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User Info Housing Inflation? Buy Half A House in forum [Market-Ticker]
Posts: 5809
Incept: 2008-12-09

Spokane WA
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Nope; we're still in the pre-game show.

With that proposal, it's going to be interesting in figuring out which 55% of the house you want to maintain, since you don't own the other 45%.

What a ****ed up place this planet is.
Posts: 1935
Incept: 2012-04-19

Unfree State of MN
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This move seems to me as the equivalent of the shoeshine boy giving me a stock tip.

Anecdotally I was at a dinner with some co-workers where several of them all were talking about crypto and saying I was foolish for not getting into bitcoin and others. Since then the value of bitcoin has about halved.

Nobody has told me to invest in California real-estate yet but soon as someone does I think the bubble has officially popped.
Posts: 34
Incept: 2018-02-07

st pete FL
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This is good news!

The government has officially admitted that housing is not affordable for a large
percentage of people.

Their solution sucks but at least it's a new game.

Twenty billion in research grants over the next 5 years and they may rediscover trailers and trailer parks.
Posts: 1566
Incept: 2010-03-01

NOLA on assignment to NOVA
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So this sounds like an HOA on crack...

Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it. Mark Twain
Posts: 82
Incept: 2011-06-19

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More can kicking to keep this clusterf*ck eCONomy going. And it will happen, just watch.
Posts: 3047
Incept: 2008-12-31

Pacific NW USA
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First house I bought was a tenants in common agreement with a roommate. Worked out great for us.

That said, having California as your co owner sounds about as good as having a chronic loud masturbator, extreme BO, food stealer living with you.

I want to see teeth flying as someone is beaten with a cast iron dildo hidden in a sock.
Posts: 74
Incept: 2019-06-19

Northern Virginia
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@Superdude...OnlyFans....thank you.
Posts: 566
Incept: 2018-01-29

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Great question.

I suspect yes, but will defer to experts on this.

Posts: 276
Incept: 2010-07-06

Ceciltucky, Maryland
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This could be a scam like rent to own houses or mobile homes. The scam works like this: Sell a house to someone who lacks the skills and financial resilience to keep it long term, then repo it when they crash. The foreclosure is expected and allowed for. I have read about some rent to own houses being foreclosed multiple times.

This is a slimy way to make money, and you run the risk that the soon to be homeless person might torch or vandalize the place.

Posts: 3052
Incept: 2008-05-04

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Dissenter - The problem isn't investors in houses. In a normally functioning market, builders would simply build into the increased demand and many of those investors would take it on the chin or at least not make nearly as much as they are underwriting. The problem is input costs for houses are going through the roof - materials, labor and regulation costs. Add in a 40% increase in the money supply in a year - what you are seeing is the result of inflation, not hedge funds. The solution isn't to shun people investing in houses and real estate - we've been doing that for millennia - the solution is deregulation and stop the printing presses.

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig V
Posts: 207
Incept: 2010-02-20

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This idea, if deployed on a large scale, will invariably cause the cost of housing to double, as the consumer's portion of the sales price re-equilibrates to current market prices. Then the idiots in charge will scratch their heads wondering what happened.
Posts: 34
Incept: 2018-03-26

Las Vegas
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Are we living in hyperinflation now?

Inflation has been averaging around 6% for several decades now. Various money supply measures (e.g. M2) go up by around 6% a year. The value of all treasuries goes up around 6% (some is taken out of circulation by the Fed). Stock market capitalization, the value of all real estate, and bond market capitalization go up around 6% as well. It's neatly summarized in the Global Wealth Report by Credit Suisse, and can be googled by anyone.

Another way of thinking of this is that the rich are getting 6% richer every year, and the joke is that wages are increasing by less than 6%. By showing that wages are rising more than CPI, you can draw attention away from the fact that with every passing year, you work for a smaller slice of the wealth pie.

Anyone in their 20's who is thinking of saving for retirement is advised to do the math to figure out exactly how disadvantaged they are relative to prior generations before implementing any retirement savings strategy. I think the trend isn't going to stop until enough young kids throw in the towel and say "we're effectively slaves, so why bother trying?"
Posts: 100
Incept: 2018-10-16

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I've got options at 1/16, soon to be in the money.
Posts: 145
Incept: 2020-03-02

South Texas 93 miles from Houston
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Paging Michael Burry. Mr. Michael Burry pickup the red phone please.

@Winesorbet the scammers HAVE TO keep the 10 year down, oil high, destroy the dollar, keep metals down so it's "Oh look! The "economy" is booming!". It's a tough job. It is curious seeing prices explode everywhere and yet when the 10 yr pops a gets slammed back down.

