WTF r u doin, Housing Market?

Am I insane or is the current model of the real estate business utterly and completely fucked?? What got my jimmies rustled was that I found a house about 6 months ago that I could have afforded - it was under $100,000, so the mortgage might be around $300 - $400. Fast forward to where I can't get a home loan because I don't have credit because I thought going into debt was a bad thing, and that house sold and was immediately put back on the rental market for $750 a month.

This has to be a fucking joke. Does anyone understand that house prices simply cannot infinitely go higher and higher?? A house that was built for $40,000 sells for $80,000 then sells for $120,000 then sells for $200,000, meanwhile the actual cost of the house was always fixed and people are creating money out of thin air. People NEED houses; it's a necessity, not a luxury. A 1 bedroom, 1 bathroom house simply should not be "too expensive" for anyone.

So the circle I'm in now is that I can afford a reasonable first-house mortgage, but I can't get a loan because I haven't rented before (or taken out credit) because I literally can't afford it. On paper, I "can't afford" a mortgage, but in order to "afford" it, I have to pay twice that mortgage in rent. How does anyone sleep at night knowing that this is how it works? Millions of people are utterly fucked over.

And hey mods if you can't figure out how this has to do with politics you can eat a dick

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bump

okay let me throw some keywords in here, maybe that will attract some of you

jews
niggers
trump
MAGA
pizza

Why don't you get a credit card? Use it as if it were a debit card, and as soon as the bill is posted pay it off in full. This'll help build your credit score for the mortgage loans.

>implying you wouldn't be spending the difference between your mortgage and that rent on upkeep and insurance if you bought the place
>poor faggot that understands nothing complains about everything
Sage

I have a credit card for my LLC which I do use as a debit card. Unfortunately, this doesn't appear on my personal credit history. And apparently, paying credit card debts off immediately isn't as good for your credit as holding a small balance through to the next cycle.

I don't want to have to open a second, personal credit card just so I have to go find something to spend money on just so I can play this nonsensical game.

Why are you insistent on home ownership? How old are you? Why is this such a priority over renting? No one should buy a home they can't put at least 20% down on and pay off a 15 year mortgage. Anyone who does otherwise is a sucker. If you can't afford that than home ownership is not right for you financially.

sorry, people don't need houses. they are a luxury

Mortgage insurance is tax deductible, not worried. Upkeep isn't that expensive unless you're the typical idiot that hires people to do every little thing around the house.

This.

It's cool, once law is defunct there are plenty of pensioners who will be easy targets for the slaughter and taking of their homes, just as their ancestors before them, just as it will always be

tfw mommy bought me a 2 bedroom condo and the land she bought for 40,000 in 93 is now Worth 2 mil.

I will admit, this is a massively unfair and jewed housing market with the government officially trying to prop up housing prices but it benefits me personally

I'm 25. I would prefer to not have my money evaporate into someone else's pocket every month, as it would be with renting. Renting is simply too expensive; if a low mortgage is already as much as I can afford, how is it reasonable to expect me to pay a rent that's actually higher than that, sometimes twice as high?

Also, 20% down on a house? Yeah fucking right, go back to the 80s when 20% meant $10,000. The average millennial will simply never be able to afford a 20% down payment on a $350,000 house.

>you don't need a roof over your head

nah go fuck yourself

I'm talking about homeowners insurance you ignorant twat. Pmi is exactly what a broke loser would assume I was referring to. Thanks for proving my point.

>Why is this such a priority over renting?
>$300 mortgage or $750 rent
>living in a low to middle income neighborhood or a ghetto

Agreed, my man. I'm going into city planning. Attractive, affordable, non-rapey neighborhoods are not too much to ask.

O YA u sure got me by just saying "insurance" when you're fully aware that there are multiple kinds. Zingo bingo bango wow thanks detective

this

finally some sane people are here

It's more fucked here - house prices are inflated to the point where rents can't keep up - people are buying (still, at insanely inflated prices), making a huge tax-deductible loss on rent if they bother to rent them at all, then flicking them off and making massive capital profits (for some reason non-taxable here). Welcome to the housing bubble mate. It'll get worse before it gets better, and it might not get better than it is now in your lifetime.

