News & Notes XLII: Consolidation Season

[WreckingCrew]

If I could like comments I would give this a Love reaction.

I bought my current home in 2020. I have done absolutely nothing to it since we bought, but apparently between then and now the home value has increased 75%. And while you think this would make me happy, it pisses me off because its effectively priced everyone else at my financial level out of the area. So many of my friends looked to buy even 6 months later and have had to go back to renting because nothing is affordable anymore. Its bullshit.

Yea, I love my little house, cost $170k in a very competitive market (decent houses were on market < 24 hrs and you had to overpay a bit)...but in no way, by any stretch of the imagination, is it EVER a $250k+ house that it's "valued at". My gf and I have been wanting to get a house together but the only way to get something liveable that's not in a ghetto is $300k+ with like 8-10% interest. It's asinine. And you can't get a new house bc new construction is all overpriced apartments and townhomes. It'll cost me double to downgrade even at this point

 

[Boom Boom Apathy]

In the 40s and 50s, housing prices were 6-7X over median income.
From the 60s through 2000, it hovered 3-4X
From 2000 to 2009, it rose to back up to 6.8X, and then the housing bubble burst, but it only came back down to about 4-5X.
Now post covid it rose back to ~7.5X

One thing that really changed after the 2008/9 crash was the rise in institutional buyers that has grown substantially over time. I believe high interest rates have exasperated this as homebuyers shied away from higher interest rates and institutional buyers didn't necessarily shy away.

Going to be interesting to see how this plays out.

 

[Blueline Bomber]

I can’t get a house because I’m spending every cent I’m making on rent and essentials. And you’d think that if I show that I’ve never missed a rent payment in the last X years, despite the increasing rent prices, it’s a good indicator that I won’t miss mortgage payments either. But apparently it doesn’t work like that.

 

[chaz4hockey]

In the 40s and 50s, housing prices were 6-7X over median income.
From the 60s through 2000, it hovered 3-4X
From 2000 to 2009, it rose to back up to 6.8X, and then the housing bubble burst, but it only came back down to about 4-5X.
Now post covid it rose back to ~7.5X

One thing that really changed after the 2008/9 crash was the rise in institutional buyers that has grown substantially over time. I believe high interest rates have exasperated this as homebuyers shied away from higher interest rates and institutional buyers didn't necessarily shy away.

Going to be interesting to see how this plays out.

“

institutional buyers didn't necessarily shy away.”

Private equity has made it much more difficult for folks to buy homes. Plus, they are also squeezing people on the rental end by buying these properties too & also charging high prices.

I’m typically a free market advocate but there are areas where the free market needs to be controlled. Housing is one and I would be in favor of not allowing private equity buying of homes.

 

[Derailed75]

Heck, I’ve slowed down buying beer at the store because a 12 pack is 15-16 bucks for a non crap beer.

Paying 20 bucks for a beer at a game or restaurant doesn’t make much sense to me.

I drink a rotation of craft beer thats 12 bucks for a six pack. When I get "cheap" low carb beer its Bud next and its 15 for a 12 pack. Everything is going up, I can't imagine we are rushing towards a breaking point with inflation.

 

[Svechhammer]

I can’t get a house because I’m spending every cent I’m making on rent and essentials. And you’d think that if I show that I’ve never missed a rent payment in the last X years, despite the increasing rent prices, it’s a good indicator that I won’t miss mortgage payments either. But apparently it doesn’t work like that.

Growing up I was always told to never put anything on credit and if I ever did to make sure I paid it off immediately. So because of that I stayed away from any form of a credit card, and avoided financing anything through my college years. The only payments I ever had were rent and my car loan.

So imagine MY surprise when I started looking into buying my first house only to find out that I didn't have enough lines of credit in my history to qualify for a mortgage. The only debt I had at the time was my car loan, I had managed to pay everything else off, but it didn't matter. The only way I was able to get myself qualified was through a technicality on my rent because the rental company filed it in a way that essentially took a loan out under your name every year that you were paying back, which sounds a bit shady, but in reality helped people qualify for mortgages.

