You will own nothing and you will be happy

[Inor]

I stumbled across this one today...

https://www.zerohedge.com/personal-finance/california-front-20-down-payments-0-interest-homebuyers-incomes-211000

The headline sounds great. But when you take a few moments to sit back and think about it, this is horribly dangerous!

First off, why is California letting people buy a house with virtually no down payment in this market? Housing prices are already down almost 40% in many areas around the San Francisco Bay. Is this a ploy to try and prop up a market where the wheels are already falling off?

Secondly, for anybody that takes this offer the state of CA effectively OWNS 20% of your house! They do not disclose the details other than to say if you sell the house, the state gets to take 20% of the sale price regardless of how much prices increase.

Third, what happens if prices fall when you sell? Does the state get their original 20% back in full or do they share in the haircut?

Forth, what happens if you buy a house for $500K (and the state kicks in the initial $100K for the down payment), you stay in the house and make all your mortgage payments and pay the mortgage off in 10 years. Maybe by then, the house appraises for $1 million. Presumably, you now owe the state $200K for the original loan. Can you finance that or do you have to come up with it as a lump sum?

Fifth, what if you die? Do your heirs have to come up with the 20% payback in a lump sum?

This whole thing absolutely reeks of a state takeover of all private property! I fully expect other progressive states to follow suit on this scam. I'm sure most of us are old enough to own our homes outright. But warn your kids and grandkids to avoid these scams like the plague!!! THE GOVERNMENT IS NOT YOUR FRIEND!!!

[Slippy]

Fundamentally, this is so FUBAR that even FUBAR things have to raise an eyebrow about this nonsense. Regardless, some really smart enterprising conservative person MAY be able to find some loophole that will favor them over the state.

Not only is the government NOT your friend, they also do some incredibly stupid things and someone who has nothing to lose might find a way to out-think the CA fools; maybe live totally rent or mortgage free at the state's expense?



I stumbled across this one today...

https://www.zerohedge.com/personal-finance/california-front-20-down-payments-0-interest-homebuyers-incomes-211000

The headline sounds great. But when you take a few moments to sit back and think about it, this is horribly dangerous!

First off, why is California letting people buy a house with virtually no down payment in this market? Housing prices are already down almost 40% in many areas around the San Francisco Bay. Is this a ploy to try and prop up a market where the wheels are already falling off?

Secondly, for anybody that takes this offer the state of CA effectively OWNS 20% of your house! They do not disclose the details other than to say if you sell the house, the state gets to take 20% of the sale price regardless of how much prices increase.

Third, what happens if prices fall when you sell? Does the state get their original 20% back in full or do they share in the haircut?

Forth, what happens if you buy a house for $500K (and the state kicks in the initial $100K for the down payment), you stay in the house and make all your mortgage payments and pay the mortgage off in 10 years. Maybe by then, the house appraises for $1 million. Presumably, you now owe the state $200K for the original loan. Can you finance that or do you have to come up with it as a lump sum?

Fifth, what if you die? Do your heirs have to come up with the 20% payback in a lump sum?

This whole thing absolutely reeks of a state takeover of all private property! I fully expect other progressive states to follow suit on this scam. I'm sure most of us are old enough to own our homes outright. But warn your kids and grandkids to avoid these scams like the plague!!! THE GOVERNMENT IS NOT YOUR FRIEND!!!

[red442joe]

California government is bad...just bad.
Think about all the people that left the state...they will all, ALL, get some kind of clinger scam notice from the state.
They will get notices they didn't register their car, with a fine.
They will get holds put on their drivers licence, such that when they try to renew their new licence, they will be told they have to clear the hold with California DMV...GOOD FUCKING LUCK!
This is what I went through when I left in '97.
I bet they gots whole other new scams to try to punish the leavers!

Joe

[Prepared One]

California keeps doubling down on stupid. Speaking of stupid, Their governor is considering running for president. I can't imagine which is more scary, another 4 years of Joe or Newsom. Or even, horror of horrors, AOC. I have heard this bitches name tossed around as well for 24. Ahhh screw it, have a drink and get drunk, because we are all fucked.

[Dwight55]

I still say the very best thing we could do is put a fifty foot high wall around it . . . Oregon and Washington

Give them to Mexico . . .

And walk . . .

