Why is every millenial friend of mine planning on mortgaging an apartment and renting it hoping it will rise enough to...

Because they are good goyim

meanwhile the jews are probably buying the fuck out of real estate right now and raising your rent, goy.

yeah house prices are above the historical mean right now, but that's because interest raise are way below the historical mean you antisemitic piece of shit. rates are starting to go up, but they will be relatively low for a few more years. people are still traumatized from the 2008 so would rather pay high rent instead of buying. supply is lagging demand in both available rental units and new homes

We're only in the dead cat bounce right now, It's going to be a long ride down in the coming years and I can't wait to see the economy collapse and watch everyone lose their home.

i think that already happened. you don't think americans learned anything from 2008?

Nah I personally don't think we've actually crashed yet, Some americans might have learned something but they are very soon forgetful as you can see how people are spending their money once again. majority of us are too young to have actually spoken with people who lived through the 1930s. The way they lived is totally different to how people live today. (i've been informed from my older relatives)
How many people do you know of that actually have an emergency cash stash at home?
How many people on average actually save up for that new couch or new dishwasher instead of the "buy now, pay later" scheme?
Look how many people buy vehicles on 8 year loans with zero down
Nobody saves money anymore, it's out the door before its even in your bank account(payday loaners)

>Keeping cash in the home when you have the FDIC
You're a moron
>How many people pay for furniture and dishwashers without financing
Most people
>How many people buy vehicles with 8 year loans and zero down
Few
>Nobody saves anymore
A lot of people save
>Payday loaners
Pawnshops were always a thing

Kill yourself, chicken little.

lol Im talking national average dipshit, you can't use your circle of friends as an example the same way I can't because I dont hang out with morons who live outside their means.

Oh I see, you think your anecdotes are more meaningful than mine.

No I'm saying look at statistics, not your personal experiences

Show me some statistics showing that most people utilize pay day loans, buy cars on 8 year loans with $0 down, and finance minor appliance purchases.

Please do so.

Also, tell me in detail why keeping cash under your mattress is in anyway a necessity or prudent financial decision.

there's definitely some sampling bias that's going on. but this is the problem with leverage + dunning-kruger effect--those that are bullish keep leveraging themselves more and more and this is counted as growth, despite the fact that the value is more intertwined with other instruments. as asset and equity valuations grow ever higher and interest rates go ever lower, this leverage becomes more intrinsic to the system and therefore creates greater systemic risk when a correction occurs

More likely it's the chinks.
My landlord tried raise my rent and I told them to kick rocks.

Where I live (northeastern city) there is no shortage of housing nor is there a shortage in the pipeline.
Also I'm not antisemitic. They're just words, don't get so butt-flustered you bagel muncher.

You did not answer any of my questions nor provide statistics.

that's great that you told your landlord to kick rocks, but the fact is that rents are going up. when you move out, they will charge the next tenant more. if there was a high vacancy rate, they would just be happy that the unit is occupied and be nice to their tenant.

the fact is that house prices and demand are going up in many areas.

In my country ( canada) the housing market has been bull with no corrections for almost my entire life. It makes sense that we are fooled into thinking that this is the norm and it will keep going like this into the future. But to answer your question no real estate is not safe right now in many places there are bubbles ready to correct, Kevin Oleaey explains what's going on in Canada well youtu.be/RFIxfRMKxPY

And when people stop paying the high rates the market will crash senpai.
Rents are going up but there is no shortage of supply and they keep building more apartments.
It doesn't take a genius to see where this is going.

i'm guessing he's talking about keeping a small amount of cash around the house in case debit machines go down during a natural disaster/prolonged power outage?

i'm sure sure if 8-year car loans and and appliance loans are going up, but so what if they are? that just shows that consumer confidence is up and people know they are going to have more money in the future, so they're not worried about it.

rates are going up slowly. mortgage lenders have to be more responsible now. there will be another downtrend in the future, sure but probably not for 5-10 years. more than enough time to hop in and out of a real estate investment.

are you really this ignorant?

