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30% Of Americans Didn't Make Their Housing Payment In June

Joe King

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#41

FunnyMoney

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#42
https://www.goldismoney2.com/threads/trumps-economic-winning-thread.127685/post-1929388
Something about a big increase in new home sales. Just thought you might be interested FM.
New house sales up is usually an indication of big money. Most people in the working class buy a used home and the age of the home is usually decades beyond "new."

For example, for middle and working class people I know, other than 3 examples, which were all 3 very low end brand new track housing, they have never bought a new house in their entire life. Actually, it is not that many who have bought even a new car - almost always it is a used car.

The very wealthy I know are of course very different and always or almost always buy new.

I have seen a lot of rich people looking for places to park their money over these last few months. They may be afraid of some future inflation. Buying RE on a fixed rate loan with a relatively small down and close to even cash flow or near same as prior rent payments they were making, can be a great inflation hedge. This is not only true for the wealthy but anyone with the ability to carry the note to term or near to term.

I think the wealthy class will come through this latest crisis a lot better off than the working (or used to be working) and lower classes.
 

solarion

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#43
They may be afraid of some future inflation. Buying RE on a fixed rate loan with a relatively small down and close to even cash flow or near same as prior rent payments they were making, can be a great inflation hedge.
Sure, except the county tyrants are right there sticking their hands in your pocket to pay rent er...taxes and to tell you what you may or may not do with "your" property. Then there's the problem of keeping the property gainfully occupied by tenants that won't trash the place.

No thank you. I rather buy fine art, fine wine, classic cars, PMs, Pb, TP, etc.
I think the wealthy class will come through this latest crisis a lot better off than the working (or used to be working) and lower classes.
Agree with you there. The "lower classes" tend to be such because they cannot be bothered to figure out even simple concepts like...what the word "inflation" actually means.

Like the man said...stupid is as stupid does.
 

FunnyMoney

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#44
...No thank you. I rather buy fine art, fine wine, classic cars, PMs, Pb, TP, etc.
...The "lower classes" tend to be such because they cannot be bothered to figure out even simple concepts like...what the word "inflation" actually means.
Those investments do not usually qualify as a business and RE can be a business if you rent out the property.

The advantage of RE, as a business or for personal use as a home, comes a lot from the leverage. For example, f you are paying a fixed interest of 5% with a small down and then early in your term the inflation suddenly spikes up to double digits for a few years, then all of sudden you just made a very large profit if you were to sell - only on paper if you wait. This is due to the leverage and RE is one of the few areas where working class and wealthy class people both have options to take advantage of this leverage. I have seen people buy in at the right time prior to an increase in home price appreciation, come in with say 40k down and then see their home go up by 20k or even 40k, which equates to a double or triple of your money on paper, or in cash if they sell.

Typically, those other places you mentioned to park money do not utilize leverage. Leverage, of course, can cut both ways though - if prices drop and / or you have trouble making the monthly payments then you can easily lose your some of your principal and possibly the ability to carry the note to term and lose everything you put into it.

The lower classes are in the lower class for a variety of reasons. It is not always because of a lack of education, but a lot of times it comes from that or that variable plays a big part. Educational opportunities are greater for the wealthier members of society - think tutors, better schools, more resources and so forth. But many times other factors are involved as well and can be the primary reason for lack of disposable income, these including: illnesses, injuries, family problems or responsibilities, lack of job opportunities in the region, victims of a crime and much more...
 
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solarion

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#45
Thanks for the lesson in economics. As I said, the problem lies with counter-party risk. I do not want county "authorities" and/or scumbag banksters as a counter-party...neither do I want to deal with moron tenants trashing property in which I'm a trustee.

Sure, there are any number of excuses employed to explain away one's lack of success. The primary excuse nearly always boils down to lack of ambition. Nearly any information can be accessed in this day and age...and quickly. Most simply lack curiosity or ambition...and that's fine with me...at least until they start whining about their station and expect me to pay to fix it for them.
 

FunnyMoney

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#46
Thanks for the lesson in economics. As I said, the problem lies with counter-party risk. I do not want county "authorities" and/or scumbag banksters as a counter-party...neither do I want to deal with moron tenants trashing property in which I'm a trustee.

