Even the super rich like Gates and Musk say they don’t plan on leaving their fortunes to their kids. However, they really mean they don’t plan on leaving billions to them but more like $50-100 millions. I see Bill Gates brought a house recently for his daughter for about $50 million for her to live in.
How are you raising your kids now? Are you giving them almost everything now? They will have already developed their behaviors by 10-12 years old by the way you raise them. By the time the kids are ready to inherit the money, they will be in their sixties and it will come in handy if they weren’t successful. Should every generation have to make it? I believe it take hard work and some luck being at the right place at the right time. It might not be the right place or time for your kids.
My kid has already been in houses on Remsen Ave in New Brunswick with me (which my wife would kill me if she found out) amongst other slums in New Brunswick to see how people live. They will have their asses put to work early and often. My wife believes in that as well.
We locked a 4.75% rate last july, put 28% down. 3500 mortgage, Insurance, taxes. Did the math recently to see what our monthly payments would cost with current rates all else equal and it roughly worked out to be 1200 bucks more a month! Add to that ~6% YoY growth in prices around here and people have to be getting ****ed. I don’t get how the market hasn’t softened, supply really must be at crisis levels in CNJ.
You now have a lot of people who bought or refied from '20-'22 at 3-3.5% who aren't going to be able to move in the foreseeable future. My 29 year old nephew and fiancé (now wife) bought out in Denver last spring and got 3.25%. They would still be renting at today's rates so they are going NOWHERE.
Your hunch is right: there is very little inventory. It's for the reason you give: homeowners are not trading up because that would mean giving up their present interest rates for much higher rates. So there is fierce competition and sometimes bidding wars for the few houses that go on the market.
The seven members of the Federal Reserve Board of Governors serve 14-year terms. The terms are staggered so that only two come up for reappointment at the same time. So elected officials, let alone voters, have little sway over them. https://www.federalreserve.gov/aboutthefed/bios/board/default.htm
Very true . I also think there is more to it . There are so many Milennials sitting on the sidelines looking to buy and later generation x folks that might want to upgrade that just can’t right now.
So possibly once the interest rates go down, that may help inventory but it could drive prices even higher. I think @kyk1827 touched on this
I'm in same boat as you and @kyk1827 . Paid my own way through RU and law school. No debt after law school bc we lived like serfs. My oldest graduated RU and has a very high paying job in Midwest, and will be fine. Youngest on way to being a physician assistant. Both are grinders like Mom and Dad. F&ck giving money Rutgers. Did it once and never again. Foundation is a misery. R Fund is a different story, and run well. Will probably give a lot of money for cancer research.
When our Belmar rentals went under water after Sandy, we put our 8 and 11 year old kids to work. We had to get them cleaned out and dried out to avoid mold. They did not complain. They had fun. We fed them well and rewarded them for their hard work. They saw how hard their parents worked to give them a good life. They know those houses will be theirs some day.
Yea it’s been an issue since reagon slashed the rate in the 80’s…
Like I said, we all know the person who bought X property for $150k in 1992 that’s worth 750k today….
I’m at 2.25% on a 15 year. I had been looking to trade-up for years but with no inventory and my crazy low rate it’s looking less and less likely.
Both parties are in on this debauchery of the government finances. We've been lied to over a period of decades. At this point Americans are living in a false reality with respect to spending. The lies about the country's financial state are so embedded that any fiscally sane politician stands very little chance of being elected over the lobbies.
Hard to give up that mortgage. Almost free money at that rate.
Which direction do you guys think the housing market will move into after Fed cuts rates?
Will it free more capital and cause the market continue moving up like 2021?
Or will it open up more supplies and make the market cool down a little bit?
Will it free more capital and cause the market continue moving up like 2021?
Or will it open up more supplies and make the market cool down a little bit?
Unless you need to move or a bigger house. Funny thing is people stop taking 30 yr fixed because most people don’t stay in the same house long term anymore.
Reagan did not slash the rate; the Federal Reserve did. And they did it only after radically increasing rates in 1980 to curb inflation. I bought a house in 1980, paid 12% interest on the mortgage, and was grateful that I had locked in at that rate; by the time of closing, interest rates had climbed to 19%.
New York City is so expensive, NYC folk are moving to Jersey City — Business Insider
New Yorkers fed up with a tough housing market are making the pilgrimage to Jersey City. While Jersey used to be a New York taboo, it's now booming — and even cool. New York City housing is becoming more elusive and expensive, and Jersey City is an attractive option.
I don’t know if I want more New Yorkers moving to NJ, housing in the entire North Jersey increases and businesses increases. It might explain all those new apartment buildings in Newark, they will move there at some point.