I wasn't the guy arguing with you. My point is just that leverage increases risk, and I see a lot of leverage these days. Parents here in Canada are getting loans on their houses so their kids can buy into real estate. If all these prices came down this leverage wouldn't have to happen. It's kind of zero sum for the debtors but involves more debt to the creditors.

Boomers are just as retarded as Millenials when it comes to realestate. They wholeheartedly believe that the markets can never correct (despite living through the 80's crash, and the ensuing foreclosures that came with it).

My parents are retarded, they are sitting on a property they could flip to a dumb chink for 1.5 million in a day. They have nearly $750,000 in mortgage debt because they refinance every couple years to pay off credit cards. Seriously these idiots could cash in, have 3/4 a million in income-generating investments, and retire in with more money than they could ever spend. Instead they're in their 60's working like slaves, and worshipping realestate.

Meanwhile I'm the only kid who has a positive balance sheet, $120k in ETFs, no debt, good job, and a plant to retire young; yet I'm a failure in their eyes because I don't own realestate.

Well jokes on them, they aren't getting a penny of assistance from me, and neither are my siblings. I'd rather cash out everything I own and burn it before giving them a cent. Fuck the boomer, fuck millenials, fuck the cult of realestate.

that was an oversimplified example and i left out a lot of costs, but yes i am fairly ignorant on this .

you'd need to hold the property for several years obviously, and get a short term mortgage, paying some of your own money on the monthly mortgage principle payments.

%2/year appreciation is really my worst case scenario because the market is HOT HOT HOT right now!!

No, I haven't really crunched the numbers on this, but can you tell me why it's impossible to profit by borrowing money to become a landlord.

so edgy

I agree with your sentiments. I still feel that if housing corrects there's going to be a bailout and who knows what that will do to the dollar.

canada is a different story. canada's real estate market is basically where america's was around 2007-2008

...

what city are they in?

Vancouver. I hope the market crashes. I have no stake in it, but i want to see the retards who are shelling out $1000 a square foot for micro condos face foreclosure for their stupidity.

I'm a Vancouver fag too.

These boomer assholes had it easy. My old man complaining about how we have it so easy when their house prices were so fucking cheap back then because they didn't have the parasitical chinks buying up everything and fucking us over.

My dad's friend, this hick, uneducated fuck that couldn't even point a country of your choosing on a map, had an easy job at BC Hydro reading meters all day straight out of high school with no formal education, bought a house way back when for pennies. He's now retiring with a pention, just sold his house for a million and is living life on easy street.

So many dumb motherfucking boomers like this live life on easy street and they have the gall to scoff at us.

I too can't wait for the housing bubble to pop, I'll laughing all the way to the bank while these asshole throw themselves from their rooftops.

people in vancouver are fucking insane. shame you can't wake up your parents, but i'm also loooking forward to seeing thing unravel. i wonder how much long this can go on.

>taking on a mortgage in a rising interest rate enviroment

Fellow Vancouverite reporting in. Parents paid $500,000 for their house and it's now worth 3 million less than 15 years later. This market is retarded and everyone my age has to move because we can't afford it. I hope it crashes and burns but I don't think it will as long as the Chinese can get their money out of the country here with no risk.

>Not getting a fixed rate mortgage.

costs are one of the most important factors when it comes to real estate investment. if you handwave them away of course it looks great.

in reality you have interest payments, taxes, insurance, legal fees, maintenance, utilities, and perhaps a property manager if you don't want to take care of renting yourself. all told these costs can easily be as much as the original mortgage, so if you don't offset them with rent you're digging yourself a serious hole. any costs that you don't offset with rent will add to the total cost of your investment, meaning that you need the property to appreciate in value significantly before you even break even. look at your original example: if the gap between your rent revenue and your costs was more than $2,000 you actually lost money.

another one of the most important factors in real estate is the local market. your local market might be filled with landlords who own their properties in full and have significantly lower costs than you. your local market might be filled with idiot landlords who are willing to take short-term losses because they think housing will appreciate at 8% forever. you're over-exposed to your local market. you have to compete with those landlords on rent. this means that you have very little control over how low your rent will be, and if it goes below your costs you're in trouble.

point being that it's not impossible to make a profit, but it's certainly not simple. you can't characterize property appreciation as a return on your downpayment/equity so easily.

are you canadian? americans can get 30 year fixed-rate mortgages.

