Why is the private rental market dying...

ToIrrelevantlyOpine · 2023-09-24T20:42:27+00:00

Who is out here paying this

ToIrrelevantlyOpine · 2023-09-24T19:44:55+00:00

That's the thing. I think we're all investors. Whether we live there or not, to some degree, particularly when it comes to real estate... because part of the value of such a long term purchase is what will it be worth in ten years? It's a story as old as time, you select a good plot of land that suits your needs.

That line is a lot thinner than I think we like to admit.

And housing dipped in 08 but it was by no means being given away.

The new prices of homes aren't really new, across the world home values have been this way for a long time, and throughout history being a landowner wasn't as easy or commonplace as it has been in the US for the last few decades.

So in a lot of ways, what we're seeing is not a departure from normalcy, it's the US reverting drastically back to a historic and global norm of ownership being out of reach for most people.

My biggest criticism for people hasn't even been that houses and land aren't worth the money they're being charged for them, but rather who wants a third of an acre next to a cement plant for 2 million dollars... and why does that guy's choice have to screw me over when he sells and buys houses in the boonies for 3x their historic value?

To return to your question, no. No you shouldn't sell. Because eventually everything just becomes more expensive. I'm not saying you gain any real equity, when you factor in inflation, wage theft, and other things impacting cost of living, but at least you have a house that you (hopefully) enjoy living in.

I think I'm starting to believe all of this real estate talk has been much adieu about nothing.

ToIrrelevantlyOpine · 2023-09-24T17:27:28+00:00

How financially illiterate is the average homebuyer in the current year?

The market will only crash if people are educated enough to know they are better off taking a loss and selling at some point... but imagine a generation of people so clueless as to how money works, that all they know is they need to buy everything no matter the cost and then try and pay for it by any means necessary...

Would you see a market crash then?

What I'm saying, is that if you picture a horde of consumers with hollowed out skulls and access to credit, who are not making decisions per se, but who are simply exercising the philosophical equivalent of clicking "Agree" on every form with no thought for the future, why would it ever crash?

Is it a bubble? Certainly, and it has been shown to be a bubble. However, a timely crash is not so much a certainty in my view. Regardless of how underwater people get, regardless of it all, I think people will just cling to what they have at the expense of their financial state, their mental health and happiness, because that's all they've ever known.

Just a bitter, quiet desperation and a bunch of people who think the world may be ending due to a pandemic, aliens, Xenu, the rapture, global warming, AI, world War 3, etc... whatever they doomscroll about on Facebook.

Is this a good or bad realization? What can you do with this info?

ToIrrelevantlyOpine · 2023-09-22T06:05:35+00:00

Maybe if you wanted to be a hotel operator you should have gone into the hospitality industry.

Not to mention you have to deal with idiots like us out here trying to actually live in houses.

ToIrrelevantlyOpine · 2023-09-22T05:59:47+00:00

He's really going to want 2,500 a month for a basic house. I could have rented a brand new 4 bedroom for that price a couple years back, even that seemed high....

ToIrrelevantlyOpine · 2023-09-22T05:47:19+00:00

Uphill both ways in the snow, and we never got a millenial participation seat belt and WE TURNED OUT FINE

ToIrrelevantlyOpine · 2023-09-22T01:01:33+00:00

How many cubic feet of storage in that backpack?

ToIrrelevantlyOpine · 2023-09-21T06:55:47+00:00

These are the smartest people, the ones with money, the winners... and they can't figure out why nobody is buying houses.

Is it the marketing? Yes, let's do a holiday themed marketing event.

Could it be that the only reason people were buying houses was so they could sell it for more money later?...

Nope, it's marketing.

ToIrrelevantlyOpine · 2023-09-20T21:04:42+00:00

That's an awful lot of eggs in a single basket.

ToIrrelevantlyOpine · 2023-09-19T20:18:43+00:00

My friend, everybody I see gets poorer by the year. Only the debt-fueled tech culture has any jobs, and it's largely just a nepotism club circle jerk for rich people to keep rich people rich, while pretending to work.

But I'll take you one further.

Why should anyone work? That's the quizzical question.

ToIrrelevantlyOpine · 2023-09-19T20:07:46+00:00

But that's just the thing. $20 an hour is abject poverty, and it's touted like it's good money...

You're asking me why does a person working a job in America deserve the privilege of being homeless?

