Fellow home owners, are you ready for the housing market to crash?
I know I’m supposed to want it to keep going up as a wealth generator or whatever.
But like… I wouldn’t be able to afford the monthly payments if I bought my house right now and it’s scary. Also none of my friends are buying homes, none of them are even renting full places. Just like renting rooms.
I’m just trying to build wealth and just entered the market, so I’m not too excited for me, but it needs to happen. It’s a basic necessity that the majority of people can’t afford, how is that okay? I will lose a bunch if the market crashes and probably never be able to achieve my goals, but its not very feasible right now anyway. I wanted a hobby farm, thats never going to happen regardless. Something has to change.
I got mine paid off this year, was paying extra every month.
this was supposed to be a starter home and I always wanted to buy another house eventually that I seemingly cannot do anymore.
I play around with mortgage calculators every so often and look at houses in my area. One of them at current rates would have someone paying well over $10k per month at 20% down, not including utilities, food, water, gas, etc. (it is a 1.4 million home). My wife and I were speculating on the type of person who could even afford that, if you follow the rule of don’t spend more than 50% of your monthly on rent.
Houses are not wealth generating. They are a long term investment. So long that the value of the dollar declines so much that it makes you think that your wealth has increased. At best, buying a house is a hedge against inflation.
Buy a house when you feel like its a good decision for you and your family. Until that day just save your money and stack sats.
A house is a home for many. For others, a house is an investment. Betting on the value of your house to increase is the same as betting on the devaluation of the dollar. A house holds its value but doesnt increase. A house degrades and cost money to keep in good, usable shape. The reason you can sell a house for more than you paid for it is the value of the dollar.
Bought my house in 2019, and it’s apparently worth 30% more than what I paid for it if my rates bill (local property taxes for the US people) is anything to go by.
Problem is, it’s all paper gains. The only way I see any of that money is by selling my house - which I kinda need in order to live in - and buying something else that has also gone up by 30%, so I’m net-even, less increased property taxes which I directly benefit from via improved infrastructure.
Now if I was a blood sucking parasite and bought a second house as a rental property by using my increased capital to muscle out first home buyers with less capital, then the gains might be enough to allow me to sleep at night under the weight of my own crushing dread at the person I had become. Maybe.
I bought this year in the US w/ my partner. Thanks to my credit union, got a rate about 1% lower than average at the time. Mortgage payment is significantly less than rent and most importantly: it’s going to be way, way, WAY less than rent in 10-15 years. Sure, we’ll have other associated home ownership costs, etc etc, but it’s worth it to us. Also, honestly, we LOVE this house. Took our time to find the right place and it has paid off, much happier here than any of the places we rented.
I’m torn, I really want to move but don’t want to play the current interest rates. I bought high but have that great interest rate. I’m also looking to move again since my job is not fully remote and my girlfriend hates my house.
The house I live in is paid off and it’s supposed to be our forever home, so market value doesn’t matter much. For my two apartments I rent out it is more relevant. On those I have a fixed interest for another 5+ years still ahead of me. After that I‘m hoping that I’ll still be able to afford the higher interest rates on the by then lower balance.
Already happened here, 30% wiped off house values since the end of 2021 and still falling, interest rates still going up. Incompetent goverment has crashed the economy hard. Fortunately we’re mortgage free, and getting renovations done while the economy is down
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