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Another housing bubble forming

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posted on May, 19 2015 @ 12:39 AM
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Owning rental properties (if you're handy) is a great way to amass wealth.

I know several people that have vacation rentals in places like Hawaii and the Florida Keys. They rent them out most of the year to pay for the mortgage, and have a place to stay when they go on vacation.

Oh what, we HAVE to go to Hawaii to fix a "broken toilet" or paint a deck? What a bummer...




posted on May, 19 2015 @ 04:34 AM
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a reply to: onequestion

I believe Ron Paul warned of this bubble only recently. Would not be surprised to read someday it was deliberately engineered, but hay, if we read the eboook Quiet Weapons for Silent Wars we will learn they are all are anyway.
edit on 19-5-2015 by Azureblue because: z

edit on 19-5-2015 by Azureblue because: z



posted on May, 19 2015 @ 06:42 AM
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I think in the future, owning property will become a liability. The red states particularly, will increase property taxes every year to make up for tax cut to the upper crust. Wall Street investors will make renters pay for the taxes. Eventually, the individual will not be able to keep up. I believe the individual who wants a home and not a rental income, will be a dinosaur. Unless we start voting for better representative. If you can get them out of Wall Streets pocket.



posted on May, 19 2015 @ 07:00 AM
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originally posted by: marg6043
a reply to: onequestion

The bubble burse in 2008, but it never went away, is not that it's a new one forming but that the last one is been inflated since 2008.


Precisely, I should also point out that as costs to producers/owners are invariably passed on to consumers/renters, it is the tenants who pay all of the property taxes which constitute a significant portion of the cost increases due to the increased property values.

Meanwhile, the interest on the loans for properties are subsidized by taxpayers as well.

I am not faulting real estate owners per se though, they certainly contribute to the problem. Tenants who pay exorbitant rents unwittingly encourage the perceived benefits of ownership which will ultimately cost everyone dearly.

A box of boards is not worth a half million dollars.



posted on May, 19 2015 @ 07:25 AM
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Eh, as far as I'm concerned, even if you buy a home, you never truly own it outright. You trade property taxes (as opposed to rent) to keep living in it. That's not free & clear ownership, that's paying money due to keep it from being seized & you evicted for failure to pay said taxes. Call it what it is -- rent to the local government.

And OP, god man, are you still trying to hack it in overpriced WPB?? Get over the the west coast where it's more liveable, it's been picking up over there for your skill set as it is. Aim for a suburb around Tampa, they've still got affordable rents. Go 25, 30 miles out if you can afford the drive, it's even cheaper.
edit on 5/19/2015 by Nyiah because: (no reason given)



posted on May, 19 2015 @ 07:42 AM
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a reply to: Nyiah

Millage VS rent, that one is an easy choice.
There will be boomerang buyers trying to buy back into the market when their prior foreclosure doesn't prevent them.
Some banks are becoming less strict, the loan officer I spoke with said all you needed was 650 and 3% down in 2013.

I don't see a bubble, but unless there is real inflation the housing prices should go flat or just beat inflation.



posted on May, 19 2015 @ 07:53 AM
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a reply to: Cauliflower

I don't want to make it seem like I'm opposed to owning a home, I'm absolutely not. Just pointing out the trading of money for a residence basically boils down to very similar mechanics.
We're mulling over the idea of whether or not to offer to buy the rental we're living in here in MI in a few years, we like the house that much. Owning it would enable us to be free to change things we would prefer to improve. Definite difference right there, most renters can't customize unless they have one of those really rare lax landlords. The landlord of our previous residence in FL let us do whatever we wanted within reason. We basically gave the bathroom a facelift, redid the floors in most of the rooms (on the cheap, mind you) He was really happy with it, since he'd let the security & pet deposit slide so we could move in quicker. Everything we did did come almost exactly to what the deposits should have been. It also helped that he already was a family friend, but still, that kind of renter freedom is not commonly given. We're not even allowed to change the wall color in the place we're in without the color being pre-approved.



posted on May, 19 2015 @ 08:29 AM
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Could there be such a thing as a "low inflation" bubble?
Inflation has the tendency to relieve national debt pressure over time.
If a nation acquires so much debt that it needs to default, the value of the nations currency collapses suddenly.
That puts pressure on the remaining stronger nations to absorb debt and keep the global monetary system stable.
So there is a potential chain reaction if the global nation economies implode their debt.

How do they plan on diffusing the Keynesian device?
edit on 19-5-2015 by Cauliflower because: (no reason given)

edit on 19-5-2015 by Cauliflower because: (no reason given)



posted on May, 19 2015 @ 08:44 AM
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Rent is crazy! We currently live in Evansville, IN. We rent a VERY small house for 900 bucks/month. Utilities are through the roof too. I don't know how people do it? We can purchase a home but didn't want to at this time. My husbands job is constantly moving and we are only here for 1 year..so we didn't feel like actually buying here. I was listening to a local radio station here and they were talking about the lack of affordable housing (both residential/rentals) 10,000 families in the southern IN area are without affordable housing. Not sure what the pop. is here but that seems like a crazy amount of people living on the edge..or not living in homes/rentals at all.

People are poor...even the people that a follow religiously on social media from different areas in the country..are feeling the pain. People that once seem to have it all are now begging for clients/business. I saw a post the other day that said "please book a session/buy product so I can pay my mortgage.." I think people are seriously hurting.

I also read this article about vintage toys (I know...I find some weird crap to keep myself entertained
It gave the cost of the toy (like a BARBIE 8.94 in 1984) Now would cost like 34.00 to purchase in todays money. Another was like a toy car for dolls it was 34.00 bucks in the 80's now over a hundered dollars..it really got me thinking how are money/what we make has really decreased. We have no purchase power.



posted on May, 19 2015 @ 12:35 PM
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I have been a Realtor in the Nashville, Tn. area for 20 years.

Back when the market crashed we were seeing home prices rise along with buyers paying too much as well as obtaining loans on homes they honestly couldn't afford. Lots of fraud going on then.

The difference is only now lending is tougher and homes arent appraising for the amount borrowers are willing to pay. The sellers are getting top dollar anyway. It's a sellers market. There arent enough sellers to compensate for the buyers right now. Its not balanced and leading to multiple offers the first day the property comes on the market.

Our THDA loan interest rates are rising next month and come Aug. 1st the government will begin making lenders issue HUD ( settlement statements) 3 days prior to closing. They are beginning to make it even tougher for buyers to get a loan.

I just lost a deal today that has been with the mortgage company two months. The day after we are supposed to close they tell me we cant close and the loan is being denied all because a couple of numbers are off!!!! Its crazy and I havent seen anything like it.

In regards to rent... I pay 1300 a month for a small apartment which will be only for another month as I am moving into a bank owned property next month. I am one of the few that was able to find a "deal" in our over priced, fast moving market.

I am trying to make a s much as I can as I too see another crash coming sooner than later. It's inevitable.



posted on May, 19 2015 @ 01:11 PM
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a reply to: MamaJ

Oh good a pro to answer a question!

According to an article:




WASHINGTON — The mortgage company ads are everywhere online: "Obama Urges Homeowners to Refinance Now." One person not taking that advice: President Obama himself. Obama's annual financial disclosure report, released Friday, shows the president and his wife are still paying 5.625% on a mortgage they took out on their Chicago home in 2005.





Obama borrowed $1.32 million in 2005 to purchase his $1.65 million Chicago home, according to his mortgage company. But his 2014 tax returns show he paid $63,164 in mortgage interest last year, suggesting he's made some early payments to get the balance down to about $692,000.


www.usatoday.com...

