2y ago

Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward

finance.yahoo.com

Personal Finance @lemmy.ml

Blaze @discuss.tchncs.de

2y ago

Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward

finance.yahoo.com /news/housing-market-affordability-bad-zillow-100000012.html

A Boring Dystopia @lemmy.world

return2ozma @lemmy.world

2y ago

Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward

finance.yahoo.com /news/housing-market-affordability-bad-zillow-100000012.html

24 comments

Zillow, who had aBsOLuTeLy NoTHiNg tO Do WiTh ThEsE pRiCeS now has some thoughts on it huh
- Yeah it’s always wild when we get comments like this. It’s like interviewing a serial killer about the uncontrollable violence people feel over [insert their MO]
Break even? That’s not even a concern. I just wanna have a place to live where I don’t have neighbors on the other side of the wall.
- This is legitimately something I fantasize about. All I want is a small standalone structure to myself, nothing too big or fancy. I’m so damn sick of being held hostage by my neighbors ridiculously odd sleep schedule and lack of basic human decency.
  Even though I’m single with a decent job, it’s never gonna happen. But I can dream. Well actually I can’t dream, because my neighbors don’t let me stay asleep long enough to reach a REM state.
  
  A single tiny home on a small property would be amazing at this point.
What's that Zillow? Buying real estate isn't profitable? Does that mean you're going to diversify? Maybe sell some of your property?
Didn't think so.
- Zillow hasn't bought homes in over a year after over leveraging by a few billion. Focus your attention where it's due, on all the institutionally funded SFR companies.
  
  Nah. They deserve as much negative attention as black rock.
- Buying it isn't profitable, holding large masses of it though, it's literally impossible to lose money, and if you do the government will do things like push employees back into overpriced office buildings to continue to justify the price.
  
  Just holding isn't that valuable. Most real estate doesn't outpace inflation. If you get to live there for basically free or collect rent it's a good deal.
If prices are going up, then it's going to be less than 13.5 years because the value of the house will grow on the meantime and you will own more than you owe
- There wouldn't even be a payback period at all if they weren't calculating for anticipated value growth.
  
  That's not true, you eventually win due to not paying rent in perpetuity
- The question is, will prices continue to go up? Or will rates push prices down? What impact will that have on rents?
  Hopefully all of that is included in this estimate. I expect housing prices to cool as rates go up, which means a longer time for the initial investment to pay back for itself.
- Nah the 13.5 accounts for a continued increase in home prices. If it didn't it would be more than that.
  
  Oh, that's surprising, then
  But then again, I would not be surprised if the rates fell in the future, so if your mortgage is a few years locked in rates and then goes floating this may be still fine
  I'm talking more likely 7 years in the future, not like one or two, though
or... just dont buy real estate? there are other options.
- Buying is oftentimes preferable to renting. Right now is probably not one of those times, depending on where you live.
  
  over the long term yeah, and I agree. the problem with a purchase is that you have to have the funds and it's a lot. no, not renting either - that's what I do now & of course and it's not the right answer though it's the only option for many. there are of course other options - rv/van life/car camping, moving elsewhere (ie: internationally/illegally), or even being a traveler (aka vanlife without a vehicle).
  personally, I'm working on building my own RV. it's a lot cheaper than buying property, but I'll be the first to admit that there's still a sizeable upfront cost

24 comments