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The home buying party is breaking up.


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9 minutes ago, Wildboer said:

It's not an asset, it's what shelters you.

Then once you pay it off, or pay it down, it becomes an asset ... 

As in equity, allows someone to purchase other "assets". For people like us to rent to people like you. "This is simple economics" ??

Edited by Whiskey Tango Foxtrot
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Rising rates is a good thing, they've been kept artificially low for so long, of course it's going to sting a little bit. A .25% increase in rate is a little under $30 per month increase in payment on a 30 year mortgage. For people buying on the edge of affordability that can be a deal breaker. 

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8 minutes ago, awful knawful said:

I think a house worth $150000 - $200000 is an asset.....

Let me guess you rent, lease cars and don't own anything?

And fuck all saved for retirement or any pension?

One day, one butt hole at a time attitude.

No, I bought my car outright. I don't view my belongings as assets though, I'm a socialist...

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11 minutes ago, Rod Johnson said:

No if you owe less than it’s worth it’s an asset 

This is a philosophical argument, not an economic one. The economics is the unsustainability of ever increasing home prices.

Edited by Wildboer
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6 minutes ago, GGNHL said:

Rising rates is a good thing, they've been kept artificially low for so long, of course it's going to sting a little bit. A .25% increase in rate is a little under $30 per month increase in payment on a 30 year mortgage. For people buying on the edge of affordability that can be a deal breaker. 

ARM'S are the biggest scam ever. Fix your rate so you have consistency in your budget. Sure, you may save a few over the long run, if it goes towards your favor. If not it can be a home wrecker.

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2 minutes ago, Wildboer said:

Shelter should not be traded in a profit motivated market. It is not sustainable.

I worry about wages not keeping up with rising prices for younger generations. I just bought a $260k house on 28acres of land and had enough down not to pay PMI. I doubt  more than maybe 4 other people I know in my age range could have done the same thing and not had it stretch them to their absolute income limits. We're eventually going to see a severe home affordability issue especially for first time buyers which will effect people who currently own homes and want to sell. Prices can't keep going up forever if people can't afford them, but honestly wouldn't be surprised to see banks start to come out with greater than 30 year mortgage products to help keep things moving...

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4 minutes ago, Whiskey Tango Foxtrot said:

ARM'S are the biggest scam ever. Fix your rate so you have consistency in your budget. Sure, you may save a few over the long run, if it goes towards your favor. If not it can be a home wrecker.

I agree, having a fixed payment for the life of your loan is very important especially for people on the edge of affording the property. It just matters how risk adverse you are I suppose but I think in most cases it partly attributed to the housing crash

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8 minutes ago, Whiskey Tango Foxtrot said:

ARM'S are the biggest scam ever. Fix your rate so you have consistency in your budget. Sure, you may save a few over the long run, if it goes towards your favor. If not it can be a home wrecker.

Arms are for rookies and suckers

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2 minutes ago, GGNHL said:

I worry about wages not keeping up with rising prices for younger generations. I just bought a $260k house on 28acres of land and had enough down not to pay PMI. I doubt  more than maybe 4 other people I know in my age range could have done the same thing and not had it stretch them to their absolute income limits. We're eventually going to see a severe home affordability issue especially for first time buyers which will effect people who currently own homes and want to sell. Prices can't keep going up forever if people can't afford them, but honestly wouldn't be surprised to see banks start to come out with greater than 30 year mortgage products to help keep things moving...

This is dead on. How long can you make a mortgage before it makes more sense to rent though? 

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5 minutes ago, Rod Johnson said:

Yes. Government. 

The government market collapsed? What market Rodney, think hard.

4 minutes ago, steve from amherst said:

When a mortgage is paid off you have a house while the renter has nothing except a rental bill twice as much as his mortgage payment would have been

That would be a great reason to buy a home if buying a home was affordable. Wages ain't keeping up though.

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