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Mortgage Rates (5 Viewers)


I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
 
did the concept of portable mortgages already die? seems like that lasted about 3 days.
Probably because that actually made some sense.
It did, and I'd benefit from it, but I don't see how the government could legislate it at all. They can't make ex post facto laws. If any private lender wanted to make their mortages portable, they already could. But how would that even work? If they issued a loan on a million dollar house and you downsize to a half million dollar house, they're just going to be ok with half the collateral?
 
did the concept of portable mortgages already die? seems like that lasted about 3 days.
Probably because that actually made some sense.
It did, and I'd benefit from it, but I don't see how the government could legislate it at all. They can't make ex post facto laws. If any private lender wanted to make their mortages portable, they already could. But how would that even work? If they issued a loan on a million dollar house and you downsize to a half million dollar house, they're just going to be ok with half the collateral?
Aren’t there countries that do this now? I’m guessing the original lender would still be on the hook for the original loan somehow and have partial stake in the new house as collateral. Would also have to be government backed I’m guessing.
 
Has anyone discussed what sellers are going to accept offers on their homes from buyers with 50 year loan preapprovals? Because I promise you they're accepting the most secure buyer 99% of the time. Just about any other offer on the table is getting accepted over one with a 50 year loan. This means that 50 year loan buyers are only getting accepted on homes with no other offers. And that means less desirable homes with issues. Now you're giving out loans to people on razor thin margins on homes just barely above "fixer-upper" level. So how are these people who need a 50 year loan just to save $200-300 a month in order to narrowly get qualified, going to afford it when the water heater breaks? Or the furnace goes? Or the roof starts leaking? Because those are the types of homes on the precipice of breaking that sit on the market with zero offers.

Now add those repairs on top of having next to zero equity 10 years in and tell me how this works without these razor thin margin buyers just giving up and walking away?
 
did the concept of portable mortgages already die? seems like that lasted about 3 days.
Probably because that actually made some sense.
It did, and I'd benefit from it, but I don't see how the government could legislate it at all. They can't make ex post facto laws. If any private lender wanted to make their mortages portable, they already could. But how would that even work? If they issued a loan on a million dollar house and you downsize to a half million dollar house, they're just going to be ok with half the collateral?
Aren’t there countries that do this now? I’m guessing the original lender would still be on the hook for the original loan somehow and have partial stake in the new house as collateral. Would also have to be government backed I’m guessing.
To the earlier question, at least in Canada you have to negotiate with the lender before starting your house search, get reapproved and get their ok on the portability. You then generally have a window of 30-90 days to sell the old house and buy the new one. If upsizing, you get a blended rate based on current rates and the old loan (keeping the same lender so they have the sole lien on the new property.) If downsizing, you have to pay the difference in the old mortgage down to whatever level mandated by the lender and there may be a prepayment penalty if the difference in loan balance is big enough. As far as I am aware, very few other countries do 30-year fixed rate mortgages or longer like the US (I think Japan was mentioned.) In other countries, they are shorter terms like 5~7 years so basically everyone has essentially ARM's. Lenders are okay with portability in that case because they know it's getting refi'd in a few years anyway plus for example, in Canada, Prepayment Penalties on certain loans are not outlawed like in the US which covers Fish question on downsizing.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Yup. I would add restricting foreign ownership. If you don’t have enough houses for US citizens. Why are we allowing foreign buyers of second, third, fourth houses particularly by countries that restrict foreign ownership themselves. About 2% of US house sales were from foreign individuals or companies in 2023 and 2024. China, Canada, Mexico and India made the highest percentage of those buyers. Three out of 4 of those countries have heavy restrictions for US buyers.in general I think we need to quickly get away from single family homes being used as investments.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
And take that money and put it towards incentives to build new homes, particularly those whose value will be under the median sale price for that ZIP code.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
 
did the concept of portable mortgages already die? seems like that lasted about 3 days.
Probably because that actually made some sense.
It did, and I'd benefit from it, but I don't see how the government could legislate it at all. They can't make ex post facto laws. If any private lender wanted to make their mortages portable, they already could. But how would that even work? If they issued a loan on a million dollar house and you downsize to a half million dollar house, they're just going to be ok with half the collateral?

The new house would still need to be appraised. If it’s worth less than the outstanding loan, the buyer would need to make up that difference (from the sale of the million dollar place).
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
 

"But with mega investors in the buyer pool, what chance does the average person stand of snagging that perfect single-family home in the desired area and for the desired price tag?

"Mega investors make life tough for first-time buyers," asserts Malone. "Both like to look to buy in the lower end of the market. First-time homebuyers, because they are often limited by not having substantial savings due to their age, and investors because there is more rental demand in those markets.

