OT: real estate
- Thread starter sid700
- Start date
dannieboiz
Active member
haha that's so hilarious.
speaking of trick or treats, people just don't have the spirits like they used to anymore.
speaking of trick or treats, people just don't have the spirits like they used to anymore.
sfsuphysics
Active member
Yeah some are "better than millionaires" in that all they did was pay a bunch of money to have an expensive pieces of property, those who have owned for MANY years (read: decades) paid 30k or so for a house that over 30 years has increased 2500% now that's some dividen return! 
orientalexpress
New member
oh trust me,they're have no problem selling for that much
Houses are only worth that much if you can sell it for that much
Houses are only worth that much if you can sell it for that much
orientalexpress
New member
yeah,i remenber that when i was a kid ,there alway somebody does that,but we're collect all the pumkins and break it on their doorstep.
dannieboiz
Active member
If you look @ the interest rate of those year 20 years ago, it was crazy. 10% was average and at times it was in the 15-16% range. That's probably the reason why you see less people can afford to buy homes then. Don't forget inflations and other factors. Average income wasn't as high then as now. People make more money, and though things cost more now.
Correction, in the early 80's mortgage rate was in the 20% range. :eek2: It was 50 years ago when interest rate was as low as now.
Correction, in the early 80's mortgage rate was in the 20% range. :eek2: It was 50 years ago when interest rate was as low as now.
tylorarm
Premium Member
Yes, mortgage to GDP has been trending up over time with lower real rates as mortgage market gets more efficient. Trend line over the past 25yrs extrapolates to total mortgage debt at around 50% of GDP in 2006 (linear regression). In 2002 nominal mortgage interest rates were similar to now but total mortgage debt at 50%. Assuming new home builds stay at pace with GDP growth nationwide, prices would have to decline 40% to get back to 50% of GDP from 70%. Or could just have 6% nominal GDP for a few years and no home price appreciation. Also note that average housing start contraction from peak to trough in following recession over past 5 recession prior to 2001 was 45%. No contraction in 2001 recession. Net, I certainly wouldn't be a buyer right now unless I was selling similar value home.
otterpop510
New member
wow tylorarm, thanks for the 'executive summary' sentence in the end.. you had me lost there for a minute.. :lol:
dantodd
New member
Also remember that in the past there was a different tax deduction credit for consumer credit. Add that to the fact that mortgage/GDP doesn't include interest AFAIK. This all means that it is more advantageous to:
A) purchase a home in leiu of renting because the mortgage rates are so low the cost differential is lower.
B) keep your house leveraged instead of running other types of consumer debt such as auto loans because the mortgage interest is deductible and an auto loan is not.
I'm not saying that we, as a nation, (and me personally) aren't over extended in debt but just that today's mortgage/GDP ratio is not directly comparable to those same numbers in the 80's.
A) purchase a home in leiu of renting because the mortgage rates are so low the cost differential is lower.
B) keep your house leveraged instead of running other types of consumer debt such as auto loans because the mortgage interest is deductible and an auto loan is not.
I'm not saying that we, as a nation, (and me personally) aren't over extended in debt but just that today's mortgage/GDP ratio is not directly comparable to those same numbers in the 80's.
sid700
Member
That's the problem with statistics and data - you need to know the source, it has to be interpreted and any caveats disclosed ('Past performance does not guarantee future results' comes to mind).
I started this thread because I was blown away by the county's median price. Just the property tax on $920K alone is more than the annual salary of a lot of people. I often wonder how my 5-yr olds can buy a home when they become adults.
I might have to sell the tank.
Vincerama2
Active member
There was a house in my old neighbourhood that, every Hallowe'en had a basket with a sign saying "Take some candy but please leave some for other trick or treaters". It was ALWAYS empty. I guess you were supposed to think that other trick or treaters took all the candy, but honestly, I think the basket always started off empty!
I remember being back home a few years ago and TEENAGERS came to the door, and my Mom was holding the candy bowl and they just all started grabbing candies. I was 2 seconds from breaking heads... I don't know which is more pathetic, being a teenaged trick or treater, or being so greedy as to grab candy from a bowl from someone who is giving it out for free. (By teenager, I mean 15+)
Then at my place last year, A woman and her 3 boys came to the door, and when I opened the door, they WALKED INTO MY HOUSE AND HEADED FOR THE CANDY BOWL! I was shocked that the woman didn't say anything about this totally rude behaviour! If that happens again this year, I'll tell the woman that it's rude.
Sheesh!
Oh, and my best halloween was when I was about 12 and as we approached one house, the teenage girl who lived there changed her shirt in a room upstairs with the curtains open and lights on! (no nudity, but for a 12 year old boy, seeing a bra is something to remember! (for 25 years)).
V
I remember being back home a few years ago and TEENAGERS came to the door, and my Mom was holding the candy bowl and they just all started grabbing candies. I was 2 seconds from breaking heads... I don't know which is more pathetic, being a teenaged trick or treater, or being so greedy as to grab candy from a bowl from someone who is giving it out for free. (By teenager, I mean 15+)
Then at my place last year, A woman and her 3 boys came to the door, and when I opened the door, they WALKED INTO MY HOUSE AND HEADED FOR THE CANDY BOWL! I was shocked that the woman didn't say anything about this totally rude behaviour! If that happens again this year, I'll tell the woman that it's rude.
Sheesh!
Oh, and my best halloween was when I was about 12 and as we approached one house, the teenage girl who lived there changed her shirt in a room upstairs with the curtains open and lights on! (no nudity, but for a 12 year old boy, seeing a bra is something to remember! (for 25 years)).
V
dannieboiz
Active member
I think that was more of a trick than a treat. That so called girl could have been a guy in a wig. hahaha... See how it stayed with u for 25 years?
:lol:
