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 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.
My grandparents bought their house back in the 1950s for the equivalent of 35,000 dollars adjusted for inflation and now that house is worth over half a million. The house I live in now was bought for around 150k back in the early 2,000s and it too would sell for about half a million. And of course, last year housing prices increased by 30% in one year. There is no way in hell this is sustainable. It is not a question of if the housing market collapses but when and it will thoroughly deserve it.
My grandmother bought a new house on top of Mt Soledad in La Jolla, CA for 0 down with a decent mortgage in 1960. I can’t even imagine what that house is worth today.
Your home rising in value doesn’t benefit you, because you still need to live in one if you sold it, and that home has likely also risen in value. Your house doesn’t grow when its value does. It doesn’t sprout an extra bedroom.
If you own multiple homes, then you can view all but one of them as an investment, as you can sell them when the market is good.
If you own one house and have a mortgage on it, then the market going down is bad because you end up with negative equity.
If you own one house with no mortgage, then the market going up is bad because it’s harder to upgrade. I wouldn’t mind my house being only worth £10,000 if it meant that I could buy my dream house for £20,000.
If you own one house with no mortgage, then the market going up is bad because it’s harder to upgrade.
Unless you’re retiring and downgrading. For those with families who grow up and move away, the house can be seen as an investment if they intend to move into a smaller space once they’re just a couple again.
Of course, that’s assuming their kids don’t have to move back home because of astronomical rent prices and a sizeable wealth gap…
If you look at history you’ll find banks have a way of getting what they want or destroying faith. It’s never straight forward. They have teams of lawyers, teams of people who make moves based solely on profit.
As a homeowner, there is nothing to be ready for. Nothing has value unless you’re trying to buy or sell it and I’m doing neither in the near/medium future regardless of the price of my home. I bought before prices went stupid so I feel like it is unlikely any crash will do the value to below what I paid.
Non-home owner, currently I could live a hundred lives and never own a home. It must crash, and it must become regulated to prevent this from occurring.
Home owner, I started buying back in 2007. Been through one crash, and if another crash makes it so I can move again, fuck it. Let the whole thing just burn.
I never counted on equity, and the system was fucked from the start. At least this way I wouldn’t feel trapped.
I already have a home. I don’t need 20 of them. I’m not going to get mad about something that benefits the majority of the control. It just sucks because a market crash just means that people who already have multiple homes are going to be able to buy even more.
Non-home owner of Lemmy here. I want you all to know that my fondest wish to see the housing market completely implode is strictly not personal.
My only chance to buy a house slipped away a few years ago. House prices have gone up by 50% or more in some locations, and interest rates have more than doubled. What was previously affordable is now completely outside my means to pay for each month.
My last hope now is for a 2008 repeat so I might be able to snag something up for what it’s actually worth. I certainly can’t count on the state or the government to take the housing crisis seriously enough to have them actually build more affordable housing for people to buy and drive the asking prices lower.
I feel this so much. My dad was a general contractor in California during the 2008 crash; we lost 6 houses that were either ready to sell, or still being built. So I personally know the kind of pain and suffering that a housing market crash can cause for certain people. At this point though I have to look out for me and my family, currently renting part of a way-to-small condo in an area where you’d need 3 incomes to afford a mortgage on a house big enough for all 4 of us.
So yeah, crash and burn market. Give me a chance to get us out of here.
It was a gigantic mistake to ever allow homes to become investments. That economic value growth is only possible by limiting the availability of homes near popular areas, which is by definition exclusionary meaning some people must be priced out of having a home in a place with good opportunities.
It’s not just unfair, it’s also inherently unstable. You’re eventually chasing away many of the workers you’re dependent on, you can’t avoid bubbles and crashes, etc.
Not a fellow home owner, in my early 20s and debt free. I feel soo bad for people who sign the dotted line on 400k mortgage and agree to decades of slavery to the economy just to have a poorly made suburbanite 2 story 3 bedroom. My parents tell me its not worth it, and I believe them. The only option for my generation that doesn’t involve half a lifetime of mortgage slavery is to either buy land somewhere extremely rural and build atop or get used to the idea vanlife/nomadic living. I refuse to get into debt, period. Would rather live out of my van and pay myself rent while working and save up the money for a little plot of land in the mountains. My sympathies to anyone who goes the ‘normal’ path and eats 500k in debt in this day and age.
