The comment that you know what your payment will be for 30 years is a bit naïve, the mortgage is the least you will pay not the most. Property taxes go up, insurance can go up and all the stuff you need to replace, a $20K roof, sewage plumbing at $8K, electricity upgrade at $11K, all new plumbing to copper $7K, painting at $9500K, replacing windows at $600 to $800 each with 18 windows and floors, bathroom upgrades, kitchen appliances, etc. etc. These are all expenses that we paid in the 15 years of home ownership of an almost 100 year-old house. Home ownership needs to consider all of the extra costs that the mortgage does not cover. Deep pockets and a wealth of skills is mandatory.
I think it (residental real estate) is once again, in an EPIC bubble, akin to 2007. When you look at median prices/ median incomes, in most regions..significant price gains, are simply unsustainable.
"The rent of land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give." - Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Book I, Chapter XI "Of the Rent of Land" Private real estate is a racket!
She’s definitely in a time warp when it comes to purchasing real estate on avg salaries…it’s a major topic b/c the two are unaligned for like the first time ever.
Thanks. Appreciated this discussion! (Also, looking forward to a solution to the affordable housing crisis. Would love to help, if that's a possible future topic for one of these shows. 🙂)
The comment that you know what your payment will be for 30 years is a bit naïve, the mortgage is the least you will pay not the most. Property taxes go up, insurance can go up and all the stuff you need to replace, a $20K roof, sewage plumbing at $8K, electricity upgrade at $11K, all new plumbing to copper $7K, painting at $9500K, replacing windows at $600 to $800 each with 18 windows and floors, bathroom upgrades, kitchen appliances, etc. etc. These are all expenses that we paid in the 15 years of home ownership of an almost 100 year-old house. Home ownership needs to consider all of the extra costs that the mortgage does not cover. Deep pockets and a wealth of skills is mandatory.
I think it (residental real estate) is once again, in an EPIC bubble, akin to 2007. When you look at median prices/ median incomes, in most regions..significant price gains, are simply unsustainable.
"The rent of land, therefore, considered as the price paid for the use of the land, is naturally a monopoly price. It is not at all proportioned to what the landlord may have laid out upon the improvement of the land, or to what he can afford to take; but to what the farmer can afford to give." - Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, Book I, Chapter XI "Of the Rent of Land"
Private real estate is a racket!
just help homeowners and renters by getting rid of government burden by getting rid of all taxes.
Wow, it’s dry in Arizona. Must be climate change.
Excellent video. Thank you for posting this
She’s definitely in a time warp when it comes to purchasing real estate on avg salaries…it’s a major topic b/c the two are unaligned for like the first time ever.
Excellent discussion. Thanks
Very interesting
Thanks. Appreciated this discussion! (Also, looking forward to a solution to the affordable housing crisis. Would love to help, if that's a possible future topic for one of these shows. 🙂)