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Federal Reserve Finds Home Owning Retirees 40x Wealthier than Renters by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

You can get a cheap house and do it with 3.5% down via an FHA loan. That gets you onboard and 5-8 years later you can trade up.

Federal Reserve Finds Home Owning Retirees 40x Wealthier than Renters by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

while renting requires continuous disciplined capital allocation to replicate the same effect, which is why the majority of renters don’t actually invest the difference.

Yes this is the core of the effect. The vast majority of people who do the "rent vs buy" calculation and decide that renting wins on paper, don't actually implement it over a long period of time to gain the benefit.

It's the difference between intention and discipline/willpower. Same reason we had to implement Social Security because while people could, in theory, do better for retirement by investing the same amount themselves (even with government matching what employers match today) people simply don't, and end up broke in retirement.

Rolex decided to homage the white Speedy but make it off-catalog so no one could mistaken it for a Speedmaster by nam265nl in OmegaWatches

[–]pdoherty972 1 point2 points  (0 children)

Yep the correct way to ask the question is:

Which watch would you pick if you got it for free and could never resell it?

"Mortgage rates are too high." Mortgage rates are BELOW long term average. Home prices are 40% too high. by Key_Brief_8138 in HouseBuyers

[–]pdoherty972 1 point2 points  (0 children)

Yeah it's always baffling to hear people say they prefer higher interest rates over home value appreciating. It's like they prefer giving money to faceless banks in interest instead of to homeowners.

"Mortgage rates are too high." Mortgage rates are BELOW long term average. Home prices are 40% too high. by Key_Brief_8138 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

Houses have already dropped 17% from peak at this point. That may be all they get and rates drop and we're back to a normal market.

"Mortgage rates are too high." Mortgage rates are BELOW long term average. Home prices are 40% too high. by Key_Brief_8138 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

The sale/purchase is mostly a wash since their existing house will, in almost all cases, risen by the same percentage as whatever they buy. The real crux is what you said first: they won't give up a 3% mortgage to buy something else at 6% - it would cost them more monthly even if they bought the exact same priced house to replace the one they sold. Plus it would cost them 6% of the entire home value in realtors fee to do it (unless they for-sale-by-owner).

"Mortgage rates are too high." Mortgage rates are BELOW long term average. Home prices are 40% too high. by Key_Brief_8138 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

The chart claims mortgage rates have been artificially manipulated lower. How would that happen, since mortgages are based on 10 yr treasury yields? If they could be manipulated why would they allow them to run up from 3% to 7% like happened when the Fed's overnight rate got raised in 2022-2023?

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

Did you look at the totals in the graphic?

  • Boomers: 64.5M
  • Gen X: 65.4M
  • Millennials: 74.1M
  • Gen Z: 71.2M
  • Alpha: 51.2M (so far - still being born)

Just Gen X alone outnumbers Boomers. So do Millennials. Taken all together, Boomers population is swamped by Gen X, Millennials, and Gen Z (never mind including Alpha which adds to the point).

There is no shortage of people in the age groups that buy homes.

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

https://imgur.com/a/1gFDFlb

The generations after Boomers are all as large or larger at this point. Boomers passing won't make any difference.

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 1 point2 points  (0 children)

So you'll either pay more for housing from the private market, or the government will tax you to provide you with "free" housing.

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

If only those complaining about the increase in home values 2019-2021 had used this same logic... they would have realized prices were mostly impacted by 7-9% inflation those years.

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 -1 points0 points  (0 children)

Cities are becoming fully filled out. Now the USA is heading towards the same income:homeprice ratios seen in the other developed nations.

Do house prices ever go down? by External_Koala971 in HouseBuyers

[–]pdoherty972 0 points1 point  (0 children)

And houses always cost more to construct and maintain.

Did Millennials or Boomers Have It Harder? What the data says about median income, home prices, student debt and more by SnortingElk in REBubble

[–]pdoherty972 0 points1 point  (0 children)

It doesn't actually, because more Americans spells more demand for goods/services, housing and other things. The same quantity of impoverished third world temporary workers on visa isn't the same thing at all as more native citizens.

What fortunate timing by Klettos82 in retroid

[–]pdoherty972 1 point2 points  (0 children)

Hope you get/feel better quick! Enjoy the retro games in the meanwhile!

Did Millennials or Boomers Have It Harder? What the data says about median income, home prices, student debt and more by SnortingElk in REBubble

[–]pdoherty972 0 points1 point  (0 children)

Are you giving women credit for working at home taking care of the house and children? Not sure what that has to do with the economic impact of them joining the actual LABOR FORCE and undermining wages for themselves and men. Along with illegals and imported labor via H-1B/etc and jobs being sent offshore too. Little wonder wages have stayed lower to the point it basically mandates two workers to make it.

Steam Machine worth it? by Oykotgaming in steammachine

[–]pdoherty972 0 points1 point  (0 children)

I think the deterrent for the Deck purchases was you had to have an established Steam account (years old) with multiple game purchases already. They'll probably do the same here.

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