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OT: Inflation

Discussion in 'California Flyway Forum' started by fugewrk55, May 1, 2021.

  1. bang you'r dead

    bang you'r dead Canada Forum Mod. Eh! Moderator

    Messages:
    12,467
    Joined:
    Apr 9, 2003
    Location:
    The Pas Manitoba
    I am pre-approved for 7 figure mortgage if I want one. 1.43% guaranteed until June 1st. I calculated that if I buy a house at 800,000 , put 25% down (200K), I then do not have to purchase mortgage insurance in Canada (CMHC guidelines), and the 600K amortized over 25 years , biweekly payments are a little under $1100 every 2 weeks. I would have the money invested, making in an average year , net 12%, so the interest on my investment will pay the mortgage and more, and I hold onto the principal.

    There are a lot of baby boomers and DINKS (double income no kids) around who would easily fall into the same category, so money is cheap, and I want to move into a nicer home , and I have nothing else to spend my money on in times of the pandemic.

    Housing will remain a hot market as long as these factors are in play. Had another place I was looking at sell for 90K over listing price. Driving me nuts.

    If there was any kind of inflationary pressure, ie. interest rates going up into the 4 or 5% range, that would be catastrophic to a lot of people, with mortgages going up 50% or more from current.
     
  2. Tommyo

    Tommyo Elite Refuge Member

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    Location:
    Auburn, CA
    It's a fools paradise
     
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  3. Refugeguy

    Refugeguy Elite Refuge Member

    Messages:
    4,435
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    Jun 23, 2017
    Location:
    Clovis
    It won’t be
     
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  4. Huntsprig

    Huntsprig Elite Refuge Member

    Messages:
    1,952
    Joined:
    May 21, 2002
    Just a friendly warning. :)


    Study: Majority Of Americans Now Say It Is OK To Punch A Grammar Nazi

    "U.S.—Is it O.K. to punch a grammar Nazi? This question has been floating around the internet after footage of an attack on a well-known, self-professed “grammatical purist,” Shawnton P. Middesmith, went viral on Friday.

    According to a new study, the answer among Americans is an overwhelming “Absolutely.”

    Link
     
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  5. Ravenanme

    Ravenanme Elite Refuge Member

    Messages:
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    Joined:
    Sep 26, 2014
    Location:
    Close to where I hunt
    It makes my Head hurt thinking about what people are willing to pay , these days for a home ! The inflationary increases I've heard are , un-real , it
    reminds me of 15/16 years ago before the bubble Burst ? I can't imagine paying todays prices (plus) with after tax dollars when overheads are going up
    so rapidly !
     
  6. Dek

    Dek Elite Refuge Member

    Messages:
    3,717
    Joined:
    Nov 10, 2003
    Location:
    Folsom
    Bang, you are my new financial advisor if you can avg a 12% net return for the next 20 years:grvnGonna be buyin' a duck club boys!!
     
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  7. GoBears16

    GoBears16 Senior Refuge Member

    Messages:
    268
    Joined:
    Mar 20, 2007
    Location:
    Manteca, California
    We sold our house in Concord before the election because of the uncertainty and knowing we were going to move before our kids started school anyways. I thought the prices would dip within 6 months but they’ve gone up 30-40% in the areas we are looking at. Houses in Danville and San Ramon were going 30-40% OVER asking price along with having over 30 offers and vast majority having zero contingencies. Told my wife we need to pump the breaks and keep renting for a few more years.

    hindsight we shoulda held on for another 6 months at our last house, and made another 10-15% but we still sold at a healthy margin so don’t feel terrible. I’m really hope things implode and we can buy low in the next few years.
     
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  8. Speckslayer

    Speckslayer Elite Refuge Member

    Messages:
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    Location:
    Sanger
    Why is grammar important?

    It's the difference between helping your Uncle Jack off a horse and helping your uncle jack off a horse.
     
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  9. mak2782

    mak2782 Elite Refuge Member

    Messages:
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    Jan 30, 2006
    Location:
    Lodi - Colusa, CA

    that makes me a buyer in this hyper inflated market...... that's a HUGE NO THANK YOU.......

    This is a bubble ... it will crumble.
     
  10. letmwurk

    letmwurk Elite Refuge Member

    Messages:
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    Joined:
    Jan 18, 2005
    Location:
    California
    Truth. For a person who can afford a $3,000 monthly mortgage payment at current 30 year rates of 3.0% they can spend $890,000 on a home. At an 8% mortgage rate they can only afford a $511,000 home - a 43% decline in value. Heck even at 5% mortgage rates the value shrinks by 27% to $699,000.
     
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