It's fairly obvious the can that has been kicked for decades is now entirely full of bricks. The mad rush for the exit doors will be spectacular. The song our host brought up during the 2006-2009 fiasco, "Jump You Fuggers, Jump" comes to mind.
Posts: 145
Incept: 2020-03-02

South Texas 93 miles from Houston
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Another version just for the moneychangers.
Posts: 195
Incept: 2013-08-19

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Ok, so I can buy a $400k house for $220k. If my intention is not to sell it, then it is a great deal. But all this does is creates demand by artificially adjusting the price. The prices will ramp, the coalition makes a pile of money, and now the next buyer is paying $400k for 55% of a $400k house.

If I want to buy 100% of the $400k house I have to compete against those that are content with owning 55% of a house.

And the property taxes will get jacked 2 ways. First with valuations increasing. Second will be city, county and schools feeling that if they are only paying 55% mortgage they can pay 150% property tax.

Posts: 7013
Incept: 2009-02-28

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I remember reading Murray Rothbard. He said the USA was set up as a land speculation game. Might be time for the political class to sell out, before millions die from fake modern science.

The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
Posts: 61
Incept: 2011-01-02

Northern Virginia
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Tim Pool had a decent rant about housing inflation, basically saying the goal is for corporations to buy and own all the housing, and everyone will have to rent. The corps can borrow unlimited amounts at almost zero percent, so they are outbidding everyone. There was some new housing development and every single house was bought by a corp and will be Single Family Rentals - might've been Blackrock.

You will own nothing and be happy!

Yes, there are stupid questions.
Posts: 4991
Incept: 2017-06-27

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Yesterday, early morning radio, heard a Bloomberg report that people are very much willing to go into debt for lifestyle, activities and home purchases. This is apparently expected to drive the economy, something i mentioned before COVID-BS would happen on a smaller scale after an equities markets retrace and then even more so after this crisis experience.

Mentioned here previously that a respected organization provided a report to my group that after the tech bust and 911, there would be a home and hearth/live like there is no tomorrow boom.

Well we also have a delayed household formation as a generation that launched very late if at all is realizing last chance. People get really creative when there is a clock (here partly a biological one) ticking.

Others simply figure that they could be dead tomorrow.

The California thing is a derivative of something that the younger generations have been sold and became accustomed to along with what the reality of taxation on property really means.

We here know that ownership and use taxes means that one really does not own anything. Perhaps younger people, along with us, know that without financial schemes such as renting former ownership items, financing, leasing and subscription models; they would have very little of the essentials of life. Thus, the political class and industrialists who created this to a degree build upon it and the consciousness creates legislation to follow along.

Why would people come up with what is essentially a hybrid/rental, non-ownership, financial scheme just to live in Cali?

The community has enough of what they want as opposed to say a ****hole in TN or other white trash place or ghetto. They figure that some day in the future they will simply leave anyway, so why own. Remember that rootlessness is a big component and problem in the loss of our culture. If they go to a trash place that they can afford, they get to put down roots where they do not wish to live all for the pleasure of probably experiencing the same as now in Cali.

There is a logic in this above paragraph. The market for these schemes know that it is the future for the entire country as do we here in this forum unless it is stopped. But, they figure that they get the good of Cali while some of it is still there, and remember, they have an easier walk-away with little invested.

"You will not own anything," remember that line, is not a prediction but a recognition of what already is.

If one never really owns something, does it matter how he achieves use of it.

The politicos and industrialists love this. If someone has no serious vested interest in an area, he does not care to protect its culture and future and will not ultimately fight them, only leave.

It has been this way in many pricey markets for as long as i can remember. People go to a barely affordable suburb for the schools and nice beaches or other suburban upper middle class stuff, tolerate the work and long commutes and figure that they will leave when the children are gone, often at a net loss. Thus, the churches and other houses of worship no longer have multi-generational families and graves only reflect at least eighty years ago, many close or get repurposed. The local stories are lost, and the areas become more magnets for the very rich to make seasonal and holiday destinations and vacations and day trip spots. The few with deep roots, we visit and occasionally get some notice from locals and curious visitors as we look over family heirlooms and entombment and burial areas.

Cali's nice areas are simply in a transition to this only using a modern means. The nice areas are still worth visiting and even living for a transient time for what remains and will ultimately only be such for the very wealthy.