Then we could deport all undocumented whoevers to Los Estados Norte de Mexico . . .

And look ahead for the San Andreas fault to trip and . . .

We could then buy waterfront property in Arizona, Nevada and Idaho . . . not have to put up those liberals any more.

Just need enough of a warning to get our people out of the affected areas before it tumbles into the sea.

May God bless,
Dwight

[Slippy]

REJOICE REOICE!

The housing market recession of 2023 is over!

I'll post some links but I am hearing and reading that housing prices are moving up again and permits/starts are rebounding from a very small dip.

None of this makes sense.

[KnuteFartne]

California keeps doubling down on stupid. Speaking of stupid, Their governor is considering running for president. I can't imagine which is more scary, another 4 years of Joe or Newsom. Or even, horror of horrors, AOC. I have heard this bitches name tossed around as well for 24. Ahhh screw it, have a drink and get drunk, because we are all fucked.She won't be old enough in 2024. One year shy.

I would like to see Trump debate AOC. He'd destroy her.

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[Mad Trapper]

Schwab , should be hung in front of US Capitol building, until crows flies and maggots are done with his fetid foul bones.

[Jester-ND]

REJOICE REOICE!

The housing market recession of 2023 is over!

I'll post some links but I am hearing and reading that housing prices are moving up again and permits/starts are rebounding from a very small dip.

None of this makes sense.

the empty offices and no rent on leveraged properties hopefully speed up the burn!!:explodingbomb:

22469

[Inor]

REJOICE REOICE!

The housing market recession of 2023 is over!

I'll post some links but I am hearing and reading that housing prices are moving up again and permits/starts are rebounding from a very small dip.

None of this makes sense.

Remember your Freshman year of college? When you tried to live on nothing but cold pizza and cheap Cold Spring beer (at $3.75 a case)? And after a week or two, you could feel it rumbling in your belly and you KNEW when it finally let loose, it was going to be bad? REAL BAD? And when the colon-blow eventually happened, it was worse than you could even imagine? And the smell peeled the paint off the walls and even made the dog's eyes bleed and put you in a coma for three days?

This is going to be worse than that...

[Prepared One]

She won't be old enough in 2024. One year shy.

I would like to see Trump debate AOC. He'd destroy her.

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Yep. I know that, but I have actually heard some pundits on the left suggest her. You really think debates matter anymore? Mmmmmm, interesting.

[StratBastard]

REJOICE REOICE!

The housing market recession of 2023 is over!

I'll post some links but I am hearing and reading that housing prices are moving up again and permits/starts are rebounding from a very small dip.

None of this makes sense.

I don't get it either. I was in the real estate biz for 30+ years, an extremely tiny little empire but all mine (and the bank's LOL). I have spent the last two years retreating to the safest position I can manifest: no debt, live damned near free, no leveraged investments, gold and silver, cash, and preps. Yet all around I still see buildings going up... BIG apartment buildings. Hotels. Houses being rehabbed. Someone is financing all this. I don't know if everyone is just going to wear their blinders right off the cliff or what. But I'm OUT.

[Prepared One]

I don't get it either. I was in the real estate biz for 30+ years, an extremely tiny little empire but all mine (and the bank's LOL). I have spent the last two years retreating to the safest position I can manifest: no debt, live damned near free, no leveraged investments, gold and silver, cash, and preps. Yet all around I still see buildings going up... BIG apartment buildings. Hotels. Houses being rehabbed. Someone is financing all this. I don't know if everyone is just going to wear their blinders right off the cliff or what. But I'm OUT.

I vote for wearing their blinders off the cliff. I don't believe they know how really close they are.

[TJC44]

Remember your Freshman year of college? When you tried to live on nothing but cold pizza and cheap Cold Spring beer (at $3.75 a case)? And after a week or two, you could feel it rumbling in your belly and you KNEW when it finally let loose, it was going to be bad? REAL BAD? And when the colon-blow eventually happened, it was worse than you could even imagine? And the smell peeled the paint off the walls and even made the dog's eyes bleed and put you in a coma for three days?

This is going to be worse than that...

Inor, You have Such a way with words.

