Real Estate Crash thread

**Mazderati** · 03-07-2023, 11:23 AM

2 in 10 Lumberghs agree.

**californiagrown** · 03-07-2023, 11:36 AM

Originally Posted by Mazderati

2 in 10 Lumberghs agree.

Everyone's gotta decide if the juice is worth the squeeze. That is always the calculation. For many, the initial capital investment, stress and burden of owning rental properties is not worth the possible income. For others, it is. Life is about tradeoffs and compromise, especially in real estate. Id rather have a crappier house in a nice area well within my means, as opposed to buying at the limit of my means because less stress is more important to me than accumulating as much wealth as possible.

**Toadman** · 03-07-2023, 01:00 PM

Originally Posted by altasnob

Starting pay at Target is now $24 an hour, nationally. Starbucks is $15. Jobless rates are ridiculously low. And with boomers soon dying, that will only continue. There's plenty of starter homes in the Tacoma area in the 350-400k range. The only reason housing seems so unaffordable in the US is because we insist on living sprawled out in giant, brand new homes, unlike the rest of the world.

If you really want to help your kid, get a rental property. When you die, and they inherit, they will get the home at a stepped up basis and can sell without any capital gains tax. You can do a cash out refinance on your primary home to get the money to purchase the rental property, and then the interest on the loan can be deducted from your rental income.

If you really want to help your kids, teach them the value of hard work and getting educated/skilled in an employable field. And tell them that their will be no inheritance when you kick the bucket.

**XXX-er** · 03-07-2023, 01:10 PM

" as much as blah blah blah "

IME in the POS environment this means maybe 2 people in the store on any given day might make that kind of wage/ might have a clue but the rest of them are not much good

**fastfred** · 03-07-2023, 01:23 PM

Originally Posted by Toadman

If you really want to help your kids, teach them the value of hard work and getting educated/skilled in an employable field. And tell them that their will be no inheritance when you kick the bucket.

Dad is that you? Are you posting on tgr now?

**Mani_UT** · 03-07-2023, 03:27 PM

Originally Posted by Toadman

If you really want to help your kids, teach them the value of hard work and getting educated/skilled in an employable field. And tell them that their will be no inheritance when you kick the bucket.

You know what? Fuck that. That's where I came from, no money, definitely no inheritance, borrowed money to pay for my flight to the US (where I had secured a good internship). It sucked. Money buys you experiences that can help you mature where lackthereof can hinder your development.
So yeah I'll try not to spoil my kid (I can't afford it anyhow) but I don't want him to start from behind. Especially in today's world. I'm not rich but I'll try to secure him housing and college. From there he can choose to become a bum or get to the next step.

**californiagrown** · 03-07-2023, 03:57 PM

Originally Posted by Mani_UT

You know what? Fuck that. That's where I came from, no money, definitely no inheritance, borrowed money to pay for my flight to the US (where I had secured a good internship). It sucked. Money buys you experiences that can help you mature where lackthereof can hinder your development.
So yeah I'll try not to spoil my kid (I can't afford it anyhow) but I don't want him to start from behind. Especially in today's world. I'm not rich but I'll try to secure him housing and college. From there he can choose to become a bum or get to the next step.

I think the point of that post was to say that he wants to raise his kids so they are independent and hardworking and not financially dependent on him well into adulthood. I would hope my kid is middle aged+ when i kick the bucket, and by then i hope he has a life he enjoys and is financially stable so he wont need or be counting on any inheritance from me.

**Mani_UT** · 03-07-2023, 04:14 PM

Originally Posted by californiagrown

I would hope my kid is middle aged+ when i kick the bucket, and by then i hope he has a life he enjoys and is financially stable so he wont need or be counting on any inheritance from me.

For sure but I think the topic is giving them a big step (while still alive) to access an increasingly out of reach RE market. Why have them struggle, pay 30-40-50% of their income in a 6% mortgage (assuming they can even buy) when you can get them ahead by planning 20 years ahead. Just to teach them that life is hard? They'll have other opportunities.

**Toadman** · 03-07-2023, 04:19 PM

Originally Posted by Mani_UT

You know what? Fuck that. That's where I came from, no money, definitely no inheritance, borrowed money to pay for my flight to the US (where I had secured a good internship). It sucked. Money buys you experiences that can help you mature where lackthereof can hinder your development.
So yeah I'll try not to spoil my kid (I can't afford it anyhow) but I don't want him to start from behind. Especially in today's world. I'm not rich but I'll try to secure him housing and college. From there he can choose to become a bum or get to the next step.