My question:
Is it legally possible to renegotiate the amount of principal you owe on an existing mortgage without stopping your payments first?



edit on 19-5-2015 by Cauliflower because: (no reason given)



posted on May, 19 2015 @ 03:48 PM
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a reply to: onequestion
Yes its institutionalized unsanity out there. I expect it will continue to be so for a long time, housing bubble is akin to the fat cats chewing gum and blowing bubbles with it, then pricking it with there money clip. And then? Buying up all the cheep realestate for pennies on the dollar and then? Rinse and repeat, basically they are not doing anything that house flippers and regular people are not doing, they are merely playing the game at another level, and really even the masses and immigrants they bring in will eventually one day not be enough to support it. But then again never underestimate stupidity and greed, its the fuel to the fire which will keep this whole market and machine going for a long long time.



posted on May, 19 2015 @ 04:08 PM
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originally posted by: onequestion
Rent for a 1 bedroom is 2000 a month where I live and its not even listed in the top 10 most expensive places to live in the US. Clearly there is another bubble forming and I'm not alone in thinking this.

Source



Real estate prices increased again in January, with several states reaching new historic highs, leading experts to wonder whether another real estate bubble might be brewing. Nationwide, home prices rose by 5.7 percent in January compared to a year ago, according to data released Tuesday by CoreLogic


To me its very odd that prices are climbing so high while the labor pool is consistently growing driving down the average earning for almost all sectors across the board.

Wages stagnating and decreasing while housing cost going up. Oh jee... we don't learn easy lessons.


When you purchase a home, unfortunately you don't own that home, you own a mortgage ..
Until that is paid off, the house is not yours ..
The system is setup so you never really own your home, even after you pay if off ..
Try not paying the house taxes ..after you finish off the mortgage ..and find that house is repossessed ..
The land is never really yours .. the govt can take it away any time using whatever circumstances ..
The right to your own shelter and a piece of land with no strings attached, is taken away from everyone ..



posted on May, 19 2015 @ 04:39 PM
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I moved to Frisco a few months ago (from Dallas). It's farther north than Dallas and is a nicer area so the rent is higher here. I did move in February, which is a prime time to secure a good price, as renters don't like to move during winter months and market rent is lower.

I got my 800 sq foot apt for $819 a month and signed a 15 month lease to lock in the price. It has granite countertops/washer & dryer included and all the amenities that come with a nice place. I got VERY lucky.

Looking at the market rent for this exact same floorplan in this apt community is now going for $1029 a month. That's outrageous. I see so many people moving out, most likely because their renewal price is too high. Can't blame them!



posted on May, 19 2015 @ 04:45 PM
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a reply to: galadofwarthethird

Obama probably wanted to disclose that the bank had done a Mortgage Modification for the Illinois property.
Your credit report usually takes a hit for not paying your mortgage for a few months, and the mortgage balance reduction that the bank tossed is reported as income to the IRS. Of course if the President of the United States was doing that 3 years ago all the you know whos reading about it in the newspaper would be calling their banks.

The whole MM thing runs pretty deep and I was just trying to make the point that we probably are not in a housing price bubble if Obama is able to talk about his MM now.



posted on May, 19 2015 @ 08:18 PM
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originally posted by: Neopan100
Rent is crazy! We currently live in Evansville, IN. We rent a VERY small house for 900 bucks/month. Utilities are through the roof too.

Actually, your rent is only $100 more than we were paying for a roughly 700 sq. ft. 2 bed/1 bath condo in a cheap Tampa 'burb. Our water was part of the rent & the CoA dues (also part of the rent) paid for the cable, since the complex had a deal with the cable company. Our average electric bill was about $150, cheapest in winter at about $90, and most expensive in summer at sometimes over $250. For what & were it was, it was actually a reasonable rent for the size. The summer utility bill always sucked, granted, but our winter heating bill also sucks where we are now. It's a trade-off, I suppose.