[BucketBack]

https://www.redfin.com/news/wp-content/uploads/2023/06/median-sale-prie-62823.png

Home-price declines are shrinking. The typical U.S. home is selling for roughly $383,000, only about $4,000 less (-1%) than the all-time high set last June. That’s the smallest year-over-year drop in nearly four months. Additionally, this is just the second time since last August the sale-to-list price ratio has
https://www.redfin.com/news/housing-market-update-home-price-declines-shrinking/

or read the cliff notes


https://www.ar15.com/forums/general/The-Typical-U-S-Home-Is-Selling-For-Just-4-000-Less-Than-Last-Year-s-All-Time-High-NSFD-/5-2656169/

[shootbrownelk]

She won't be old enough in 2024. One year shy.

I would like to see Trump debate AOC. He'd destroy her.

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A talking Parrot would destroy AOC in a debate.

[Slippy]

New construction continues at a strong pace. Un-phukcing-believable if you ask me. Doesn't make sense, but it does since fundamentals don't matter anymore in clown world.
https://www.census.gov/construction/nrc/current/index.html

[T-Man 1066]

A dead Parrot would destroy AOC in a debate.

There, FIFY!

[Prepared One]

New construction continues at a strong pace. Un-phukcing-believable if you ask me. Doesn't make sense, but it does since fundamentals don't matter anymore in clown world.
https://www.census.gov/construction/nrc/current/index.html

I don't get this as well, where are all these people getting money from. Real wages are going down against inflation, which is not done it's worst yet, and a recession is coming if not already here. Dementia Joe and his economic team have no clue yet they keep hammering on this green deal BS. All the indicators as I see them are pointing to bad economic shit coming our way, yet people keep spending money.

I spoke to the owner of my old company the other day and construction is way up, particular the commercial market. They are going gangbusters he said. (So much for them collapsing and going out of business without me :pout:)

[shootbrownelk]

New construction continues at a strong pace. Un-phukcing-believable if you ask me. Doesn't make sense, but it does since fundamentals don't matter anymore in clown world.
https://www.census.gov/construction/nrc/current/index.html

All those illegal aliens have to live somewhere Slippy. Apartment buildings sprouting up like mushrooms after a rain.

[KnuteFartne]

New construction continues at a strong pace. Un-phukcing-believable if you ask me. Doesn't make sense, but it does since fundamentals don't matter anymore in clown world.
https://www.census.gov/construction/nrc/current/index.htmlLook into "Affirmatively Furthering Fair Housing". All your questions should be answered. Also CA just started a new program to help "disadvantaged" people buy new homes. Gavin Newsom will pay the down payment (meaning I get to pay the down payment) and will be in co-ownership with the family. Once the family goes to sell the CA government gets to tell the family what they can ask for the house. A very Marxist idea. Look for it to expand to other states.

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[Inor]

New construction continues at a strong pace. Un-phukcing-believable if you ask me. Doesn't make sense, but it does since fundamentals don't matter anymore in clown world.
https://www.census.gov/construction/nrc/current/index.html

You would know a lot better than me, but...

I am wondering if a lot of these big home builders had sunk a ton of money into land for developments during the big times during 'rona. Now, I notice a lot of them in Tucson are offering big incentives and buy downs against the increased mortgage rates just to get out of the inventory. So is it the builders just got so deep in land etc., they are building and moving homes as quick as they can just to get out of the trade before it all blows up? Maybe?

[Slippy]

You would know a lot better than me, but...

I am wondering if a lot of these big home builders had sunk a ton of money into land for developments during the big times during 'rona. Now, I notice a lot of them in Tucson are offering big incentives and buy downs against the increased mortgage rates just to get out of the inventory. So is it the builders just got so deep in land etc., they are building and moving homes as quick as they can just to get out of the trade before it all blows up? Maybe?

It sort of defies logic, to me. Take DR Horton, the largest US Homebuilder. On a '23 revenue pace of $30 billion. Yes, its down from last year's $33 billion but damn, their last 5 years were phenomenal, doubling their revenue since 2018

https://investor.drhorton.com/~/media/Files/D/D-R-Horton-IR/reports-and-presentations/reports/2022-dhi-annual-report.pdf

I think the bottom line on homebuilding is that demand is crazy good and most people don't give two rat's asses about incurring debt at any interest rate %.

Risk doesn't mean what it used to mean, maybe? Who knows anymore? I damn sure don't.