I get why parents want to provide the kids with a better start to life. I think that's a natural parental instinct, or at least for most parents. I've seen both sides of the coin with friends that had their lives handed to them with a silver platter and silver spoon. Most turned out not to be assholes and were appreciative of what the parents did for them.

I didn't have that silver spoon. I had to forge it myself. I don't feel like I am any better than the next person. But, I do know that when the shit hits the fan, I have a leg up on those that were handed their spoon.

**Mazderati** · 03-07-2023, 04:40 PM

Remember those Mexican pointy boots? Surely America is a market for the bootstrap equivalent.

**sirbumpsalot** · 03-07-2023, 04:41 PM

Originally Posted by Mani_UT

You know what? Fuck that. That's where I came from, no money, definitely no inheritance, borrowed money to pay for my flight to the US (where I had secured a good internship). It sucked. Money buys you experiences that can help you mature where lackthereof can hinder your development.
So yeah I'll try not to spoil my kid (I can't afford it anyhow) but I don't want him to start from behind. Especially in today's world. I'm not rich but I'll try to secure him housing and college. From there he can choose to become a bum or get to the next step.

I have more confidence that your kids will be able to figure it out on their own than you do!

**californiagrown** · 03-07-2023, 04:48 PM

Originally Posted by Mani_UT

For sure but I think the topic is giving them a big step (while still alive) to access an increasingly out of reach RE market. Why have them struggle, pay 30-40-50% of their income in a 6% mortgage (assuming they can even buy) when you can get them ahead by planning 20 years ahead. Just to teach them that life is hard? They'll have other opportunities.

I would like my kid to treat life as though there was no familial safety net or step up financially, but be extremely grateful if there was a net in a time of need, or a boost was given for a life milestone (college tuition help, DP on a starter home, etc). Its a mindset i had/have, and would like to instill into my kid- that you must earn everything and to never expect a break. So, dont count on an inheritance from me(... but i will probably help out here and there while im alive, and will hopefully leave a fat inheritance when i die).

**Cisco Kid** · 03-07-2023, 05:03 PM

Good luck with that. Sincerely

**yeahman** · 03-07-2023, 05:59 PM

"You give your children enough money to do something, but not enough to do nothing."

Name the movie.

**dunfree** · 03-07-2023, 06:14 PM

Originally Posted by yeahman

"You give your children enough money to do something, but not enough to do nothing."

Name the movie.

warren g and Charlie creeper?

**sirbumpsalot** · 03-08-2023, 12:36 PM

Guess who's house this was:

https://www.zillow.com/homedetails/1...8910891_zpid/?

**mud** · 03-08-2023, 01:04 PM

lion stained glass [x]
initials on the gate [x]
bloodstained imported Italian tiles with scratch marks [o]

**Core Shot** · 03-08-2023, 01:12 PM

Originally Posted by sirbumpsalot

Guess who's house this was:

https://www.zillow.com/homedetails/1...8910891_zpid/?

Only $3 million?
That’s a great estate. Unfortunately it’s in vegas

**sirbumpsalot** · 03-08-2023, 01:15 PM

Originally Posted by Core Shot

Only $3 million?
That’s a great estate. Unfortunately it’s in vegas

says 0.42 acres....but I gotta think its bigger than that.

**lowsparkco** · 03-08-2023, 01:30 PM

Check this out....

https://www.zillow.com/homes/20090-M...80924851_zpid/

The actual MLS entry has some additional information that the home needs carpet, interior paint, and a roof.

I looked closely at comparatives this morning for a client and the best I can determine value is closer to $500k to 550k. So, the broker is drumming up a bunch of interest from Buyers who potentially can't qualify for a loan big enough to buy the place. Odd strategy. I hope the client insisted on it.

**dan_pdx** · 03-08-2023, 06:20 PM

Originally Posted by sirbumpsalot

Guess who's house this was:

https://www.zillow.com/homedetails/1...8910891_zpid/?

Siegfried & Roy?

The cage looks like a great way to keep the kids out of your hair, but maybe that wasn't the original intent.

**Supermoon** · 03-10-2023, 03:02 PM

Silicon Valley Bank goes tits up. Sounds like they were banking on the fact their VC money would never dry up and the interest rates would stay low. Where have I heard this before?

**::: :::** · 03-11-2023, 07:46 PM

relevant to the conversation on converting commercial buildings to residential
https://www.nytimes.com/interactive/...e=articleShare

**liv2ski** · 03-12-2023, 03:27 PM

Was thinking about the S&L crisis way back in the day. If banks start failing, that could be the beginning of a crash in RE values also if history repeats.