Dealing with Debt: Will 30 year mortgages help first time home buyers?
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- เผยแพร่เมื่อ 11 เม.ย. 2024
- The solution to debt is not more debt, says Doug Hoyes, Co-founder of Hoyes, Michalos & Associates.
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fear a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
Consider reallocating from real estate to other reliable investments like stock, crypto or precious metals . Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice, but it may be wise to invest, as cash isn't ideal in this period.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
This is such an important topic. I have family in FL and TX and I tell people all the time not to fall for the no income tax narrative. Both of these states have no income tax and my relatives always complain about their absurdly high property tax, sales tax and other various fees. You have to look at the total tax (and fee) picture, not just income tax.
I lived in Nevada where they have no state income tax and I saved so much money every paycheck. It made me realize how over taxed we are in Canada. Their sales tax was almost half that of Ontario. Gas was more than half off Canada and Canada is an oil nation. Btw in the US they pay higher property taxes than Canadians regardless if they have state income taxes or not. Canadians are just over taxed for what we get in return.
For sure! You need to think about all the taxes and fees, not just income tax. I think financial advisors can really help by looking at your whole financial picture, cutting down on any extra costs, and finding ways to handle property taxes smartly. This can take a load off homeowners, especially in places like FL and TX where taxes can be a bit tricky 🙁
you're spot on about the value of a financial advisor. As a businessman, moving from California to Texas, my advisor traded stocks for me, allowing me to purchase two homes worth $1.8m with the profits. While Texas property taxes are comparable to California's without Prop 13, being free from California state income taxes has significantly improved my financial standing.
I'd love to know who your advisor is. You see, I'm a Russian living in America with my family, finding my way around the market can be tough as a beginner and i know i am not the only one. I have $200k saved up and ready to invest, but I could use some guidance.
She is well known as - Chasity George Charles. please do your own research.
I just had a brilliant idea to make homes affordable in Canada, increase the mortgage term to 120 years
Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.
You need to hire a financial advisor to help you diversify your portfolio by including Mutual Funds, inflation-indexed bonds, and stocks of companies with reliable cash flows rather than growth stocks, where prices were based on future prospective earnings.
He is well known as - "Trade with Ethan Grayson" . please do your own research
Look upTrade with ethan grayson
@@leedavis3639 I think I want to try out a financial advisor, but the amount of information on the internet is overwhelming. Could recommend any good one(s)?.
This will make the banks richer 😮
They will do anything except consider importing less immigrants
They’re buddies with their Liberal friends
Considering the amount of homeowners that are slipping into negative amortization these days I see 30 year mortgages as a last ditch effort to keep the great housing ponzi afloat. Nobody under the age of 30 wants to touch homeownership. Let the older generations keep their debt trap.
We had 30 year mortgages already they just weren't insured by CMHC.
This government never do things what needs to be done, they need to increase supply. By this it will create more demand for the limited supply.
Only applies to new homes. So this helps developers as they won’t have to sell their unsold properties at a discount. Supply of homes is tricky because we have homes used exclusively for short term rentals and others vacant. It’s ridiculous in a housing crisis to even allow that to occur.
Why would it help new home buyers? All that does is increase demand. Supply is still limited so it will drive costs even higher. It’s fucking basic
The GOAL is to prop up property prices for those who already own, but to frame the policy as "helping" 1st time buyers. It helps the banks too, since the profit on a 30 year mortgage interest is MUCH better than a 25, or a 20 year. The whole thing makes me a bit sick.
They could significantly reduce immigration and easily solve affordability issues but companies like Hilton hotels, Amazon, fast food industry etc refuse to have to pay more than 15/hr (far below livable wage in most cities). They say “it’s the important role they play in our economy”
Politicians are not the smartest tool in the box. That's why.
@@History_Camelthey are reducing immigration. Foreign students are greatly reduced over the next two years. Temporary foreign workers will be reduced as well. It’s still not enough because we haven’t seen much increase in new supply per year.
Nobody remembers what "40 Year No Money Down" mortgages did to house prices? Or maybe they do.
I follow Dave Ramsey , 15 yrs mortgage , the quicker you are debt free , the more money you have to invest and save
And you should have 20% downpayment. If you don't have that you're treading water not swimming.
Doug sounds like a man with common sense. We have to fix the underlying problem, putting people into debt for life is just insanity!
It won't lower interest rates and it certainly hasn't helped regular home buyers. Always some ridiculous spin to bring in more buyers!!
Another windfall for mortgage lenders. Imagine the interest paid over 30 years
Compared to a 25 year term a 30 year term will cost ten of thousands more in interest costs
All 30 year amortizations do for first time home buyers on 'new' contruction.... is ensure distorted Real Estate based Banking/Financial system DEBT instrument solidification.
It is NOT viable to download the distortion now on first time home buyers further constraining GDI from stagnant GDP moving.