Ever since then, I've made every payment that I can through credit cards that I've since opened. I pay off everything every month, and just use them like I used to use my debit cards, never spending more than I have, but it gets me past that bullshit of needing to qualify for this or that. Its all such a scam, really.

 

[raynman]

I can’t get a house because I’m spending every cent I’m making on rent and essentials. And you’d think that if I show that I’ve never missed a rent payment in the last X years, despite the increasing rent prices, it’s a good indicator that I won’t miss mortgage payments either. But apparently it doesn’t work like that.

I don’t live in a place like Raleigh but my main reasoning for purchasing in 2021 was that a monthly mortgage payment was literally half of what I’d pay for a shitty apartment or townhouse that I wouldn’t be able to afford (rent is even worse now because of a shortage in the area). I made $15 an hour at the time but had pretty good credit. Figured it’d be a decent fixer upper/starter home I could make money on in 5 years when my career would progress to the point of being able to upgrade to a house with everything I really want. My career has progressed quicker than anticipated but with interest rates and a real estate shortage in my area this is my long term house now unless I find a wife to split bills with one day.

 

[raynman]

EDIT: double post sorry

 

[Big Daddy Cane]

Not to go too off-topic, but if you are in a financial situation to be a deadbeat (paying in full at the end of the month, depriving the bank issuing the rewards credit card of finance charge interest), do it. You’re leaving money on the table paying with a debit card.

I use a Citi Custom Cash exclusively at grocery stores. At 5% on $500 spend per month, that’s $300 yearly.

 

[WreckingCrew]

Private equity has made it much more difficult for folks to buy homes. Plus, they are also squeezing people on the rental end by buying these properties too & also charging high prices.

I’m typically a free market advocate but there are areas where the free market needs to be controlled. Housing is one and I would be in favor of not allowing private equity buying of homes.

This to me is the biggest problem...corporations can swoop in and buy outright with cash, then make out like bandits by leasing/renting the property or even turning around and flipping it for a slight payout...rinse and repeat because they have the up-front money and interest rates mean nothing. I had a coworker who bought his house for like $190k a number of years back, maintained and made some improvements on it, sold it when he moved and retired for $300k...the next day the company that bought it listed it for $370k, and sold it a few months later for like $350k. Keep that feedback loop going and it's causing the market to run away.

Not to go too off-topic, but if you are in a financial situation to be a deadbeat (paying in full at the end of the month, depriving the bank issuing the rewards credit card of finance charge interest), do it. You’re leaving money on the table paying with a debit card.

I use a Citi Custom Cash exclusively at grocery stores. At 5% on $500 spend per month, that’s $300 yearly.

I used to pay everything with a debit until I kinda realized this. I just buy with my credit card, pay off, and get the rewards. Problem is a lot of people aren't as diligent about spending using a credit card vs debit. Also, mine is only a lowly 1%, but it has all my credit history so closing it and getting a new card with higher rewards would kill my credit score.

 

[Svechhammer]

This to me is the biggest problem...corporations can swoop in and buy outright with cash, then make out like bandits by leasing/renting the property or even turning around and flipping it for a slight payout...rinse and repeat because they have the up-front money and interest rates mean nothing. I had a coworker who bought his house for like $190k a number of years back, maintained and made some improvements on it, sold it when he moved and retired for $300k...the next day the company that bought it listed it for $370k, and sold it a few months later for like $350k. Keep that feedback loop going and it's causing the market to run away.

What really grinds my gears is now you're seeing those same corporations solicit current homeowners to sell with promises of an all cash offer at or above market value because they know they can turn around and sell it for even more when they play the long game. I swear, I get spam emails, texts, and letters to my mailbox monthly from these people, and they're able to case an entire region at once because of their spending power.

It should be illegal for corporations to own residential homes, especially single family units.

