America Should Become a Nation of Renters (1 Viewer)

[Sand]

You’re the one that used the word “prison”. It was a joke, but with a real point: it’s silly to use such a word. A mortgage is not any kind of prison. It’s a reasonable, voluntary loan of money with advantages to both sides. 

Tim, oh man.  That word is used in many, many contexts.  This isn't a Godwin's law thing - it's just a harmless figure of speech.

 

[The Z Machine]

Id be interested in seeing the numbers on who takes advantage of that tax deduction these days.  Once the standard deduction went up after one of the latest tax code changes...I would wonder how many have gone away from itemizing.  We did here as we just did not have much outside of mortgage interest and charitable contributions.

I seem to be just over the line where itemizing is worthwhile.  The SALT cap was the biggest hitter I would imagine.  It caused a big shift in the amount of tax I owed.  So much so that I claim 0 on my W-4 even though I have 2 kids and I still end up owing the feds a bunch at the end.

 

[The Z Machine]

Id be interested in seeing the numbers on who takes advantage of that tax deduction these days.  Once the standard deduction went up after one of the latest tax code changes...I would wonder how many have gone away from itemizing.  We did here as we just did not have much outside of mortgage interest and charitable contributions.

I seem to be just over the line where itemizing is worthwhile.  The SALT cap was the biggest hitter I would imagine.  It caused a big shift in the amount of tax I owed.  So much so that I claim 0 on my W-4 even though I have 2 kids and I still end up owing the feds a bunch at the end.

 

[timschochet]

Tim, oh man.  That word is used in many, many contexts.  This isn't a Godwin's law thing - it's just a harmless figure of speech.

I get it.  I’m not saying it’s offensive or anything. But I object to its use here. And it strikes me as strange that anyone who regards themselves as conservative would use such a term here for what is a voluntary transaction. Calling a mortgage a financial prison is something you might hear from a Marxist or radical leftist- it’s no part of capitalist ideology. 

 

[Sand]

I get it.  I’m not saying it’s offensive or anything. But I object to its use here. And it strikes me as strange that anyone who regards themselves as conservative would use such a term here for what is a voluntary transaction. Calling a mortgage a financial prison is something you might hear from a Marxist or radical leftist- it’s no part of capitalist ideology. 

Yeah, but you act like it's a moral objection, not an intellectual one.  I agree with you on what a mortgage is, but the use of prison in that sense is just fine.

Now, can we also agree that student loans are "a reasonable, voluntary loan of money with advantages to both sides."?

 

[Sabertooth]

I wish the article didnt mention Trump, but are you satisfied with the direction on real estate in America right now and for the future?

I am.  I have several houses selling for way more than I paid.  Also I’m still finding cheap homes to rent.  Couldn’t be better for me as a flipper/landlord.  

 

[Desert_Power]

I am.  I have several houses selling for way more than I paid.  Also I’m still finding cheap homes to rent.  Couldn’t be better for me as a flipper/landlord.  

Which markets are you doing that in?

 

[Sabertooth]

Which markets are you doing that in?

Very small rural Upper Peninsula market.  

 

[Nugget]

Yeah, but you act like it's a moral objection, not an intellectual one.  I agree with you on what a mortgage is, but the use of prison in that sense is just fine.

Now, can we also agree that student loans are "a reasonable, voluntary loan of money with advantages to both sides."?

Once the federal government steps out of the student loan market and they can be discharged during a bankruptcy, i will be much more supportive of student loans.

 

[Max Power]

I am.  I have several houses selling for way more than I paid.  Also I’m still finding cheap homes to rent.  Couldn’t be better for me as a flipper/landlord.  

Are you finding cheap homes to buy still?

In my area houses are listed and pending within 48 hours.  The ones that need work will sit longer.

 

[Sabertooth]

Are you finding cheap homes to buy still?

In my area houses are listed and pending within 48 hours.  The ones that need work will sit longer.

Yes so far.  I’m purchasing two different homes next month for $35k each.  I intend to flip one and renovate and hold the other.  I think the one I flip will go for about $110-$120k finished.  I hope to finish it in 2-3 months.  The other will be a duplex with each unit fetching probably $700 per month rent.  

 

[pollardsvision]

Yes so far.  I’m purchasing two different homes next month for $35k each.  I intend to flip one and renovate and hold the other.  I think the one I flip will go for about $110-$120k finished.  I hope to finish it in 2-3 months.  The other will be a duplex with each unit fetching probably $700 per month rent.  

I guess an $80K profit will ease the pain of $8 2x4's for the renovation. 

 

[Sand]

Once the federal government steps out of the student loan market and they can be discharged during a bankruptcy, i will be much more supportive of student loans.

Sure - just be prepared for the rates to rise to the level of an unsecured personal loan.  That's what they are and what the private market will price them at.  Expect 15-25%.

 

[Sand]

I guess an $80K profit will ease the pain of $8 2x4's for the renovation. 

I just paid $19 a board for 8 foot 2x8s.  General insanity.

 

[Stoneworker]

Pretty amazing how the Fed and Biden administration bury their heads in the sand on this issue.