I don’t get it either. Got into a thing with someone I know recently. What exactly is the worse case scenario if I rent for the rest of my life? And all they could come up with is I might not making as much money. Ok, so that is it. I won’t be as wealthy as I could potentially have been.
So yeah a slightly shittier nursing home, big freaken deal. It’s not like my entire life is going to be ruined it means that I could have had slightly more money when I am too old to do shit with it. Potentially. It isn’t even a certain thing the housing market can do whatever it wants.
You people are freaken nuts. Half million dollar bet on a wood house that a single flood or fire could destroy you. You have zero control over your taxes or if some zoning department person wants to just ruin your life. And the entire awful system only exists because the government is going to bail you out. Well guess what, the government will be broke one day.
You people are freaken nuts. Half million dollar bet on a wood house that a single flood or fire could destroy you. You have zero control over your taxes or if some zoning department person wants to just ruin your life.
In fairness, my mortgage is never going to go up aside from property tax which is pretty reasonable here, whereas our rent was going up every year. Also every mortgage payment is at least in part a bank deposit towards when we sell at some point.
I don’t know why you say that. Your taxes can easily go up, your insurance can go up, and your bank can do all kinds of games. Which doesn’t even deal with if your neighborhood changes and your house is underwater.
I bought a reasonably affordable small home in 2019 when I was 21-22. I got it on a 15 year mortgage. That means by my mid 30’s I’ll own my home outright and will be able to put my entire mortgage payment (minus property taxes) into my bank account every month, opening up tons of possibilities for the rest of the best years of my life. If I was renting that would never be a possibility, and I’d have to pay ever increasing rent until I die.
If I hadn’t bought my house at what turned out to be a steal at 240k with low interest 4 years ago I would be looking at like 50k middle of nowhere properties. If it has even a broken down house there with plumbing/electricity then it would mean that a trailer would hook up nice.
I hope you are able to save up for a nice tiny home away from cost of living nonsense with good internet!
Thank you! I am actually completely content living in a 4 season canvas tent + propane heat and would rather build my own little cabin on-site than pay 60k for a ‘tiny home’ (glorified shed IMO lol) I also download most of my entertainment to hard drive and have lots of offline games and ebooks (and other hobbies that don’t involve the internet) so as long as I can go to the library every month or two and stock up on entertainment with their wifi ill be happy as peaches! Not everyone is willing to give up modern convinence like I am, very grateful to be able to live cheap and minimal.
I was looking at that and it’s so annoying how many cities ban living on property you own like that.
Cause honestly everyone living in trailers on bits of property until land lords get foreclosed on feel like our best bet. But so many places are like nooo you gotta live in a 500k house. We would rather the lot be empty than you have a little camper trailer you live in on it.
Oh yeah absolutely was just told a story about a family who built a little tiny house for elderly parent instead of nursing home. They drew up design blueprint, got the specs, had it all professionally drafted and built to code, and then they are told to tear it all down because it was 200sqft less than minimum requirements. Like 1. why didn’t they tell them that before it was approved by city and 2. come on show a little humanity even if its not exact code any reasonable person would look at that and go whatever good enough. When you can’t do what you want with your property without jumping through a dozen buracratic hoops, it isn’t really your property in anything but name IMO.
Also IDK where you live but over here where I am theres abandoned shopping malls EVERYWHERE left to rot. I say we should spend some tax dollars to renovate them and their big ass lots and turn them into homeless shelters/ extremely low cost living areas. No they would rather them just rot if they aren’t making any money.
If more people lived with that sort of style, they wouldn’t even have to give up modern conveniences. If there was higher demand, there could be development to increase internet accessibility in residences like that, better equipment for cooking and plumbing, insulation, etc. There could be modular small dwellings easy to build, like the way people used to get Sears home plans and lumber delivered and build their own house.
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