"Mega investors have multiple ways to outmaneuver the average buyer."

For example, mega investors have more cash on hand and typically don’t need financing, so they can offer a speedy transaction without mortgage approval or appraisal contingencies.

They are also more able to waive inspection contingencies since they are buying multiple properties and are diversified enough for the occasional unwelcome surprise.

Nor do they live in the property themselves, so they feel less of a need to maintain the property.

"If waiving contingencies isn’t enough, investors can also reach into their deep pockets and simply outbid other buyers," he adds."
 
And, yet, if we banned the mega investors, how would you like to be a home owner who now is selling into a very depleted pool of buyers? There are no easy answers for this one, because the system is already broken.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
 
And, yet, if we banned the mega investors, how would you like to be a home owner who now is selling into a very depleted pool of buyers? There are no easy answers for this one, because the system is already broken.

Yeah, I'm not looking forward to selling my dad's house right now. About to feel the pain of maintaining upkeep on a depreciating asset in real time. Not what I was bargaining for. I plan on listing it 'as is' as soon as possible, but even in a desirable location, I have a sinking feeling about this.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
The problem with multi-family is that we don't have the roads and infrastructure to support that density.

As a side note, my son works for a builder in the entry level market and they are into each lot for $80,000 in a developer friendly area.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
The problem with multi-family is that we don't have the roads and infrastructure to support that density.

As a side note, my son works for a builder in the entry level market and they are into each lot for $80,000 in a developer friendly area.
Then we should have been investing in that infrastructure too. Instead we get boomers and Gen X getting the benefit of appreciating real estate assets while Gen Z gets to pay rent while paying off big college loan bills.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
The problem with multi-family is that we don't have the roads and infrastructure to support that density.

As a side note, my son works for a builder in the entry level market and they are into each lot for $80,000 in a developer friendly area.
Then we should have been investing in that infrastructure too. Instead we get boomers and Gen X getting the benefit of appreciating real estate assets while Gen Z gets to pay rent while paying off big college loan bills.
So what? We are here now. Need a solution.

FWIW - I don't want to density the neighborhoods I live in either. That's why I moved there. They have less density.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
The problem with multi-family is that we don't have the roads and infrastructure to support that density.

As a side note, my son works for a builder in the entry level market and they are into each lot for $80,000 in a developer friendly area.
Then we should have been investing in that infrastructure too. Instead we get boomers and Gen X getting the benefit of appreciating real estate assets while Gen Z gets to pay rent while paying off big college loan bills.
So what? We are here now. Need a solution.

FWIW - I don't want to density the neighborhoods I live in either. That's why I moved there. They have less density.
Make new cities like China. Or invest in deteriorating smaller towns that have been hollowed out.

Or keep sprawling outwards so everyone can have their grass in their yard and 1.5 hour commutes.
 
It really is all about lack of supply. Not enough homes were built in the last 20 years to support the demand without escalating prices. One of the root causes was that existing owners are incentivized to prevent construction as that raises the value of their investment. The other is not wanting to densify existing neighborhoods. Basically boomers doing boomer things to benefit their cohort over others.

20 years ago, society and government should have incentivized building more multifamily units instead of loosening mortgage lending guidelines and bringing a subprime mortgage induced crash.
The problem with multi-family is that we don't have the roads and infrastructure to support that density.

As a side note, my son works for a builder in the entry level market and they are into each lot for $80,000 in a developer friendly area.
Then we should have been investing in that infrastructure too. Instead we get boomers and Gen X getting the benefit of appreciating real estate assets while Gen Z gets to pay rent while paying off big college loan bills.
So what? We are here now. Need a solution.

FWIW - I don't want to density the neighborhoods I live in either. That's why I moved there. They have less density.
Make new cities like China. Or invest in deteriorating smaller towns that have been hollowed out.

Or keep sprawling outwards so everyone can have their grass in their yard and 1.5 hour commutes.
I love the idea of new cities.

How we do these things probably is a mix of many answers, not one way.

In Texas, the answer is not to take away the reason you want to be here. It's to make more places like Frisco - exploding growth, its own downtown, a standalone city, not a 45 minute commute to Dallas every day but a place with its own economy.

But, say, in New York, where people are conditioned to public transit already, maybe it's investing in bigger and better public transit combined with building higher upward for more density. There's no abundance of land there, like there is in Texas.

In cities, I think we need to reclaim streets for housing and green space, and have more blocks where there's walking only, really, not vehicles, and reimagine and reengineer the space.