Here is a good video describing the process and why. We see Cali as very new in terms of culture, however it is dying just like the very old of the Northeast and other areas. It was a culture which could have been the first modern culture to endure as any old; yes, its values were that strong. Most do not realize that in its modernity it was a very good style conservative place with very high ideals. Instead of it being such a place that would launch Star Trek, it will be a point of memory with wealthy preserving historical things to feel good about themselves and pretend that the culture that built them did not die. Imagine one day when great freeways are preserved like we do lighthouses and landmark neighborhoods and things like empty churches in the Northeast. When one needs a reason to preserve the symbols of a culture it is already gone.


"Better to reign in Hell, than serve in Heaven," Satan's monologue in the first book of John Milton's Paradise Lost
Posts: 1
Incept: 2020-02-13

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So, the occupant is responsible for all tax and maintenance. Also 50% of any property improvements go to the investors? Undoubtedly somewhere in the contract an estimated property value will trigger fees if the occupant has not matched comparable appreciation.

Is 50% of property appreciation plus property improvement a good enough return on the investors money? Surely the investors should be charging the occupant with 'half-rent'.
Posts: 18443
Incept: 2007-07-05
A True American Patriot!
N 47.72/ W 122.55
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Insiders control the hedge funds. Also, "blue voters" also live in expensive areas of California.

If you only need 55% to get into a house, the PITI now really gets turbo-charged and instead of it buying the whole house, THE SAME PITI (more or less) now buys essentially half.

Housing prices essentially double and allow a massive windfall for "The Chosen."

This is nothing more than a scheme to loot more of the state.

Diversity + proximity = WAR
Until bullets fly and people die, nothing is going to change.
Once you see what the problem is, you can't unsee it.
That kind of sums up the last month since the election, a giant amber alert for Trump's balls. - Davkj1
Posts: 642
Incept: 2009-03-05

Sunny UK
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@Eleua - "Is that a list of things in Berlin during the 1920s?"

I mean... in both cases there were filthy commies rioting, committing murders, and generally causing all manner of upheaval, so yeah... there's some pretty striking parallels.

The commies in the streets were one of the major factors in Hitler being elected to do something about it. Just a little something to think about.
Posts: 52
Incept: 2013-06-05

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In the history of bad ideas this definitely ranks in top one or two percent. I just hope that I can get out of California before stupidity like this makes it darned near impossible.
Posts: 575
Incept: 2011-03-24

Washington, DC
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As PT Barnum said there is a sucker born every minute. In todays world there seems to be 100 born every minute. You would think for the better part of 250 years the citizens of the USA were completely supported by the gov't, when the opposite was true up until the public assistance farce started in 1965. Although some started as far back as 1913.

Anyone who could rub two brain cells together can figure out all this gov't printed funny money being shoved into various sectors of the USA economy (housing, education, health care) will drive up the price/cost of those goods and services. Printing funny money and raising the minimum wage has done nothing to help the middle class of the USA.

I went grocery shopping last night at Costco. A year ago I paid $1.79 - $1.99/lb for ground beef. Last night I paid $3.69/lb. Produce is getting ridiculous. My grocery bill is about 50% higher on average than last year. I am buying the same basic items. Fruits, vegetables, meat, and dairy. We buy very little premade foods. My wife and I don't eat them, but my teenagers like some of them and they are a treat for them. None of my children are overweight like I was at their age. The only item I didn't see a huge increase was in a gallon of milk. Last year it was $2.25 to 2.35 and last night I paid $2.75/gal. My grocery bill was about $200 more for the same basic items over last year. Last year I was paying $2.25 to $2.35/gal for reg and $2.45 to 2.60 for premium at the Costco pumps. Last night is was $2.79 for reg and 3.24 for premium.

Housing prices are skyrocketing more than they did in 2005 - 2008. Savings and CD's are bringing a whopping .01% APR interest. You need about $1000 to get about $.01 per month in interest.

I haven't figured out how Joe & the Ho have a positive approval rating. But borrowing the Treasury and spreading it around like manure can buy some positive percentage polls. They even want to increase taxes and its

(Politicians), 536 commoditized temple monkeys pawing through the ruins of America in search of bribes. (The District of Corruption) works like a vending machine. You put coins in the slot, select your law, and the desired legislation slides out." Fred Reed. Some editting by me.

Posts: 3782
Incept: 2008-02-23

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They even want to increase taxes and its

But they're only going to increase taxes on "rich" people. smiley

Nobody can be saved from anything, unless they save themselves.
It is hopeless doing things for people, it is often very dangerous
indeed to do things at all, and the only thing worth doing for
the race is to increase its stock of ideas. ~T.H. White
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