House prices are too high because interest rates are too low and monthly payments are too low. If you have good credit you can borrow at 2.5 percent. It should be six percent, minimum.

And yes, it's about politics.

Cheap credit was how Bush and Obama kept white people from complaining about never getting raises.

Now Trump is in charge. The plan is:

>raise interest rates
>crash housing market
>cause financial crisis 2.0
>get MSM to blame Trump
>Dems back in White House 2020

From the problems you describe about your life it sounds like you already got yourself. Other people have also advised you of your retardation, yet you continue to defend your position. Only one piece of advice remains.

Kys and be cremated. Then you can reside in something you can afford

The boomers will start dropping like flies in the next 10 years. If they don't die, they will be downsizing or moving to condos or retirement homes.
Who is going to have the money to buy up their mcmansions, lake homes, hobby farms and horse ranches?
No one.
This will drive down real estate prices

Renting costs more than owning because you used to be able to get a loan with fucked up credit which drove housing prices up then the housing bubble burst in 2008 and banks won't lend to anyone with bad credit any more. So now you need good credit and rent is sky rocketing because all those people with fucked up credit have to rent now.

25 is relatively young to buy a house. Are you married/ have children? Renting is not "money evaporating into someone else's pocket". You are paying for a product and receiving it. You are owed a livable space and protected by law because of your paying rent. It's the same reason I have a gym membership instead of buying all the equipment myself and renting out a warehouse to put it all in, I can't stomach that upfront cost.

20% is not unreasonable. Taking on debt is a huge decision and it should be mitigated in every way possible. Considering the interest accumulation, possible deterioration, taxes, expenses of regular upkeep, you're hardly breaking even with a small down payment/ long mortgage setup. Housing is not guaranteed to increase in value the way Americans like to assume. Also $350,000 is a very high number. You realize that's out of reach for the vast majority of people right? That's not a reasonable expectation of home ownership.

The US economy doesn't owe you home ownership and you shouldn't needlessly put yourself in a bad situation financially because you feel that way.

Fuckin too right mate fuck pizza

It makes no sense to buy now even if you can swing a big down payment and get mortgage approval. I'd love to own a house too but at these prices and also these mortgage terms it just can't work. The bubble has to burst. It isn't sustainable. Here in Canada the only thing preventing a crash is Chinese buyers. Government won't do anything about that because existing property owners (mostly boomers) want it this way so their property value stays high. Problem is 1. The chinks are tax cheats, so their presence does not benefit longterm stable economy, 2. It's a soft chinese invasion and Canada is letting it happen for short term gain.

It is your fault for not understanding how credit works. No one knows if you've paid a bill in your life. Who the fuck would then give you $100k for a house. Read up on establishing credit and quit being a faggot. $100k for a house is low compared to a populated part of the country.

You really sound like a dumbass liberal.

Supply and demand, my nigger.

And that 100k house renting for 700? Sounds reasonable. Did you not think the owner also has to pay tax and insurance?

He would have to put 30k down if he wants it to be a rental property. 30 year loan on 70k at 4.5% is $355/month. Say tax and insurance is another $180. So he pays $535 a month and brings in $700. When you consider damage, unoccupied periods and his time dealing with repairs and complaints, he's making very little money. He probably won't see his 30k investment again until he sells the home.
So unless the area improves and he can raise rent in the future, the only way he makes money is in 30 years when the mortgage is paid and he sells the house, assuming it's still worth what he paid 30 years in the future. It's called a forced profit, and is usually seen as a pretty risky and low-reward investment.

>it's a necessity
That's right good goy you need it, for the right price.

>Does anyone understand that house prices simply cannot infinitely go higher and higher??
Oh yes, they can.
t. Russland dweller.

The Chinese. It's already happening.

thanks for a weak chuckle. You sound like a clueless boomer or Gen X cunt with a trust fund your boomer parents set up for you. In the end, it's people like you that will have to get real about this, not people like me.

Yeah the bubble is already worse than last time. Out of curiosity, what do you think a reasonable house price would be, and then what would a reasonable monthly payment be for that house?

What does that look like, though? What kind of homeowner or agent is going to let a $400,000 mcmansion sell for less?

I'm not married but if my current relationship continues on its current path I will be within a couple years. I see rent as money disappearing when it's $750 being paid on a house that's either already owned fully by the landlord or their mortgage is easily half of my rent. It's robbery.

Leaf cucks are a cancer. So can't wait for the day of the rake.

you arent even addressing how mortgages work user..

>buyer puts 20% down, which the bank takes
>bank goes to federal reserve, which prints out brand new money for the mortgage
>bank gives that money to seller
>bank keeps the 20%+ down payment and charges interest for the mortgage

this is beyond retarded ponzi scheme

>we should give MORE money to the jews

>And hey mods if you can't figure out how this has to do with politics you can eat a dick
>Implying gookmoots 12 year old booger eating mods understand adult life.

Checked.

Back in the day credit was availible to anyone and everyone before the banking sector crashed.

It is the same over here, 500+ on renting or roughly the same as a mortgage but you need at least 10% for a deposit.

I see renting and it is burning money because that is just the rent and you will not own it either at the end and the landlord can choose to boot you out along with various rules attached to the property.

Prices now will not drop, over here it is due to supply and demand and cities are expenisve but so can be small villages depending where they are.


Even if you get a cheaper mortgage compared to an expensive rent and you spend the difference on bills and home improvements so what you will own the house at the end if you keep up payments.

A lot of them will pass them on to their kids, outright or on zero-interest loans that are basically an advance on inheriting them. There's more hope in the short term in rising interest rates forcing enough mortgagee sales to depress prices a bit. That's obviously not preferable (because it punishes the people who've benefited least from the market rather than those who made it this way), but if you don't own a home yet there's a glimmer of hope there.

You're retarded.
How do you expect to get a line of credit on something as huge as a house with no credit history?

>millennials

>current model of the real estate business utterly and completely fucked
You're not insane. It's fucked. It's not just real estate though. This problem is systemic. The whole financial system is one big scam. You can't expect things to be hunky dory when money can be created out of thin air, with nothing real to back it up. The real estate prices are just a symptom of a much deeper problem.

>How does anyone sleep at night knowing that this is how it works? Millions of people are utterly fucked over.
They sleep comfortably in their over priced homes. Average people absolutely do not care but they'll expect to be bailed out when reality finally comes home to roost. The fact that you cannot afford to buy a home means nothing to them.

This is something that just needs to run it's course. Buckle up, it's going to be a shit show.

Credit is fucking retarded. I have shit credit and went to buy a $3k motorcycle with $1k down. Got denied, so instead I bought a $2k motorcycle cash on Craigslist.

>supply and demand

Ah yes, the perfect non-reply to this issue. The market will fix it, the market created it, right?

The issue is not that the owner isn't making 100% profit. The issue is that the owner already owns at least one other house, and now he's taken an affordable home off the market and made it unaffordable to a large group of people - for thirty years at the most. Instead of just trying to cop an extra $150 a month somewhere else, he's actively preventing a person like me from having an affordable monthly payment for the SAME PRODUCT.

t.Boomer

This. Especially if you can't put down a sizable downpayment. Lending to idiots like you is what causes excessive default rates.

OP is a financially illiterate faggot

What happens to the parents home when there is more than one kid?
It gets sold
What happens if the kid can't afford the property taxes?
It gets sold
What if the kids can't pay the death tax?
It gets sold

>guy with shit credit wants to buy a motorcycle

lol color me surprised

Either way though, yeah that's fucked up.

Uh no, fuck you. I simply have the money to afford a low mortgage. Just because I didn't go out at 18 and get a credit card that mommy and daddy pay off for me, now I'm less financially viable than a slackjaw moron with three credit cards and a minimum wage job. I have enough money saved and enough income to pay for it, but no funny money paper trail for the banks to peruse. It's a joke.