I could go on and on. There's TONS of stuff we need to try.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
:2cents: this is a reason I like our county’s policy of charging half the property tax for owner occupied. I’d be in favor of increasing the difference big time, like 5x for short term rentals
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
:2cents: this is a reason I like our county’s policy of charging half the property tax for owner occupied. I’d be in favor of increasing the difference big time, like 5x for short term rentals
LOL...hotel lobby got you too. In Asheville, Marriott and Hilton greased enough palms to outright ban them.

In reality, owner occupied should be charged double. AirBnB properties bring sales tax and tourist revenue and don't add kids to the schools. They are a cash machine for the local gov't.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
:2cents: this is a reason I like our county’s policy of charging half the property tax for owner occupied. I’d be in favor of increasing the difference big time, like 5x for short term rentals
LOL...hotel lobby got you too. In Asheville, Marriott and Hilton greased enough palms to outright ban them.

In reality, owner occupied should be charged double. AirBnB properties bring sales tax and tourist revenue and don't add kids to the schools. They are a cash machine for the local gov't.
The goal here is to encourage home ownership. So no.
 
The problem with multi-family is that we don't have the roads and infrastructure to support that density
Can you expand on this a little?

We don't have roads all over suburbia that go nowhere, that need to be maintained with tax dollars, because of multifamily. We have them because of single family homes. Some multifamily starter type townhouses close to town center in any of these NIMBY towns would be a tax win, and i don't really know what more infrastructure needs to be added for multifamily. We aren't talking about doubling the population, right?
 
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
Wouldn't prices falling increase LTV and thus increase corporate buying?

And, yet, if we banned the mega investors, how would you like to be a home owner who now is selling into a very depleted pool of buyers? There are no easy answers for this one, because the system is already broken.
The system is already very locked up. This would just prolong that, induce a correction, drop interest rates, and then we'd start to see a healthy cycle again.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
:2cents: this is a reason I like our county’s policy of charging half the property tax for owner occupied. I’d be in favor of increasing the difference big time, like 5x for short term rentals
LOL...hotel lobby got you too. In Asheville, Marriott and Hilton greased enough palms to outright ban them.

In reality, owner occupied should be charged double. AirBnB properties bring sales tax and tourist revenue and don't add kids to the schools. They are a cash machine for the local gov't.
Most property owners hate Air BnBs in the neighborhood. Single family homes were never supposed to be an investment, it’s a place to live.
 
And, yet, if we banned the mega investors, how would you like to be a home owner who now is selling into a very depleted pool of buyers? There are no easy answers for this one, because the system is already broken.
Is this the same homeowner who watched the value of their property go up 50% since COVID? I'm ok with that guy taking a haircut, myself included.
Yeah. Everyone wants a solution but a solution that doesn’t affect them………so nobody really wants a solution. Hence why we have the 50 year mortgage idea. A non solution.
 
The problem with multi-family is that we don't have the roads and infrastructure to support that density
Can you expand on this a little?

We don't have roads all over suburbia that go nowhere, that need to be maintained with tax dollars, because of multifamily. We have them because of single family homes. Some multifamily starter type townhouses close to town center in any of these NIMBY towns would be a tax win, and i don't really know what more infrastructure needs to be added for multifamily. We aren't talking about doubling the population, right?
Locally they are building multi family out the wazoo on any remaining piece of land (townhomes). No new roads to handle the traffic, just more trailer for the kids to go to class. Mass transit has been such a failure in the suburbs that the county got rid of the buses and offer free uber for those in need.
 

I'm not a fan of the 50 year mortgage proposal, but I also have a soft spot for the people who are working low pay jobs that want to start family or set down roots somewhere. Low earners have little path to home ownership currently and this could be an option. In most situations I'd side with owning over renting, but I can acknowledge it doesn't make financial sense for everyone.

I'd like to see more lower income earners become home owners, but I'm not a fan of tax dollars subsidizing that. I also believe its a very difficult challenge to make homes "more affordable".
Unfortunately we've seen what a government mandate for increasing the home ownership rate does. Speculative loans, financial "wizardry", a brutal retracement with owners getting crushed under negative equity, etc. It's a stark, very stark, lesson.

One thing the US could do is try and restrict companies from buying single family homes for the purposes of renting. One good idea I saw was to impose a fee for every non-owner occupied house owned by a person/entity. First extra house is 0, second is X, third is 2x, fourth is 3x, etc. At some point the fee will erode any ability of a company to make money. This will free up houses for ownership.
Der comrade.....should we put a fee on your second share of NVDA and increase it on each additional share so NVDA price drops to a level that everyone can buy a share.


According to this article corporate home ownership has dropped from 12% to 10% over the last 10 years. The reality is that price appreciation has put the market in a place where purchasing a home and leasing it is a losing proposition. Finding a flip that makes sense is nearly impossible at least in my market.

