember that, when housing was actually starting to get affordable, that was considered nightmarish.
Thank you... the newspaper headlines were banner saying when will it end... the crisis of falling real estate...
It was in fact the buy opportunity of a lifetime... and some regular everyday people did just that...
My thought is the country is nuts.... first the crisis is high prices and then the crisis is low prices and now it is high prices... guess we are always in a state of crisis.
Or maybe human nature to want what everyone wants and shun which what has fallen out of favor?
Last edited by Ultrarunner; 11-02-2018 at 09:48 PM..
Population increase is not the driver of this. It's increasing wealth disparity and property hoarding by the rich. Population growth has slowed dramatically in the West, and is only kept up by a relative trickle of immigration to keep it from actually shrinking. When you look at the dramatic population growth in much of Canada and the United States during the first half of the 20th century, the cost of housing remained attainable despite the need for housing to be built very rapidly for an exploding population and with less technology than today. Housing is no longer affordable for the middle class, how is this not a crisis? If you're one of the lucky one's and don't think it effects you look at it from this perspective: where's the motivation to work when even full time work can't provide the basic shelter necessities for your family? This could cause a complete economic collapse.
The wealthy class of property owners are such fools, that they don't understand that if society collapses for those with meager resources, then it collapses for everyone.
But that is a universal truth... not enough mite to stop wanton disorder...
It has also proven very effective to achieve a goal... in the court of public opinion.
I do think the go along to get along days are coming to an end...
Several politicians I know have said if they can kick the can down the road so much the better...
Often doing the right thing proves unpopular... at least in the short term.
Last edited by Ultrarunner; 11-03-2018 at 08:45 AM..
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