That makes sense. I am on the east coast and I did not get why home price was going up when interest is also going up. Bought last year in July for 280k (brand new-built), and same home selling for 294k now.
I've been waiting for the home prices in CA to drop so I can jump in and buy another investment property. But I don't see it happening in SoCal....and in other parts of CA. Although it's not as crazy as 2021, it's still a seller market (despite the high interest rates). That's because the number homes that are listed for sale remains very low.
I graduated in 2001 but I had been “broke” for a long time. It took my wife and I 5 years to pay off our student loans. We didn’t start investing in rental properties until 2008. And our rental properties have only appreciated 2X as much in value.....and we are very content with this. Yes, they would be 3-4 times more, if I started investing in the early 2000s. I wished I had the money in the early 2000s….but if I did, I’d probably go out and spent it all on stupid things like most young new college grads, who have very little life experience. I too had very little life experience when I was a young grad.
It’s definitely easier for our parents to build wealth. Even with the income of less than $30k a year, my parents were able to buy a house, their only house, for $134k. They rented out the other rooms when all of us moved out for colleges. When we graduated, we had to help our parents to pay off their house because they came to this country when they were in their early 50s and didn’t save enough for retirement. When my mom passed away last year, my dad sold the house for $890k. He kept 1/4 of the sold amount and gave 1/4 to each 3 of us, siblings. He currently lives with my sister.
I feel really bad for the younger generation. A $100k/year income is no longer impressive. Sadly, there’s nothing these young people can do to stop this inflation money printing madness. The more things the politicians try to do, the more problems they create.....and give their citizens false hopes. Recent and future college grads will have to work harder and longer to save for retirement.
It’s definitely easier for our parents to build wealth. Even with the income of less than $30k a year, my parents were able to buy a house, their only house, for $134k. They rented out the other rooms when all of us moved out for colleges. When we graduated, we had to help our parents to pay off their house because they came to this country when they were in their early 50s and didn’t save enough for retirement. When my mom passed away last year, my dad sold the house for $890k. He kept 1/4 of the sold amount and gave 1/4 to each 3 of us, siblings. He currently lives with my sister.
Hopefully, you parents have saved enough and won’t need to sell their houses to fund their retirement….and these houses will eventually belong to you and your siblings.
I feel really bad for the younger generation. A $100k/year income is no longer impressive. Sadly, there’s nothing these young people can do to stop this inflation money printing madness. The more things the politicians try to do, the more problems they create.....and give their citizens false hopes. Recent and future college grads will have to work harder and longer to save for retirement.
In the past, young people/young college students could afford to take gap years, to switch career (by going back to school and taking out more student loans), and to spend time to enjoy their youth for several years before starting to get more serious about saving for retirement. In other words, there was more wiggle room for mistakes in the past. Now, it is very important for the young 18-19 yo kids to make the right decisions (choosing the right college with low tuition, choosing the right college major, avoid taking gap years etc) as early as possible. It is better to start working and saving early in life….the more years one works, the more money he/she makes and saves.
Inflation is still very sticky. There is a shortage of skilled labor. Shortage of good experience. Shortage of human capital. Our nation exploded with the baby boomers generation because the post world war 2 economy meant there were a lot of people around to build new industries which helped economic growth and prosperity. Those days will not be repeated in current and future economies. The stock market will not perform the way it did the last 4 decades because productivity is not the same as our parents generation.
Young and futures generations have/will have different views of work. They lean more on their parents. Most young adults still LIVE with their parents. About 1 in 3 men between the age of 15-44 today are fathers, while about 50% of females of the same age are mothers. About 30% of men under age 35 are still virgins. There are economic and social reasons of why the birth rates are still declining, and in 15 years (by 2040), nearly 100% of our population growth will rely on immigrants - if we’re lucky. Because this is a global trend. The internet changed humanity’s mindset about life and the need to form families, and recent economic challenges exacerbated the attitude change towards life. Just look at declines in college enrollments, the 10M+ open jobs for the past few years, lack of labor participation, everyone asking for a raise to make ends meet, etc. Its the new normal.
Our society can’t function at elevated debt, elevated inflation, elevated median age, elevated shortages in affordable homes, etc. These economic trends are all happening all at once across the country for the first time in the history of the nation. It’s nice that our parents have nice nest eggs to retire on, but will their kids even get social security benefits when they retire? Unless inheritance and wealth transfer happens in a big way to young generations, most of those kids (now in their 40-50’s) didn’t save nearly the same amount as their parents adjusted for inflation. Specially with future taxes going up. Yes, we have nice and cool things today than 30-40 years ago, but the demand for more innovation and progress will become even more expensive at a time when debt is already servicing most things for consumers. More printed money will be needed to support and fix our economy from current and future cracks, and there are already many in the system today.