Here's another source that states 100+ owners have 3% of the market...

I can only offer my personal experience but I am of the opinion that corporations are influencing the real estate market more than in the past. I've sold multiple properties in my life and it wasn't until 2022 where I was exposed to corporate offers for a house.

We listed low in 2022 because our realtor guaranteed we'd get an aggressive offer. That was the truth. I received 5 offers in the first several days of being listed. Two offers were from corporations and both were about 15% over asking. Ultimately the highest bid was from a couple we met later on in the process who told us this was their ninth offer and they went to the highest end of their budget just to not get outbid again. We sold for about 20% more than asking.

Come to house we purchased at the same time and we moved a lot of that 20% we earned into our offer for my current home. We obviously got picked offering about 10% over asking. Again I met with home seller and he let me know he had multiple offers from companies (Above our offer) but liked our offer because he knew we were a military family. He also knew my family was interested in his other property that is right next door and wanted to keep the two properties linked if he could.

So while neither of these were corporate sales, they inflated both transactions. Luckily my current home has increased it's value, but the house I sold is Zillow estimated below what they purchased it for.
Investment homes, whether large scale corporate buyers or ma and pa trying to make money through AirBnB, are absolutely sucking up supply. Yet another reason we should let prices fall so they're forced to sell (they've already begun in some areas).
:2cents: this is a reason I like our county’s policy of charging half the property tax for owner occupied. I’d be in favor of increasing the difference big time, like 5x for short term rentals
LOL...hotel lobby got you too. In Asheville, Marriott and Hilton greased enough palms to outright ban them.

In reality, owner occupied should be charged double. AirBnB properties bring sales tax and tourist revenue and don't add kids to the schools. They are a cash machine for the local gov't.
The goal here is to encourage home ownership. So no.
Most of the homes are owned. You need make between $75,000 and $100,000 to qualify for a $300,000 home. Most peeps under 30 don't want to live in a $300,000 home. Their apartment with granite and LVP and community area with coffee bar, peloton bike, and pool table is much nicer. For $2800 a month rent ($100k to qualify) I can put someone in a $600,000 home. Builders aren't going to touch $300,000 homes in most major markets when they have $80,000 just in the lot and the permanently inflated material prices. Also labor prices are going up but we can't discuss why here.
 
The American Enterprise Institute estimates 64% of homes sold by the largest homebuilders provide permanent mortgage rate buydowns

After 3 years of heavy use, permanent buydowns have become a structural feature of the new home market, artificially propping up home prices

The problem?

When the forestalled price correction eventually comes (now), all these buyers are underwater

 
The American Enterprise Institute estimates 64% of homes sold by the largest homebuilders provide permanent mortgage rate buydowns

After 3 years of heavy use, permanent buydowns have become a structural feature of the new home market, artificially propping up home prices

The problem?

When the forestalled price correction eventually comes (now), all these buyers are underwater

Explain this to me like I’m a bit slow please.
 
The American Enterprise Institute estimates 64% of homes sold by the largest homebuilders provide permanent mortgage rate buydowns

After 3 years of heavy use, permanent buydowns have become a structural feature of the new home market, artificially propping up home prices

The problem?

When the forestalled price correction eventually comes (now), all these buyers are underwater

Explain this to me like I’m a bit slow please.
Builders are only able to move their $400k home buy offering mortgages with 3% year 1, 4% year 2, and 5% years 3-30. This is propping up home prices that should be falling. Lenders aren't allowed to offer these buydowns so the neighbor with the same home used for one year have to sell below this price. It's very likely that these new homebuyers will be upside down for several years. I'm already seeing it in local markets where 1-3 year old homes are selling below what they were purchased for.
 
The problem with multi-family is that we don't have the roads and infrastructure to support that density
Can you expand on this a little?

We don't have roads all over suburbia that go nowhere, that need to be maintained with tax dollars, because of multifamily. We have them because of single family homes. Some multifamily starter type townhouses close to town center in any of these NIMBY towns would be a tax win, and i don't really know what more infrastructure needs to be added for multifamily. We aren't talking about doubling the population, right?
Locally they are building multi family out the wazoo on any remaining piece of land (townhomes). No new roads to handle the traffic, just more trailer for the kids to go to class. Mass transit has been such a failure in the suburbs that the county got rid of the buses and offer free uber for those in need.
The influx on the schools was tough. I took several years for a new school to be built, but in that span of several years we had to have trailer classrooms, students without lockers, multiple rezoning that changed kids schools and a spike in student vs faculty rate.

I'm not against the growth in areas, but I don't have a lot of faith that county commissioners take everything into account and grow properly at steady rates. It mostly seems to be buying a 10 acre parcel and putting up 200 row homes.
 

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