Just A UPS Guy
Bully.
Staggering.
These Recession Signals are Flashing...
- Thread starter vantexan
- Start date
Thebrownblob
Well-Known Member
I bought a brand new house in 2006 right before the 2008 crash I paid $245,000.
It’s now estimated to be worth over 550k with newer houses built around me going for even more.
I don’t think I could afford this house now if I bought it new today.
This is a bad omen for young people starting out.
That's why I paid for most of my kids college.
I try to give them a good start off on life now they are both homeowners
If they had to buy a house right now they both told me they could not afford it
Thebrownblob
Well-Known Member
Bad things start to happen when societies youth begin to feel like they cannot be part of the economy.
Both of my kids told me just besides the price of a housing right now they cannot afford a mortgage at 7 or 8%
But on the other hand my mortgage was at that rate when I bought my house but housing was much more affordable back then
Thebrownblob
Well-Known Member
But now we have the worst of both worlds, extremely high prices, and extremely high interest rates. I believe I paid about 5% when I first got this house but I was able to refinance for 2.5% a few years later a 15 years mortgage. Those are once in a lifetime rates. I don’t think anyone will ever see those rates again in our lifetime.
Even worse when it’s more than a feeling.
I have a junior in college a senior in high school and a junior in high school. So far we’ve been able to avoid student loans. The problem I see (maybe an opportunity) is that I’m not even sure a college degree is even worth a damn anymore. Even an advanced degree has a payoff so far in the future as to cause skepticism.
Thebrownblob
Well-Known Member
I agree with you. I have helped my kids steer clear of as many student loans as possible. I still think college education is a good thing for certain degrees, but there’s a lot of fluff out there that can totally ruin your life with loans.
Just A UPS Guy
Bully.
Not including secondary and tertiary fees/taxes/etc.
$80k (my first house in 2002) financed at 7% is about $565/mo
$285k at 7% is $1,896/mo
$400k (avg home price with 20% down) is $2,661/mo.
Now, make that $480k home purchase with only 5% down and add PMI...over $3,200
Perhaps can't afford that and rent is ridiculous
oldngray
nowhere special
US economist predicts 2024 will bring 'biggest crash of our lifetime'
As Americans and the markets ready to enter the new year, financial author Harry Dent warns 2024 will bring the "everything bubble" to a burst "of a lifetime."
Up In Smoke
Well-Known Member
Dent has written many books and predicted many market moves. He predicted the "roaring 2000s" and a Dow of 35000 by 2009 and we all know how that ended up. He also predicted in 2008 the "The Great Depression Ahead" for markets in the next decade only to see the Dow go from 6,600 to 30,000. He then predicted the Dow to drop to 5,000 following the election of Trump in 2016. He sells books and people listen to him, but like most "experts", he has no crystal ball.US economist predicts 2024 will bring 'biggest crash of our lifetime'
As Americans and the markets ready to enter the new year, financial author Harry Dent warns 2024 will bring the "everything bubble" to a burst "of a lifetime."www.foxbusiness.com
Don't worry, an immutable law of economics is when you run out of buyers prices drop. More and more people are being priced out of the market. And politics matter. If an administration is telling you ICE cars are being removed as an option and EV's are more expensive and there's no grid capable yet to support them then those politics are going to affect your everyday life.
He was predicting the "Big One" by June '23. Didn't happen. But he has very interesting takes on demographics. A lot more people than he are predicting a major crash and looking at what Warren Buffet has sold recently I think major players are covering themselves.
Also the sign of a huge bubble.
You’re talking about massive deflation. The economy will respond with massive layoffs? The government? Massive stimulus. And the cycle of madness continues.
That’s never stopped us before.
The big difference now is interest rates are high
Even at 4% interest rates the interest payments are probably at least 1.25 trillion per year
Supply will remain low and demand will remain high for the foreseeable future.
If, for some unknown reason, there was a flood of properties that hit the market, younger buyers waiting out the boom will be ready to purchase homes, which will beget another boom.
