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Exodus from California driving up home prices across the country

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2 minutes ago, bornontheblue said:

Yeah, well its dumb. That is probably why you don't see any new apartment complexes going up. Why build, especially when inflation will probably be 10% in the next few months. You would get a much better return on investments somewhere else. 

 

So what you are saying is the private market is incapable of providing affordable rental housing?

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On 2/23/2022 at 2:24 PM, Rofl_copter_dos said:

So what you are saying is the private market is incapable of providing housing?

No. I am saying the private market won't provide housing if the state puts artificial  limits to the return on investment. 

 

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1 minute ago, bornontheblue said:

No. I am saying the private market won't provide housing if the state puts artificial  limits to the return on investment. 

 

The limits are there to ensure the affordability of said housing. Do you think the average person in a non-luxury complex is getting yearly 10% pay increases?

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On 2/23/2022 at 1:26 PM, bornontheblue said:

No. I am saying the private market won't provide housing if the state puts artificial  limits to the return on investment. 

 

cause 10% year over year is peanuts...lol 

 

 

 

 

 

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On 2/23/2022 at 1:22 PM, bornontheblue said:

Yeah, well its dumb. That is probably why you don't see any new apartment complexes going up. Why build, especially when inflation will probably be 10% in the next few months. You would get a much better return on investments somewhere else. 

 

This is fairly recent thing, and it’s not like apartments were popping up left and right before. 

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4 minutes ago, SalinasSpartan said:

This is fairly recent thing, and it’s not like apartments were popping up left and right before. 

The law was passed in 2019 once it was clear skyrocketing rents were going to metastasize out of the Bay Area and LA into virtually every CA urban area.  The state is currently going to war against a slew of small and midsize cities over their refusal to even attempt to zone and build new multifamily housing, but in the absence of any resolution that ends with a large increase in housing supply it serves as a reasonably effective stopgap.

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On 2/23/2022 at 2:31 PM, SalinasSpartan said:

This is fairly recent thing, and it’s not like apartments were popping up left and right before. 

I am sure there are several things , its a dynamic situation. 

Artificial price floors and ceilings really just make situations worse. So do governments who won't allow multi family housing units. Its an artificial limit on supply. 

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1 hour ago, bornontheblue said:

We could do the Socialist model from the 60's and 70's in eastern Europe and just build dull , cheap, dank apartment complexes that all look alike in are in a constant state of disrepair, , and are filled with cockroaches. 

Nobody would be homeless, so that is a win. But you live Ina  crappy apartment with three generations of family  that looks the exact same as everybody else's family apartment. 

Free government bread too , but you have to stand in line for a few hours to get you stale bread. 

 

 

Don't be silly, that's not the only option.  

 

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3 minutes ago, bornontheblue said:

I am sure there are several things , its a dynamic situation. 

Artificial price floors and ceilings really just make situations worse. So do governments who won't allow multi family housing units. Its an artificial limit on supply. 

The state is hitting it from both ends, but i see no problem with a law preventing landlords from cranking up rent well beyond what an existing renter can afford while the state brawls with local governments and HOAs in court.

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10k existing houses to airbnb?  Well heck we can spend 300 million and get 1000 shitty apartments to replace them.  We can displace grandpa and some out of state pricks can make money and ruin neighborhoods at the same time. #genius

 

 

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On 2/23/2022 at 4:46 PM, toonkee said:

10k existing houses to airbnb?  Well heck we can spend 300 million and get 1000 shitty apartments to replace them.  We can displace grandpa and some out of state pricks can make money and ruin neighborhoods at the same time. #genius

 

 

There needs to be transient rental licenses, and they need to be capped.  

 

 

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On 2/23/2022 at 2:42 PM, retrofade said:

Nah man, it's obviously either one extreme or the other. 

You gonna switch to government supplied housing anytime soon, or keep the one you have to pay money for? 

Which one is going to have the higher quality living environment.  I Prefer to keep the one I paid for myself. 

 

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1 minute ago, tailingpermit said:

There needs to be transient rental licenses, and they need to be capped.  

It's complicated, but that's basically what they are doing. Still means thousands of housing units removed and converted to commercial lodging.

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The housing and stock market crash of 2008 was caused by the subprime lending scams and over inflated house prices. A lot of people were involved including county assessors who love the tax revenue. California was kind of the starting place and one of the main culprits. People blame Realtors but it wasn't their fault. Predatory lenders put families in homes knowing they couldn't afford it. They did it through sub prime mortgages where a house payment was affordable for a while. Things like no money down, interest only 20/80 loans and 3/1 and 5/1 arms. When people's arms came due and the adjustable rate went to 9% plus the 9% on their second mortgage which was their financed down payment, they could no longer afford the home and were foreclosed on. I also saw people wth a bankruptcy only a year old get qualified for a loan. The banks and lenders made a lot of money on the interest only loans and washed, rinsed and did it all over again to another family. It was a giant pyramid scheme. And when the banks and lenders were stuck holding bad loans that they created and it came crumbling down they cried foul. Some got bailed out like BOA. I called BS.

I was working for a developer/builder during the crash who got caught sitting on too many spec homes and went under along with many other builders that were in the same sinking boat. The interest eventually caught up to them.