Fed refuses to back off $40 billion/month purchase program of mortgage-backed securities (MBS)...artificially keeping mortgage rates low and throwing gas on house prices. They now own $2.3 trillion MBS...almost 1/3 of the entire market.

Now, with approximately $2.2 trillion of MBS in U.S. federal holdings, economists and strategists are asking whether the Fed is doing more harm than good for a real estate sector in a buying frenzy.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/fed-mortgage-securities-purchases-draw-fire-in-white-hot-us-housing-market-64425193

 

[NorvilleBarnes]

I get it.  I’m not saying it’s offensive or anything. But I object to its use here. And it strikes me as strange that anyone who regards themselves as conservative would use such a term here for what is a voluntary transaction. Calling a mortgage a financial prison is something you might hear from a Marxist or radical leftist- it’s no part of capitalist ideology. 

Tim, don't hold this thread prisoner over the use of metaphors.

 

[The Big Donkey]

Pretty amazing how the Fed and Biden administration bury their heads in the sand on this issue.

Fed refuses to back off $40 billion/month purchase program of mortgage-backed securities (MBS)...artificially keeping mortgage rates low and throwing gas on house prices. They now own $2.3 trillion MBS...almost 1/3 of the entire market.

Now, with approximately $2.2 trillion of MBS in U.S. federal holdings, economists and strategists are asking whether the Fed is doing more harm than good for a real estate sector in a buying frenzy.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/fed-mortgage-securities-purchases-draw-fire-in-white-hot-us-housing-market-64425193

1/3 of the MBS market?  jeez I hope that the credit agency's are much better now than in 07-09.  

 

[Max Power]

CALIFORNIA WILL PAY OFF ALL PAST-DUE RENT ACCUMULATED DURING COVID-19 PANDEMIC, NEWSOM SAYS

California Gov. Gavin Newsom and lawmakers are negotiating whether to extend the state's ban on evictions for unpaid rent.

...

California has $5.2 billion to pay off people's rent, money from multiple aid packages approved by Congress. That appears to be more than enough to cover all of the unpaid rent in the state, according to Jason Elliott, senior counselor to Newsom on housing and homelessness.

https://www.google.com/amp/s/abc7.com/amp/california-evictions-eviction-moratorium-rent-help-unpaid/10816581/

 

[BladeRunner]

CALIFORNIA WILL PAY OFF ALL PAST-DUE RENT ACCUMULATED DURING COVID-19 PANDEMIC, NEWSOM SAYS

California Gov. Gavin Newsom and lawmakers are negotiating whether to extend the state's ban on evictions for unpaid rent.

...

California has $5.2 billion to pay off people's rent, money from multiple aid packages approved by Congress. That appears to be more than enough to cover all of the unpaid rent in the state, according to Jason Elliott, senior counselor to Newsom on housing and homelessness.

https://www.google.com/amp/s/abc7.com/amp/california-evictions-eviction-moratorium-rent-help-unpaid/10816581/

Is he trying to buy recall election votes?  No doubt.

 

[Sabertooth]

I guess an $80K profit will ease the pain of $8 2x4's for the renovation. 

Paint an flooring buddy.  Paint and flooring.  

 

[Sabertooth]

I just paid $19 a board for 8 foot 2x8s.  General insanity.

Out of control.  

 

[Max Power]

Is he trying to buy recall election votes?  No doubt.

I support making landlords whole, but I'm not sure what the next step is.

This will be interesting to see how it's received by the renters who spent their savings to keep above water. 

 

[Sand]

1/3 of the MBS market?  jeez I hope that the credit agency's are much better now than in 07-09.  

I remember back when there was a big push for only requiring a 3% down payment.  Because, you know, real estate only goes up.

It's better now.  

 

[Bogart]

Does anyone think the bubble pops sooner than later? I own a paid off 3bed/2bath house that is valued at double or more of what I think the true value should be. Location is in Fort Worth. Been extremely tempted to sell, pay off the debt I have, save/invest the rest and rent until the prices come down. I would probably "clear" 10 years of rent (of a place nicer than mine) with the sell of the house (not counting profits from investing). And be completely debt free. And no property taxes or paying for upkeep. Two kids that come over every other weekend (16 and 12) would probably enjoy a cool apartment or condo situation. Also moving closer to my kids and to my office would be possible.

Where is the dark cloud to my plan?

 

[Stoneworker]

Does anyone think the bubble pops sooner than later? I own a paid off 3bed/2bath house that is valued at double or more of what I think the true value should be. Location is in Fort Worth. Been extremely tempted to sell, pay off the debt I have, save/invest the rest and rent until the prices come down. I would probably "clear" 10 years of rent (of a place nicer than mine) with the sell of the house (not counting profits from investing). And be completely debt free. And no property taxes or paying for upkeep. Two kids that come over every other weekend (16 and 12) would probably enjoy a cool apartment or condo situation. Also moving closer to my kids and to my office would be possible.

Where is the dark cloud to my plan?

I would re-examine the "save/invest the rest" assumption...most other financial assets are also in a bubble.