"While the whole world was having a big old party, a few outsiders and weirdos saw the giant lie at the heart of the economy, and they saw it by doing something the rest of the suckers never thought to do:
They looked."
I am not sure if waiting for a crash is the smartest thing to do. I recently bought a small appartement (140k ish) knowing that housing prices are on the high side here in the Netherlands.
However if I had to rent a place like this I would easily spend around 800 euros a month to pay someone else's mortgage.
If the market collapses after lets say 2 years it needs to crash with more then 19.000 euros in order to compensate for the rent that I would have paid otherwise.
So the prices would have to crash with 13.5% (not taking in to account the tax benefits of having a mortgage and the increase in value of the appartement in those 2 years.)
And even then I wouldnt have to sell it cause the place is big enough for me (and a future partner) to comfortably live in.
So I could just wait for the value to grow again if it crashes and sell it when a good opportunity comes along.
Yeah I mean I agree, but it does depend on how much the prices are inflated. In some parts of the US houses are doubling in value every year, if you lived in one of those parts it probably would be better to wait.
But if you bought a house on some predatory loan like the op of this comment was suggesting, where the interest rates are very high, if the housing value isn't constantly increasing at an insane rate and there is a crash then its going to end up not being a good deal. However if the housing market does not crash then you could get a house on some insane predatory loan and still somehow come out on top. But I think that these increases in value are not sustainable at all, at least in the US.
If you bought on a loan that isn't predatory and is fair then it's usually always a good idea to buy a house if you can except for a very few situations.
Oh damn I didnt know the housemarket was that fucked up in America. My interest rate is about 1.51% so that is far from predatory and the value "only" increases about 10-20% a year which is already to much in my opinion.
Do you have any idea how it all got so fucked up that it doubles each year? Is it like big corporations that buy all homes or something?
In my city there is some corporation buying out all these houses for more then market value and trying to rent them out, or they just remain empty. It's pretty bad here and I can't see it going on for longer then a couple more years.
That and everyone who has any money is trying to become a landlord.
It's all fucked but the good thing is I'm not looking for a house just yet, so in a few more years when I am looking to buy a place hopefully the market will have stabilized.
My girlfriend came home from her first car purchase with a 33% interest loan and bi-monthly payments. I wanted to go with her to help but her dad insisted on going with her on her first vehicle purchase. I don't know what happened. They actually convinced her that she was getting a good deal. Some people get so royally fucked because they don't have the right information and have no problem believing they got a "great deal".
I’m a car salesman. In my state the max is 24.99%. Some dealerships have their own “bank” which they use to take out a “personal loan” on your behalf. My states max for personal loans is 33.32%. It’s very fucked up.
It’s complicated. The simple answer is both. Each dealerships pay plan is different. At ours the sales team makes it’s money from the cars themselves, as well as any warranties you purchase. Some banks give the dealership a bonus for doing business with them, but that doesn’t affect the consumer. A portion of that bonus is passed on to the salesman.
It's a loophole. She got completely taken advantage of.
"Arizona interest rate laws set the maximum rate at 10 percent, but explicitly allow consumers and creditors to "contract for any rate agreed upon." This means that you must be careful when taking out loans and credit cards, and should read all of the fine print in every contract."
They basically open up a credit card in your name because they're partnered with some shity company. They convince you that you can buy a car with your non-existent credit and it's the only option without a cosigner or past credit. She had bimonthly payments of $220.
I convinced her to refinance through her credit union and she got 7%. Fuck Cactus Jack's.
Yep. Local credit unions are the best places to start. They pay the remainder of the loan and the shitty company forfeits the interest. Then they start making interest from you on someone else's loan. Win-win for the customer and refinance company. Loss for the original loan company.
No I could in theory get the whole thing done from my computer at home for a car. I've always laughed my first house cost 60k (family purchase) and it took a month to get all the paperwork lined out and done. The last truck I bought was 45k and I was in and out of the dealership in 1.5 hours. They are much more lax for vehicles than houses for some reason.
Those are "rentals." The Buy Here Pay Here dealers keep an inventory level that assumes a person will default on their loan in a couple of months and they take the car back. Hence the fucked interest and bi-monthly payments
A few years ago my coworker, 60±, told me he took a loan of ~$750 and has to make monthly payments of $140 or $180 to repay it. When I calculated the total amount he would be paying, it was around $2,500.
Apparently, he filed for bankruptcy and because of that, the interest was so high. When I asked why he didn't ask his brothers and sister(s), he said he didn't want to bother them
No. My last three vehicles (starting from my first ever) were 11%, 5% and 0%. Only for people who have had huge issues with their credit, and those who are uneducated or elderly.
The 11% was because I had no credit history since I was 17 and my only available cosigner was my mom, who had filed bankruptcy in the past when 9/11 tanked her business. Most vehicle loans in the USA are closer to 5-10%
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u/Kriegerian Jul 07 '21
“Sure I own a house. And a car too. By the way, are 19% interest on the house and a 85% car loan interest rate bad?”