I used to pay everything with a debit until I kinda realized this. I just buy with my credit card, pay off, and get the rewards. Problem is a lot of people aren't as diligent about spending using a credit card vs debit. Also, mine is only a lowly 1%, but it has all my credit history so closing it and getting a new card with higher rewards would kill my credit score.

How long are you looking to keep things relatively stable until you need to make a big purchase (car, home, etc)? I ask because taking a hit to your credit isn't exactly a bad thing if it opens the door for you to rebound higher, and taking out a 2nd card and keeping both at a reasonable rate might actually help you out more in the end with your credit score, as it'll show you can manage debt across multiple payments, even if you're not actively spending more.

 

[Big Daddy Cane]

@WreckingCrew

See if you can product change into something else. That’s how I got the aforementioned card. Family members have had success with Capital One and Chase. It should have no impact on your scores.

 

[hblueridgegal]

Hurricanes Launch Caniac Connect | Carolina Hurricanes

New fan feedback platform aimed to improve experiences

www.nhl.com

 

[Derailed75]

Hurricanes Launch Caniac Connect | Carolina Hurricanes

New fan feedback platform aimed to improve experiences

www.nhl.com

This should be fun

 

[Lempo]

EDIT: double post sorry

It's okay.

 

[hblueridgegal]

Sounds Scroogy...says the Backyard Bistro staff was laid off before Christmas. The sportsbook isn't going in there any longer. Says it would have cost $1M to convert it so it's back to PNC at some point.

 

[tarheelhockey]

In high school I was a goalkeeper for our soccer team.

During my senior year we were really good and made a run to the state championship. So, as we got farther along in the tournament, coach started doing PKs at the end of practice (since in soccer PKs are used all the time, even in the playoffs).

I was the backup goalie, but a very good shot stopper. Backup because unlike hockey, it’s much more important in soccer for goalies to be ball movers, come out and challenge for crosses, etc. My goal kicks barely made it past half field on a good day. Anyway, PKs were among my specialties, I was very good at them. Just a knack for reading the shooter, the timing of it all, etc.

Well, obviously I’ve been playing with these guys for 2-3 years now, so I know their shooting tendencies more or less. One practice, the day before the semifinals, coach decided to do a “game like” shootout. Went to the main field, turned the big lights on, one shooter at a time, really hyped the thing up. The goal was to get the team used to the pressure. Instead, I stopped something like 8 out 10 shots (exceptionally high for soccer), mostly because I knew everyone’s go to spot. I even stopped our best player and PK taker who hadn’t missed a PK all year. Long story short, I unintentionally sabotaged the drill, everyone got super annoyed with themselves and started losing confidence, and coach had to pivot and explain that this drill is actually nothing like the real thing at all because they wouldn’t be playing a goalie that knew their tendencies in the state tournament.

So yeah I get a little bit why Martinook might be pissed lmao.

My version of this story: when I was in college, I took a psychology course where the professor introduced that memorization technique where you keep adding mental images together in order to remember a long list of information. You know, like if I give you 10 words the best way to remember them is to create a little vignette where those 10 things are all present, and you’ll still remember them all tomorrow. That sort of thing.

So not more than a few days later, my roommate asks me to volunteer for an experiment he’s running for a class.

You can see where this is going. Long story short, he and his project group ended up having to completely scrap and re-run an entire experiment with a new set of volunteers because their data was so ****ed up from having me in the room.



(Ironically, if he had invited me a few days later, I’d probably have forgotten all about the memorization technique)

 

[tarheelhockey]

Sounds Scroogy...says the Backyard Bistro staff was laid off before Christmas. The sportsbook isn't going in there any longer. Says it would have cost $1M to convert it so it's back to PNC at some point.

Man, they spend a lot of that podcast doing victory laps on other local news people

 

[spockBokk]

Heck, I’ve slowed down buying beer at the store because a 12 pack is 15-16 bucks for a non crap beer.

Paying 20 bucks for a beer at a game or restaurant doesn’t make much sense to me.

