[Papa_lecki]

Originally Posted by Stu from NYC

Do believe value of our home down due to higher interest rates.

Assuming a $3,000 monthly budget...

-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.

-7.23% mortgage rate today could buy you a home worth $434k.

That's a $207k (32%) decline in purchasing power.

[bcsnave]

Originally Posted by Papa_lecki

Assuming a $3,000 monthly budget...

-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.

-7.23% mortgage rate today could buy you a home worth $434k.

That's a $207k (32%) decline in purchasing power.

Stu, what is this "mortgage" thing that speak of? I am not familar with that.

P.S. Please support my new business venture https://www.talkofthevillages.com/fo...9-post179.html

[Normal]

The Florida market is starting to saturate with investments. You can make better gains elsewhere.

[JMintzer]

Originally Posted by bcsnave

Stu, what is this "mortgage" thing that speak of? I am not familar with that.

P.S. Please support my new business venture https://www.talkofthevillages.com/fo...9-post179.html

People selling their homes in order to buy in TV will be affected, resulting in less purchase power...

[Stu from NYC]

Originally Posted by bcsnave

Stu, what is this "mortgage" thing that speak of? I am not familar with that.

Something we had when wearing a younger mans clothes.

[Stu from NYC]

Originally Posted by Papa_lecki

Assuming a $3,000 monthly budget...

-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.

-7.23% mortgage rate today could buy you a home worth $434k.

That's a $207k (32%) decline in purchasing power.

On a 3000/month budget would not want either home. Food would not be affordable.

[CoachKandSportsguy]

Originally Posted by ThirdOfFive

I’m no businessperson (thank goodness my wife is) but a whole lot of these prognostications smack not of fact and truth but instead, wishful thinking.

By definition, prognostications are never facts nor truths, because they are about the future, and the future hasn't happened yet.

Moreover, the future is always uncertain, sometimes more uncertain than at other times. Anyone who states a human behavioral future event with black and white certainty, probably, but not certainly, wants to sell you something.

But discussions about the future, when framed as a probability or risk, has much more validity, but still not a certainty. . and a 50/50 probability, is basically an unknown probability, because both outcomes are even, ergo, unknown or random or binary, either it does or doesn't, which has no value.

so you are correct with the obvious. .

[JMintzer]

Originally Posted by Stu from NYC

On a 3000/month budget would not want either home. Food would not be affordable.

Pretty sure that $3000 budget is a line item for housing costs. Not their total monthly spending allowance...

[Stu from NYC]

Originally Posted by JMintzer

Pretty sure that $3000 budget is a line item for housing costs. Not their total monthly spending allowance...

Not clear from original post but if total income bank would be nuts to approve either mortgage.

[CoachKandSportsguy]

Originally Posted by Papa_lecki

Assuming a $3,000 monthly budget...
-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.
-7.23% mortgage rate today could buy you a home worth $434k.
That's a $207k (32%) decline in purchasing power.

That's mortgage only, insurance and taxes by region affect the total purchasing ability. . in FL with insurance doubling, the home size affordability is also dwindling

DOesn't apply to all cash buyers, 40% of americans don't have a mortgage on their homes. . Also questionable application when moving from a higher cost of living location to a lower cost of living area. . also doesn't apply when downsizing boomer. .

so. . interest rates play a 60 % part, but not the only part and demand can overwhelm supply locally. . meaning none of this is applicable under certain constraints. . specifically moving higher to lower COL and using cash.

[Randall55]

Originally Posted by Stu from NYC

Something we had when wearing a younger mans clothes.

When mortgage interest rates are high, people pay cash for the home.

When interest rates are 2% many people get a mortgage. With a large sum of cash, you can invest and make well over 2% interest.

[tophcfa]

Time will tell regarding the prediction. Personally, I hope the prediction is wrong. I don’t want the market for investments in residential homes used for short term rentals to pop, I want it to explode like a nuclear bomb was dropped on it.

[CoachKandSportsguy]

Originally Posted by tophcfa

Time will tell regarding the prediction. Personally, I hope the prediction is wrong. I don’t want the market for investments in residential homes used for short term rentals to pop, I want it to explode like a nuclear bomb was dropped on it.

OK, well, hmmm, not sure you are clear enough. . .
but , the stock would be a great short!