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Home prices: Biggest rise since housing bubble

Home prices: Biggest rise since housing bubble

1nd3p3nd3nt
March 26, 2013
the system we use is set up to continuously create bubbles. when you understand the housing market, you realize so much of it is sales. never do they admit housing prices will be going down, always it`s `they`re about to rebound` or they`ll `start climbing again.` the mortgage brokers work `points in the back` for payouts from banks. if everyone rubber stamps the deal they all get paid. this, when the baby boomers are retiring. there will be many, many houses on the market. people need to stop seeing their house as a freakin investment. 83 1 Reply

Bob Bichen 1nd3p3nd3nt
March 26, 2013
I like to call my house a "store of wealth" rather than an asset as it produces no positive cash flow (my definition of an asset). Since my 30s I have used the benchmark of "if I can`t afford it with a 15 year mortgage without being under stress and without 20% or more down, I can`t afford it). That has kept me in a modest house ($250k) despite a six figure income and nearly $1MM in net worth. The truth is that most people who become millionaires do it by way of being prodigous savers. I am just a working middle-class American, but using this model I hope to have $2MM or more net worth when I retire in 20 years or so. 25 1 Reply

Tim Spriggs Bob Bichen
March 26, 2013
Why the double `MM?` One M is sufficient. 6 3 Reply

MarkThisDown Tim Spriggs
March 26, 2013
M=Thousand MM=Million 10 Reply

disqus_C2kQ6zBTCy MarkThisDown
March 26, 2013
always thought k= thousand 7 Reply

John disqus_C2kQ6zBTCy
March 26, 2013
Bob even wrote "250k" is the value of his house, so 1M should have worked. 6 Reply

Hoho Green disqus_C2kQ6zBTCy
March 26, 2013
learn something new everyday... 2 Reply

disqus_C2kQ6zBTCy Hoho Green
March 26, 2013
i hope i learn something else new today cause this isnt gonna help me much going further in life lol 4 Reply

Jacek Ringwelski disqus_C2kQ6zBTCy
March 26, 2013
I thought k=kilo 0 Reply

coloretaf Jacek Ringwelski
March 26, 2013
which is a thousand... kilometer = 1000 meters 2 Reply

liberals_need_not_apply MarkThisDown
March 30, 2013
K= Thousand 0 Reply

Guest Tim Spriggs
March 26, 2013
Oilman? 0 Reply

Long Fisch 1nd3p3nd3nt
March 26, 2013
Mortgage brokers don`t get to hide "points in the back", mortgage brokers are required to show all points (charged or in rebate) on the HUD 1. Banks are the ones who do not have to display the "points in the back" on the HUD which allows them to hide how much they are actually charging. I agree with your point on bubbles, everything works in bubbles and has for centuries, look into the most famous bubble the tulip mania bubble from 1637. 10 Reply

1nd3p3nd3nt Long Fisch
March 26, 2013
the banks get the `points in the back` but they pay out for the mortgage brokers to put them there. the con isn`t on the brokers, it`s on the people who don`t read every single line of the agreement or don`t understand what it all means and rely on the mortgage broker to explain it. all they need is that signature. greasing the wheels and all that jazz : ) 2 Reply

bond4u 1nd3p3nd3nt
March 26, 2013
If you read that agreement probably I will not going to sign and buy that house :) 0 Reply

Hoho Green Long Fisch
March 26, 2013
You just don`t know, had a ton of Mortgage broker as customer they would laugh at the back side points you pay and how much they take. 1 Reply

Daniel Maddigan 1nd3p3nd3nt
March 26, 2013
amen 8 Reply

Watiu 1nd3p3nd3nt
March 26, 2013
This so much. Houses are only pushed as "investments" to get naive people to buy them. 6 Reply

Val Gabr Watiu
March 26, 2013
Yeah, and you and many others would like to pay rent that costs nowadays more in some places for a family of 4+ than mortgage payment...and then your money are just GONE...so let`s not say that house owning is a total scham...many sides benefit 6 Reply

andyabrams Watiu
March 26, 2013
In the words of Lex Luthor in Superman I: "everybody wants land and they ain`t making any more". People like you are what make residential rental properties a good investment. 2 Reply

lala Lam Watiu
March 26, 2013
You have no idea what you are talking about. They are usually the biggest "investments" most people will have. We have seen ups and downs but overall it has gone up and up over history. It is a little concerning of the recent price increases but people are willing to pay it now. Points usually don`t add up to much anyways. 2 Reply

greg1172 lala Lam
March 26, 2013
historically it goes up with inflation...thats not much of an investment. 0 Reply

James Sentry Watiu
March 26, 2013
Right. After you have paid about 3X what you bought it for, after 30 years of paying mortgage interest, where is the big investment payout??? 3 Reply

Andrew Stalzer James Sentry
March 26, 2013
The payout is you are paying towards ownership instead of towards temporary residence (aka rent). Once you pay rent, that money is gone forever. If you pay toward a mortgage then you are paying towards owning the home (which will likely go up in value well more than the interest payments (using historical averages) after 30 years). 6 Reply

ozbukes16 Andrew Stalzer
March 27, 2013
You`re also paying property taxes and for repairs--depending on the market you`re in renting may be the better bet 0 Reply

Cecil Burrow James Sentry
March 26, 2013
If you pay 3x what you bought it for, then your interest rate must have been outrageous. 1 Reply

Greg Black 1nd3p3nd3nt
March 26, 2013
Capitalism itself is a continuous bubble/burst. Just look at the last 100 years. Bubble,bust,bubble,bust. Buying a house can be a good investment. You have to pay for somewhere to live anyway. Might as well get some of that back. You can get a decent house where i live with an $800 mortgage. Likewise a decent apartment is over $700 a month. But like ANY investment, there is always a chance that you lose out. 1 Reply

