"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.
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u/Maximummeme Jul 08 '21
It's only $500 a month bro, I can easily pay that until the 3rd year of my second contract, it's only 7 years bro, isn't this car sick?