Evidently, our financial institutions didn't learn a damn thing. Because it's happening again with creative financing and an over inflated house market. Especially out West and California. The recent exodus from California is creating problems with over inflating home values elsewhere which will lead to more creative financing in order to get people into homes they can't afford. The next crash is coming and this time I seriously doubt there will be any bailing out. The U.S. is already in extreme debt.

I have done pretty well investing in real estate over the last several years. However, I am keeping a close eye on markets where they could be showing signs of a crash coming. I am currently hearing about some concerning things on the East Coast. Anyone else in real estate should be paying close attention as well. 

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7 minutes ago, toonkee said:

It's complicated, but that's basically what they are doing. Still means thousands of housing units removed and converted to commercial lodging.

The law is just expiring on 7/1.  It's not going anywhere.  HOAs aren't allowing this no matter what either way and most homes, at least in areas people might want to stay in here are in HOAs.  This idiot crying about missing out on tax revenue is amusing.  The STATE will get more tax revenue out of tourism/hotel room taxes than some shithole AirBnB off Sahara and Decatur.  She is just cowtowing to the single IQ booger eater crowd.

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On 2/23/2022 at 2:52 PM, AztecAlien said:

The housing and stock market crash of 2008 was caused by the subprime lending scams and over inflated house prices. A lot of people were involved including county assessors who love the tax revenue. California was kind of the starting place and one of the main culprits. People blame Realtors but it wasn't their fault. Predatory lenders put families in homes knowing they couldn't afford it. They did it through sub prime mortgages where a house payment was affordable for a while. Things like no money down, interest only 20/80 loans and 3/1 and 5/1 arms. When people's arms came due and the adjustable rate went to 9% plus the 9% on their second mortgage which was their financed down payment, they could no longer afford the home and were foreclosed on. I also saw people wth a bankruptcy only a year old get qualified for a loan. The banks and lenders made a lot of money on the interest only loans and washed, rinsed and did it all over again to another family. It was a giant pyramid scheme. And when the banks and lenders were stuck holding bad loans  that they created and it came crumbling down they cried foul. Some got bailed out like BOA. I called BS.

I was working for a developer/builder during the crash who got caught sitting on too many spec homes and went under along with many other builders that were in the same sinking boat. The interest eventually caught up to them.

Evidently, our financial institutions didn't learn a damn thing. Because it's happening again with creative financing and an over inflated house market. Especially out West and California. The next crash is coming and this time I seriously doubt there will be any bailing out. The U.S. is already in extreme debt.

I have done pretty well investing in real estate over the last several years. However, I am keeping a close eye on markets where they could be showing signs of a crash coming. I am currently hearing about some concerning things on the East Coast. Anyone else in real estate should be paying close attention as well. 

Can you give us a heads up on when to pull out of stock market?  Thanks in advance.

JK

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On 2/23/2022 at 4:52 PM, AztecAlien said:

The housing and stock market crash of 2008 was caused by the subprime lending scams and over inflated house prices. A lot of people were involved including county assessors who love the tax revenue. California was kind of the starting place and one of the main culprits. People blame Realtors but it wasn't their fault. Predatory lenders put families in homes knowing they couldn't afford it. They did it through sub prime mortgages where a house payment was affordable for a while. Things like no money down, interest only 20/80 loans and 3/1 and 5/1 arms. When people's arms came due and the adjustable rate went to 9% plus the 9% on their second mortgage which was their financed down payment, they could no longer afford the home and were foreclosed on. I also saw people wth a bankruptcy only a year old get qualified for a loan. The banks and lenders made a lot of money on the interest only loans and washed, rinsed and did it all over again to another family. It was a giant pyramid scheme. And when the banks and lenders were stuck holding bad loans that they created and it came crumbling down they cried foul. Some got bailed out like BOA. I called BS.

I was working for a developer/builder during the crash who got caught sitting on too many spec homes and went under along with many other builders that were in the same sinking boat. The interest eventually caught up to them.

Evidently, our financial institutions didn't learn a damn thing. Because it's happening again with creative financing and an over inflated house market. Especially out West and California. The recent exodus from California is creating problems with over inflating home values elsewhere which will lead to more creative financing in order to get people into homes they can't afford. The next crash is coming and this time I seriously doubt there will be any bailing out. The U.S. is already in extreme debt.

I have done pretty well investing in real estate over the last several years. However, I am keeping a close eye on markets where they could be showing signs of a crash coming. I am currently hearing about some concerning things on the East Coast. Anyone else in real estate should be paying close attention as well. 

Problem is “creative financing” isn’t backed by the government and with interest rates (STILL) so low it’s not worthwhile to private investors willing to back pocket it. 
 

Hence why the government has had to dump trillions into the government entities to ensure liquidity.  

 

 

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On 2/23/2022 at 3:08 PM, tailingpermit said:

Problem is “creative financing” isn’t backed by the government and with interest rates (STILL) so low it’s not worthwhile to investors. 
 

Hence why the government has had to dump trillions into the government entities to ensure liquidity.  

Subprime lending is what caused the 2008 crash. And government bailed some of the banks out that were doing it. Bank of America is just one example. Government was tied to it more than you think. Also, subprime mortgages are making a comeback because people can't afford to get into a home. Watch out!!

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