How we think about money

[czub]

Appraiser, huh? Back when I used to finance commercial real estate projects, the joke was that MAI stands for Made As Instructed.

Anyway, you're not completely wrong and in many ways I agree with you, just don't have your level of confidence. Posted this few weeks ago in a Politics & Hot Topics thread.

Yes, the conventional wisdom would lead you to believe that if rates go from 3% to 6%, resulting in a 40%* increase in the 30-yr mortgage payment, you'd expect a substantial drop in home prices since most buy based on a monthly payment but we're not seeing this or even anything remotely close to this.

Between builders buying down the rate for several years and current homeowners staying put, courtesy of golden handcuffs of their current low rate mortgage, the prices have barely budged so far. Labor and building materials inflation is also helping to sustain the prices of existing homes.

*With rates north of 7%, it's more of a 60% increase so we'll start seeing weakening in more markets.


For my personal investments, I do a fair bit of real estate investing via a crowdfunding platform and have to look at loans in 30+ markets. There's no collapse but in most markets the growth is over and some are seeing slight declines.

 

[GFB]

....done with this thread it's tiresome....

With all due respect, I think that was a self-inflicted wound.

 

[moosensquirrel]

I'm not hung up on it man, it's just an example. Nobody is loaning money to anyone at zero percent interest on a steadily depreciating asset like a washing machine or car. The cost of the money is built into the sales agreement whether in price or fees. I guarantee you. It just doesn't make sense and if it doesn't make sense, zero percent loans aren't true. They are a marketing gimmick.

Right: if not outright fraud, certainly a violation of the various "deceptive practice" statutes

 

[greg vess]

The good book says don't dwell on wealth or love but be happy with God has given you. The stress levels people create for themselves is preposterous. I didn't watch the video but I figured this out long ago. Live cheap and enjoy life. Worry about what God thinks and not your peers. The human body wasn't built for the rigors of trying to survive and impress everyone around us at the same time. It's probably what contributes to disease and heart attacks on a massive level.

 

[GFB]

It's probably what contributes to disease and heart attacks on a massive level.

That and fried chicken. But it's easier for me to try and avoid seeking status than it is to give up fried chicken.

 

[greg vess]

That and fried chicken. But it's easier for me to try and avoid seeking status than it is to give up fried chicken.

I hear that but I doubt fried chicken a couple times a week is a hugely unhealthy thing. Look at the amount of fat people in Alaska have to eat during the cold months just to survive. However, If you eat like that every meal and don't work hard and burn it off that can be a problem.

 

[GFB]

I hear that but I doubt fried chicken a couple times a week is a hugely unhealthy thing. Look at the amount of fat people in Alaska have to eat during the cold months just to survive. However, If you eat like that and don't work hard and burn it off that can be a problem.

Careful. If we start talking about health, DANK is probably going to move this thread to the gunsmithing sub-forum. I think you're right though.

 

[InTune]

Oddly enough, I was single and debt-free at 33. Owned my condo and my car.

Then I got married. Wasn't debt-free any more.

Yeah, C'mon....Good coochie and I was like, beat me , bite me, make me write bad checks.

 

[james357]

Paid cash for my Ram Larime 1500 Hemi 2004...18k miles. Also the same for my 2004 Jeep Grand Cherokee 8 cylinder 102k. Just replaced the belts and all fluids with synthetic if that could be used a new tires and tune up.
Bought a Jeep Rubicon 20015 new bought it Feb 2016. For 42850 cash. Sold it with 25k to car max for 33800k. We figgered we didn't need 3 cars and the expense. Took it off road to a paint friendly trail. I figgered I rented it for 3k a year. I didn't like the attention a loaded bright blue Jeep got and figgered if I went camping it would be stolen. All my vehicles are or were parked in my basement. My Truck has spent 10 days outside since 2004.

 

[greg vess]

I have purchased 4 Trans AM's. 2 of them were 80's models that were seven and eight years old. They stickered for up the mid 20,999 price range new. Got both that look like brand new with under 40,000 miles for 5500 and 6500 cash. In 2021 I bought a 2004 GMC Sierra four-wheel drive with 42,000 miles on it and paid $7,500 cash for that. It still doesn't have a scratch or a ding in the paint and the interior looks like new. I sold cars on and off from 1994-2002. I only bought two new cars and both of those were in the paper at a sale price and a massive discounts and I financed them through my bank which gave me a low interest rate. After selling cars for so long I'll never buy another new car in my life. The depreciation hit you take right after you drive off the lot is enormous. Why not buy one a few years old and let somebody else pay all that depreciation. Swallow the pride and buy reasonably and intelligently. Make sure to do a Car Fax and find out the service and accident history and take it to a mechanic if you don't know what you are looking for. The money people throw away on new cars every few years is staggering. All that waste just to be hip.