Back then, there was value in saving. You could save up to buy a home.

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Jun 30, 2022
11:29:09am

Mitty All-American

Back then, there was value in saving. You could save up to buy a home.

Banks paid you interest.

Now, trying to save is just falling further behind.

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Mitty

Previous username: ArchbishopMitty
Bio page: Mitty
Joined: Nov 16, 2012
Last login: May 5, 2024
Total posts: 12,834 (4 FO)

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Messages

Author

Time

My brother is 69...he financed his house in the 70s at 19%....interest rates

Don_Juan_El_Guapo

6/30/22 10:22am

I bought a condo when I was a student at BYU and my rate was 8.25%. In remember calling every day to check the rates and

cheezedawg

6/30/22 10:24am

My first home in 2000 8.375% and that was good at the time.

Ycrazy

6/30/22 10:26am

Yeah this was 1999.

cheezedawg

6/30/22 10:31am

This take has been bad every time it comes up. Houses are 5-6x income now….

The_Cuss

6/30/22 10:25am

Maybe? He was a firefighter. His wife a stay at home mom. He had to pick up side

Don_Juan_El_Guapo

6/30/22 10:27am

And unnaturally low interest rates are a big cause of that home price run.

Big Daddy D

6/30/22 10:30am

Only one factor, if there's sufficient supply and materials,

Plato

6/30/22 10:43am

Not sure what you’re trying to say but I will stand by my stance that low

Big Daddy D

6/30/22 10:51am

Low interest rates don't cause an increase in the cost to build i.e. labor and

Plato

6/30/22 1:03pm

Lower interest rates expands capacity to purchase. That expansion is reflected

Big Daddy D

6/30/22 1:53pm

Couple that with the govt forcing people to stop producing for two years.

Shore10

6/30/22 2:21pm

population is increasing at a faster rate than we can do environmental studies

flyzag

6/30/22 10:50am

I can't believe how stupidly they kept the rates so low for so long...

Mitty

6/30/22 11:30am

Median house size is also double with smaller families. $100k @ 19% is $1600/mo P&I. Adjusted for '75 inflation, $8600

molodyets

6/30/22 10:35am

His house was very small

Don_Juan_El_Guapo

6/30/22 10:43am

Weird how people conveniently seem to ignore the much larger home sizes when

Gente_Boa

6/30/22 10:47am

inflation and interest adjusted monthly cost per square foot is a funny thing.

molodyets

6/30/22 10:57am

It’s not just the size, it’s complexity and feature expansion, too, in wiring,

Abe Froman

6/30/22 11:01am

Also true - in 1975 less than 50% of homes had AC

molodyets

6/30/22 11:03am

We had a swamp cooler that my dad would stick in a window every summer.

Don_Juan_El_Guapo

6/30/22 11:06am

Get ready for the property tax increase coming up in 6mo.

Shore10

6/30/22 11:30am

The average home price to median income ratio hasn’t been under 4 in the past 70 years

cheezedawg

6/30/22 10:36am

But the cost of a home isn't just price.

molodyets

6/30/22 11:04am

Isn’t this discussion about interest rates?

cheezedawg

6/30/22 11:09am

nvm - misread who you were replying too.

molodyets

6/30/22 11:11am

Thats true, but the price of a home is the MAJOR cost....

The_Cuss

6/30/22 1:09pm

THIS is the key point, purchasing a home in 70's, 80's, 90's etc. was way better

The_Cuss

6/30/22 1:12pm

Back then, there was value in saving. You could save up to buy a home.

Mitty

6/30/22 11:29am

Mine is 10X

Hill4Heisman

6/30/22 11:52am

You must be a Real Estate agent. That’s their line

byu1

6/30/22 10:26am

Hopefully he later refinanced again

6/30/22 10:27am

Oh, I'm sure that happened.

Don_Juan_El_Guapo

6/30/22 10:29am

Nice.

Vincent's Picks

6/30/22 10:29am

Seriously, stop. The market can't even take 6% from how overpriced we are.

Shore10

6/30/22 11:21am

RE: Seriously, stop. The market can't even take 6% from how over priced we are.

cheezedawg

6/30/22 11:27am

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