The system needs to correct and the entitlement imbalances(losses) attenuated.
Doug is right, first time buyers need lower prices but the government can’t engineer that because existing home owners and speculators won’t vote for them. We have too much debt and the country would benefit greatly if housing values fell a lot but which government will let the market crash?
30 yr mortgage at a fixed low rate is your friend in a high inflation environment. It'll kill you if you have a high rate. The amount of interest you pay goes exponential.
50 ways to leave your negative Equity:
"You just slip out the back, Jack
Make a new plan, Stan
You don't need to be coy, Roy
Just get yourself free
Hop on the bus, Gus
You don't need to discuss much
Just drop off the key, Lee
And get yourself free| Paul Simon
How can it help when the real estate market needs to correct and increase supply?
it's not about mortgages term or high interest rate. it's about the housing price. people were ok with 7 to 10% interest rate before because housing were affordable.
The title is meaningless or at the very least a contradiction in terms. "will allowing first time home buyers to spend more money on a home help them?"
No it does not. You’re paying more in the long run in interest rates…The problem is change for meaningful policies to tame demand. Great analysis !
The problem is a high price tags… banks are getting richer and public getting hard earn money
This will help first-time homeowners bid up the cost of all housing, which means it benefits the banks and people who already own housing, but it hurts those currently buying homes by burdening them with debt well into their senior years.
It only applies to new homes. It’s really meant to bail out developers who are going to have new excess properties to sell. If the government did nothing those developers would be cutting prices which would actually help new buyers. I hate that the Libs are trying to sell this as helping new buyers.
This guy literally offered 0 insight. Everyone sane know you don't have a crystal ball, but your value of being an expert guest is that you can offer an educated speculation and not just restating facts and definitions that most viewers already know.
I got my inheritance and bought a house in full for cash. Half wondering if i should have just left for a cheaper COL country
This guy is great. More doug
Might save a few re mortagera but nobody will be buying houses so detached from income anymore
"Homeowners" don't have mortgages. The clue is in the second part of the word.
The only one will benefit is the banks. 5 more years interest for banker.
Talk about a stupid reason to go into debt in the middle of a debt crisis.
Canada 🇨🇦 will absolutely have homes which are currently being built
Ah yes, the good ole 'kick the can down the road' strategy.
Don't let them gaslight you into believing that "owning" a home is the point of life.
I don't even like the 25 - paying it off ASAP. Extending the length just gives the banks more money.
Inflation eats away at the interest the banks collect. What people don’t realize in the past when you paid off your home you likely paid in interest the cost of the home. So when a home doubled in value you only broke even as inflation reduced the value of money. It doesn’t make much sense to pay off your home if you have the ability to invest.
Increase the prices so people have to work longer and can’t retire. Modern day slavery.
Why not 100 years
We have a SUPPLY issue people. We need to build more homes. We need to reduce immigration to more sustainable levels to catch up. Making it easier to qualify for longer mortgages will only benefit the banks, and the developers who will jack up their prices in response to easier money.
At the least, Canada needs to tie immigration to housing targets, job vacancies, and number of doctors and nurses.
The longer the mortgage the more people pay in interest. Or another way to look at it is you pay less down on the principal each payment. Why do people think this is helpful. This government loves low info voters.
Do 200 years mortgage. People need to stay poor
The Feds have the power to fix Canada's 2 biggest issues overnight (i. terrible GDP per capita and productivity growth, ii. housing crisis): they could lower income tax (so people have an incentive to be uber productive on an individual level) and tax real estate capitals gains to offset those losses. Productivity would go up, shelter prices would go down, investment would shift away from real estate - which is a non-productive asset - and towards productive investments that yield GDP…and they can keep the same tax revenue. A win from almost every angle! They just have to be willing to annoy the filthy rich that benefited from an offset in their ‘shelter timeline’ relative to other Canadians (i.e. they happen to have been at a point in their lives to "buy" a house prior to the start of "the everything bubble"). If only we had actual leaders in power instead of these simpletons who think they’re fooling their citizens. Shame on them. Squandering the potential of our country.
Just renting by another name with none of the advantages.
This is simply ridiculous, You must implement capital gain tax on all property peoples who own 2 or more property and decide to sell any property will be tax , let's see how the housing market will be corrected
More taxes is not the answer. Your encouraging enslavement. No free money, it 0% rates. Thr only solution is raising rates.
With your plan there will be less incentive to invest in the housing stock. You should think before pushing socialism
More debt is the last fools jumping in the trap
Honestly ill bet that people just want a home. They wont care if prices go up once they own it
My property owns me... You want my entire pay cheque you say? Here you go fine sir.....
they are gonna need more then 30 years to pay off what some have borrowed. Joke
blah blah blah. Real estate super bubble in Frozen land of canada is done😂😂😂