I’m sorry to hear about your wife possibly being laid off.
That’s always the inherent risk of working for someone else. I’m not self employed and know it’s always a possibility for me too.
I’m sorry to hear about your wife possibly being laid off.
That’s always the inherent risk of working for someone else. I’m not self employed and know it’s always a possibility for me too.
And this is after she lost her job of 16 years about a year and a half ago.
Agreed. However what happens to people that have bought the last few years, also what if they have lost their job? If interest rates are two high the property becomes even more unaffordable even though it can cost less. Finally, anyone who is hourly or salaried get any hint of a COLA increase? We have many ills with our economy, not just higher rates will cure inflation.
What happens to people who bought property the last few years? Congrats to them -- they locked in sub 3% interest rates.
True, however the issue becomes equity in the home. They are locked into low rates, great, but in a long term investment that may be worth substantially less. If they become unemployed and can't pay a loan, may be stuck in an upside down investment, credit destroyed. Take a look at who is buying up properties right and left, management companies. Same with farmland, the family owned farm is steadily becoming a thing of the past that is why they are trying to bringing back the estate tax, maybe not purposely, however I suspect their are many politicians who do have nefarious designs on the people. I am pro capitalism, pro ownership, pro individual rights by the way. I agree with you that many people who bought at low rates are much better off than those buying now, however I do remember 2007 very well.
Im not sure how contracts are written now but since it’s the lenders collateral if you house drops in value and they’d be underwater they can call for you to pay for the lost value in the home.
In the Great Depression as I remember the values were dropping so fast people just moved out and let them go.
In the Great Depression as I remember the values were dropping so fast people just moved out and let them go.
To be clear, I’m not arguing inflation is good. I thought you were saying rising interest rates were bad and I was stating why they weren’t at the moment.
We may get some okies back that migrated Northern California durning the dust bowl of the 30’s.
A reverse migration as they have their dust bowl, Norther Californians used to be fairly conservative but it’s been 20 years so who knows?
A reverse migration as they have their dust bowl, Norther Californians used to be fairly conservative but it’s been 20 years so who knows?
low rates are great if locked in. not sure how the banks will handle when the collateral devalues? but low rates won't protect you from devaluation and the problem of not being able to sell because the proposed purchaser can't get credit. overall it's going to be much more painful than the 70's and 8's in my opinion. there just wasn't as much exposure to the market by the joe shmoe back then. now what if we have a currency collapse? also don't forget that even with low rates you are paying back dollars valued in the years of the notes with whatever dollars exist in today or the future.
Same things happened in late '70s - mid '80s.
House mortgages were 9-10%. Car loans were 20% (go buy that $90k F250 and $6 diesel).
We bought our house in '78, @5.2%. 3 months later, loans were pushing 9%.
The house across from us sold for $48k, ours was $42k.
2 years later, same house sold for $65k.
18 months, sold for $84k.
A year later, they walked.
Sat empty, almost 3 years. Bank sold it for $35k
We had been in our house 8 years, it was worth less than we bought it.
Shifted happens. Timing is everything
A LOT of people will be hurt by the Pedo stupidity.
House mortgages were 9-10%. Car loans were 20% (go buy that $90k F250 and $6 diesel).
We bought our house in '78, @5.2%. 3 months later, loans were pushing 9%.
The house across from us sold for $48k, ours was $42k.
2 years later, same house sold for $65k.
18 months, sold for $84k.
A year later, they walked.
Sat empty, almost 3 years. Bank sold it for $35k
We had been in our house 8 years, it was worth less than we bought it.
Shifted happens. Timing is everything
A LOT of people will be hurt by the Pedo stupidity.