This. Same as with student loans, house prices are insanely inflated by too much borrowing. THANKS, fiat currency, thanks, central banks. The whole world runs on Keynesian economics now, and the only winners are the banker jews.

>It's robbery
Ok, but then by that definition any time you exchange money for goods and services it's robbery. The homeowner takes on enormous financial risk by investing in a home and renting it out, you do not. Is a gym membership robbery? Is renting a textbook robbery? Why should I eat at a restaurant if they're not offering equity in the restaurant? Your argument is nonsense. Yes renting can be a ripoff like anything else but it's not by definition.

>Also $350,000 is a very high number. You realize that's out of reach for the vast majority of people right?
$350k will get you a shitty house in my area. Town houses are like 400-600k to live with liberals, poos and niggers. Houses in a new development? 450-700k. Jews need to be eradicated.

>Who is going to have the money to buy up their mcmansions, lake homes, hobby farms and horse ranches?

Rich foreigners. You're really underestimating how scummy boomers are.

Huh? Do you even understand how markets work??
A 400k home is only worth 400k if someone is willing to pay that price!
If you have to sell into a weak market or a market where there is a glut...guess what happens

How old are you? Just open a bunch of credit card and bank accounts and your credit score would be high in a few years time.

Btw, the crash is coming.

>Btw, the crash is coming.
Crashes are cyclical. Always have been, always will be.

The economy is under about as much of an obligation to make sense to you as the laws of physics.

"WTF r u doin, Superposition of electrons?"
"WTF r u doin, Dark Energy"
etc.

The banks will keep everything and will try to sell it higher to pay their debts

You are fucked, no one wants to fix this because the problem is too deep and related with the international jew banks

youtube.com/watch?v=InfvncOn6_U

This thread is filled with so much idiocy I can't even take it.
It's a free market. Stop whining just because you're poor.

Yeah, and the S&P 500 is mean-reverting with a non-stochastic volatility.

ITT: Fairytales

Every market price for a house is a fair market price, that's what the market decided!

Land is a limited resource.

Yeah my part of the country is similar, Boston area to be specific. But my point is I'm not going to buy in just because society tells me to. Subjecting myself to inflated housing costs and living paycheck to paycheck to afford an endless mortgage is not worth the social capital of owning a home

No, it's robbery if I very well know the cost of a product or service, and then it's being middle-manned to me at a much higher price. Is a gym membership robbery, where you're paying $50 a month to pick up heavy things and put them back down again, in company of other people? Yeah probably. Is renting textbooks that immediately cost less the next year because it's a racket a robbery? Yes.

Rentals are a racket because if the renters actually knew how much a mortgage costs, they would rather do that. But oh, the game we've been setting up for the last 100 years is preventing that, and so the circle continues.

here that same house would be 2.5million.

quit crying faggot

>I have a credit card for my LLC
WOOPS! the down-side of an LLC.

>apparently, paying credit card debts off immediately isn't as good for your credit as holding a small balance through to the next cycle.
... I did not know that. Holy fuck, there's more to personal finance than just "live below your means", save, and avoid/pay debt in order from highest to lowest interest rates.

Okay go ahead and break that down in layman's terms

>land is a limited resource

Meanwhile all humans on earth could cram elbow to elbow into the area of Texas. And if land is a limited resource, we should probably stop building 5 bed 4 bath mcmansions on it.

You don't need to go find something to spend money on.
Use your first card for regular things. Use your second for only one good. I use my second card only for gas and third only for eating out every once in a while. If you can manage 2 cards and pay them off, the credit card companies throw free money at you.

As an aside I was looking up mcmansions in my area and there are a ton of examples where the prices were 1 MIllion or less in 2005 , then went down to like 300K during the crash in 2009, and then were bought up and are now being resold at 3-5 Million dollars right now

its definitely a bubble, and its for the same reason: greed.

You clearly don't understand how credit works. If you had established some sort of history while you were younger you wouldn't have this problem. It's you're responsibility to understand how the system works, you can't just go into a bank autistically screeching demanding money. A sound history of making timely payments is one of the most important factors in your creditworthiness. It would be wise to start that process. Now you know

so whens the bubble gonna pop?

