Lot of $$ / Buy vs. Rent
10-30-2024 | 04:15 AM
#81
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You are paying it down exactly the same amount as a 3% mortgage. The answer however is not much. That is why I did 15 or 20 year loans. Or just add some amount to your payment each month. Any time I refied a loan I kept making the same payment as the original loan. Does the same thing.
Last edited by sailingfun; 10-30-2024 at 04:26 AM.
10-30-2024 | 05:43 AM
#82
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A lot of people complaining about interest rates. 7% is close to the historical norm. The ultra low rates in the ‘10s were an anomaly due to an economy that has weakness in the fundamentals. That finally caught up to us.
Money costs money. Retail money costs more.
Money costs money. Retail money costs more.
10-30-2024 | 07:11 AM
#83
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A lot of people complaining about interest rates. 7% is close to the historical norm. The ultra low rates in the ‘10s were an anomaly due to an economy that has weakness in the fundamentals. That finally caught up to us.
Money costs money. Retail money costs more.
Money costs money. Retail money costs more.
The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.
10-30-2024 | 07:37 AM
#84
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The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.
But big line must go up no matfer what.
So a house I easily bought as a LT in the Navy in 2010, for $170k, is now $330k with much higher interest rates, taxes and insurance.
Navy LT pay hasn't doubled in that time. But housing price has probably tripled.
I know my mortgage in 2010 was around $1150/mo
It's about $2800 today if I were to buy the exact same house. No upgrades. 10 years older.
10-30-2024 | 08:45 AM
#86
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A lot of people complaining about interest rates. 7% is close to the historical norm. The ultra low rates in the ‘10s were an anomaly due to an economy that has weakness in the fundamentals. That finally caught up to us.
Money costs money. Retail money costs more.
Money costs money. Retail money costs more.
a house sold in Peach Tree City sold for $600K in 2022 and is now listed for $899K… and it’s going to be sell in no time
10-30-2024 | 09:01 AM
#87
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I would not count on it selling fast. The market is correcting however I don't think it will be a deep correction. New construction is now having to offer deep incentives plus interest rate buy downs.
10-30-2024 | 09:13 AM
#88
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New construction is the place to be these days. Great deals going on with the excess inventory.
10-30-2024 | 11:15 AM
#89
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The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.
The problem is the cost of housing hasn’t been CPI driven once people starting looking at it as an investment versus a living expense.
This is caused by a number of factors, but principally due because there was no safe place to put money. You always have to have a spot to park money where it is safe, and with interest rates at or near zero, there really wasn’t any where else for it to go. Too much money, too few venues.
The increase in home values isn’t a strict degradation in buying power that simple inflation causes, where everyone is a loser. In the case of housing, there is a winner, namely the owner.
Interest rates have crept back to normal. There’s now a place for safe cash, and maybe the pressure on housing will subside a bit.
10-30-2024 | 02:00 PM
#90
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From: N60.4858 W149.9327
Well in crewdawgs example the rent was 2300, so the renter would pay 276k... But their 80k down payment plus the delta between rent and the mortgage would have compounded to roughly 240k. (This doesn't even include investing the savings from not paying for mx and upkeep on a house)
My whole point is that it's not always a slam dunk home run to buy, but if you can find a house for the right price and good interest rate and are willing to stay there at least until the rent buy curve crosses in favor of buying, then that's great!
My whole point is that it's not always a slam dunk home run to buy, but if you can find a house for the right price and good interest rate and are willing to stay there at least until the rent buy curve crosses in favor of buying, then that's great!