Formerly_Known_as_Whiteplight 1nd3p3nd3nt
March 26, 2013
Or an ATM. 1 Reply

HPKC10 1nd3p3nd3nt
March 26, 2013
No people need to stop seeing their house as an investment that always goes up! Thats the problem with this country, markets go up and down, politicians try to prevent the latter from ever happening! Thats when their crony buddies get loans, bailouts etc. 1 Reply

lala Lam HPKC10
March 26, 2013
You are stupid. There are ups and down but overall properties go up over time steadily. Not the highest payout but something you have more control over than other investment opportunities. 2 Reply

James Sentry lala Lam
March 26, 2013
You will have paid about 3X what you bought if for after 30 years of mortgage interest. Some investment. 3 2 Reply

Andrew Stalzer James Sentry
March 26, 2013
In 30 years, your house will also likely triple in value. Based on historic averages it will probably go up even more than that. Also, what is the alternative. Renting. That money is never coming back. Buying a home is WAY better than renting a home (if you can afford it). It isn`t even close. 3 Reply

ozbukes16 Andrew Stalzer
March 27, 2013
as said before, it depends on the market you`re in--sometimes owning a house is way better than renting, and sometimes it isn`t 0 Reply

Jacek Ringwelski James Sentry
March 26, 2013
My mortgage payment (with property taxes, school taxes, local taxes and homeowners insurance combined) is $2,100 a month. I pay $2,600 a month, this will let me pay it off 12 years earlier and save about $130,000 in interest. 3 Reply

lala Lam James Sentry
March 26, 2013
Yeah a 30 year mortgage. That`s why you pay it off as soon as possible or do so with no mortgage. 0 Reply

Nancy Long lala Lam
March 26, 2013
agreed and buy a cheaper home so yo ucan pay it off faster 1 Reply

lala Lam Nancy Long
March 26, 2013
Mortgage is basically a means of getting us into houses sooner we can`t out right afford. And for getting us in early, we pay more in the long run. I am a real estate appraiser and jsut about everywhere I look, people that bought houses in the 80`s and 90`s have seen there house values at least double since then at the bottom of the market. Rule of thumb I`ve understood is that home values increase on average 3% a year overall. We get bubbles where they rise a lot then drop when the bubble pops but overall 3% increase a year. 1 Reply

HPKC10 lala Lam
March 26, 2013
Inflation adjusted housing prices are even at best. Housing prices are on par with 1986 levels vs. inflation. If housing doesn`t appreciate faster than inflation it is actually cheaper to rent. Expenses of owning a home add up.... Property Taxes, Home Owners Insurance, Maintenance, Closing Costs, Selling Costs, Etc.. If the Federal Government didn`t subsidize home ownership, Renting in this environment would be a no-brainer 1 Reply

Andrew Stalzer HPKC10
March 26, 2013
Rent is always cheaper. The difference is that renting you are paying for a temporary residence. While a mortgage you are paying to own that property. 1 Reply

HPKC10 Andrew Stalzer
March 26, 2013
yes while you eventually might own that property outright in 30 years, Property taxes are the reminder that in the United States you never truly own your own home or land for that matter. It would be interesting to look at property tax rates, and how much they have increased over the last 30 years 2 Reply

HUY NGUYEN HPKC10
March 26, 2013
house are much cheaper in Texas, but property taxes in TX over 20 to 30 years will cost more than buying house in California. Seem the cheapest property tax are in the South(confederated) states, except for Florida. Seem like you can never retire in US on SSN, really need to get rid of public union and muni bond. 0 Reply

lala Lam HPKC10
March 26, 2013
Some people choose to rent some don`t. But when we talk about inflation, things haven`t changed all that much. The costs of certain things have gone up and down by that record of inflation shouldn`t I be paying $50 for a hamburger? 1 Reply

HPKC10 lala Lam
March 26, 2013
What are you babbling about? Look who`s stupid NOW! 1 Reply

greg1172 1nd3p3nd3nt
March 26, 2013
totally agree homes are no longer an investment....more like a money pit. of all my investments over the last 20 years i`ve lost the most on homes. but i think you overstate the boomer equation. there will always be folks looking for homes as others are moving out and downsizing 0 Reply

SamMichigan greg1172
March 26, 2013
Unless one is rental unit savvy, I don`t think homes have ever been a decent investment by the time you consider upkeep, interest and taxes. Might be a slighter better deal than renting though since you end up paying the landlord`s taxes for them. 0 Reply

HUY NGUYEN 1nd3p3nd3nt
March 26, 2013
I don`t understand why there is a need for a broker. I get a quote from my credit union it shows 6 different types cost based on discount point + origination fee. If you go to a broker they tell you there are over 200 quotes...who can understand that? So I avoid both banks and broker. 0 Reply

Just Email 1nd3p3nd3nt
March 26, 2013
As long as fed buys junk to keep the economy growing , everything is going .... 0 Reply

David R Priest
March 26, 2013
Take a trip to the grocery store or the gas station and answer this question. Are home prices up or is the dollar down? 75 9 Reply

jrboss93 David R Priest
March 26, 2013
Pay no attention to the Bernanke behind the curtain. 49 3 Reply

BarneyBeer David R Priest
March 26, 2013
− Ok, gas prices compared to when? Compared to summer 2011, they`re down a bit. Compared to summer 2010 they`re up. Compared to July 2008, they`re down. Compared to winter 2007, they`re up. Are you trying to tell me that the dollar has been constantly inflating and deflating this whole time?






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