America has over 4,300 “banks”, while Canada has about 30. Canada population is about 10% of the US, yet, in America… it’s cool to have multiple credit cards and banks… and debt. Today, about 10% of our banks could be weeks to months away from collapsing due to lack of liquidity and inability to raise money and stay in business with good reserves. That number will likely increase during the age of mobile banking. It can take hours for bank customers to do bank runs on their banks at small and regional banks. As the Fed raises rates higher, which means less demand for lending, it will hit most of our financial institutions margins in a big way. We’re now seeing 5-15% spreads in interest rates for banks to give loans (depending on borrower’s credit); for mortgages, personal loans, small business loans, etc. So we will see less access to capital over the next 6-18 months, which means the economy will start to choke, less growth and bubbles bursting. Small business bankruptcies are already up, which means the commercial real estate industry (specially offices) will have more empty spaces with “for lease” signs. The owners of those properties will not be able to meet their loan obligations; as 1 trillion dollars of debt is due for refinancing this year at a higher interest rates, and another 1 trillion due next year. The CRE market is heading towards a train wreck.
Greedflation is screwing everything and it will only get worse. It’s effecting society’s values, as money continues to become the only motive.
Source: https://www.wsj.com/articles/americans-pull-back-from-values-that-once-defined-u-s-wsj-norc-poll-finds-df8534cd
Technology has accelerated everything. What used to change years can change in weeks if not days.
America be like…
The moral of the story is there’s nothing you can do about the national debt…about the weak US dollar. Keep your finances in check and you will be fine.
Agreed, but being aware of what's going on in the world is how you stay ahead of the curve. Investors that understood what QE meant in 2009...and what "buying" corporate bonds of March of 2020 knows what that meant. The one's that basically went through their day to day life, saving their money in .01% interest rate accounts and <1% bonds basically got screwed. Just look at bitcoin. It was one of the reasons why it was created, and why it was invested in- people saw and understood that paper currency is just gonna get printed and devalued opened at .09 cents in 2010- and look where its at today.
Why worry about things that you that can’t control? Work less and spend more would be irresponsible things to do right now. Based on the current negative trend, one should do the exact opposite….work more, spend less and save for future retirement
I definitely agree with you on the speed of change the days. But Lula is saying the same stuff he said back in the 90s, the guy had always been anti west particular to the US, so his comments are no surprise. I will be curious to see how his term does, the guy has a long history in politics down there involving corruption and this last election was very close. As for China that's a can we been kicking down the road a longtime, Trump finally took it head on, and it looks like he was right. The 2024 election is gonna be critical.
I’m pretty sure Musk has flagged your Twitter account as “state-affiliated media.”
I was in North Miami Beach, Hollywood, boca and fort Lauderdale
that is excellent compensation, you're making this as an associate or owner?
Good luck with that! The only thing that will stop it is if the Feds start living within their means. And that’s not gonna happen, because they’ve got the meat bots in the country addicted to the handouts. And it’s the handouts that get people elected.
Median student loan debt is $40k, median home price is $450k.
Yes, Covid was a major economic disrupter with a subsequent and substantial inflationary period.
I don't agree with Thehighwind87 on a lot of things, especially on the "dentistry vs other professions" topic. But I have to agree with him on this one. Our county is heading in the wrong direction. When I graduated in 2001, the national debt was under $3 trillions. Now we are at 31 trillion in debt. The median home price was in the mid 200s and now it is in the mid 400s. Housing affordability is at an all time low.
I agree with mostly everything you said. I was focusing on his wording of “we going hyperinflation”.
Houses in my area (just average middle class neighborhood) pre pandemic was around 400-500k. 700-800k was considered a new house with great square footage. Everything on Redfin now is selling for 1 million+ and those that were “newer homes” 1.5+. But sure cpi is “only” 5-6% lol.
The median home price in 2019 was $250k. So again those $400-500k houses were 2x the median pre-pandemic. Not sure if that would be considered average. Maybe for the area? But sounds like an expensive area. Those who can afford it will, those who can’t won’t. Sounds like your practice will become even more valuable due to higher income folk moving in. Must be a fairly desirable area!
Makes me wonder who is buying too, and who can afford those payments and yet still thinks it's a good idea to live in an area with the cost of living that high
Persistent inflation =/= hyperinflation.
Do all of you guys live in the bay area, LA, NY, DC, south FL etc...?
We all should move to TX so we can afford a decent place to live in.
95 N Floral Leaf Cir, The Woodlands, TX 77381 | realtor.com®
View 28 photos for 95 N Floral Leaf Cir, The Woodlands, TX 77381, a 4 bed, 3 bath, 2,688 Sq. Ft. single family home built in 1993 that was last sold on 06/13/2023.www.realtor.com
Plenty of room for a good life at a reasonable price outside the top 20 largest metropolitan areas in the country (I know you just cited Houston, but still). I've lived in two of them, and people might be shocked to learn we have Indian food, let alone electricity and running water!Do all of you guys live in the bay area, LA, NY, DC, south FL etc...?
We all should move to TX so we can afford a decent place to live in.
95 N Floral Leaf Cir, The Woodlands, TX 77381 | realtor.com®
View 28 photos for 95 N Floral Leaf Cir, The Woodlands, TX 77381, a 4 bed, 3 bath, 2,688 Sq. Ft. single family home built in 1993 that was last sold on 06/13/2023.