[MountainGirl]

Add "exponential growth, up the curve, tipping point" into all ideas and most guesses are pretty good, imo.

[Prepared One]

It sort of defies logic, to me. Take DR Horton, the largest US Homebuilder. On a '23 revenue pace of $30 billion. Yes, its down from last year's $33 billion but damn, their last 5 years were phenomenal, doubling their revenue since 2018

https://investor.drhorton.com/~/media/Files/D/D-R-Horton-IR/reports-and-presentations/reports/2022-dhi-annual-report.pdf

I think the bottom line on homebuilding is that demand is crazy good and most people don't give two rat's asses about incurring debt at any interest rate %.

Risk doesn't mean what it used to mean, maybe? Who knows anymore? I damn sure don't.

Risk? Dementia Joe and our tax dollars will be happy to bail you out. At least that's what most young people are led to believe.

[Inor]

It sort of defies logic, to me. Take DR Horton, the largest US Homebuilder. On a '23 revenue pace of $30 billion. Yes, its down from last year's $33 billion but damn, their last 5 years were phenomenal, doubling their revenue since 2018

https://investor.drhorton.com/~/media/Files/D/D-R-Horton-IR/reports-and-presentations/reports/2022-dhi-annual-report.pdf

I think the bottom line on homebuilding is that demand is crazy good and most people don't give two rat's asses about incurring debt at any interest rate %.

Risk doesn't mean what it used to mean, maybe? Who knows anymore? I damn sure don't.

I am waiting for some bank to start offering 40 year mortgages. You know it is GOING to happen. When it does, that will signal when they have their dream of "you will own nothing and be happy". (It will also signal the start of the real hyperinflation.)

On the upside, it will also signal when guys like us can go for the juggler buying bad assets for cash and flipping them for insane profits.

[MountainGirl]

This might fit in - as it applies specifically to housing:
12 min vid.
Federal Home Loan Bank - 2nd wave of crisis coming


https://www.youtube.com/watch?v=4Rz6UfU3dQc

[Slippy]

You asked...

40 year mortgages!

FUBAR
https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_070
https://www.wesh.com/article/do-you-qualify-new-40-year-mortgage/44399418#



I am waiting for some bank to start offering 40 year mortgages. You know it is GOING to happen. When it does, that will signal when they have their dream of "you will own nothing and be happy". (It will also signal the start of the real hyperinflation.)

On the upside, it will also signal when guys like us can go for the juggler buying bad assets for cash and flipping them for insane profits.

[Inor]

You asked...

40 year mortgages!

FUBAR
https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_070
https://www.wesh.com/article/do-you-qualify-new-40-year-mortgage/44399418#

Sharpen your knives and make money while you can because we are well and truly fucked now...

[MountainGirl]

You asked...

40 year mortgages!

FUBAR
https://www.hud.gov/press/press_releases_media_advisories/hud_no_22_070
https://www.wesh.com/article/do-you-qualify-new-40-year-mortgage/44399418#

Interesting that the HUD link ^^ is from 15 months ago; of course they knew this "need" was coming.

[Prepared One]

A house of cards doomed to fail. It's coming. The more and the longer your in debt. The more your controlled by the Government.The more your in the sheep's pen.

[StratBastard]

A house of cards doomed to fail. It's coming. The more and the longer your in debt. The more your controlled by the Government.The more your in the sheep's pen.

Those of us who planned well and retired debt-free are likely going to be labeled insurrectionists of some kind eventually... percieved as not with the program.

[MountainGirl]

Those of us who planned well and retired debt-free are likely going to be labeled insurrectionists of some kind eventually... percieved as not with the program.

Just as well, as we're already deplorables, white supremists, felons, war criminals, and on the UN's Most Wanted list. <Yawn>

[Prepared One]

Those of us who planned well and retired debt-free are likely going to be labeled insurrectionists of some kind eventually... percieved as not with the program.

We will be outliers to be sure. As I see it, financial independence will become harder and harder to achieve, all by design I suspect. The college pukes coming out these days are already programed that the government is there to help. They will help alright, they will close the circle and that will be that. Forever indebted and dependent on the G_Man for their very existence. Those who own their own land and have a few bucks in the bank will be watched closely till we die.

[red442joe]

"till we are encouraged/helped to die".
FIFY

Joe