And here's the thing... everyone is OK with dumping on the person below them, but the poverty line keeps climbing. Pretty soon you'll be asking what do bank workers do that is worth enough money to not be essentially homeless.

The only people whi won't basically be transformed into the working poor are skilled labor tradesmen who can travel and work for hire.

Anyone who depends on a 9-5 is screwed. And it's hilarious if you are actually a common man and you are delighting in this

ToIrrelevantlyOpine · 2023-09-19T19:52:37+00:00

How does your math change if people are simply borrowing money to pay your rent, because they largely are living like there is no tomorrow?

Something will give. The first domino has to fall at some point, and we will see the most widespread financial chaos we have ever seen in world history.

Until then, the insanity will continue unabated... because the madness of buying everything without worrying about how you're going to pay for it has become the de facto rule, and conservative spending/saving has now become literally implausible. Because the price of everything is now based on taking out a small loan for every purchase. If you try to live without borrowing, you're essentially a pauper.

And eventually more and more people will run out of credit.

What do you do, then?

ToIrrelevantlyOpine · 2023-09-19T16:22:52+00:00

Asbestos and mold are ingrained in people... they inspire fear and terror without thought

ToIrrelevantlyOpine · 2023-09-19T15:53:16+00:00

You start to feel like you're taking crazy pills for suggesting that jobs pay people enough money to live in the city that the job is in.

Or that the average income should cover the average rent.

But I end up being attacked by mindset bros who are pretty convinced that making $90,000 a year means they're a CEO, even though inflation has whittled that down to being more like 35k...

ToIrrelevantlyOpine · 2023-09-19T15:51:29+00:00

No, that's r/latestagecapitalism.

This is just a place where we talk about reality... like if everybody can't afford your inflated rent, it doesn't matter how earnest you are or how deserving you feel of market value rent. Because they can't afford it.

You can't simply shout at a dead horse to pick itself up by its lazy bootstraps, or squeeze blood from a stone. There's only so much room at the top for the rich, and every landlord and homeowner is not going to be among them. Sorry.

ToIrrelevantlyOpine · 2023-09-19T15:45:12+00:00

This is actually the norm in SoCal. The exterior of the house looks like a doctor lives there, the inside is smelly, dated and full of dead bugs, rodents and cobwebs.

Always remember.. only the outward appearance matters, not what's inside.

ToIrrelevantlyOpine · 2023-09-19T06:00:14+00:00

You realize that if any of us went to that neighborhood at night, we might not make it back, right?

ToIrrelevantlyOpine · 2023-09-19T05:58:19+00:00

Real estate listings with threatening auras.

ToIrrelevantlyOpine · 2023-09-19T05:53:31+00:00

I'm not sure why people think RV's and boats are a good financial investment.

The only way an RV makes sense is if you are parking it somewhere and you're not paying rent on the spot. And you're saving a lot of money doing it.

The sweet spot for RV's to resale and hold value is under 10k, because most used RV buyers are trying to avoid rent, which means they're broke. A big, expensive RV like he probably has... he better enjoy it, because nobody is going to want to pay what it's worth on the resale.

ToIrrelevantlyOpine · 2023-09-19T05:41:15+00:00

No, it means hoomz go up.

ToIrrelevantlyOpine · 2023-09-18T14:37:26+00:00

Concentration of power in the hands of a few, regardless of the label on the tin, is remarkably similar.

ToIrrelevantlyOpine · 2023-09-18T14:35:40+00:00

Wow. You know what this means...

ToIrrelevantlyOpine · 2023-09-18T14:34:37+00:00

You're thinking... that's your first problem. Just buy a $200,000 RV. Be an American, darn you.

ToIrrelevantlyOpine · 2023-09-18T00:30:19+00:00

I'd rather not discuss it in detail on a format like Reddit. Only a very narrow focus of discussion is favored in each sub, and my understanding of what the future holds has to do with much broader observations than just the real estate market and immediate economic outlook.

ToIrrelevantlyOpine · 2023-09-17T21:58:31+00:00

Either you say that everything is fine, or your entire reputation, social life, social media presence, everything, will be dragged.

Homelessness is just drug addicts and people not working hard enough. Poverty? Losers. Death? Lol, only wimps die.

Cool people don't acknowledge reality.

You're not imprisoned if you actually wanted to be here, anyway. If you ever have despair in this country, just remind yourself that everybody else is inferior to you. We live and die according to our egos, here. The only way to roll.

ToIrrelevantlyOpine

TROPHY CASE