Right now, where we are, the bang for the buck is infinitely better, though. For $1200 a month, we have a 2100 sq. ft 4 bed/1 bath (that's including the half-finished basement that is fully functional) a 2-stall garage all on half an acre of property in town. We're in the Grand Rapids area, most people think MI is a jobless hellhole, but it's in reality very far from it. FL is much, much worse by comparison, both with the wages & the cost of living. Less money down south, and higher rents by the square foot. We have 3 times the house for $400 more a month, and double the income we used to have, and we're just a single income home at this point. Hubby's in manufacturing (mechanic) so this is definitely a hot spot for that industry right now, and established companies are doing stellar. FL is not the place to go for manufacturing, the pay is insultingly low down there.

If I may ask, what is drawing people to Evansville? I was under the impression that the area was steadily collapsing. Something move in & rejuvenate the area?



posted on May, 20 2015 @ 10:21 AM
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a reply to: onequestion

Let me ask you something-when was the last time anyone paid their mortgage in cash?

The lenders want you to direct debit because-lo and behold-it generates interest. And where does the interest go? surprise surprise- to the very lender you borrowed from.

But we can't crack down on them because TPTB are the ones the encourage this behavior because it "stimulates the market"

We've been Punk'd.



posted on May, 20 2015 @ 10:27 AM
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a reply to: Nyiah

I don't know what the sqf of this house is but it is very small for 5 people (2 adults, 3 girls)..Evansville is a rathole. I hate it here. My husband works for a agency here for the time being. We were supposed to be going to San Antonio, TX..but had to go here for a 1 year contract
It is very depressing here. People are dirt poor..white trashy type. I mean there are some nicer areas and Im sure the people are nice middle/upper class people..but from what I have observed around shopping is that there are a lot of poor people. I cannot wait to get the hell out of this place.

The schools are HORRID. We tried to rent as far away from the downtown/ghetto-e areas as possible..but the schools are in such shambles that they bus the kids into these schools over here. The school is just around the block from our rental and it has a rating of 1 out of 10. I tried to let the girls go to school there but pulled them out. My 1st grader had 5 teacher in 1 month. The teachers would walked out midday and never came back...that's how horrible it was. Finally, after a my daughter (1st grade mind you) had her hair chopped with scissors, her lunchbox smashed to bits, and 2 death threats involving a knife..we called it quits...They were ghetto trash..and the school is just a babysitter until the juvenile detention can take over..and probably prison...

We have until July (contract fulfilled) then we are out of here! We plan on buying a home..I don't know where though???



posted on May, 20 2015 @ 10:27 AM
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a reply to: Nyiah

I don't know what the sqf of this house is but it is very small for 5 people (2 adults, 3 girls)..Evansville is a rathole. I hate it here. My husband works for a agency here for the time being. We were supposed to be going to San Antonio, TX..but had to go here for a 1 year contract
It is very depressing here. People are dirt poor..white trashy type. I mean there are some nicer areas and Im sure the people are nice middle/upper class people..but from what I have observed around shopping is that there are a lot of poor people. I cannot wait to get the hell out of this place.

The schools are HORRID. We tried to rent as far away from the downtown/ghetto-e areas as possible..but the schools are in such shambles that they bus the kids into these schools over here. The school is just around the block from our rental and it has a rating of 1 out of 10. I tried to let the girls go to school there but pulled them out. My 1st grader had 5 teacher in 1 month. The teachers would walked out midday and never came back...that's how horrible it was. Finally, after a my daughter (1st grade mind you) had her hair chopped with scissors, her lunchbox smashed to bits, and 2 death threats involving a knife..we called it quits...They were ghetto trash..and the school is just a babysitter until the juvenile detention can take over..and probably prison...

We have until July (contract fulfilled) then we are out of here! We plan on buying a home..I don't know where though???



posted on May, 20 2015 @ 10:58 AM
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a reply to: Neopan100


Yikes, that sounds awful.

If you're considering buying a home you can try New Braunfels. It's not too far away from San Antonio (about 30 miles) and it's a nice area. South Texas gets very hot, however!!


edit on 20-5-2015 by texasgirl because: spelling




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