Would be nice to pick up a house on the cheap when shit crashes again.

It's fucked mate. Parents bought their house 30 years ago for 30k. After 30 years of paying it off they checked how much they could sell it for and they could list it for 200k. I don't feel like going into a huge post about a fix, but it's definitely fucked. Debt jew banks and greedy resellers/fix it uppers are to blame.

>buy shit house for 50k
>dump 50k into it making it nice
>resell for 250k
>young people can't afford it now

>thanks for a weak chuckle
>weak
Like your finances, capacity for critical thought, and libido? Your story checks out. Low test millennial confirmed.

I am hoping it will be less than five years time. At least for Canada. I'm not sure about the specifics of the US market.

Right, but the important point is that I simply do not otherwise need a credit card. If the only reason to get a credit card is to impress banks enough that they'll lend you money for a house, that's a fucking stupid, artificially propped up game. How can I be forced to spend money? How can I be forced to open a credit card that I absolutely do not need?

>LLC

Yeah never mind that I'm a sole proprietor and all the money being spent is mine, I better go open up another card I don't need for anything just to have the right piece of paper for someone else to look at. Fuck.

But you dodged my point. If you can't afford the risk and costs of homeownership than renting is not robbery. Home ownership is not just paying a mortgage, it's having a huge portion of your worth in one asset. You have to consider taxes, insurance, upkeep, and be prepared for natural disasters. Renting alleviates all of these issues.

Let me ask you this then. What if you knew your favorite coffee shop's expenses and their exact cost of making coffee. They own their building and their day to day is not particularly expensive. Do they owe you only charging you their exact cost? Is it robbery if they make a profit on investment? And don't give me some faggoty answer, you are essentially saying that return on investment is robbery

user, even if you just use your card for groceries and pay off every month it will give you decent credit for when you need to take out a loan for anything.

There is no bubble I'm the US yet, if anything the market is currently under supplied

Yeah housing is a jew trick. I read /out/ and studied the art of living innawoods. Now I just live innawoods and bring laptop to connect to internet in public libraries. Shower in gyms. Fuck the globalist housing meme. Housefags better pepper their angus when apocalypse happens.

It often works differently in NZ:

>What happens to the parents home when there is more than one kid?
One of the kids buys the rest out, or they manage it together as a rental.

>What happens if the kid can't afford the property taxes?
Very unusual because our property taxes are apparently much lower than yours - typically a few grand a year.

>What if the kids can't pay the death tax?
We don't tax death here.

>burgers complaining about their housing market

Shut up you fat fucks. You don't have it even half as bad as NZ, Australia or Canada.

What I'm saying is that someone that can "afford" rent for $800 can also afford a $400 mortgage with those other costs factored in. The "robbery" part comes in, particularly for the housing market, because housing is something practically everyone wants/needs and there are people trying to generate profit by purchasing and inflating the price on a product that other people could have bought. I don't expect a coffee shop to not make profit, but what I'm talking about is if someone set up a "coffee shop" where they just have a room for you to sit in, and they charge you $8 for a cup of coffee that they walk down the street to another coffee shop to pick up for $3.

It can go up because the demand for house goes up as more people move into the area.

It may sound stupid, but that's what lenders are looking at. Just get a card and put necessities on it you pay off every month, don't max it out. You're line will increase as well as your credit score. Plus a lot of cards will give you cash back or travel perks just for buying normal shit you would anyway.

>coined the "islam is a religion of peace"
>knew that Saudi king did 9/11, refused to do anything
>attacked saddam instead
>neocon cuck fully cucked to arab oil barons
redpilled as fuck famalam baka mfw omg weed lmao

>a lot of cards will give you cash back or travel perks just for buying normal shit you would anyway

...is this whole fucking game why there are so many cards with those options? People are getting jewed en masse so much that card companies have to say "look its not that bad!!!" and hand out presents?

>form a llc
>use it to build credit
>once credit is established, take a loan under llc
>buy house under another llc
>disolve 1st llc
>????
>free house.

