2021 Stock Market
- Thread starter Mtowncyclone13
- Start date
A. Stimulus checks and repurposed money that would have been spent on vacations, etc. It's no coincidence that there's been a corresponding spike in the savings rate. B. Companies that do better in a rising interest rate environment or deal with commodities. Banking and energy are two such sectors.
My IRA contribution this year was funded with my stimulus checks and credit card cash back rewards. I'm no rocket scientist, so I presume I'm not the only one who did so.
People looking to buy houses in the lower price range are getting beaten out by all-cash buyers. Those are usually investors and not owner-occupiers.
He said it would take 50-65k to make the house livable plus commission and closing costs and other profits. If an owner buys a house they aren't worried about profit margin. Investor profits just raise the price of the house for the end buyer.
I charge EVERYTHING to my cash back cards for this reason. Pay them off the next day, then once the cash back is generated it deposits to my brokerage for investment.
Ah yes, getting it to market value is the problem, got it. Anything I buy or look at I am not competing with an owner occupant. Many lending programs require you to live at the residence in certain amount of time if you are owner occupant, that would not be possible in most of these instances.
Now there are investors (including institutional investors which I despise) buying lower end housing and turning them into rentals. My last flip was just purchased by an investor. I am not a fan of that.
The new home market is not doing its part either. Way too many homes built towards the upper middle class locally. I understand the profits aren't there for lower end builds but that market is just basically ignored.
That's not quite how it works. In reality, because most owners don't want to do the rehabbing, they would much rather buy a renovated house from a flipper.
Think about it. If you can only afford a lower priced property, you're sure as hell not going to have the money to write checks for 10's of thousands of dollars to contractors in order to make a place habitable. Because homeowners don't have the money is how these places end up in a state of disrepair in the first place. They would not otherwise be able to purchase such a home. By purchasing a rehabbed home, they can fund the improvements in a mortgage and finance them at a real interest rate (inflation adjusted) that is close to zero.
Rehabbers/flippers play a valuable role in the marketplace.
While we won't see 2008 again, we'll definitely see a pullback. Happens during every economic downturn. You mentioned that you would be in the market for a retirement home. Those second homes are the first properties shed during a downturn so they always fall by a lot more.
This is correct. Like ALL forms of business in this country there are people that are bad people and don't do what they should. They need to do it right so folks won't have massive bills a few months after they move in. I know I've cost myself profits when selling these homes but I know when someone buys it massive issues aren't going to hit them right away. Helps me sleep at night.
I'm above board on everything. Even if folks say I don't need to, I'll call the inspector. I have them answer my questions. I'd rather have stuff done right then have something come back on me. Reputation and word travels fairly quick and sticks with you.
Just do your stuff right and you'll be fine.
Des Moines was trying to do the same thing. Habitat for Humanity would not have been able to do their standard builds with the new guidelines. I've lost track on where that ended up, I think Habitat may have gotten a waiver.
I’m not sure why but for some reason flippers have a bad reputation. When, in reality, most are doing a good job of turning a substandard home into an above standard home.
Also, the margins aren’t what gets portrayed on TV...it’s a lot of work to make that money. But for some reason, real estate agents can make 6-7% and swipe $10s of thousands for facilitating a transaction. But a flipper can’t make those margins after rehabbing a property? Makes no sense.
Why aren’t you a fan of an investor that rents it out? That provides a value to the market place as well, just like flippers. All of these different functions provide value.
And for anyone that says a flipper is part of the problem, just think about the ugliest house in your neighborhood, and how happy you and your neighbors would be if someone came in, fixed the POS up nice and sold it for a high price, thus improving the value of the entire neighborhood and making it easier to look at when you are driving by.
Unless that new owner is going to do the repairs all themselves (not most buyers) someone is getting that profit somehow. Most flippers at least have some ability to do some of the improvements..
GDPNow
GDPNow forecasting model provides a "nowcast" of the official estimate prior to its release by estimating GDP growth using a methodology similar to the one used by the US Bureau of Economic Analysis.
www.atlantafed.org
13.6% GDP estimate from the ATL Fed GDP Now model..
Money printers goes brrrh