I’ve switched to bourbon mostly, cause reasons

 

[bleedgreen]

Hell I more or less gave up drinking altogether. My body didn’t really like it anymore, now it’s pretty much only a glass of wine on a special occasion. I suspect at some point I’ll get over it and came back a little more but it’s been months and I haven’t missed it. I sound more and more like my Dad when I talk. Giving up drinking has aged me like ten years?!?

Let that lesson sink in deep my friends.

 

[MinJaBen]

I’m typically a free market advocate but there are areas where the free market needs to be controlled. Housing is one and I would be in favor of not allowing private equity buying of homes.

Good luck ever making that happen. You have a lot of Boomers where their house is their largest source of wealth, and they will soon be looking to sell it to fund retirement or down size or move in with their kids. They will fight you tooth and nail to keep you from slashing that value by severely limiting the purchasers.

 

[bleedgreen]

Good luck ever making that happen. You have a lot of Boomers where their house is their largest source of wealth, and they will soon be looking to sell it to fund retirement or down size or move in with their kids. They will fight you tooth and nail to keep you from slashing that value by severely limiting the purchasers.

For them to make the most of selling their property and downsizing here they have to leave CO, which many of them now do. Which is sad. Can’t afford to be retired in the state they lived their life. I doubt I will either.

 

[DaveG]

Hell I more or less gave up drinking altogether. My body didn’t really like it anymore, now it’s pretty much only a glass of wine on a special occasion. I suspect at some point I’ll get over it and came back a little more but it’s been months and I haven’t missed it. I sound more and more like my Dad when I talk. Giving up drinking has aged me like ten years?!?

Let that lesson sink in deep my friends.

I hear you there, I've cut back to about once a week and even at that 2-3 beers max when I do. It's helped but also I've noticed my stress level is a LOT higher, though that may just be work bullshit.

 

[Boom Boom Apathy]

Hell I more or less gave up drinking altogether. My body didn’t really like it anymore, now it’s pretty much only a glass of wine on a special occasion. I suspect at some point I’ll get over it and came back a little more but it’s been months and I haven’t missed it. I sound more and more like my Dad when I talk. Giving up drinking has aged me like ten years?!?

Let that lesson sink in deep my friends.

Opposite for me. I stopped completely for 90 days. I slept better, my acid reflux was significantly reduced, my allergies were way less severe, and my blood pressure improved. Made me feel younger. Over the holidays, I drank socially again, but now am cutting it out again.

My father in-law was an alcoholic. He was already sober by the time I met him, but he said a lot of his medical issues went away when he quit.

 

[WreckingCrew]

What really grinds my gears is now you're seeing those same corporations solicit current homeowners to sell with promises of an all cash offer at or above market value because they know they can turn around and sell it for even more when they play the long game. I swear, I get spam emails, texts, and letters to my mailbox monthly from these people, and they're able to case an entire region at once because of their spending power.

It should be illegal for corporations to own residential homes, especially single family units.

Same here and agreed 100%...pisses me off immensely because it's making it harder and harder for people to get a first home, or a new home, at anything resembling a reasonable price or rate.

How long are you looking to keep things relatively stable until you need to make a big purchase (car, home, etc)? I ask because taking a hit to your credit isn't exactly a bad thing if it opens the door for you to rebound higher, and taking out a 2nd card and keeping both at a reasonable rate might actually help you out more in the end with your credit score, as it'll show you can manage debt across multiple payments, even if you're not actively spending more.

Well, this past year I had to buy a new roof...and a new AC...and a new car (+ getting the old one fixed up and usable as a backup). I'm probably going to be in the market to change houses this year if possible. My credit score is excellent, and I could probably just open a new card and let the current one fade into the background, but I also hate managing multiple cards/accounts.

@WreckingCrew

See if you can product change into something else. That’s how I got the aforementioned card. Family members have had success with Capital One and Chase. It should have no impact on your scores.

Say who what?