Serious question: The current housing market is
a) purely a product of supply and demand
or
b) mostly driven by fiat currency inflation and artificially low interest rates

I don't think you can buy a home for personal use with a loan taken out by an LLC...?

>he doesn't know about aether theory of the electric universe

sheeeit

>And apparently, paying credit card debts off immediately isn't as good for your credit as holding a small balance through to the next cycle.
You don't have to hold the balance through the next cycle, it just has to appear on your statement.

Its 100% politics and what youre discovering is how the land monopoly has fucked you and everyone else

A man named Henry George laid this out nearly 100 years ago and offered up a solution. Instead of taxing income and capital we only tax the value a community has added to a piece of land. This will disincentive hording real estate and break the land monopoly.

This. Their mortgage payments are well under market rents and they're bitching because their credit's too shit to take advantage of low interest loans. How bad's your area? I'm stuck in Auckland and spend a lot of time looking at listings in the country and sighing.

>things that will never, ever be taught in school

Thanks, "education"

Basically just to differentiate from other cards or to tailor rewards to what you find most useful. Just be cognizant of your credit limit, don't bump up against that limit (this looks bad to creditors) and pay your balance every month to avoid interest charges.

It's as simple as being responsible. Unfortunately there are a lot of morons in our country who can't handle that

>What if the kids can't pay the death tax?
Try living in a state with no inheritance tax. But I feel for ya. Untold stories of kids having to sell property their parents owned free and clear. Imagine inheriting a farm or ranch worth several million, and then having to cough up half that in taxes. Fuck the government. That's pure evil.

>LLC
Not sure if jew or poo.

Professional musician. American through and through.

If you want a real solution to this problem look into Henry George

>inb4 communism hurr durr

Georgism is concerned with the distribution of economic rent caused by natural monopolies, pollution, and the control of commons, including title of ownership for natural resources and other contrived privileges (e.g., intellectual property). Any natural resource which is inherently limited in supply can generate economic rent, but the classical and most significant example of 'land monopoly' involves the extraction of common ground rent from valuable urban locations. Georgists argue that taxing economic rent is efficient, fair, and equitable. The main Georgist policy is a tax assessed on land value. Georgists argue that revenues from a land value tax (LVT) can reduce or eliminate existing taxes on labor and investment that are unfair and inefficient. Some Georgists also advocate for the return of surplus public revenue back to the people by means of a basic income or citizen's dividend.

Another Georgist. Mah nigga.

>tfw own a thriftstore/junkstore
>people give you random shit they dont want and its free money
>have a trade out deal with customers so i keep stock rotated and new things constantly available
>when economy is bad my business is incredible because everyone comes here for cheap used goods
>when the economy is good i get a bunch of free shit because people don't know what to do with the old so they take it here, aka free money because business is still good
>always have people coming in for used band equipment like instruments and uniforms
>thinking about opening up a video game area for all the highschool/middleschoolers who check out the place with their parents after school(business is in between a highschool and middleshcool)
>if it ever got bad i could sell the store for yuge profit

You have to be smarter than the average bear to start one, but owning your own business is far better than straight home ownership. I invested in a little junk store and before i knew it made enough money for a house. If you get a good location, you'll be in for a ride of dosh.

Im just going to keep shilling for Geoism and hope people will actually look it up
The privileged rentier class is ruining capitalism

The tax upon land values is, therefore, the most just and equal of all taxes. It falls only upon those who receive from society a peculiar and valuable benefit, and upon them in proportion to the benefit they receive. It is the taking by the community, for the use of the community, of that value which is the creation of the community. It is the application of the common property to common uses. When all rent is taken by taxation for the needs of the community, then will the equality ordained by Nature be attained. No citizen will have an advantage over any other citizen save as is given by his industry, skill, and intelligence; and each will obtain what he fairly earns. Then, but not till then, will labor get its full reward, and capital its natural return.
—Henry George, Progress and Poverty, Book VIII, Chapter 3

cheers

Wow. I've been thinking something like this would be a good idea, especially with automation start to eliminate lots of jobs. Didn't know it was a thing already though, so thanks.

Hahaha. No wonder you're so fucking stupid.