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anon_0k9zlfz6lz9oy
Guest
Not saying its the only reason but a big reason for all the development in newark and poor communities in general is due to the trump/scott opportunity zone legislation
New York City is so expensive, NYC folk are moving to Jersey City — Business Insider
New Yorkers fed up with a tough housing market are making the pilgrimage to Jersey City. While Jersey used to be a New York taboo, it's now booming — and even cool. New York City housing is becoming more elusive and expensive, and Jersey City is an attractive option.apple.news
I don’t know if I want more New Yorkers moving to NJ, housing in the entire North Jersey increases and businesses increases. It might explain all those new apartment buildings in Newark, they will move there at some point.
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anon_0k9zlfz6lz9oy
Guest
People are staying in homes longer now than ever before fyi.
JMO I think you see more inventory come onto the market and also more people jump into the market because the rates are 100 bps lower. I think it washes out and not much changes.
The only way the housing market comes off is if we have a big spike in unemployment, a black swan event or if new construction somehow catches up to supply.
I had not heard of this legislation. PBS did a segment on it, and don't be surprised.
Is this still available, and are there funds that we could invest in the shelter capital gains? Thinking of bailing on a rental property, but was worried about capital gains.
Trump-era Opportunity Zones meant to help low-income communities exploited by investors
Former President Donald Trump's 2017 tax plan created Opportunity Zones — a program of tax incentives to encourage investment in low-income communities. But as Paul Solman reports, that program has not necessarily spurred economic growth and jobs in distressed communities the way it had been...
www.pbs.org
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anon_0k9zlfz6lz9oy
Guest
Extremely rare we get below 4mm annualized home sales. We are getting close at a time where we have 28 year lows on total mortgage apps. Historic amount of demand sitting on the sidelines hoping rates go down.
Inventory is totally fvcked for the long term due to everyones low rates they locked between 2020-2021. If inventory was at normal historical levels prices would be dropping 5-10% yoy.
Inventory is totally fvcked for the long term due to everyones low rates they locked between 2020-2021. If inventory was at normal historical levels prices would be dropping 5-10% yoy.
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anon_0k9zlfz6lz9oy
Guest
Yes they are still available and yes used to shelter cap gains. Barrett Linburg runs a big OZ fund and is pretty active on twitter. Easy to connect withI had not heard of this legislation. PBS did a segment on it, and don't be surprised.
Is this still available, and are there funds that we could invest in the shelter capital gains? Thinking of bailing on a rental property, but was worried about capital gains.
Trump-era Opportunity Zones meant to help low-income communities exploited by investors
Former President Donald Trump's 2017 tax plan created Opportunity Zones — a program of tax incentives to encourage investment in low-income communities. But as Paul Solman reports, that program has not necessarily spurred economic growth and jobs in distressed communities the way it had been...
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anon_0k9zlfz6lz9oy
Guest
Denver is nice but the problem out there is pretty much silicone valley is relocating there.
They are building housing developments the size of complete towns here and do not have the roads to handle their housing explosion. I havent been out there since before pandemic but would go multiple times a year for work
It's not like they are single houses they are building townhouse style developments. Such a vast area with everyone right on too if each other
BofA still believes in the bubble. The big difference is people that already have low interest rates are fine waiting for the market to improve before selling. That wasn't the case back in the 80's
BofA: Buckle up for 1980s-style housing ‘turbulence' | Fortune
“Looking back at previous housing recessions, we think the 1980s are a better analogy for today's market than the 2008 housing crash,” BofA economists say.
fortune.com
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anon_0k9zlfz6lz9oy
Guest
Got home late last night from a productive trip to Dallas visiting one of our properties and meeting with the top brokers, lenders, vendors and owners in the country at the Old Capital Real Estate Conference.
Next week on Tuesday 10/10 I am going to host a live webinar at 7PM EST discussing what I am seeing in the current state of the multi-family market (75+ unit space) and how I am preparing for 2024. I don't think many people truly are aware of what's coming around the corner. 2024 will be an enormous year of both pain and gain when it comes to investment properties.
In the webinar, I am going to go over
1) Interest Rates
2) Where I see opportunity
3) Where I see distress
4) The fundamentals of the market
5) Cap Rates
6) Operations and expenses
7) Where rents are headed
8 ) Where prices are headed
Here is the link to sign up if you'd like to attend. I am going to try to keep it to about 30-40 minutes of content and about 20 minutes of open Q&A
Next week on Tuesday 10/10 I am going to host a live webinar at 7PM EST discussing what I am seeing in the current state of the multi-family market (75+ unit space) and how I am preparing for 2024. I don't think many people truly are aware of what's coming around the corner. 2024 will be an enormous year of both pain and gain when it comes to investment properties.
In the webinar, I am going to go over
1) Interest Rates
2) Where I see opportunity
3) Where I see distress
4) The fundamentals of the market
5) Cap Rates
6) Operations and expenses
7) Where rents are headed
8 ) Where prices are headed
Here is the link to sign up if you'd like to attend. I am going to try to keep it to about 30-40 minutes of content and about 20 minutes of open Q&A
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anon_0k9zlfz6lz9oy
Guest
Housing is so fvcked for the long term due to the refi wave between 2020-2022. We will structurally just have lower inventory until a wave of deaths, divorces or a major job loss recession
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