No, apartments have no land value and are therefore a depreciating asset. They don't rise in value the same rate as actual homes

>with idiot landlords who are willing to take short-term losses because they think housing will appreciate at 8% forever. you're over-exposed to your local market. you have to compete with those landlords on rent. this means that you have very little control over how low your rent will be, and if it goes below your costs you're in trouble.
>point being that it's not impossible to make a profit, but it's certainly not simple. you can't characterize property appreciation as a return on your downpayment/equity so easily.

these are all great points damn. but lots of jerkoffs have made windfall gains using leverage to invest in property. it's risky, but i wish i were one of those jerkoffs :(

certainly, a lot of people made windfall gains, but that's relatively easy to do in a bubble if you get out in time.

here's a funny thing, though: most people can't tell you the total cost of their investments - particularly in real estate.

you'll hear people say they bought a house for $100k 10 years ago and sold it last week for $200k. they're ignoring the interest payments they made. ok, so adjust for that. assuming a 10 year mortgage with $15k paid in interest. down goes the profit. factor in the legal fees for buying/selling, taxes, insurance, etc. we can lowball that at $15k over the 10 years. in reality it's probably double, but even so they're down to a $70k profit on a $130k investment which is not particularly special. what's weird is that people themselves often don't see this. they'll brag that they made $100k off their investment to anyone that'll listen. so don't be too jealous. people lack an accurate picture of their own finances.

of course, that's not even mentioning opportunity costs.

keep renting genius.
you are paying someone's mortgage.

we weren't talking about renting vs. buying, we were talking about being a landlord vs. other investments.

>you are paying someone's mortgage.
you mean a bank's shareholders?

You just have to buy right - lots of folks invest in states they dont live in

i changed my mind. fuck paying exorbitant fees to cuck faggot real estate agents and loan officers.

Milloinnnial Power!!!:
youtube.com/watch?v=fGaEqwGGXfQ

Housing is so local you cannot generalize "housing market" or "housing prices". There are several places i would never consider buying at the current prices that are clearly unsustainable, london, canada and stockholm being of the many.

Basically when you buy a house, you can discount 10-15% of the buying price instantly due to brokerage and taxes. So you need to have 15% rise in price to be break even. Rentíng you will be paying ridiculous taxes, housing taxes, ukpeep costs, maintaining costs for a company to take care of your renting business unless you want to dedicate time and effort when you could struggle to find new renter when the last one moves.

If you need to get a big mortgage for the house, it's a big no-no. Even worse, if you take a long term mortgages with a floating rates atm. You would be fucked. So at least lock a fixed rate.

If you can buy a house with cash, sure, then it's probably not too bad decision. If you are just leverating to buy several houses for renting the risks of fuck up are probably MUCH higher than you ever would imagine.

Rent right now where I live is out of control.

$1500/month for a half decent place

not bad except I am a wage slave for $2000/month

>inb4 cheaper available
Sure, if I want a shit corporate landlord that doesn't give a fuck.
Shitty apartment quality, paying a premium, expected to be overjoyed about shithole
Roommates (my current fucking nightmare)

OR

I have finally gotten out of debt and I have $35k saved.

$325,000 Mortgage (getting State loan to cover 20% to remove PMI?) ... Is roughly $1500/month

Besides the expense of filling a house with shit I need...

Wouldn't it be wiser to have $1500/month going to equity vs, rent sink hole?

not to mention, $325k is a big ass house here... I could AirBNB/Rent out the extra rooms?

Yes. This is correct almost all of the time, assuming you either don't plan to move or the real estate market where you are is very strong.

Man I wish. 200k gets me a 900sq/ft condo in this area.

If youre making 2k per mo. theres no way you will be approved for 325k. More like 150k at most

aahhhh that's a lie. It's actually ~$3400/mo

Talked to a Mortgage Broker back in 2014, and seemed to indicate that $325k would be my upper limit. Going to call a better one tomorrow and see what they say I guess...