Sure, there are any number of excuses employed to explain away one's lack of success. The primary excuse nearly always boils down to lack of ambition. Nearly any information can be accessed in this day and age...and quickly. Most simply lack curiosity or ambition...and that's fine with me...at least until they start whining about their station and expect me to pay to fix it for them.
That is your decision on where you park your money. I just wanted to be clear about the fact that RE is very different from those other investments. And while those other investments have no or less counter-party risk, that risk still exists unless those things are something you are willing to consume. Even gold, with 5000 years of history as a preservation of wealth, has risk... Govts and military / criminal factions may try to take it from you or the price of food may end up being the only thing stable and all other things are worth little or nothing. Remember, a mad max situation is not the target end goal for those scumbags as you correctly called them, their end goal is a NK society for the world. NK is the blueprint nation.

Not everyone is poor because they were lazy or stupid. For example, I know a self made mechanic. Came from an poor family and didn't even wear shoes until the age of 7. His dream was to own a eating establishment in the town he came from - to be part of the community and do what he enjoyed. He saved money working as a car mechanic for about 30 years to start his dream business. He finally "retired" from being a mechanic and plunked most of his money into his new dream adventure, renting a place, buying equipment and furniture for the place. Opened the cafe in Jan. and was making rent the first two months. He lost everything with this latest flu issue the globalists are imposing on us and while he has a chance to open back up now, he's already lost nearly all his money and he estimates the traffic would be much less than what he needs to re-open and try again. He is pretty old and does not want to go back to being a mechanic. Back to the lower class he goes.

I know a lot of people with similar stories. This gentlemen has some level of security with his SS now an option in just a few years more. Around the world you will find that lazy and stupid are not the primary cause of poverty - they are actually very low on the list. The developed world is different, but the majority of the world's poor are not poor because of those 2 factors but because of other factors, almost always ones outside of their control.
 
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solarion

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#47
Not everyone is poor because they were lazy or stupid.
Never said they were.

The restaurant business is cutthroat, competitive, and risky. Plunking down one's life savings to open one is admirable, but incredibly risky. That's how capitalism is supposed to work, risks can pay off or they can screw you...unless of course you're a bankster. Then you'll be too big to fail...or jail.

Good for "around the world". The terms "poor" and "poverty" are, of course, relative. Certainly nations that allow higher levels of economic freedom experience lower rates of poverty, because it allows those that aren't lazy and/or stupid an opportunity to succeed. The US used to be a place where this kind of thinking was cherished. ...now it's something else entirely. A place where alleged equality of results without equality of effort has become the rule. This plainly encourages lazy and stupid, but that's kind of the point...isn't it?
 

Juristic Person

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#48
Not just the housing market, lots of merchandise going cheaper as folks struggle.

This lockdown is opening up huge opportunitys for those with cash, one of the reasons for this clusterfuck occurring.
Huge opportunities such as.....?
 

Juristic Person

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#49
I know a few folks who are seriously considering taking a hit on their 401k's, paying off their debts with it, sell their houses and moving to a much simpler place to live (i.e. very rural places).
Get out of 401k’s while you still can!
 

arminius

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#50

hoarder

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#51

DodgebyDave

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#52
Place has been payed for for 20 years!

:t00t:
 

FunnyMoney

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#53
Place has been payed for for 20 years!

:t00t:
Taxes, insurance, utility and maintenance? Is a house ever really done paying for?

How can you be secure from unwanted yet upcoming increases in those things, especially the taxes part? I'm expecting RE to tank hard by mid next year, but % taxes to go way up to more than offset state budget issues.
 

Buck

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#54
% taxes to go way up to more than offset state budget "peaceful riot" issues.
fify

and it's just beginning...the new FY is Oct 1 and it's right around the corner and i'll bet most state legislatures will be frothing to get tax issues jammed through and to get even more on the ballot for us to vote for...

it is, after all, for a just cause...'cause they're outta money'
 

Joe King

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#55
For example, for middle and working class people I know,
Perhaps the World is a bit bigger than you and your circle of people? All the evidence I see at this time IRL, supports what @Irons posted.
 

the_shootist

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#57
Taxes, insurance, utility and maintenance? Is a house ever really done paying for?

How can you be secure from unwanted yet upcoming increases in those things, especially the taxes part? I'm expecting RE to tank hard by mid next year, but % taxes to go way up to more than offset state budget issues.
^^^THIS^^^^ In America you can never truly own a home so I pay the fee every month to the bank (a few shekels in comparison to the full balance) and keep all the cash I have accumulated to invest little by little in things I CAN own outright