The inflated housing prices are largely due to speculative buying practices. How do we solve this issue?
People are snatching up properties for investment purposes causing the next generation to live extensively on rental properties instead of buying homes.
Bump
I made my last house payment 4 years ago
Was house poor for many years.
Property taxes are still a motherfucker though.
Which is driven by market speculation. The higher the perceived value of your home the more taxes you pay
The rollover has already started. There will be a large correction in many markets within the next 6 months. You will be able to get a house for cheap if you have cash. Credit markets are already drying up so it's just a matter of time now.
Oh, and don't forget about the liquidity market running to equities. When the Dow pops it will be a bloodbath. We are already in a tight liquidity squeeze. You can't have a dry credit market AND a dry liquidity market at the same time.
That's the the dilemma I'm in now....I can buy a house with a low interest rate but if the market crashes I could lose more money that I would on a higher interest rate.
>own a house
>have to mow grass
>rake leaves
>shovel snow
>deal with hundred other landscaping shit
>if anything goes wrong you have to pay for it out of pocket
>usually hundreds if not thousands of dollars
>if I want to move I have to sell the house and possibly end up paying thousands in closing costs
>rent an apartment
>don't have to do shit of yard work
>never have to worry about anything breaking because you just call maintenance and they fix it free of charge including replacing entire appliances when they break
>if I need to move for some reason I can just pack up and leave and don't have to worry about selling a house
apartment master race desu
this is coming from someone who owned a house with his ex wife btw, it sucked fucking balls, only nice thing was having a back yard
if you want to own a house you better be sure you have a lot of extra cash and be prepared to slave in the yard constantly including shoveling snow in the winter
Land value tax and significantly tearing down limits on construction
Definitely agree with you there.
Biggest issue is if you buy a house your payment will more or less stay the same. 15 years down the road you'll come out ahead when rent has doubled.
PREACH BROTHA
>How do we solve this issue?
Raise the interest rates to something that's not completely unrealistic (or even better get rid of the Fed) so interest rates are higher and not everyone will put so much in real estate thus not blowing it up so much
Get rid of subsidized housing, it makes people afford certain homes that they should'nt thus driving up property prices
Next two points may not apply to america but play a huge factor here in Vienna, probably most european cities
Stop state sponsored mass immigration
Get rid of all the real estate regulations which would make it possible for people to build apartments if there is a high request. Right now if you want to build a project in Vienna you have to be tight with lots of politicians, otherwise it's absolutely impossible.
39, 59
found your house nigger
>Sup Forums does it again
>nothing beyond our reach
Not a dilemma because once the rollover is complete, no-one will have access to credit. The banks are so over-leveraged that the debt will destroy them. I'm talking central banks will be fucked.
> tfw paid off house, tons of money in the stock market, and drafting job that depends on new construction
please don't pop, not again
please
But won't it just start all over again?
We are due for a pop. The pop is coming. In fact the markets have all been crazy last few months, lots of small pops. Building up for a big pop.
>the pop is coming late 2017-early 2018
More than likely after the dust settles (3-5 years), we will have a globally centralized currency with a high probability of it being fully digital.
I was giving it till 2020 back in 2013 but no way now. I saw that the exposure in subprime auto lending just in the US is 1.5 trillion. Repos are skyrocketing. That is definitely a big enough bubble to be a black swan.
Yeah, and the fact that there has never been a period of growth after a recession longer than 9 years in all of American history.
>and we're in year 8
What growth lol
Also check the rate of Americans defaulting on personal credit card payments over the last few months, it is skyrocketing.
How hard do you think it will crash? Will it lead to a global financial crisis again?
Really curious how/if it is going to affect real estate prices here.
Capitalist economies don't grow indefinitely, they alternate between periods of recession and growth. Also called bear and bull markets. Usually there is a small recession every 5 years or so, there's never been a growth period longer than 9 years. We've been in a growth period since the end of the 2008 recession, even if there isn't technically a lot of growth to speak of.
>thanks Obama
bumb
It's hard to say. If it happens sooner, it might be easier and out of the way in 6 months or so. If it keeps holding off my instinct is that it will be harder. Since our last recession was pretty bad and since our economic growth has been sluggish since then it could be a bad one again, anything could really happen. It also could coincide with some geopolitical disaster, like Turkey making good on its threats to flood Europe with refugees at the same time as international markets crash. It's unpredictable.
Honestly I hope so
Let's hope countries will have to default on their debt this time or go completely broke. It's long overdue.
That's true, debt has been increasing in a lot of countries too. Spanish banks for example are in a really bad spot right now and a crash could mean default for them. Same goes for a lot of South America.
All the way down. If you look at your average investment bank, they are impossibly leveraged. I'm talking JP, AIG, BOJ. There won't be a floor. Our current fiat system is a house of cards.
You'll get bail-ins far before the bank defaults
At some point even the countries won't be able to lend enough money. So they will print it too much and it becomes absolutely worthless -> bail in won't change much
This system of endless debt just has to die at some point, there is no other way. It is as certain as the early death of a drug addict, even if he's still breathing.
But be glad when it happens you won't be without a weapon in a country that recently accepted hundred thousands of middle eastern invaders who are 100% dependend on government assistence that will be gone.
>Just kicks the problem down the road 5 more years
>this system of endless debt just has to die at some point
Yep. And the longer it takes the worse it will be.
>But be glad when it happens you won't be without a weapon in a country that recently accepted hundred thousands of middle eastern invaders who are 100% dependend on government assistence that will be gone
This is the real issue. Migrants have largely failed to integrate and find jobs, tensions will only rise once the handouts dry up.
>tensions will rise
It probably is going to be a real civil war. All of those migrants paid thousands of dollars to come here. Many took out loans from loansharks so they can't return empty handed without big consequences. So they will try to get es much as possible through violence. And meanwhile the police won't have enough funds to operate. Please tell me who else this could end up, I would love to be wrong.
you already know how it's going to end up
I still have hope that people will realize that big government actually was the root of all evil that caused this. But yeah, it will probably lead to big government right wing parties. Which is at least better than big government left wing parties as it is.
>reinstate Habsburg dynasty
It's the only thing you can do. I think there are still a few of them alive and involved in politics there.
>monarchy
>martial law
>maybe buy a gun
Big government is always the enemy